Fighting Poverty - Minimum Wages and more

I am about to climb up on my soap box and talk about economic situations which are very frightening. Poverty is the number one crisis we are facing in this country today, and I can only see it getting worse.

It used to be that if a family was living 'below the poverty level' then they would be able to qualify for certain programs designed to ease their struggle.  Once upon a time, this wasn't called 'welfare' and didn't have the stigma that it can hold for many today.

I want to make this clear that this diary isn't supposed to be 'hey look at my problem' - I used my numbers only so I'd have a reference point - it's nothing more than that.

The methodology used to calculate "Federal" Poverty levels is deeply flawed.  Follow my reasoning:

First off poverty levels are flawed because of the numbers they use to start with. The numbers are compiled by the census bureau based on respondents to surveys (or door to door depending on where you live) head counts that are returned to them.  Well let's face it - there are some 'head counts' that don't get counted - what about the thousands of homeless people that are in nearly every city and town in our country .. how are they counted when you're establishing a poverty level? It's simple: they don't.  So, that's one flaw.

Then the 2nd flaw: the calculation is based math that worked in 1968 - that families of three or more spend approximately 1/3 of their take home pay on groceries.  While this may have worked in 1968 how can it possibly work today?

It's almost pathetic when you consider what the income levels have to be for you to be considered 'living at the poverty level'.  For instance for 2008: If you are a single person you are not considered to be at poverty level IF you are making more than $10,400.  Gee thank you very much.

That means that I can't even pay my rent which is $11,440 a year.  Then lets add on that medical insurance that I now have to have because I live in Massachusetts - that wonderful plan that says if I don't have insurance I'll pay a penalty on my taxes.  Let me see - I'm paying $5,844 per year for that.  So, before I have ten cents to pay for food, clothing or other necessities, I need to be TAKING HOME $17,284.00.  So if I break that into 52 weeks and break those weeks into work hours (assuming 40) just to pay my rent and medical insurance my hourly pay must be $8.31 per hour TAKE HOME.

Less I forget:  That medical insurance I was just telling you about - let's assume for a minute I only need to visit the doctor one time annually - for a co-payment of $25 - that doesn't sound so bad now does it? But don't forget prescriptions - I have three prescription meds I take that are critical to my health - so I'm paying $90 per quarter for those.  So taking on 90X4 and $25 for ONE doctor's visit I need to add on a few dollars to my 'take home' pay.  It's not much right - only an additional $7.40 per week - can't be all that painful.  True enough - but here's the kicker - If I should fall ill and need to be hospitalized - none of my hospital bills are covered until I pay $2,000 out of pocket (excluding my prescription costs).  So, tack on another $38.46 per week and you know what just happened? My 'minimum wage' now has to be $9.45 per hour TAKE HOME.

OOPS: Wait, I haven't even picked up one bit of groceries right? Well I'm a single person.  I seldom buy in bulk for the simple reason that I live in a very simple 2 room apartment that I share refrigeration with someone else.  So to be easy on it lets say that I spend approximately $50 per week on food and say another $10 a week on paper goods, shampoo, etc..  Kindly add on $1.50 to my 'minimum' take home wage.  So we're now at $10.95 per hour after tax take home rate.  Lots of luck.

The reality is that for me - a single person - living modestly with no car, no auto insurance, no $4 per gasoline to fill it up with - I need to make almost $15 per hour to survive.  That means no 'extras', no nights out to the movies, no nights out period.  And heaven forbid I need a new set of clothing - forget that - it's not in the budget.

We are heading in a very bad direction.  Very bad.  In 1987 I made $60,000 at my job.  In 2006 (the last year I worked in corporate America) I made $32,000.  this year, I need to make that $32,000 and a lot more - why you ask? Simple: I'm a freelancer - I have to pay my own taxes, I have to put my own money into a retirement plan.  I'm 50 years old and in a position that I would have anticipated being in more than 30 years ago.

My heart aches for those people who are making minimum wage and trying to 'get by' on what they're making - I don't know how you're doing it.  We all hear stories about what's happening with children overseas starving for want of a decent meal - but we need help here, at home, in our own back-yards.

It's frightening to think that not just children need our help. There are thousands of 'me' out there - barely making ends meet, hoping the next paycheck covers the rent, struggling with every day expenses.

For the record: I have been working for more than 30 years, since I was 17 years old.  The longest period of time I have gone without work was when I was laid off in 2005 and remained out of work from December 31, 2005 until I decided to take up freelancing in September of 2007 - a painful and difficult time that cost me all of my savings.

I didn't intend this to be a 'poor me' diary nor do I want it viewed that way - I'm content, I work hard and long hours, I get by - I just needed an example to show how difficult life can be for so many.  

There are hundreds of thousands of people who are in far worse condition than I am in.  We need to rally together - to see what we can do to better assist those in our own neighborhoods who need our help.

Take action - see what you can do in your neighborhood to fight poverty.  Whether you can spare a can or two of non-perishable items to your local food pantry, donate used clothing for a clothing drive or participate at a local soup kitchen or a thousand other small things you can do to help a neighbor save a dollar or two. Arrange a car pool for grocery shopping, sign up with "SHARE" which is active in 33 states to help cut grocery bills (you can take part in this program if you perform community service) not only for yourself but others in your community.

There are many of us who are struggling to make ends meet. While we have some of the worst anti-poverty programs we can individually make a difference in the lives of those who are not doing as well as we are. Remember, no matter how bad you think you might have it, someone has it a lot worse than you do.