American Wealth and Poverty

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Wealth and poverty are abstract labels which are used to mislead people and push agendas. The “poor” in America have more food, shelter, modern conveniences, and opportunities than at any time in recent history. In truth, Americans, even ones in poverty are living pretty well by most any standards. Poverty in the US and other developed countries does not equal homelessness and hunger (obesity and diabetes are the top concerns for the poor). In the US, you are considered to be in poverty if you are a head of household and earn less than $12,000 per year. This definition by itself is misleading as there are many earning below poverty incomes but may live just fine or perhaps live with others to share costs. The poverty threshold also doesn’t account for government assistance and benefits or subsidization by families. By the government’s accounting, poverty has fallen in the past years down to 12.3% in 2017 from 12.7% in 2016 as the US jobs environment is stronger than ever.

When one hears the term poverty, it brings up images of hollow, gaunt faces on homeless people in the street. In truth, the homeless problem is a completely different problem from poverty as clinical analysis and studies show that the great majority of homeless are those who suffer from mental and drug abuse issues which leads them to a life on the streets. Against that image, one of the biggest health concerns for those considered to be living in poverty in the US, is obesity. Being poor allows you to apply for all sorts of housing, food, education, and other benefits that normal people are not qualified for.

Using income to define poverty is truly a misnomer. When you consider the fact that someone may be considered living in poverty in the US but yet have the following:

  1. Having a roof over their head and a bed to sleep in with indoor plumbing, heating/cooling, and electricity paid for by public housing assistance programs
  2. Eating well over 2,000 calories a day with food purchased using food stamps
  3. Public schooling for children in poverty for which parents pay nothing along with free school lunch programs and other benefits
  4. Low cost or free items provided by NGOs such as clothing, household goods, TV/radio and other entertainment
  5. Health care through Medicaid and emergency rooms paid for by Medicaid

Someone who lives in poverty in the US would be considered wealthy in a third world country. But even if you live in a third world country, you may be perfectly happy and content with your lifestyle in a tribal village or communal farm. The label of poverty is nothing more than an abstract economic term that has little meaning in those places. It reminds me of the children’s charity ads back in the early 1980s where actress Sally Struthers walks through a tribal village and says “look at all these poor children” while a group of happy, laughing children gather in the background to gawk at her. Yet today, poverty is used as the basic excuse or rationalization to justify ever larger government budgets and spending. Ironically, the “War on Poverty” launched several decades ago by the US government and has spent countless billions of dollars annually has only resulted in an increase in the overall population considered living in poverty.

Photo: Look at these children living in poverty!

Wealth is another label used to justify larger government and social experimentation. After all, if the society is wealthy, no one should mind if they paid more taxes for free health care, free college and other such freebies. Besides, the wealthy want to be taxed more, so says candidate Bernie Sanders who happens to be a millionaire. In truth, that is false. Despite a handful of rich billionaires who signed a letter saying they don’t mind being taxed more, the great majority of those Americans who are considered wealthy do everything they can to keep the federal government hands out of their pockets. This fact is irrefutable as the rich employ vast armies of wealth managers, tax accountants, trust lawyers to keep the government away from their bank accounts. If a rich person truly wants to pay more taxes, the IRS tax forms provide write-in option where someone may pay more taxes than what they owe towards the federal government. I don’t know of any significant contributions to the treasury coming from the wealthy and especially those billionaires who signed that letter for more taxes.

Photo: They need more money!

The concept of wealth and poverty are abstract and relativistic ideas that is being used to justify political and social initiatives. You can be happy living a basic lifestyle with few material possessions or you can be miserable living in the most expensive mansion. Perhaps a better measure is some sort of happiness index similar to the annual World Happiness Report (it is sponsored by the UN so beware of geopolitical biases within that report). At the most basic, when human survival and basic health needs are sufficiently met, the next higher levels relate to the happiness of the population. Happiness is the better measurement of the human condition and freedom to socialize, make choices and to realize yourself as a person is the best indicator of human needs.

Photo: Happiness and poverty are not necessarily linked.