Category Archives: Poverty

Living in poor neighborhoods raises stroke risk

As with so many of the health problems inflicting immense physical and fiscal harm on Americans, stoke has been linked with living in neglected communities.

Once again,, class makes all the difference when it comes to health, a symptom is the widening wealth gap created by the harsh conditions of neoliberal austerity.

From the University of Alabama at Birmingham:

A higher neighborhood advantage, or socioeconomic status, of where a person lives contributes to a lower risk of having a stroke no matter the person’s race, according to findings published [$39 to read] in the Oct. 14 online issue of Neurology, the medical journal of the American Academy of Neurology.

The report from the University of Alabama at BirminghamREasons for Geographic And Racial Differences in Stroke study shows this effect is the same for black and white adults, both men and women.

“More blacks than whites in the United States have strokes and die from strokes,” said Virginia Howard, Ph.D., lead author of the study and professor in the UAB School of Public HealthDepartment of Epidemiology. “More people who live in the Southeastern area known as the stroke belt have stroke and die from stroke compared to those who live in the rest of the United States.”

This study showed that residents in more disadvantaged neighborhoods had greater stroke risk than those who lived in more advantaged neighborhoods. The neighborhood index is composed of six factors, including a higher value of housing units and higher proportion of residents employed in professional occupations. A higher score in all of these categories leads to a higher advantaged neighborhood.

The observation was true even after adjustment for age, race, sex and region of the country. But after adjustment for other stroke risk factors, there was no association between the level of the neighborhood advantage and stroke risk, suggesting that those living in more disadvantaged neighborhoods are more likely to develop risk factors including hypertension, diabetes and smoking. Because of being more likely to develop these risk factors, they are at higher risk of stroke.

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Chart of the day: Univ. of Calif. workers go hungry

From Food Insecurity Among University of California Employees, a report from the Occidental College Urban & Environmental Policy Institute

The Los Angeles Times reports:

Seven in 10 University of California workers in clerical, administrative and support services struggle to put adequate food on the table, according to a new Occidental College study.

The study, set for release Monday, found that 45% of 2,890 employees surveyed throughout the 10-campus UC system went hungry at times. An additional 25% had to reduce the quality of their diet.

The problems persisted even though most of those surveyed were full-time employees with college degrees and average earnings of $22 an hour.

Peter Dreier, an Occidental professor of politics who conducted the study with two colleagues and the International Brotherhood of Teamsters Local 2010, said the results were startling.

“This is a systemwide problem; it exists on every campus,” Dreier said. “This is not a handful of people who happen to be down on their luck. They need a living wage so they can afford to feed their families.”

Brazilian regime seeks permanent austerity

It’s the worst possible scenario for millions of the poor in South America’s largest country and a neoliberal’s wet dream, and it seems inevitable.

From teleSUR English:

Unelected Brazilian President Michel Temer is a step closer to cementing his long-term austerity plan for the cash-strapped country as the lower house of Congress approved Monday a constitutional reform that would freeze public spending for the next two decades.

Critics argue that the aggressively neoliberal plan — known as PEC 241, the Portuguese acronym for Proposed Constitutional Amendment — dramatically undermines rights enshrined in the 1988 constitution, written in the early years of Brazil’s transition to democracy following the fall of the military dictatorship in 1985.

Progressive economists often warn that austerity deepens an economic downturn rather than reverses it, by depleting consumers of buying power. Public disinvestment, is, in effect, anti-Keynesian, and is akin to turning off the engine of a plane already in free-fall.

With a population of more than 200 million, Brazil’s income and wealth disparities are among the widest in the world, and the country is currently in the midst of its worst economic contraction since the Great Depression.  The PEC 241’s 20-year freeze on public spending will almost certainly produce an anemic economy because it will starve a demand economy of the very oxygen it needs — consumer demand — to thrive.

The controversial amendment passed with ease in the lower house by a 366 to 111 vote in favor, with two abstentions, after a marathon nine-hour session. The measure still needs a second vote in the lower house, where it is expected to pass the supermajority threshold in a vote scheduled for Oct. 24; if approved, it will be forwarded to the Senate for final approval.

Troikarchs steal still more of the Greek commons

Greek Prime Minister Alexis Tsipras and his Syriza party swept into power last year with a promise to end the austerity measures imposed on Greece by the financial overlords of the International Monetary Fund, the European Commission, and the European Central Bank.

Their vow has provd as hollow as the political vows of countless other politicians, and in the two years since, Greece has sliced pensions and health care to pay the banksters, as the country continues to record massive unemployment and deepening misery.

And now Tsipras has done it again, surrendering to their latest demands with yet another round of cuts and selloffs of the national commons, although many of his own party voted in opposition.

From Deutsche Welle:

The reforms were passed by a narrow 152-141 majority vote in Greece’s 300-seat parliament, after 152 parliamentary members of the ruling Syriza-Independent Greeks coalition approved the reform bill. Only one member of the coalition voted against the bill, along with all opposition members.

The reforms will see public assets transferred to a new asset fund created by Greece’s creditors. Assets include airports and motorways, as well as water and electricity utilities. The holding company groups together these state entities with the country’s privatization agency, the bank stability fund and state real estate. It will be led by an official chosen by Greece’s creditors, although Greece’s Finance Ministry will retain overall control.

The reforms sparked significant backlash among demonstrators and public sector workers.

Ahead of the vote, protestors outside of the parliament in Athens chanted, “Next you’ll sell the Acropolis!”

Greece’s public sector union criticized the reforms, saying that the transfer of public assets paved the way for a fire-sale to private investors. “Health, education, electricity and water are not commodities. They belong to the people,” the union said in a statement.

Workers at Greece’s public water utility companies in Athens and Thessaloniki walked out on Tuesday to protest the reforms. “They are handing over the nation’s wealth and sovereignty,” George Sinioris, head of the water company workers association said.

Chevron’s malignant legacies in Ecuador, Bay Area

In the second of three programs on the brutal policies of a global oil giant [first part here], Abby Martin looks at the lethal pollution of Ecuador’s land and water by an American oil giant, a bizarre U.S. court ruling made by a judge who owns stock in the company, the the firm’s heavy-handed politics in Richmond, California.

During our six years at the Berkeley Daily Planet, we covered environmental politics in nearby Richmond, one of the San Francisco Bay Area’s poorest communities, and watched as Chevron Texaco fought to control city council elections to ensure that operations at the company’s massive refinery were unhindered by council members’ concerns about dangers to the health and safety of their constituents.

Martin lived nearby and saw firsthand how the company spared no expense in courts and in political and public relations campaigns, and we’re glad that the issue will gain wider exposure through her efforts.

And now, one with the shot.

From teleSUR English:

The Empire Files: Chevron vs. the Amazon – The Environmental Trial of the Century

Program files:

In Part II of this three-part series, The Empire Files continues the investigation into the battle between Chevron Texaco and Ecuador.

In this installment, Abby Martin uncovers what really happened throughout the 22-year legal battle between the oil corporation and indigenous Amazonians, interviewing lead attorney for the case, Pablo Fajardo.

This episode also chronicles the shameful, scandalous history of Chevron Texaco—from the support of Hitler’s Nazi movement, to backing war crimes in Myanmar—and its retaliatory attacks against its victims.

IMF sounds the alarm for the U.S. economy

It’s bad, and getting worse.

From Xinhua:

The U.S. economy risks getting stuck in a prolonged period of low-growth amid slowing productivity and a shrinking middle class, the International Monetary Fund (IMF) has warned.

The U.S. economy grew at an annual rate of 1.2 percent in the second quarter this year, following a downwardly revised 0.8 percent gain in the first quarter, according to the U.S. Department of Commerce. That marked the third straight quarter in which the U.S. economy grew at lower than 2 percent, the weakest period in four years.

The weaker-than-expected economic data underscores the continuing frustration about the current U.S. recovery, which has repeatedly failed to shift to higher gear in the past seven years.

The U.S. economy has grown at an average pace of 2.1 percent since the recession ended in the mid-2009, registering the weakest U.S. economic expansion since World War II. During the postwar period up to the current recession (1947-2007), the average annual growth rate for the United States was 3.4 percent.

The IMF warned in June that the United States faces “potentially significant longer-term challenges” to strong and sustained growth, including a shrinking labor force and middle class.

Recoveries grow increasingly feeble

A report from the Economic Policy Institute reveals that recoveries are slower with each succeeding recession:

BLOG Econ 2More from the EPI:

One key gauge of the severity of recessions is the output gap, which measures the difference between the economy’s actual output and its potential output if all resources (including workers) were fully employed. At the trough of the Great Recession in June 2009, the output gap was 7.1 percent, equivalent to over a trillion dollars. The only larger output gap in the postwar period was the 7.6 percent gap recorded at the trough of the early 1980s recession in the last quarter of 1982. Cumulatively, the losses over the Great Recession and the sluggish recovery dwarf even those from the early 1980s recession. The output gaps at the trough of the early 1990s recession (the first quarter of 1991) and that of the early 2000s (the final quarter of 2001) were 2.6 and 1.8 percent, respectively.

And the gold goes to. . .

From the World Socialist Web Site:

Hundreds of retail stores have been shut over the past two years as the impact of relentless cuts in wages and pensions and the permanent destruction of decent-paying jobs, combined with sweeping cuts in social programs, have thrown tens of millions of working class families into poverty or near-poverty. The bankers and speculators have placed relentless pressure on the chains to cut costs and increase profit margins at the expense of their employees and the general public.

The surge in stock and bond prices both in the US and internationally, which has further enriched the capitalist elite, has come amid mounting indications of stagnation and slump in the real economy and a worsening social crisis. Economic growth in the US, Europe, Japan and China has slowed to a crawl. New figures released Friday pointed to a slowdown across the entire Chinese economy, with factory output, business investment and retail sales all failing to meet economists’ projections.

The euro zone economy grew by a paltry 0.3 percent in the second quarter, with Italy failing to register any growth and the German economy expanding at a reduced rate.

Gross domestic product in the US is barely increasing, rising only 0.8 percent in the first quarter and 1.2 percent in the second. Both labor productivity and business investment are falling sharply, reflecting the systematic diversion of resources from productive investment to financial speculation and parasitic activities such as stock buybacks, dividend increases and mergers and acquisitions.

US corporations, flush with cash extorted through the slashing of wages and benefits and the imposition of speedup, are hoarding $1.9 trillion. They refuse to invest in new plants and equipment that could provide decent jobs and address the decay of the country’s bridges, roads, schools and housing because the profit margins are too low, preferring instead to speculate on the market and buy back their own stock to increase the take of big investors and inflate the bonuses of top executives.

More from the Associated Press:

Income inequality has surged near levels last seen before the Great Depression. The average income for the top 1 per cent of households climbed 7.7 per cent last year to $1.36 million, according to tax data tracked by Emmanuel Saez, an economics professor at the University of California, Berkeley. That privileged sliver of the population saw pay climb at almost twice the rate of income growth for the other 99 per cent, whose pay averaged a humble $48,768.

But why care how much the wealthy are making? What counts the most to any family is how much that family is bringing in. And that goes to the heart of the income-inequality debate: Most Americans still have yet to recover from the Great Recession, even though that downturn ended seven years ago. The average income for the 99 per cent is still lower than it was back in 1998 after adjusting for inflation.

Meanwhile, incomes for the executives, bankers, hedge fund managers, entertainers and doctors who make up the top 1 per cent have steadily improved. These one-percenters account for roughly 22 per cent of all personal income, more than double the post-World War II era level of roughly 10 per cent. One reason the income disparity is troubling for the nation is that it’s thinning out the ranks of the middle class.

Incomes in California follow the pattern

The Golden State is, increasing, golden for those at the top, lead for those below.

Consider this graphic from the Public Policy Institute of California:


More from the Institute:

Over the past three decades, the distribution of pre-tax cash income in California has been driven by broad, long-term economic forces—although economic booms and busts also figure in. We can track changes in the spread of incomes since 1980 by measuring family incomes at the top, middle, and bottom of the ladder.

Top income levels (at the 90th percentile) were 39.7 percent higher in 2014 than they were in 1980, while low incomes (at the 10th percentile) were 18.6 percent lower. The middle-income level (at the 50th percentile) in California is a mere 5 percent higher than it was in 1980.

California’s economy has experienced a number of boom-and-bust cycles in the past three decades, and incomes across the spectrum have clearly been affected by the gains and losses of these cycles. However, their effects have been uneven. Top incomes have contracted in bust periods, but they have typically rebounded fairly quickly and have gained additional ground. Over the long term, top incomes have increased well beyond 1980 levels. Middle incomes gained some ground in the late 1990s and early 2000s, rising roughly 10 percent above 1980 levels, but these gains disappeared during the last recession. Low incomes declined the most during each of he major recessions since 1980 (early 1980s, early 1990s, and late 2000s) and did not rise above 1980 levels during recovery periods. In 2006, after the growth period of the late 1990s and early 2000s, the 10th and 20th percentiles of income had rebounded to 1980 levels, but the Great Recession took hold soon after. These trends at the bottom, middle, and top of the income ladder add up to a long-term divergence of family incomes in California.

According to the most recent data (from 2014), the median family income before taxes and adjusted to represent a family of four in California is about $69,000. Incomes at the bottom are $15,000 or less, while the top incomes are $198,000 or more.

America’s ethnic wealth divides are growing deeper

BLOG Wealth

The chart is from a sobering new report from the Institute for Policy Studies: The Ever-Growing Gap: Without change, African-American and Latino families won’t match white wealth for centuries.

Key findings from the report:

  • Over the past 30 years, the average wealth of White families has grown by 84% — 1.2 times the rate of growth for the Latino population and threetimes the rate of growth for the Black population. If the past 30 years were to repeat, the next three decades would see the average wealth of White households increase by over $18,000 per year, while Latino and Black households would see their respective wealth increase by about $2,250 and $750 per year.
  • Over the past 30 years, the wealth of the Forbes 400 richest Americans has grown by an average of 736% — 10 times the rate of growth for the Latino population and 27 times the rate of growth for the Black population. Today, the wealthiest 100 members of the Forbes list alone own about as much wealth as the entire African-American population combined, while the wealthiest 186 members of the Forbes 400 own as much wealth as the entire Latino population combined. If average Black households had enjoyed the same growth rate as the Forbes400 over the past 30 years, they would have an extra $475,000 in wealth today. Latino households would have an extra $386,000.
  • By 2043 — the year in which it is projected thatpeople of color will make up a majority of the U.S. population — the wealth divide between White families and Latino and Black families will have doubled, on average, from about $500,000 in  2013 to over $1 million.
  • If average Black family wealth continues to grow at the same pace it has over the past three decades, it would take Black families 228 years to amass the same amount of wealth White families have today. That’s just 17 years shorter than the 245-year span of slavery in this country. For the average Latino family, it would take 84 years to amass the same amount of wealth White families have today — that’s the year 2097.

Next, an interview by The Real News Network‘s Kim Brown of one of the authors of the report, Josh Hoxie , who heads the institute’s Project on Opportunity and Taxation:

A Post-Racial Society With a Racial Wealth Divide?

From the transcript:

HOXIE: Historical policy definitely has played a role in contributing to the racial wealth gap. And one of the interesting things about studying wealth is that it’s really where the result of past policy meets the present that’s impacting people’s lives. So income can tell us a snapshot of where people are at right now, but wealth really gives us that longitudinal view. And as you pointed out, the historical public policies in this country have contributed directly to the growing racial wealth gap we’re witnessing today. And unfortunately, current policies that we have right now also contribute to the racial wealth gap we see today.

Just one example of that is the tax expenditures that we see come out of Congress year-in, year-out, which now total over half a trillion dollars, $600 billion, to be exact. So we’re seeing this money come out that’s designed to be helping people generate wealth. It’s for retirement savings, it’s for home ownership, it’s for things like saving for your child’s college. But the problem is that it’s being skewed into fewer and fewer hands, people at the tippity-top of the economic spectrum who don’t need huge subsidies in order to maintain or generate wealth. People at the bottom are not getting the same amount of help, or anywhere near the amount of help that people at the top are getting.

BROWN: And your report notes that, that there has been tremendous accelerated wealth, growth by the top 1 percent of Americans. You cite the Forbes 400 and you say that they have seen wealth gains of over 700 percent in the last 30 years. I’m curious, because most of the Forbes 400 are white Americans, now, if you were to somehow exclude these very wealthy hundreds of people from this equation, does that change the wealth gap at all? Does that shrink it between when you’re looking at average black, white, and Latino families? Or is the gap still about the same?

HOXIE: Well, it’s certainly true the wealth has concentrated over the past 30 years in an incredible amount into the tippity-top of the economic spectrum. The Forbes 400, as you mentioned, had an average wealth gain of over 700 percent. For context, that’s 10 times faster than the rate of growth for an average Latino family and 27 times the rate of growth for an average black family. So no doubt that money has been concentrating significantly.

And to you direct question, I think there is a role that money concentrating at the top plays in driving the averages up for white families. Because if we look at the median income, or median wealth, excuse me, black wealth over the past 30 years for the median family has actually gone down. So we talk a lot in this report about the average family which, you know, the statistical average is being pulled up by those at the top, and the same is true for white families.

Now, the median white family has gone up, but less than the average, which implies that the top of the spectrum is pulling up that average. But for the black median family and for the Latino median family those rates have been going down. So what we’re seeing is that a typical family that you see on the street is not doing as well as they were 30 years ago when it comes to generating and maintaining wealth.

What more to say?