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Wednesday, July 20, 2011

The Rich Are Getting Poorer And The Poor Are Getting Richer

"The whole gospel of Karl Marx can be summed up in a single sentence: Hate the man who is better off than you are. Never under any circumstances admit that his success may be due to his own efforts, to the productive contribution he has made to the whole community." — Henry Hazlitt

In a nation devoted to social justice, wealth redistribution and class warfare our so called poor are better off than most people on his planet.

Noted conservative and naturalized American Dinesh D'Souza, an √©migr√© from India, who came to America, stayed to serve in the Reagan White House, and married an American spouse, put it very succinctly: he wanted to come to a nation where even poor people owned automobiles and televisions, and where even the poorest of the poor ate well-enough to be fat. I've seen more than one "poor" person pay for their purchase at the grocery store using food stamps, then promptly get on their iPhone, and hop into a late model car to drive away. There are truly impoverished people in this nation of ours, but the person in this example isn't one of them. He only thinks he is — thanks to the drumbeat of leftist propaganda.

This is an excellent report from the Heritage Foundation on the definition of poverty in America and how that definition has changed over the decades.

From the abstract:

For decades, the U.S. Census Bureau has reported that over 30 million Americans were living in "poverty," but the bureau's definition of poverty differs widely from that held by most Americans. In fact, other government surveys show that most of the persons whom the government defines as "in poverty" are not poor in any ordinary sense of the term. The overwhelming majority of the poor have air conditioning, cable TV, and a host of other modern amenities. They are well housed, have an adequate and reasonably steady supply of food, and have met their other basic needs, including medical care. Some poor Americans do experience significant hardships, including temporary food shortages or inadequate housing, but these individuals are a minority within the overall poverty population. Poverty remains an issue of serious social concern, but accurate information about that problem is essential in crafting wise public policy. Exaggeration and misinformation about poverty obscure the nature, extent, and causes of real material deprivation, thereby hampering the development of well-targeted, effective programs to reduce the problem.”

The Heritage report goes on to state:

“Each year for the past two decades, the U.S. Census Bureau has reported that over 30 million Americans were living in “poverty.” In recent years, the Census has reported that one in seven Americans are poor. But what does it mean to be “poor” in America? How poor are America’s poor?

For most Americans, the word “poverty” suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable shelter. For example, the Poverty Pulse poll taken by the Catholic Campaign for Human Development asked the general public: “How would you describe being poor in the U.S.?” The overwhelming majority of responses focused on homelessness, hunger or not being able to eat properly, and not being able to meet basic needs. That perception is bolstered by news stories about poverty that routinely feature homelessness and hunger.

Yet if poverty means lacking nutritious food, adequate warm housing, and clothing for a family, relatively few of the more than 30 million people identified as being “in poverty” by the Census Bureau could be characterized as poor. While material hardship definitely exists in the United States, it is restricted in scope and severity. The average poor person, as defined by the government, has a living standard far higher than the public imagines.”

“As scholar James Q. Wilson has stated, “The poorest Americans today live a better life than all but the richest persons a hundred years ago.” In 2005, the typical household defined as poor by the government had a car and air conditioning. For entertainment, the household had two color televisions, cable or satellite TV, a DVD player, and a VCR. If there were children, especially boys, in the home, the family had a game system, such as an Xbox or a PlayStation. In the kitchen, the household had a refrigerator, an oven and stove, and a microwave. Other household conveniences included a clothes washer, clothes dryer, ceiling fans, a cordless phone, and a coffee maker.

The home of the typical poor family was not overcrowded and was in good repair. In fact, the typical poor American had more living space than the average European. The typical poor American family was also able to obtain medical care when needed. By its own report, the typical family was not hungry and had sufficient funds during the past year to meet all essential needs.

Poor families certainly struggle to make ends meet, but in most cases, they are struggling to pay for air conditioning and the cable TV bill as well as to put food on the table. Their living standards are far different from the images of dire deprivation promoted by activists and the mainstream media.

Regrettably, annual Census reports not only exaggerate current poverty, but also suggest that the number of poor persons and their living conditions have remained virtually unchanged for four decades or more. In reality, the living conditions of poor Americans have shown significant improvement over time.

Consumer items that were luxuries or significant purchases for the middle class a few decades ago have become commonplace in poor households. In part, this is caused by a normal downward trend in price following the introduction of a new product. Initially, new products tend to be expensive and available only to the affluent. Over time, prices fall sharply, and the product saturates the entire population, including poor households.

As a rule of thumb, poor households tend to obtain modern conveniences about a dozen years after the middle class. Today, most poor families have conveniences that were unaffordable to the middle class not too long ago.”

An example of the difference between all Americans and those defined as poor according to the charts included in the report:

Item

All Americans

Defined as Poor

Refrigerator

99.9%

99.6%

TY Set

98.7%

97.7%

Air Conditioning

84%

78.3%

Cable TV

79%

63%

Cell Phone

76%

55%

Personal Computer

68%

38.2%

As you can see by the charts so called poor Americans are far better off than many of the so called middle class people in other countries.

Heritage does not make the same mistake as liberals and say that we can solve the problem of poverty, just reduce it. This has always been one of the biggest obstacles to addressing the issue of poverty — our own high flown expectations about what can be done about it.

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