Monday, September 26, 2016

Some things are getting better


The latest census figures show that employers are finally creating jobs and the numbers of people in poverty has decreased significantly over the last year.
The Caicedos are among the 3.5 million Americans who were able to raise their chins above the poverty line last year, according to census data released this month. More than seven years after the recession ended, employers are finally being compelled to reach deeper into the pools of untapped labor, creating more jobs, especially among retailers, restaurants and hotels, and paying higher wages to attract workers and meet new minimum wage requirements.

“It all came together at the same time,” said Diane Swonk, an independent business economist in Chicago. “Lots of employment and wages gains, particularly in the lowest-paying end of the jobs spectrum, combined with minimum-wage increases that started to hit some very large population areas.”

Poverty declined among every group. But African-Americans and Hispanics — who account for more than 45 percent of those below the poverty line of $24,300 for a family of four in most states — experienced the largest improvement.

Government programs — like Social Security, the earned-income tax credit and food stamps — have kept tens of millions from sinking into poverty year after year. But a main driver behind the impressive 1.2 percentage point decline in the poverty rate, the largest annual drop since 1999, was that the economy finally hit a tipping point after years of steady, if lukewarm, improvement.

There are different roads out of poverty, said Sheldon Danziger, president of the Russell Sage Foundation, a social science research institution, but today, one of the most promising is to “go somewhere where they raised the minimum wage.”

About 43 million Americans, more than 14 million of them children, are still officially classified as poor, and countless others up and down the income ladder remain worried about their families’ financial security. But the Census Bureau’s report found that 2015 was the first year since 2008, when the economic downturn began, that the poverty rate fell significantly and incomes for most American households rose.
Life has not improved for everyone and there is still much to be done but positive growth usually begets more positive growth as the economy enjoys an increased cash flow. About the only thing that could stop it would be increased tax cuts for the wealthy allowing them to squirrel away the monies that should be moving and working in the economy.

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