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NC Budget and Tax Center, Poverty and Income Data 2013, Poverty and Policy Matters

Children face the highest poverty rate in North Carolina compared to other age groups according to data released last week by the US Census Bureau. After more than five years into an economic recovery, one in four children (25.2%) in North Carolina remained in poverty in 2013 –unchanged from 2012 and higher than the national child poverty rate (22%). At a time when we are experiencing an economic recovery, it is troubling that our state’s child poverty rate is not declining and remains significantly higher than the national average.

The numbers become even more meaningful when considering the disadvantages children in poverty face: less access to early education programs and high quality schools, food insecurity, higher stress levels and higher dropout rates, among other risk factors. Recent findings in brain development research also warn of the impact of toxic stress associated with poverty on a young child’s developing brain. Toxic stress can weaken the architecture of a child’s brain, creating long-term challenges that make it hard for one to be economically secure as an adult. Other numbers are rising for children across the nation and in North Carolina that we certainly don’t want to see on the rise. Infant mortality and child mortality has increased in North Carolina. There has also been a rise in the number of homeless school children, according to recently released national data. Both are indicators of poverty’s tight grasp on America’s and North Carolina’s children.

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Commentary

Farmworkers 2If you missed it this morning, be sure to take a few minutes to read this morning’s lead story over on the main Policy Watch site: “Twenty-first Century children, Nineteenth Century laws.” The article features a powerful interview with a young woman who describes the pain and hardship she endured for years as a child laborer in 21st Century America — something that, as remarkable as it may seem, remains perfectly legal more than a century after our country supposedly addressed it. Here is an excerpt:

Q. When and why did you start working? Was it your choice?

A. At the age of 8 years old I started working in cotton fields in Arkansas. When I was12-years old I started working in blueberry fields in Michigan, as well as working in the processing plant and various nurseries. I come from a family of migrant farmworkers; we were all expected to work at some point. I am not entirely sure why I started at a much younger age. But growing up I learned that we worked to help pay for bills, school clothes and supplies and also to learn a lesson. Both my parents met in the fields, they both knew how hard the life of a migrant farmworker was and didn’t want for that life to be their children’s. They made us work to show us exactly what was out there without a proper education and to motivate us to stay in school.

Q. What was your typical job and what would be a typical workday? Read More

Uncategorized

The good folks at Think Progress published a story yesterday entitled “Your assumptions about welfare recipients are wrong.” It’s a myth-buster worth checking out as we contemplate the realities that confront so many of our fellow Americans — especially during the holiday season.

“The stereotype of the low-income people enrolled in government programs is that they spend the money on frivolities and are unwise with their budgets. But the data proves otherwise. Families who receive public benefits such as housing assistance, welfare cash assistance, food stamps, Medicaid, and Social Security Income (SSI) for the disabled or low-income elderly have much smaller spending budgets than those who don’t receive benefits and spend a bigger portion on the basics such as food, housing, and transportation, according to an analysis by the Bureau of Labor Statistics.

On average, families who are enrolled in these public programs spend less than half of what families who aren’t enrolled spend. They also put a bigger percentage of that money toward food, housing, and transportation, devoting 77 percent of their budgets to these necessities compared to about 65 percent for other families. Meanwhile, they spend less, on average, on some things thought to be luxuries like eating out and entertainment. A family that doesn’t get public benefits spends 4.5 percent of its budget on ‘food away from home,’ while a two-parent family who gets benefits spends 4 percent of its budget on eating out and a single parent spends 3.6 percent. ‘Food away from home spending was higher in both dollar amount and percent of total spending among families not receiving assistance,’ the report notes. Families who don’t need assistance also spend more on entertainment in both dollar and percentage terms and devote more of their budgets to ‘other’ expenses.

Read the rest of the story by clicking here.

NC Budget and Tax Center, Poverty and Policy Matters

Poverty remains elevated in North Carolina and the nation as we continue to deal with the painfully slow recovery. As I explained back in September, new Census Bureau data on poverty and income confirm that the economic recovery is continuing to bypass middle- and lower-income families. The little economic growth that is taking place is also sidestepping certain demographic groups, including children, communities of color, and women. A snapshot of these disparities, as well as how poverty varies across the state, is captured in a new infographic released today by the NC Budget and Tax CenterRead More

NC Budget and Tax Center, Poverty and Policy Matters, Uncategorized

Poverty continues to impact 1 in 5 North Carolinians, according to 2012 Census Bureau Data released last week. The extent of poverty would be far greater without the safety net and work supports, however. This post is part of a blog series that will explain how the new poverty data demonstrates the important role public programs play and the need for continued support. See our posts on the Supplemental Nutrition Assistance Program, Social Security, and Unemployment Insurance.

Despite economic growth from 2011 to 2012, North Carolina saw no meaningful improvement in either poverty rates or household incomes over the same period. New US Census data shows that safety-net programs, such as the Earned Income Tax Credit (EITC), blunted the extent of poverty’s reach across the United States. If not for the federal EITC, an additional 5.5 million Americans—including 2.9 million children—would have lived in poverty last year.

The EITC goes to families that work but struggle to get by on low wages. It helps them pay for basic necessities, reduces child poverty more than any other program, and improves kids’ chances of success as adults. The tax credit’s anti-poverty effect is not yet available for North Carolina or other states but we do know that it lifted approximately 293,400 North Carolinians—half of whom were children—out of poverty during the 2009-2011 period.

We also know that state EITCs build on the success at the federal credit. Yet, state lawmakers enacted a tax plan that allows North Carolina’s EITC to expire at the end of 2013. Read More