http://www.gmu.edu/departments/economics/wew/articles/05/poor.html A MINORITY VIEW BY WALTER E. WILLIAMS RELEASE: WEDNESDAY, MAY 11, 2005, AND THEREAFTER HOW NOT TO BE POOR Ministers Louis Farrakhan, Jesse Jackson, Al Sharpton, Washington, D.C.'s Mayor Anthony Williams and others recently met to discuss plans to celebrate the 10th anniversary of the October 1995 Million Man March. Whilst reading about the plans, I thought of an excellent topic for the event: how not to be poor. Avoiding long-term poverty is not rocket science. First, graduate from high school. Second, get married before you have children, and stay married. Third, work at any kind of job, even one that starts out paying the minimum wage. And, finally, avoid engaging in criminal behavior. If you graduate from high school today with a B or C average, in most places in our country there's a low-cost or financially assisted post-high-school education program available to increase your skills. Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum wage job is no great shakes, but it produces an income higher than the Bureau of Census' poverty threshold. Plus, having a job in the first place increases one's prospects for a better job. The Children's Defense Fund and civil rights organizations frequently whine about the number of black children living in poverty. In 1999, the Bureau of the Census reported that 33.1 percent of black children lived in poverty compared with 13.5 percent of white children. It turns out that race per se has little to do with the difference. Instead, it's welfare and single parenthood. When black children are compared to white children living in identical circumstances, mainly in a two-parent household, both children will have the same probability of being poor. How much does racial discrimination explain? So far as black poverty is concerned, I'd say little or nothing, which is not to say that every vestige of racial discrimination has been eliminated. But let's pose a few questions. Is it racial discrimination that stops black students from studying and completing high school? Is it racial discrimination that's responsible for the 68 percent illegitimacy rate among blacks? The 1999 Bureau of Census report might raise another racial discrimination question. Among black households that included a married couple, over 50 percent were middle class earning above $50,000, and 26 percent earned more than $75,000. How in the world did these black families manage not to be poor? Did America's racists cut them some slack? The civil rights struggle is over, and it has been won. At one time black Americans did not have the same constitutional protections as whites. Now, we do, because the civil rights struggle is over and won is not the same as saying that there are not major problems for a large segment of the black community. What it does say is that they're not civil rights problems, and to act as if they are leads to a serious misallocation of resources. Rotten education is a severe handicap to upward mobility, but is it a civil rights problem? Let's look at it. Washington, D.C. public schools, as well as many other big city schools, are little more than educational cesspools. Per student spending in Washington, D.C., is just about the highest in the nation. D.C.'s mayors have been black, and so have a large percentage of the city council, school principals, teachers and superintendents. Suggesting that racial discrimination plays any part in Washington, D.C.'s educational calamity is near madness and diverts attention away from possible solutions. Bill Cosby had the courage to speak out against individual irresponsibility. Surely those who profess to have the best interests of blacks at heart should be able to summon the courage to do so as well.
He is. And good-looking too (or so he would have you believe). You can see his picture at the link and judge for yourself. I know why you made the above remark, but why would it be so offensive if a Latino had written this article? Aren't facts just facts?
I would say that some of the discrepency between whites and blacks stems from the black culture. Of course black culture was created to live through slavery and racism, so in that way whites helped create the lifestyle and culture of contempary African-Americans. On the other hand, Africans-American can't continue to blame white people now that they have the same opportunities. On the other hand, there is some racism involved. I would like to know what some of the African-Americans on this bbs think.
I went to schools that was lower income (90%+ Blacks, Hispanics and FOB Asians) and a school that was in the surburbs (ranked 229 in the nation or something like that, 4th best in Houston by MSN) I'll just have say that the structures and priorities in those schools are totally different. I think a good highscool is not just the classes themselves but also academic programs that are needed to improve them. The academic programs like debate, band, chess club, academic challenge and etc builds teamworks and goals that makes kids want to learn. I do believe that culture is a big reason why the blacks in this country do bad, but most of more urban schools just doesn't have enough resources to create good academic programs like the ones I mentioned above to promote or change that way of thinking. Kids believe it or not needs instant gratification and academic programs helps that. In mostly urban schools, the only thing that gains major recognition are sports. But in in a lot of suburban schools there's a lot more good instant gratification with the afterschool programs. It's not just having an academic teams, but with actual rewards for being on those teams. Small things like overnight trips, free team dinner, and etc really does make you work that much harder to get all the recognintion and freebies (or maybe it was just me).
Some in South Central Los Angeles like to blame Koreans. Williams and Cosby are right on. The PC mindset of this country has done nothing to exacerbate the situation. Just the initial reply to this post illustrates this - only black people are somehow entitled to critique black people, anyone else who does it would probably get the race card flung in their face.
So that was what their message was. So everything would be better if whitey tore blacks a new hole for being lazy, uneducated, promiscuous and fertile, unemployed or underemployed, and being on welfare (while having better rap/hip hop/dance skillz with longer penises). Thanks for clearing that up.
we live in a new casino monarchy, if your country doesnt take care of you, who will? YOURSELF is the answer, it creates rifts, lack of social and national identity, not to mention crime, and poor education with no one without a good private hmo or something similiar lacking health care. but we can build iraq.
Most jobs start with wages higher than the minimum wage, which is currently $5.15. A man and his wife, even earning the minimum wage, would earn $21,000 annually. According to the Bureau of Census, in 2003, the poverty threshold for one person was $9,393, for a two-person household it was $12,015, and for a family of four it was $18,810. Taking a minimum wage job is no great shakes, but it produces an income higher than the Bureau of Census' poverty threshold. giddyup, how many of these $21,000 earners can afford health care insurance?
While I am an insurance agent, I don't sell a whole lot of health insurance, but I do have access to rates! A 22YO couple with no children can get good basic protection for about $125- 150 per month. Of course, they may have access to benefits through one or both of their jobs. I think Williams message is that young people are HOPELESS for no reason. If you start out right and work smart, you can have a productive life until something breaks for you.
If they are making minimum wage it is very doubtful that they will have access through their jobs. In addition when applying for individual health insurance, their rates can be higher, or they can be denied for pre-existing conditions like diabetes, or high blood pressure etc.. So the people who need it most, might not be able to get it. Of course if the couple has kids, then rates are even higher. Let's also not that the 21K figure is before taxes, and the $150 figure will be taken out after taxes. taking $150 out a month even if 21k was afer taxes would be harsh. After taxes that cost is almost prohibitive. Remember these people need transportation to work, possibly gas/and or auto insurance, car payments or money for public transportation, rent, food, clothes, all the other basics. Even with the insurance their will be co-pay, and/or a deductible, which also take a huge percentage of that small wage.
Anybody here ever had a minimum wage job that also had health benefits? I am betting not. $150/month for two people seems low. Is that for a catastrophic health care insurance? like $500 deductible per person, 80/20 copay thereafter, $5000 out-of-pocket limit on copay? If so, most years that couple would pay the $1800 in premiums and part of the deductibles without the health insurance kicking in a thing. Of course, with an unlikely serious illness, the health insurance would carry its weight, but the couple would be in dire financial straits since they probably lose wages while the one is sick and would still have to pay the premium, deductible, and out-of-pocket limit ($1800+$500+$5000 = $7300 out of their $21,000 gross). The point I am making is that $21,000 is hardly a "livable" wage and somehow comparing that wage against the poverity limit $18,810 is disingenuous. (Of course we could take the Walmart approach and assume its EEs who are at the entry level pay position are getting their care health care from Medicaid, but I assume this conflicts with the implicit "ownership society" p-o-v of the author.)
For one person earning $21,000, their effective tax rate would be 13%. The first $7151 would be taxed at 10%, the rest at 15%. Their taxes would be around $2800. If the medical insurance was $150/month for 1 person, that would be about 10% of their after tax income. Giddy said that was for two people, so if two people are earning the minimum wage then it is 5% of their after tax income. All this is assuming no deductions, which is a very conservative way to figure it.
You are only talking about the income tax, and not their S.S. taxes their unemployment percentage etc.
One thing to note is that many feel the poverty line is not an accurate gauge of poverty anymore. A minimum wage earning means a person earns about $825 per month before taxes. After taxes, it's probably closer to about $660.00 per month. When you factor in housing, utilities, car expenses (payments, insurance and gas), health insurance (sorry, there are pretty much NO minimum wage earners getting health benefits), food and miscellaneous expenses, that leaves someone whose barely surviving. To say they're above the poverty level sounds nice, but in reality, it isn't totally an accurate description of how well they're doing. I agree that the keys are (1) education and (2) not starting a family when you can't afford it.
