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September 20, 2005

Been A Long Time Since I Had This Feeling

When I got an e-mail alerting me to John Edwards' latest speech on poverty, I expected the usual hand-wringing about a country so great and a shame so large and an inequity so massive and so forth. That's not to dispute the truth of it, but it's a debate that Americans have long ago been inured to and, unless Edwards was bringing something new to the table, rehashing it would be good for the soul but far from the center. And then I read this:

The trouble is that for too many Americans—not just in the Gulf but everywhere—the American Dream has become too distant. You can see it in the numbers: millions of parents work full-time but still live in poverty. The typical white family has about $80,000 in assets; the typical Hispanic family, about $8,000; the typical African-American family, about $6,000.

“Income is what you use to get by, but assets are what you use to get ahead.” This huge asset gap is one reason so many families are barely getting by. And again, it’s not just the poor: middle-class incomes are stagnant, and more people file for bankruptcy than graduate from college each year.

Assets couldn't be more crucial. And almost nobody mentions them. Poverty is usually discussed in platitudes, a Bad Thing requiring either random cash or the magic of personal responsibility. Edwards, here, is light-years beyond that crap. Reading him, I got goosebumps for the first time since the debates. And they they kept a-coming:

In the 1960s we fought a war on poverty. Our intentions were good, but sometimes we expected government to do things that only individuals and communities can achieve.

Sometimes we gave too much money to bureaucracies, not people. Yet those efforts still helped cut the poverty rate by 43 percent from 1963 to 1973.

Again, in the 1990s, the Earned Income Tax Credit and welfare reform helped lift 7 million more people out of poverty. If we are going to fight poverty, we have to commit ourselves once more, more deeply than ever before.

What!? He's not fleeing from the Great Society? Not promising to outsource government? Not putting it all on black families? Surely you kid!

Sorry, I wasn't expecting to quote so much of this speech, but I also wasn't expecting it to be so good. More after the jump:

Where I come from, what matters the most isn’t how much you have, it’s how much you give. Work gives pride, dignity, and hope to our lives and our communities. And so the President is wrong: America is not, and never wished to be, a Wealth Society.

To be true to our values, our country must build a Working Society – an America where everyone who works hard finally has the rewards to show for it. In the Working Society, nobody who works full-time should have to raise children in poverty, or in fear that one health emergency or pink slip will drive them over the cliff.

In the Working Society, everyone who works full-time will at last have something to show for it – a home of their own, an account where their savings and paycheck can grow.

In the Working Society, everyone willing to work will have the chance to get ahead. Anyone who wants to go to college and work will be able to go the first year for free.

In the Working Society, people who work have the right to live in communities where the streets are safe, the schools are good, and jobs can be reached.

In the Working Society, everyone will also be asked to hold up their end of the bargain—to work, to hold off having kids until they’re ready, and to do their part for their kids when the time comes.

The first test of the working society will be in the Gulf. And the central principle of our effort should be the one I just outlined: We can only renew the Gulf if we renew the lives of the Gulf’s people by encouraging and honoring work.

The President doesn’t get that. At a time when a million people have been displaced, many already poor before the storm; when the only shot many people have is a good job rebuilding New Orleans, the President intervened to suspend prevailing wage laws so his contractor friends can cut wages for a hard day’s work.

Correct me if I’m wrong, but the President never suggested cutting million-dollar salaries for the heads of Halliburton or the other companies profiting from these contracts. A President who never met an earmark he wouldn’t approve or a millionaire tax cut he wouldn’t promote decided to slash wages for the least of us.

Seventy-five years ago, our government was led by a President who actually succeeded in navigating America through a disaster. Faced with the Great Depression, Franklin Roosevelt saw that relief requires more than food and shelter; it requires the dignity that comes from a job at a decent wage. And he saw something else: as Allida Black put it at a forum here last week, we have to “build to last.”

Many of our children still go to schools that the WPA constructed; many of our homes are lighted because of dams that the PWA built; many of our families still hike on trails that his CCC blazed. That’s why trailer parks are not the answer.

In fact, if we know anything from a half century of urban development, it is that concentrating poor people close to each other and away from jobs is a lousy idea. If the Great Depression brought forth Hoovervilles, these trailer towns may someday be known as Bushvilles.

We can do better.

While reading this next quote, pay special attention to what I've italicized; this should be the progressive response to school vouchers:

Today, a single mom with two kids who works full-time for the minimum wage is about $2000 below the poverty line. The erosion of the minimum wage is a disgrace; we need to raise it to at least $7.50 an hour. Unionized workers make 30% more, so we need to give them back a real right to organize. And we need make sure that people can enter the workforce and change jobs without losing their health insurance.

It’s not enough to say that people who work full-time shouldn’t live in poverty.

We need to help every American develop the assets they need to get ahead—to send their kids to college, buy a home, or just have the piece of mind that there's a little breathing room should catastrophe -- in the form of a hurricane or lost health insurance - -comes into their lives.

First, let’s help folks buy a home they can actually keep. Today, the rich get subsidies while the poor get ravaged by predatory lenders. We should do something different: crack down on those lenders and offer a new deal to poor families just going into the workforce: for the first five years you are working, we will set aside up to $1,000 in an account to help you make home payments. After five years, you’ll have up to $5,000 for down payments.

Next, I’d help families save. We should offer low-income Americans “work bonds”—an extension of the Earned Income Tax Credit that helps families save for the future. Low-income working families would receive an extra credit of up to $500 per year that would be directly deposited into a new account held by a bank or a safe stock fund with low fees.

If families put away more, the amount in the account would grow, and it would be available not just for retirement, but also for a small business or a personal emergency. It’d be there for a rainy day and a better future.

Third, work should give you a good education. I could give a whole speech about education alone, because we will never end poverty unless we improve our schools. But here’s just one idea that would help with both education and housing.

This President likes to talk a lot about school vouchers; I’d like a major effort to give working parents who are poor housing vouchers so they have a chance to move into neighborhoods with better schools. That will not only expand opportunity; it will build healthier communities through “cultural integration,” as David Brooks called it.

Poor people don’t need new bureaucracies; they need access to the same banks and jobs and markets that most Americans take for granted. The chance to go to college meant everything in my life, and young people need to know that if they work hard they’ll be able to afford it.

For years now, I’ve talked about an idea I call College for Everyone: if you stay out of trouble in high school and agree to work your first year in college, you ought to get your first year of tuition at a public university or community college free. In a couple weeks, I’ll be announcing a new pilot project in North Carolina to test out that idea in an entire county.

And we also need policies that help strengthen families. Though the 2001 tax bill eliminated the marriage penalty for the middle-class, poor families can still get hit with a $3,000 marriage penalty. That makes no sense. We need to finish the job of welfare reform. It caused millions of mothers to go out and get jobs, but it left poor young men right where they were.

In communities where 40 percent of young men are unemployed, we can get more poor men into the workforce by connecting them with more jobs and supporting their wages, the way the EITC already does for families.

Read it all. The only bit missing is health care. So what say you, John? Ready to be right on everything?

September 20, 2005 in Election 2008 | Permalink

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» John Edwards' Speech at Center for American Progre from Iddybud
What I appreciate most about Sen. Edwards is that, unlike any Democrat today, he has forwarded concrete ideas that will make a real difference in the personal lives of so many poor and hard-working Americans who aren't looking for a hand-out, but are... [Read More]

Tracked on Sep 21, 2005 10:45:25 PM

» Still Foxy After All These Months from Daily Pepper
John Edwards returned to the warm embrace of the "Daily Show" audience tonight in all his unwrinkled glory. Jon Stewart has so much respect for the Edwards that he gave Edwards two segments, an honor often reserved for the serious... [Read More]

Tracked on Oct 6, 2005 11:30:47 AM

Comments

I agree, Ezra.

I read both Kerry's and Edwards' responses. Honestly, I thought Kerry would be better at making a response at a time like this -- gravitas, the authority of being the last guy who ran against Bush. Wrong. Edwards wins hands down. He said stuff that I wasn't expecting, that pols don't just spout all the time, like you say. He talked like someone who knew what he was talking about, like an especially lucid wonk at a thinktank (in the good way) rather than a grandstanding pol. Really, I wasn't a fan of Edwards during the 2004 campaign. But he's really winning me over as somebody who both knows and cares.

Posted by: tlaura | Sep 20, 2005 4:26:21 PM

Some questions: Why is everything tied to paid work? Where are the jobs? What do those jobs entail? Why do we need some fatcat pol to rebuild the Unions? What if people don't want to move,"...into neighborhoods with better schools."? Why should people have to work for what is a human right in many less wealthy nations; ie, health care?

Posted by: ed | Sep 20, 2005 4:33:27 PM

Some of what Edwards says I agree with here. I myself have pointed out that assetts, both tangible and intangible seperate the Rich from the Poor far more signifigantly than income (although the two are related.)

However, I have a couple of issues. First off, while the concept that everyone who works full time should have a certain minimum level of prosperity sounds nice, I have to question what if, even though they work full time, for whatever reason, their economic output (what they produce) is worth less than what all of these things that are defined as prosperity cost? I acknowledge that their are cases where people should probably be paid more for what they produce, but there are also cases where they are paid fairly, and the problem is that the worth of what they produce is low.

As an example, when I was in college I also worked full time delivering Pizza. While it was a pretty good job, with tips above minimum wage, there is no way that it would have been sufficient to raise a family on. I don't think I was unfairly compensated for the work that I did. Of course I wanted more income, that is why I was in college to being with so I could raise the value of my production. If no full time job could exist that was like this though, I would only have been able to work part time in school. How that rule will help those who are less educated I certainly don't understand.

This bit I both agree with and find troubling: "In the Working Society, everyone will also be asked to hold up their end of the bargain—to work, to hold off having kids until they’re ready, and to do their part for their kids when the time comes."

It is a nice sentiment, that I agree with in general, but when a politician starts talking about such things I wonder if they think it a good idea or something they will mandate. If this is a 'bargain' how is it to be enforced? I have real reservations about Government, rather than people, deciding when children are approriate.

Posted by: Dave Justus | Sep 20, 2005 4:48:12 PM

I've been watching it for the last few months, but it's so awesome that it's hard for me to believe it's happening -- a charismatic politician who cares about helping people goes back to academia and makes a serious effort to learn what the most effective solutions are. Then he comes back and starts pushing for those solutions. Hooray!

Posted by: Neil the Ethical Werewolf | Sep 20, 2005 5:00:52 PM

Dave,

You make good points, but Edwards is only proposing raising the minimum wage to $7.50 federally and doing things like helping poor families set up and maintain bank accounts. He's not proposing seriously attacking the concept of the labour market ceasing to pay workers at marginal product. That higher minimum wage would actually be slightly binding for some small businesses (though not most places they pay it like McDonalds). The rest would have to be done through the IRS, and then payments are basically conditional on your lifecycle status, whether you have clildren etc., like the EITC. Edwards is a New Dem. He's just proving that New Dems don't have to be dry and prissy and refuse to rhetorically embrace liberal ideas as they advance their own solutions.

Actually, you get at a bit of my problem with Edwards in 2004: sometimes he seemed like a lot of bubbly, earnest rhetoric without a workable, moderate plan attached. But this...this is pretty good.

Posted by: tlaura | Sep 20, 2005 5:11:33 PM

Coming at this from the left, I worried about Edwards in 2004 because despite the populist inclinations, his policy instincts were conservative. Plus, his blowdried charm bugged me; what can I say, if I must have a major-party candidate I want FDR, not JFK.

However, this speech makes me want to work for the man in 2008. Whew; I sure had no interest in working for Kerry, so that says a lot.

To Ed, there's no good reason, but making healthcare portable is a palatable baby step to a functioning modern system.

To Dave, the answer is that people do it themselves once you give them reasonable opportunities. Checked out birth rates in Europe lately? They're low enough governments are encouraging reproduction.

Posted by: wcw | Sep 20, 2005 5:13:59 PM

That was beautiful. He strikes the perfect balance between rhetorical power and cold hard facts. I knew he had it in him ... I admit that I have a secret hope burning in my heart that he will be the one who runs in the next election.

As to assets, we need to be talking up assets as much as possible. Assets are what help if a person gets into a jam.

To give myself some perspective, I look at my assets and think, "Not bad for a single person in San Francisco. Not bad at all." Then I imagine if I had two kids, and I know I couldn't get by. The ability to accumulate assets is something that educated middle-class white people like me tend to take for granted. And we should stop that.

Posted by: Pepper | Sep 20, 2005 6:32:53 PM

Tlaura,

I agree, and I don't have a huge issue with a minimum wage hike to 7.50 although I have a doubt about it being very effective at lowering poverty. A good portion of the gains will be offset by inflation and loss of some jobs. That is a fairly modest number though, and won't have major negative effects.

However, if the justification for that is that full time employment means you deserve to be able to support a family, own a house, build up savings etc. then a minimum wage increase to $7.50 obviously isn't enough. Since that is the justification of the increase, more will have to follow. Some people do not have the skills to trade for a wage that would support a family, own a house etc. (unfortunately in my opinion and we need to make sure this is a temporty not a permanent state.) IF all full time jobs must meet this minimum requirement, then either their will be less full time jobs, or less jobs period. Economically speaking their is no way out of that.

This has nothing to do with how hard you work. If my only skill is ditch digging, I can work really hard, but I won't be able to sell my skills for more than the cost of a backhoe digging the ditch. The problem there is that I need better skills.

wcw,

I am well aware of the birth rate in Europe and the problems it is, and will cause them. Edwards doesn't seem concerned with the total number of kids though (although we don't have the problems Europe does, we are certainly not expiriencing a population boom), he instead seems concerned with poor people having them. I am very leery whenever anyone from the left or the right (and this sort of thing crops up on the right from time to time too) start talking about controls over who can, and cannot, have kids. There are of course poor people who nonetheless want kids and do a great job of raising them, even if they can't afford the latest video game consol.

Posted by: Dave Justus | Sep 20, 2005 7:29:09 PM

I don't quite think Edwards is arguing for mandatory birth control. More to the point, someone who's only skill is ditch-digging may need a better skill, but how does he get one? The training programs we thought worked don't -- they need radical overhaul. And, in any case, how can he go train elsewhere wehn he needs to support a family? And mustn't someone dig ditches?

There are a variety of ways for the Fed to push folks working full time towards a livable wage. Doubling the EITC is foremost among them, universal health care is up there too, as are a variety of asset building programs that float around the think tanks. The question isn't how we do it, but if we have the will to do it. And that's a question of values. Digging a ditch sounds quasi-hellish...if you're willing to do that in order to support your family, society should see to it that you succeed.

Posted by: Ezra | Sep 20, 2005 8:13:17 PM

Dave, people can't organize in some states--they can't collectively bargain because of unionbusting state laws.

And sorry, but the idea that wages are completely dependent on your job skills and output is really naive and idealistic. I mean, Michael Brown? He's just the most egregious example of a person who's paid not because of what they do, but because of who they and their friends (or their social class) are.

But more, I fail to see how paying people less for having no skills is a better way to get them skills than making education more accessible. Skills aren't like gold coins in Super Mario Bros.; it's not like you can just pick them up if you really really want them. You've got to be able to get them, and for it to be sustainable the investment has to pay off every step of the way.

Substantively, Edwards is right. Systematically, the rich are favored over the poor. It's wrong. Changing that system incrementally to make the lives of most Americans better is a good thing.

Posted by: theorajones | Sep 20, 2005 8:47:22 PM

Something almost completely hidden from our political and economic consciousness is the distribution of 'profit' from private enterprise.

Why should state and federal chartered corporations that are given many protections and advantages in society be focused solely on the profit that goes to the owners (and by proxy, to the senior managers)?

How much is too much profit to owners, and not enough societal benefit? This is never discussed as an issue, but it really underlays our national existence.

Wages could and must be higher for non-student employment and the distribution of wages across the working community is far, far to heavily weighted toward the managerial class.

I'm not suggesting government controls on profits, but we all know that corporations are paying less of the tax burden now than historical averages.

Minimum wage laws, and the right to collectively bargain are societies way of saying to businesses that they have society responsibilities. Tax policy can make it attractive to businesses to narrow the gulf between worker, managerial and company officers. It should do so.

A society divided into a small fraction of people of great income and a huge fraction of people in poverty cannot be stable over the long run. The US and international institutions tell third world countries that they cannot grow their way to success in the world economy if income distributin is out of whack. We just don't practice this belief at home, or even discuss it as a major issue.

It will come to haunt the US unless we attend to these issues. This should be a major part of the Dem. party message to the citizens - we must educate ourselves on morally, poliitically and economically good sense.

Posted by: JimPortlandOR | Sep 20, 2005 9:49:51 PM

I am glad you like him. I was not surprised, though, as this is nothing new to Edwards. I've been following him since I voted for him for the Senate and he's always been like this.

It just took a lot of time for people to get to know him, to start ignoring GOP talking points against him, and to put away their own elitists prejudices against him (the hair, the looks, the Southern accent, the phony notion that he is 'conservative', etc.). Actually, as his Center for Poverty and Work just officially opened last week, I am going to call or go over there and see if he'll let me work for him.

I recently wrote about Katrina being a real boost for Edwards (as much as it sounds horrible to try to find a political silver lining in such a disaster) bacuase it brought the issue of poverty to the forefront. Every Dem who starts talking about poverty today will be seen as opportunistic phony EXCEPT Edwards. I dunno if that will last until 2008, but I sure hope so. This guy is supersmart and a can-do kind of person with genuine empathy and excellent understanding of issues (which he keeps studying the way he prepared hard for all his legal cases).

Posted by: coturnix | Sep 20, 2005 11:46:27 PM

What Coturnix said. Edwards genuinely groks poverty in America, and 2008 may well be an election in which America has to look very hard at itself. It's perhaps a cliché to say that he's walked the walk, and so can talk the talk, but it does inform him.

Posted by: ahem | Sep 21, 2005 3:03:42 AM

It's very encouraging to read Edwards and realize that his written words are just as thoughtful, eloquent and powerful without the aid of his charismatic speaking presence.

As right as you are when you write:

Assets couldn't be more crucial. And almost nobody mentions them. Poverty is usually discussed in platitudes, a Bad Thing requiring either random cash or the magic of personal responsibility. Edwards, here, is light-years beyond that crap. Reading him, I got goosebumps for the first time since the debates.

This makes me nervous. We experienced a late-90s asset bubble and (depending on your view) we may well be experiencing another in housing. In the next few years, while people suffer during a likely economic downturn (magnitude uncertain), I'm not sure it will be wise to discuss empowerment through assets. A large chunk of America has been pushed down such a road with the current real estate climate, savings and consumption climate. Should the economy sour, so shall moods on the subject.

I really do love a lot of what Edwards says in this piece. I only hope my pessimism about how the public would receive such ideas is overstated. Many are unconcerned with or indifferent to the plight of the poor, and many more do not like to feel their interests are aligned with the poor; they'd rather believe they're above and separate. That's a tall hurdle to jump.

Posted by: lb | Sep 21, 2005 6:04:49 AM

Edwards seems the opposite (at the moment) of Hillary (or Dean in 2003): a relative idealist/outlier in his policy positions, but a reputation as a moderate. No clue why he achieves it when Hillary et al have to deal with being called far-lefties despite moderate positions, but it's true. And in that alone he seems a far better candidate than anyone else around.

I still think he bombed the debate though.

Posted by: Tony Vila | Sep 21, 2005 12:05:41 PM

That was great, and I'm impressed that he did it without antagonizing the monied population. But if some conservative invokes the "class warfare" meme, all he have to say is "why are you so against giving those who work hard what they deserve?" or something like that.

Posted by: ItAintEazy | Sep 21, 2005 1:02:20 PM

The housing voucher idea is stupid. The main difference between "good" schools and "bad" schools is the composition of the student body. A school attended by rich kids is considered "good", a school attended by poor kids is considered "bad". Start sending poor kids to "good" schools and the schools won't be considered "good" anymore. A political platform of moving poor people into rich neighborhoods so their kids can ruin the schools doesn't sound like a winner to me.

Posted by: James B. Shearer | Sep 21, 2005 5:57:32 PM

The problem I have with Edwards' proposals is that it fetishizes work. Should people be rewarded by government _just_ for doing work, any work at all, even work of dubious quality and/or of limited value? I don't think so. This is not to take away from the value of the ditch digger's labor - of course this work is backbreaking - but it simply doesn't provide as much value to the economy as the labor of the engineer who designs the next computer chip. It appears as if Edwards is saying all labor is equivalent on some level. I would much prefer to see government reward those who are not content with staying a ditch digger, and instead strive to improve themselves until they become that computer engineer.

Posted by: chemjeff | Sep 21, 2005 11:05:33 PM

Wow. Not bad Edwards, not bad at all.

Posted by: Adrock | Sep 22, 2005 11:13:39 AM

I agree with Shearer to a point. What differentiates the good from the bad, besides just pointing out composition of the student body. I don't see the difference as being poor or rich. Its attitude. Should we not work toward making the bad schools better capable of handling bad attitudes in the first place?

Oh and by attitude, I don't just mean the student body, I mean the faculty as well.

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