Minor Thoughts from me to you

Archives for Wealth (page 2 / 2)

Poverty in America

What causes poverty in America? Greedy capitalistic businessmen? Unethical financiers? How about marriage?:

For the most part, long-term poverty today is self-inflicted. To see this, let's examine some numbers from the Census Bureau's 2004 Current Population Survey. There's one segment of the black population that suffers only a 9.9 percent poverty rate, and only 13.7 percent of their under-5-year-olds are poor. There's another segment of the black population that suffers a 39.5 percent poverty rate, and 58.1 percent of its under-5-year-olds are poor.

Among whites, one population segment suffers a 6 percent poverty rate, and only 9.9 percent of its under-5-year-olds are poor. Another segment of the white population suffers a 26.4 percent poverty rate, and 52 percent of its under-5-year-olds are poor.

What do you think distinguishes the high and low poverty populations? The only statistical distinction between both the black and white populations is marriage. There is far less poverty in married-couple families, where presumably at least one of the spouses is employed. Fully 85 percent of black children living in poverty reside in a female-headed household.

It turns out that the poor in America are actually doing pretty well, by absolute standards.

In 1971, only about 32 percent of all Americans enjoyed air conditioning in their homes. By 2001, 76 percent of poor people had air conditioning. In 1971, only 43 percent of Americans owned a color television; in 2001, 97 percent of poor people owned at least one. In 1971, 1 percent of American homes had a microwave oven; in 2001, 73 percent of poor people had one. Forty-six percent of poor households own their homes. Only about 6 percent of poor households are overcrowded. The average poor American has more living space than the average non-poor individual living in Paris, London, Vienna, Athens and other European cities.

Nearly three-quarters of poor households own a car; 30 percent own two or more cars. Seventy-eight percent of the poor have a VCR or DVD player; 62 percent have cable or satellite TV reception; and one-third have an automatic dishwasher.

That's certainly doing better than me. I don't have cable TV or a dish washer (not until my daughter gets a bit older, at any rate).

Indian Wealth Leads to Indian Altruism

I cheer globalization, even when American workers lose their jobs to non-Americans. Why? Because the world's poor are always made better off. To be blunt, I feel far, far more sympthathy for the poor of the world than I do for America's newly unemployed. One group of people gets to enjoy fresh food year round, air conditioning, heating, clean drinking water. The other group -- doesn't. So when the have-nots get an opportunity to become the haves, I cheer.

Why do I bring it up? Well, I read a story in the New York Times that demonstrates, again, how things are improving in India: In India, Poverty Inspires Technology Workers to Altruism:

"Babajob seeks to bring the social-networking revolution popularized by Facebook and MySpace to people who do not even have computers -- the world's poor. And the start-up is just one example of an unanticipated byproduct of the outsourcing boom: many of the hundreds of multinationals and hundreds of thousands of technology workers who are working here are turning their talents to fighting the grinding poverty that surrounds them.

"In Redmond, you don't see 7-year-olds begging on the street," said Sean Blagsvedt, Babajob's founder, referring to Microsoft's headquarters in Washington State, where he once worked. "In India, you can't escape the feeling that you're really lucky. So you ask, What are you going to do about all the stuff around you? How are you going to use all these skills?"

The best-known networking sites in the industry connect computer-savvy elites to one another. Babajob, by contrast, connects India's elites to the poor at their doorsteps, people who need jobs but lack the connections to find them. Job seekers advertise skills, employers advertise jobs and matches are made through social networks.

For example, if Rajeev and Sanjay are friends, and Sanjay needs a chauffeur, he can view Rajeev's page, travel to the page of Rajeev's chauffeur and see which of the chauffeur's friends are looking for similar work.

Woohoo!