Tag: poverty

The National Debt Is Making Us Poorer

Many Americans are unhappy about years of higher-than-normal inflation that have sapped buying power and reduced standards of living.

Now, the Congressional Budget Office (CBO) demonstrates that a difficult culprit will make you feel poorer over the next few decades: The nearly $35 trillion (and growing) national debt.

At its current trajectory, the rising national debt—and the increasing burden of making interest payments on it—will reduce Americans’ future income growth by 12 percent over the next 30 years, the CBO projects in a new report. That means the average person will earn about $5,000 less annually than they would in a scenario where the debt was not growing.

“This is the result of crowding out, whereby a higher national debt reduces private investment and slows income growth,” explain the number crunchers at the Committee for a Responsible Federal Budget (CRFB), a nonprofit that advocates for reducing the federal deficit. “With additional debt, income growth would slow further.”

If the national debt grows faster than the CBO currently expects—something that could happen due to wars, pandemics, or simply because lawmakers in Washington can’t cure their addiction to borrowing—the average person could miss out on $14,000 annually in future income gains that won’t materialize, the CRFB predicts.

That crowding-out effect is a serious threat to future economic growth. There are a finite number of dollars in the economy in any given year, and each dollar that has to be taxed away to make an interest payment on the debt is a dollar that cannot be invested, spent, or paid to an employee.

The costs of rising debt can be a bit difficult to understand because we don’t see reductions in potential earnings as obviously as we see price increases at the grocery store. Still, the effect is pretty similar. Americans’ experience with inflation in recent years is helpful in understanding how the cost of the national debt depresses living standards.

In the CBO’s baseline model, average earnings are expected to climb from about $84,000 this year to $123,000 in 2054, 30 years from now. That sounds great, except for the fact that average earnings would have climbed to about $128,000 by 2054 in a scenario where the national debt was stable and not growing.

To someone living in 2054, that $5,000 won’t feel real because it never existed. But it would have existed, if not for the poor decisions by federal officials in the 2010s and 2020s.

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Homelessness After Age 50 Is Rising

Imagine you are 82 years old, barely making ends meet on a fixed Social Security check and getting a $1,300 bill to fix a burst water pipe. Imagine being 51, years away from Social Security, and losing your low-wage job because a new medical diagnosis forces you to give up your driver’s license in a place with no public transit. Or imagine being 70, experiencing memory loss and forgetting to pay your bills.

In these all-too-common scenarios, eviction and homelessness lurk around the corner. People aged 50 and older are the fastest-growing group of people experiencing homeless in the United States. They make up nearly half of the homeless population, and their numbers are estimated to triple by 2030.

Some older adults have been on the brink of or experienced homelessness at some point during their lives, especially if they struggled to find stable, good-paying jobs or if they suffer from substance use or mental health disorders.

Meanwhile, recent years have witnessed an alarming increase in the number of Americans over 50 experiencing homelessness for the first time. When they should be enjoying some hard-earned rest after decades of work, too many are losing their homes and ending up in shelters or on the streets.

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Maybe We’re Closer to ‘You’ll Own Nothing’ Than We Realize

The World Economic Forum’s catchphrase you’ll own nothing and be happy was widely mocked as an eyebrow-raising vision of a “sharing economy” future without the implicit agency granted by full ownership. Renting stuff that one needed only for one-time use has long been a market, and car-sharing makes sense for urban dwellers who only need a vehicle on occasion.

But to own nothing still implies powerlessness and poverty, not happiness, which continues to be associated with owning income streams and nice things, i.e. wealth.

Given our dependence on software / digital rights and the phantom wealth of credit-asset bubbles,”how much do we actually own?” is a fair question. Consider the recent New York Times article Why Tech Companies Are Not Your Friends: Lessons From Roku, which was reprinted in other publications with the more accurate title Our Gadgets Are Not Ours.

The gist of the article is that since we don’t own control of the software, our “ownership” of the device is illusory. Here is an excerpt:

More than a decade ago, when we bought a TV it was just that–a big screen that let you plug into it whatever you wanted. Nowadays, the vast majority of TVs connect to the internet and run the manufacturer’s operating system and apps. Even though you bought the TV, the software component, a major part of what makes the product work, remains controlled by the company.

Changes to the product’s software interface and data collection practices can happen at any moment. In extreme examples, a device can stop working. In 2020, for instance, Amazon deactivated the Echo Look, a camera that helped people organize their wardrobes. It issued a promotional credit for owners to buy a different Amazon gadget that lacked similar features.

The less extreme, more common situation is when companies stop supporting older products because they need to sell new gadgets. Apple’s original Apple Watch from 2015, for example, no longer gets software updates and now barely works.

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San Francisco buys vodka shots for homeless alcoholics in taxpayer-funded program

The City of San Francisco is providing free beer and vodka shots to homeless alcoholics at taxpayer expense under a little-known pilot program. 

The “Managed Alcohol Program” operated by San Francisco’s Department of Public Health serves regimented doses of alcohol to voluntary participants with alcohol addiction in an effort to keep the homeless off the streets and relieve the city’s emergency services. Experts say the program can save or extend lives, but critics wonder if the government would be better off funding treatment and sobriety programs instead.

“Established in countries such as Canada and Australia, a managed alcohol program is usually administered by a nurse and trained support staff in a facility such as a homeless shelter or a transitional or permanent home, and is one method to minimize harm for those with alcohol use disorder,” the California Health Care Foundation explains in an 2020 article describing the pilot program. 

“By prescribing limited quantities of alcohol, the model aims to prevent potentially life-threatening effects of alcohol withdrawal, such as seizures and injuries.” 

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Ohio Pastor Criminally Charged for Letting People Sleep In Church. Again.

An Ohio pastor is once again being brought up on criminal charges for sheltering people in his church.

On Friday, the city of Bryan, Ohio refiled charges against Chris Avell, the pastor of Dad’s Place, for fire and zoning code violations related to his operation of a 24-hour “Rest and Refresh” ministry at the church’s downtown building.

The city argues the church’s 24-hour ministry is in fact just a residential homeless shelter, which is not allowed at the commercially zoned property. The fire code violations make it not only unauthorized but also unsafe. Each violation, if not corrected, is punishable by a $1,000 daily fine.

“We appreciate that Dad’s Place has tried to help people in need,” said Bryan Mayor Carrie Schlade in a statement. “But putting these people’s lives at risk in the case of a fire or other dangers is not helping them.”

“Here we are with the pastor facing new criminal charges for caring for people inside his church,” First Liberty Institute attorney Jeremy Dys, who is representing Dad’s Place, told Reason in an interview on Friday.

Reason covered Avell’s case back in January when he was first charged with 18 criminal counts for similar zoning and fire code violations.

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Greenpeace Crusade Will Blind and Kill Children

Greenpeace and other anti-biotech activist groups have logged a win in a crusade that could ultimately blind and kill thousands of children annually. How? By persuading the Court of Appeals of the Philippines to issue a scientifically ignorant and morally hideous decision to ban the planting of vitamin A–enriched golden rice. The objective result will be more children blinded and killed by vitamin A deficiency.

The World Health Organization estimates that 250,000–500,000 children who are vitamin A–deficient become blind every year, and half of them die within 12 months of losing their sight. In addition, children with immune systems weakened by vitamin A deficiency have an increased risk of illness and death from infectious diseases.

The court also banned the planting of an eggplant variety that has been biotech-enhanced to resist insect pests. The same variety approved by Bangladeshi regulators has reduced pesticide usage and improved farmers’ yields by more than 50 percent.

In their press release, Greenpeace activists crowed, “The Court of Appeals has essentially put a moratorium on these genetically modified crops.”

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Nearly 13% of US Households Face Lack of Food – Reports

A growing number of Americans are struggling to feed themselves and 12.8% of households face lack of food, Newsweek said on Tuesday, citing US Department of Agriculture (USDA) data.

Some 17 million US households faced problems to obtain enough food in 2022 due to lack of resources, the report said.

Those most affected by food insecurity were single parent and ethnic minorities households as well as families with children.

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Behind the Badge: In New York City Homeless Shelters, the Same ‘Peace Officers’ Abuse Residents

In April 2018, at a New York City intake center for homeless families, Melina Cardona and five other city employees handcuffed a woman who had just walked in to get information about emergency housing. They applied the cuffs in a manner “so excessive,” they fractured her arm.

At the time, Cardona was a peace officer with the New York City Department of Homeless Services Police, an obscure, approximately 700-member agency that maintains security throughout the shelters the city owns and operates. Department of Homeless Services (DHS) officers “work with New York City’s most vulnerable population,” as a former deputy commissioner said in a recent recruitment video.

They are “the original community police officers.”

Although DHS’s peace officers are given broad powers, they are not police officers. They carry non-lethal weapons such as pepper spray, batons, and Tasers, and they are given the power to detain, not arrest. Nevertheless, they have been training with the NYPD since 2017.

And peace officers still have the ability to mistreat the people they are employed to protect. An investigation by a team of journalists reporting for MuckRock and New York Focus offers a first-of-its-kind look at how these officers are held accountable — and how long their behavior can go unchecked. Previously-unreleased disciplinary files show that it often takes DHS a half a year or more to suspend officers found guilty of misconduct. Those who do land a timely suspension tend to be back at work within a month.

If they’ve done it once, they’re likely to do it twice: Through public records requests, MuckRock and New York Focus uncovered disciplinary incidents involving 31 officers, many of them repeat offenders. Just three officers were involved in more than a third of all incidents.

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How effective are California’s homelessness programs? Audit finds state hasn’t been keeping track

California spent $24 billion to tackle homelessness over the past five years but didn’t consistently track whether the huge outlay of public money actually improved the situation, according to state audit released Tuesday.

With makeshift tents lining the streets and disrupting businesses in cities and towns throughout California, homelessness has become one of the most frustrating and seemingly intractable issues in the country’s most populous state. An estimated 171,000 people are homeless in California, which amounts to roughly 30% of all of the homeless people in the U.S.

Despite the roughly billions of dollars spent on more than 30 homeless and housing programs during the 2018-2023 fiscal years, California doesn’t have reliable data needed to fully understand why the problem didn’t improve in many cities, according to state auditor’s report.

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‘It’s going to be war’: Hundreds of furious Brooklyn residents take to the streets to protest planned homeless shelter for 150 men

Thousands of protesters descended on a Brooklyn neighborhood Saturday to protest a planned homeless shelter that will house only men.

The shelter, proposed by the city, will be a 32-room hotel with a community facility, and will provide services like case management, housing placement, and community partnerships that will work to provide the men with jobs.

The planned site is located in heavily residential Bensonhurst, where locals have expressed unease over the site’s proximity to several schools.

City officials have shot back that the neighborhood is one of few in the five boroughs without a shelter, and that residents have had ample notice, being notified back in November.

Unswayed, residents, business owners, and politicians in the mostly Asian neighborhood came together Saturday to say no to the city’s plans, as Mayor Eric Adams‘ administration works to address the city’s rapidly rising homeless rate.

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