Wednesday 12 October 2011
by: Richard D. Wolff, MR Zine | News Analysis
http://www.truth-out.org/capitalism-and-poverty/1318426007
The US Census Bureau recently reported what most Americans already knew. Poverty is deepening. The gap between rich and poor is growing. Slippage soon into the ranks of the poor now confronts tens of millions of Americans who long thought of themselves as securely "middle class."
The reality is worse than the Census Bureau reports. Consider that the Bureau's poverty line in 2010 for a family of four was $22,314.
Families of four making more than that were not counted as poor. That poverty line works out to $15 per day per person for everything: food, clothing, housing, medical care, transportation, education, and so on. If you have more than $15 per day per person in your household to pay for everything each person needs, the Bureau does not count you as part of this country's poverty problem.
So the real number of US citizens living in poverty -- more reasonably defined -- is much larger today than the 46.2 million reported by the Census Bureau. It is thus much higher than the 15.1 per cent of our people the Bureau sees as poor. Conservatively estimated, about one in four Americans already lives in real poverty.
Another one in four is or should be worried about joining them soon. Long-lasting and high unemployment now drains away income from families and friends of the unemployed who have used up savings as well as unemployment insurance. As city, state, and local governments cut services and supports, people will have to divert money to offset part of those cuts. When Medicare and if Social Security benefits are cut, millions will be spending more to help elderly parents. Finally, poverty looms for those with jobs as (1) wages are cut or fail to keep up with rising prices, and (2) benefits -- especially pensions and medical insurance -- are reduced.
Deepening poverty has multiple causes, but the capitalist economic system is major among them. First, capitalism's periodic crises always increase poverty, and the current crisis is no exception. More precisely, how capitalist corporations operate, in or out of crisis, regularly reproduces poverty. At the top of every corporation, its major shareholders (15-20 or fewer) own controlling blocs of shares. They select a board of directors -- usually 15-20 individuals -- who run the corporation. These two tiny groups make all the key decisions: what, how, and where to produce and what to do with the profits.
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October 14, 2011