Poverty & Inequality

July 02, 2009

A Bleak Employment Picture for Women – and Shelter from the Storm

by Valerie Norton, Public Policy Fellow, 
National Women's Law Center 

The unemployment data released today by the Bureau of Labor Statistics paint a bleak employment picture. The economy lost 467,000 jobs over the last month and the nation’s unemployment rate climbed to 9.5%, the highest rate in nearly 26 years. At the start of the 4th of July weekend, we’d like to be thinking about sunny days and summer fun – but we know for millions of families, the rain is unrelenting. 

Unemployment among women who maintain families – who have no other income to fall back on and are especially vulnerable – jumped to 11.7%, an increase of 17% in three months. Unemployment among African-American and Hispanic women  reached 11.3% and 11.5%, respectively.

There are efforts underway to provide families some shelter from the storm. We’ve previously written about the Economic Recovery Act, which is providing assistance to many in need and creating jobs for women and men. And, thanks to advocacy by a coalition of civil rights, environmental and labor groups, including the Center, the climate bill (American Clean Energy and Security Act of 2009) passed by the House requires the creation of a Green Construction Careers Demonstration Project that will help targeted groups, including low-income women, gain access to quality jobs. But while those storm clouds persist, we know there’s more work to do.

June 19, 2009

You Can't Fix What You Don't Measure: Updating the Poverty Measure to Reflect Reality

by Kinara Flagg, Legal Intern, 
National Women's Law Center 

On Tuesday, I wrote of the “already poor” who are being harmed by the recession.

While the media may not be paying much attention to the poor, Congressman Jim McDermott (D-WA) is focusing attention on poverty and how we define it – an issue that has been recognized but neglected for years. On Wednesday, Rep. McDermott introduced the Measuring American Poverty Act of 2009 (H.R. 2909), a bill that would update the way that poverty is measured in the United States.

The poverty measure used today was developed in 1961 by economist Mollie Orshansky based on data provided by the USDA on their “Economy Food Plan.” She then multiplied this number by three, based on data from a Household Consumption Survey which showed that families of three or more people spent about one third of their after-tax income on food. This measure is very outdated, as today’s families spend closer to one eighth of their income on food and spend much more on health care and housing than they used to. Since the 1960s, the only real change to this measure has been to adjust the amount for inflation and increases in the cost of living.

The “modern” poverty measure proposed in McDermott’s bill is largely based on recommendations developed in a 1995 National Academy of Sciences study. It will consider not only the amount of income that families spend on food, but also on clothing and shelter. Unlike the traditional measure, when determining the resources families have to purchase basic necessities the modern poverty measure will take into account certain income assistance that families receive, such as the Earned Income Tax Credit and Supplemental Nutrition Assistance Program benefits (formerly Food Stamps). Including these benefits in calculating poverty should enable us to better determine the impact of these anti-poverty policies. The modern poverty measure would also subtract necessary expenses, including federal taxes, out-of-pocket medical expenses, and expenses related to working – such as child care – in determining available income, and would take account of geographic differences.

Continue reading "You Can't Fix What You Don't Measure: Updating the Poverty Measure to Reflect Reality" »

June 17, 2009

The Importance of Social Security

by Joan Entmacher, Vice President for Family Economic Security, 
National Women's Law Center 

Today I testified before the Senate Special Committee on Aging about Social Security. It was a welcome change from the past few years, when I testified at hearings that focused on plans to privatize Social Security and cut benefits. Today, I had an opportunity to discuss ways to strengthen and improve Social Security -- the foundation of older women’s economic security, and the effective way to increase retirement security for all Americans facing an environment of heightened economic risk.

It won’t take an extreme makeover to improve Social Security for women and economically vulnerable Americans. I presented some proposals, such as improving widow(er)s’ benefits and benefits for low lifetime earners and caregivers and modernizing Supplemental Security Income. I emphasized that these changes are especially critical for women, who face a higher threat of poverty in old age than men.

I also reminded the committee that Social Security is not just a retirement program --- it’s a family insurance program. Social Security provides disability and life insurance benefits to workers and their families, including children – over 1 million of whom are lifted out of poverty by this program. Read my complete testimony before the Senate Special Committee on Aging

To help better prepare women for retirement, the National Women’s Law Center is hosting a webinar series for service providers, advocates, and individuals. The first webinar, Planning for the Future: What Women Need to Know About Social Security, will take place on Tuesday, June 23 at 1:00 p.m. Eastern. This online workshop is free to participants, but registration is required. Stay tuned for more information on the rest of the series.

June 16, 2009

Recession Pushes 'Already Poor' Women and Families Deeper into Poverty and Unemployment

by Kinara Flagg, Intern, 
National Women's Law Center 

The recession has affected people from all walks of life and from all socioeconomic classes. Over the past months, the media has focused on the significant cut backs that middle class families have had to make in order to weather these tighter financial times. Though many of us can relate to these stories, the media has neglected to describe the economic strife experienced by those that were poor to begin with: the “already poor” as opposed to the “Nouveau Poor.” In Too Poor to Make the News, from Sunday’s New York Times Op-Ed page, Barbara Ehrenreich, journalist and author of Nickel and Dimed, describes the recession’s effect on those who were living at the bottom prior to the economic downturn.

For the “already poor,” things have gone from bad to worse. Much of this is because of growing unemployment, and though the media focuses on the terminations at big law firms and on Wall Street, unemployment is disproportionately affecting blue collar workers at a rate three times faster than white collar employees. 

Though most analyses of unemployment data focus on the deep job losses in the manufacturing and construction sectors to argue that the recession is hitting men harder than women, recent data shows that women’s unemployment is also on the rise. Between April 2009 and May 2009, the unemployment rate among adult women rose from 7.1 percent to 7.5 percent, a one-month increase of 5.6 percent, while the unemployment rate among women who maintain families rose from 10 percent to 11 percent, a one-month increase of 10 percent.  While men’s unemployment rate is still higher than women’s, women are now losing jobs at a faster rate than men. Well before the recession women earned less than men, were prone to higher rates of poverty, and were more likely to support a family on their own. This makes “already poor” women and their families especially vulnerable to the current state of the economy.

As more jobs are cut, the poorest families fall behind on rent and are often forced to double up with friends or family. Because doubling up violates zoning laws, overcrowding is vastly underreported. Economic stresses related to job loss are linked to spikes in domestic violence and child abuse.

During these times it may be tempting to cast off stories of job loss and poverty as inevitable results of the economic downturn, but let’s not forget the millions of “already poor” women and their families who are being driven into greater destitution.

June 15, 2009

Weekly Round-Up

by Catherine Kruse, Outreach Intern, 
National Women’s Law Center 

Several bloggers discussed their families’ experiences with the health care system and the need for health reform, including Miss Lori at Chicago Moms Blog and a young guest blogger at Moms Rising.

Margo Kaplan of the Center for HIV Law and Policy reported on a judge’s sentencing of a pregnant woman with HIV for a jail term twice the length of the sentence recommended by the federal prosecutor and defense attorney. 

A new report by the Kaiser Family Foundation measured racial and ethnic disparities among women at the state level.

PunditMom discussed Disney’s decision to introduce its first African-American movie princess.  

At RecessionWire, Deborah Siegel posed the question, “Is the recession redefining ‘value’ in the minds of men?”  

High school girls still receive 1.3 million fewer opportunities to play sports than high school boys, and legislation pending in Congress would help close this gap. Tomorrow, NWLC’s Neena Chaudhry will appear at a Capitol Hill briefing to build support for these bills.

June 09, 2009

Register Today: Webinar on Taxes for the Common Good

The debate is heating up on health care reform and other critical priorities for women and families. One of the challenges we face is finding ways to pay for these vital investments so we need to understand how responsible and fair tax policies can help provide the revenues we need.

To make sure you know about ways we can improve tax fairness and how you can be a voice for the common good, I’m helping to lead a free webinar hosted by the Coalition for Human Needs on Thursday, June 11, at 3:00 p.m. Eastern. Register today.

This webinar, Taxes for the Common Good: What You Need to Know, will give examples of fair tax policies and help you answer the special interests.

Presenters:

  • Joan Entmacher, National Women's Law Center
  • Alison Goldberg, Wealth for the Common Good
  • Deborah Weinstein, Executive Director, Coalition on Human Needs

Once you register for this webinar you will receive log in instructions and explanatory materials by email.

June 05, 2009

Unemployment Rate Rising Faster Among Women

Recovery Act Jobs and Training Must Include Women

Unemployment data released today show that women’s unemployment rate rose faster than men’s in May – and unemployment among women who head families rose even faster, the National Women’s Law Center (NWLC) said today.

“Today’s data confirm that this recession is hitting both women and men hard. While men’s unemployment rate is still higher than women’s, women are now losing jobs at a faster rate than men. And the unemployment rate for women who head families – who are particularly vulnerable – is surging,” said Nancy Duff Campbell, NWLC Co-President. 
NWLC’s analysis of the Labor Department’s May unemployment data finds that:

  • Between April 2009 and May 2009, the unemployment rate among adult women rose from 7.1 percent to 7.5 percent, a one-month increase of 5.6 percent; the unemployment rate among adult men rose from 9.4 percent to 9.8 percent, a one-month increase of 4.3 percent.
  • Between April 2009 and May 2009, the unemployment rate among women who maintain families rose from 10 percent to 11 percent, a one-month increase of 10 percent (not seasonally adjusted). 

“It is vital that women have fair access to jobs and job training opportunities created by the economic recovery act passed earlier this year,” Campbell stated. “The federal government needs to ensure that recipients of recovery funds are complying with their civil rights obligations in hiring and training people for these jobs.”

May 26, 2009

Weekly Round-Up

by Robin Reed, Online Outreach Manager, 
National Women's Law Center

Today, the California Supreme Court is expected issue its decision in the challenge to Proposition 8, the ballot initiative that eliminated marriage equality in the state. More information is available from Equality California.

Jill at Feministe posted in response to a Washington Post article on the factors influencing poverty in the United States that many in the middle class take for granted.

A new online game released by the University of California at Berkeley, Universe Quest, encourages girls to engage in math and science and pursue non-traditional careers. 

A Los Angeles Times article addressed the increasing number of Caesarean sections being performed in the United States, as well as the high cost of the procedures.

Ezra Klein posted at his Washington Post blog about the costs of delaying health care reform in the United States (via Pandagon).

May 18, 2009

Weekly Round-Up

by Katrina Tsukuda, Outreach Intern, 
National Women's Law Center 

Kris at Title IX Blog posted about how the ACLU has filed for an injunction against Quinnipiac University in order to prevent the women’s volleyball team from being cut.

Our Bodies Ourselves celebrated the 2009 Womens’ Health Heroes by commemorating 20 individuals and organizations who have played a crucial role in women’s health advocacy worldwide.

CivilRights.org announced a newly formed coalition called the Inter-Alliance Dialogue, which aims to “advocate the needs of low-income workers, minorities, domestic workers, day laborers, and other groups most affected by the recession.”

Nona Willis Aronowitz wrote in The Nation about the general disengagement between young childless feminists, and mother and family oriented feminists in the blogosphere.

PunditMom highlighted Tracee’s blog post from the Fit Girl Series on The Girl’s Revolution blog about the importance of an individual’s decision to stay healthy and commented on how the dietary habits of young girls have been negatively impacted by the media’s construction of an ideal women’s body type.

May 12, 2009

Don’t Lose Sleep Worrying About Social Security

by Joan Entmacher, Vice President for Family Economic Security,  
National Women's Law Center 

We know women are worried about their economic security in retirement, and with good reason:  401(k)s have tanked, private defined benefit pensions are disappearing, jobs –- for those who want or have to keep on working –- are harder to come by. And today, with the release of the Social Security Trustees’ annual report, the news media are raising alarms about Social Security.  

The Wall Street Journal story begins, “Social Security and Medicare trust funds are expected to run out of money sooner than expected, a report released Tuesday shows.” It’s not until several paragraphs down that the full story comes out: “Social Security's challenges have been exacerbated by the recession. Still, the fund is expected to continue paying full benefits for almost 30 years while funding about 75% of benefits thereafter.”

That’s right: Social Security can pay 100% of promised benefits until 2037. And after that, Social Security isn’t broke; payroll taxes coming into the system will cover 76% of benefits. It’s true that, mostly because of the recession, Social Security’s finances are not as strong as they were last year, when the reserves were expected to last until 2041. But to put this 2037 date into perspective: in 1983, when there was a bipartisan agreement to strengthen Social Security’s solvency, the program was within months, not decades, of running short of the funds it needed to pay full benefits. We have enough time to be careful and thoughtful about the changes we make to a program that over 51 million Americans – especially women -- depend upon.

So don’t worry that Social Security won’t be there for you – whatever age you are.  But do think about Social Security. Think about the importance of Social Security in providing secure retirement income for women. Think about the fact that the average monthly Social Security benefit for women receiving benefits as retired workers is $1,004; for widows $1,119. Instead of thinking about ways to cut already modest benefits, think about ways we can improve Social Security benefits, especially for widows, workers with low lifetime earnings, and other economically vulnerable people

But get your sleep.