1)Who do you think is poor, both in the United States and globally?
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2)Why do you believe people are poor in the United States and globally?
The poor are the people who qualify for and who are below the United States poverty line. Based on the findings from the PowerPoint it is obvious that the Welfare Reform of 1996 left more people in poverty if not leaving people in far worse condition than when they were receiving benefits. The US poverty line does not adequately encompass the entire poverty class.
3)What do you think is being done about poverty (e.g., specific policies and programs in the United States and globally) and how well do you think poverty is being addressed?
EITC (Earned Income Tax Credit), Food Stamps, TANF(Temporary Assistance for Needy Families) are a few programs that were created to provided assistance to low income families. I think the EITC is a great way to get money back to families, but it does not address their day-to-day struggles and only provides assistance once a year. Also people who do not know how to best manage their finances will not allocate their monies efficiently. Food Stamps give families what the poverty line is based on... groceries. The problem with Food Stamps is that they just recently included a healthy option for food such as fresh fruits. I feel like these programs are a starts and possibly a bandage that only elongate the problem.
4)What do you personally think should be done about poverty in United States and globally (e.g., specific private and government policies, programs, etc. that you would recommend)?
I think there ought to be more focus on financial literacy. Places like Check Cashing stores, Title pawns, rent-to-own stores often lead to financial destruction.
I love the financial literacy focus. It is SO true. It truly leads to financial destruction. (Side note: the commercials kill me. They talk about needing money for the club? Pawn your car....seriously?!) But anyway....After highschool I got into major credit card debt because I didn't know what the hell I was doing. No one ever sat me down and told me about APR, Equifax...none of that! I came from a very mixed school, and I have seen people all over the financial map make the same mistakes. There should be a mandatory class in highschool that acknowledges all these terms and teaches students what to stay away from...what it really costs to rent to own that flat screen, etc. I think they should also have classes like these mandatory if you are receiving assistance. Why should any of our taxes go to someone purchasing a TV @ Aarons for $1,500 when they could have saved their money and bought it from Best Buy for $300.
ReplyDeleteI have to agree about the financial literacy approach. I see a lower and lower rate of parents teaching kids about money matters (mostly in less of my friends who are parents who do not make their kids do chores and do not offer allowances), and economics classes seem to play less and less of a role in high school.
ReplyDeleteThe whole check-cashing places, credit cards sending out pre-approved credit cards to people who just filed for bankruptcy, etc.... completely irresponsible of companies all in the name of preying on people who are not aware of how much trouble it can be and how easy it is to get into trouble by saying yes.
There is a great organization called Operation Hope, and their philosophy is to lead the "Silver Rights Movement." They go into communities and teach financial literacy, most importantly in the schools. I have volunteered with them before and it was mindblowing to hear these kids perspectives on finances and money.
ReplyDeleteSomeone can have all the money in the world, but if they do not know how to budget and spend it, they will forever be poor.