Poor Getting Richer?

Unless, of course, there’s no difference. In the online world, that’s largely the case. You could make 10 times as much as I do, and it wouldn’t change the nature of our interaction. On the other hand, in the real world I might feel differently as the visible trappings of wealth you display separate us by class.

These features trickle down. ABS and airbags have been widely available in all cars for 10 years now. Air conditioning and other comforts have been standard for a long time.

Of course the wealthy get these features first. They’re early adopters and pay a premium for them. This is a good thing. It stimulates develop of new products that eventually trickle down to everyone.

But you know what? You’ve put your finger on another benefit of modern cars: They last longer. If the poor can only afford 10 year old cars, the 10 year old car they can buy today will be MUCH better than a 10 year old car they could have purchased 20 years ago. Hell, I drive a 2003 Ford Escape, and I have no desire to buy new because the difference between new cars and mine are just not that stark - not enough to warrant a big car payment. My vehicle looks and drives like new. Of course, I take the time to maintain it.

On the other hand, if you drove a 10 year old car in the 70’s, 80’s or 90’s you were probably driving a rusted wreck - especially if the vehicle started life as an economy car. Those old Chevettes and Vegas and K-Cars were lucky to make it 10 years - or in some cases even 5 years. Today, we’re surrounded by 10 year old cars that look new. Chalk it up to tighter tolerances, better materials, advances in rustproofing and paint, yada yada. All of which benefits the poor more than the rich, because the rich can always afford to dump worn vehicles while the poor can’t.

If you live your life mostly online, the fact that you live in a hovel doesn’t matter as much to your overall standard of living, because the things you can do and see are not affected by your living quarters.

But if you do live in a hovel, isn’t it great that there’s an entire world of social interaction out there that you can participate in where no one has to know where you live? Or for that matter, what color your skin is? Doesn’t that make your life better?

Not all jobs for poor people are service jobs. But there are jobs that can be done online by unskilled people. Call center work and telemarketing come to mind. I would concede that there aren’t many such jobs right now. But for those people on the margin who have managed to find work they can do from home, it makes a world of difference.

But speaking of service work - even little things like online banking or online access to government services can be a big quality of life improvement for people who can’t travel easily, such as single mothers. I grew up in a family with a single mother and with no car. Do you know how hard it was for her to even go grocery shopping? She had to pack her kids up on a bloody bus and haul us across town to the grocery store and back. Sometimes trying to carry as much as we could on the bus, or other times splurging to pay for delivery service if we just couldn’t carry it. It was an all-day affair, and with a couple of squalling infants in tow it had to be absolutely exhausting for her. The same pattern would be repeated if she had to go to the bank to cash her cheque, or go to a government office or buy clothes or do anything else that couldn’t be done at home.

Today, a lot of that can be done online. My mother would have killed for that.

Oh, you’re right. The poor don’t purchase anything at all. They live on hopes and dreams that progressives will save them from living in a cave in a state of raw nature.

There are options for non-card payment. I believe you can deposit money with PayPal and then use it for many online transactions. You’re really reaching here.

My mother could NEVER have gone to any sort of college with small children at home, while pulling down a job. Had the internet existed then, she could have studied at home. I’m not sure you really understand the problems poor people face if you think that expanding community colleges is equivalent to or better than online education for many of them.

Really? So now it’s Harvard or MIT or nothing? This says a lot about how you’re choosing to debate here - or your perception of the poor. I was thinking more along the lines of online training in a specific skill that employers might be looking for, or getting a GED online if you dropped out of school. You can take online courses in all sorts of things that you might be able to leverage into a real-world job or at least improve your resume so you have a better chance of getting a job.

Why don’t you look up the rapid rise of home schooling? Not long ago, the vast majority of home schooling was done for religious reasons, but now more parents are citing toxic school environments (drugs, violence, poor teaching, etc) as reasons for home schooling. The internet is a key part of this.

My own kid is doing grade 11 math at home, because his school’s math teacher for the section he would have been in is completely useless and has a terrible record for kids dropping the class because they can’t learn. Right now he’s watching a free set of lectures online from the Khan Academy. If you’d like to brush up, they’re here.

For a smart but poor kid forced to go to a drug and gang infested inner city school with a bunch of lousy teachers and a 50% drop out rate, these kinds of resources are invaluable. They’re also invaluable to someone who dropped out of school and is trying to rectify that mistake.

I never said it makes up for it - I said it is a factor that is improving the lives of poor people. You always go for the extreme interpretation so you can refute it.

And let’s not kid ourselves that the poor are starving in America. As for rats, I don’t know. But the poor in America are not destitute - the poverty line is double the world annual income and damned near the median income of some developed nations. The poor in America generally get enough to eat, although their choices are limited. They generally have a decent roof over their heads, access to the internet, cell phones, TVs, dishwashers, automatic washing machines, and the other basic trappings of life we take for granted. That doesn’t mean they are happy or that they’re not experiencing hardship and frustration, but let’s not exaggerate.

Then it’s a good thing I never claimed anything of the sort, so you can put your strawman away and snuff out the match.

I’m well aware of the problems the poor face. As I said, I’ve been there. I’ve lived in a house with no central heat and no indoor plumbing. Don’t tell me about poverty until you’ve had to walk out to the outhouse in a Saskatchewan winter, or had to hike water from an outside well so you could prime the kitchen pump and hand-pump enough water to fill the array of rusty kettles we used to heat our bathwater. And don’t sneer at television as a lifestyle improvement when your other entertainment options are just about zero because you have no money and no place to go. The day we got our color TV was a huge event in our family. Had the internet existed then, it would have made life on a poor farm much more bearable.

The point is not that the internet makes the problems of the poor go away. The point was simply that the internet is a quality of life improvement that doesn’t show up in the poverty statistics.

Man, did that ever work out well for the residents of Detroit.

Right. Because the people in all those nations with really progressive taxes are all farting through silk. I guess the homeless guy I saw sleeping in the gutter in Paris must have been making a lifestyle statement, because France has the most progressive tax system in the world. For that matter, I guess those slums I saw from the train must have just been some kind of modern art statement.

Because if your labor is only worth $5.00/hr, forcing employers to pay $10 for it or not hire you at all will do you so much good.

There we can agree. Let’s fix the issues that have broken the market, put accountability for pricing back on doctors and patients to control costs, and use government only for cases of catastrophic health issues.

Because in a world of declining ratios of workers to retirees and a government that is borrowing 40 cents of every dollar it spends, what you really need is more retirees who receive more benefits. That will fix everything.

The thing is, the higher mileage cars are happening irrespective of EPA mandates, and in fact mileage gains are coming faster than what the EPA required. That’s because the technology was available. And if it wasn’t, all the mandates in the world couldn’t improve mileage.

And there have been plenty of investments in alternatives to oil. Companies in my little province alone have invested billions of dollars in research and development of oil sands. Shale oil and gas are also seeing major investments.

And it’s sure a good thing that all the money invested in fracking technology was there, because natural gas is cheaper and emits much less CO2 per BTU than other alternatives. Good thing the progressives are right behind it and helping to fast-track a changeover from coal to natural gas to help slow global warming.

Right. Because what society really needs is to institutionalize its children at an even younger age. Parental influence is SO over-rated. And France is a terrible model - it pays for its expansive daycare through business taxes - part of the reason why business investment in France is in the dumper and France is facing deteriorating economic conditions and posting bad job losses.

I was actually in France the day Hollande was elected. There were riot police everywhere in case Sarkozy was re-elected, because the socialists were threatening riots in that case. Instead, there was cheering in the streets and horns honking in joy.

Hollande advocated and promised pretty much everything you are are suggesting as a cure to France’s economic woes - higher taxes on the rich, more expansive social programs, targeted government 'investment, etc. So far, it’s been a disaster. So much so that Hollande is now compaigning on a plan to cut capital gains taxes to try to slow the tide of business contraction and capital flight. He’s another lefty that promised a quick fix to unemployment, only to see it get substantially worse after his ‘pro worker’ policies were put into place.

As for giving the public education system even more control over the children… Tell you what: You fix the public school system so that kids in the inner city have an 80% graduation rate, then we’ll talk about giving the government more control over our children. Get the drugs and violence out of the schools, and fire the teachers who don’t give a damn. Until you can get the current education system in order, I wouldn’t let you expand it to day care for my dog.

Right. Because the financial system is currently an unregulated wild west. Oh wait… It’s actually the most regulated industry in the U.S. Well, that or health care, which is also working incredibly well. And wasn’t that the head of Goldman Sachs I saw visiting the White House? Or maybe Citibank? It’s so hard to tell them apart. Especially when you need a scorecard to tell the regulators from the people being regulated because they swap positions so much.

But I’m sure the NEXT set of regulations will be golden!

So everyone else does these things, and some do worse and some do better? That’s quite an endorsement. The ones doing ‘worse’ aren’t just a little worse off - they’re going bloody bankrupt. Some, like France, are facing capital flight and a population so disaffected that it’s a good night when only a handful of cars are burned to the ground by angry people. Others, like the UK, have expensive government-run health care systems that rank near the bottom for quality of service and health outcomes.

The Euro Zone as a whole currently has a 12.2% unemployment rate, a whole list of countries near bankruptcy, a birth rate way below replacement, and other structural problems. At this point I think they’re more useful as a cautionary tale than as an example of something to be emulated.

In the meantime, the countries that rank at the top of the world in economic performance also happen to have lower taxes and more economic freedom. Australia, New Zealand, Switzerland, Canada… All with smaller governments than yours, less debt, and better outcomes for the poor.

We have a functioning health care system that is largely decentralized and which has significant amount of free market solutions. Our government spends less on health care per capita than your government does, and I believe our government is involved in a smaller percentage of overall health care delivery in dollars, or at least a a similar amount.

But it’s always tricky comparing health care costs across countries. Part of the U.S.'s problem is due to poor health of the population, inner city poverty and crime, obesity, and a crazy mixed government/private health care system that retains the best features of neither the market nor government control.

More affordable higher education? Tuition at the University of Alberta runs between $7,000 and $20,000 per year depending on the faculty. I was just in Nebraska and out of curiosity looked up the tuition there. For state residents, it’s $8,060.00 per year. That ranges from comparable to much cheaper than the Canadian equivalent.

Our taxes are less progressive than American taxes, and we have lower capital gains and dividend taxes as well. Our federal corporate tax rate is only 12.5%. If our GINI coefficient is lower, it’s likely due to the nature of our society and the types of immigrants we get rather than any sort of progressive policy choices. Or, just perhaps, a more business-friendly tax and regulatory climate creates benefits that do trickle down to everyone. Fast-food employees here make something like $3-4 over minimum wage because our economy is strong and unemployment low.

Our retirement system works better than yours in part because we means-test it - wealthy retirees only get the basic Canada Pension, while poor retirees get supplementals which can double or triple it. You should try it, but my understanding is that American progressives are dead-set against means testing Social Security and Medicare.

In Canada about 30% of workers are in unions (vs 7 or 8% here). Canada also has a functioning UHC system, a minimum wage of about $10-11/hr.

Also because Canadian financial sectors had more capital, they could weather the crisis better. In the US due to deregulation we were overleveraged causing a boom and bust cycle which Canada mostly escaped.

Social security can be fixed with minor tweaks. Raise the tax rate a little bit (maybe from 6.2% to 6.8%), increase or eliminate the cap (or create a donut hole) and that will keep the system solvent and allow a more secure retirement for most people.

The arguments you are making make no sense to me. Canada does many of the things I list, and they are doing fine. Labor unions, a high minimum wage and better regulated banks haven’t destroyed Canada. Canada is doing better than we are.

As far as investments into new energy (with the goal of making energy cheaper, cutting costs. A 2 car household with electricity will probably spend close to $550 a month on energy), it is not something that would bankrupt society. The US government spends about 5 billion a year on energy R&D (no idea what private industry spends). By comparison Americans spend about $20 billion a year on ice cream. It isn’t going to bankrupt us.
Progressives are against means testing SS & Medicare because that is (for us at least) likely going to be a back door method of eliminating them, not a means of strengthening them. We means test them, then run a smear campaign saying ‘only poor people get those programs’ (poor people = blacks, latinos and single mothers), then the middle class votes to eliminate them. Class warfare is alive and well down here. Besides SS is already means tested in many ways. The less you make, the more you get in return plus it isn’t taxed.

O.K. I know this article is from a “liberal rag” but it does use solid data in this particular case. Maybe the issue isn’t the poor getting poorer, but the wealth gap getting larger and the middle class shrinking. And when you concentrate wealth in the hand of a very few the many lose their voice.

I don’t know of a single person who is at a higher (20% or more) tax bracket who wishes they had less income (regardless of the source) so they wouldn’t have to pay to much in taxes.

Only 4.7% of hourly wage workers make minimum wage or less. Changing the minimum wage would not significantly affect the middle class.

It is more likely that the difference in the economies between the US and Canada are the lower business taxes in Canada, the lower deficits and debt by the government, the means tested entitlements, the smaller government involvement in mortgages, and the elitist immigration policies. These are policies that affect many more people than unions and minimum wage.

In the past 30 years spendingon the 10 biggest welfare programs has gone up 367 percent in constant dollars. There is no evidence that the middle class is voting to do away with means tested programs.

What the chart says is that income for the very rich has gone up but not that the middle class is shrinking. As the chart in the OP shows the middle class is moving up into the upper class, not getting worse off.

So, irrespective of the other issues being debated in this thread, are we satisfied that the poor are NOT getting richer?

I’ve presented my evidence, and haven’t seen a counterargument, but I could have skimmed past it by accident.

That’s impossible as the real income of Americans has declined every year for the past 7 years. You are correct that the very rich are getting even more filthy rich, but it is at the expense of everyone else.

I thin the OP was pretty poorly written if you go to the links he provided. It, too, shows the poor as being stagnant. His cites are more about the middle class and whether or not that is shrinking. The links supposedly show that to the extent the middle class is shrinking, it’s because more middle class people are entering the upper class.

I don’t think your data is in a format that addresses that, since it looks at fixed percentiles.

Lots more people earn within $3-4/hr of the minimum wage. I don’t have the exact stats, but ~30-40% of wage earners fall within $4/hr of the minimum wage ($11.25/hr or less). Those people will see their incomes go up with a higher minimum wage.

Canada’s debt is about 70-80% of GDP, about where the US was a few years ago. Their debt is not lower than ours by much.

Canada has a better living environment for the poor and working class than the US does (better, more affordable health care; higher minimum wage; bigger labor unions; less income inequality) and they still do fine. The argument that you can’t take care of the poor and working class without it destroying the economy is disproven by nations like Canada.

I don’t think money matters much, but education does. Especially when looking for a job.

Yes it is a good thing. But it does not change the fact that they guy next to the Lexus does not have built-in GPS and a back-up camera and other safety features.

Damn, that Detroit does a good job! Lucky we bailed them out!
My Saturn was 14 years old before it had a problem that would cost more than it was worth to fix. But it is a big difference driving an old car because you want to (and can afford maintenance) and driving one because you have to. And I congratulate you on being ecologically sensitive, since it is almost always better for the planet to drive an old slightly less efficient car than a new one,

The times today had an article on this (in the Review section.) Being poor causes lots of stress, and this is different stress than we get from working long hours. Our stress is manageable, the stress of the poor kills them. Those on the bottom are three times more likely to die prematurely than those on the top. Even people who start poor and make it suffer from problems that those who were never poor don’t have. In fact it appears that the effects of poverty account for about 70-80% of the difference in longevity between whites and blacks in the US.
The article mentions that there have been animal studies correlating the feeling of helplessness that comes from poverty with these things, and which shows that it is not the case that people with these symptoms fall to the bottom.

One of the big issues in the US anyhow is that poor people tend not to have checking accounts. My daughter studied this problem in Newark. Checking accounts in the US are expensive if you can’t keep a hefty minimum balance, and especially if you are likely to bounce checks.

You think on-line courses take no time? I agree that decent childcare is essential, but the need to be in class at a given time, and direct feedback from the professor about work not done is going to work better than on-line classes; especially if the community college is close, which it should be and often is. Sure, someone in the middle of nowhere would do better with on-line classes.
I’m not against them - I’m just saying that they aren’t a panacea and certainly no reason to abandon community colleges.

There is a lot of GED stuff available already. Is it solving the problem in a big way?

Whatever the pluses and minuses of home schooling are, do you really think the parents of a kid mired in poverty are going to be good teachers? They are, by definition, those not strongly connected to the school. Our oldest kid had some bad teachers also - we could easily supplement rather than replace.

Oh. If the sum of you position is that the internet often helps, I agree. But it is not a replacement for other stuff, and is not going to get people out of poverty or even make their lives significantly better for the most part.

Let’s see what happens if food stamps get cut. Starving no, not yet, hungry probably, given the stress on food banks especially during the recession. I’m from New York - there are rats. Unless I missed the visit of the Pied Piper, there still are rats.
I lived in the Congo, I know what real poverty looks like. If we move our poor next door to those huts, I’m sure they’d feel much better. Ditto if they were near the dump in Mumbai described in a recent book. But as Americans they may deserve a bit better, just to be a bit chauvinistic.

Good thing I didn’t advocate doing away with the Internet for the poor. They’ve stayed poor after they got it. If you agree that it doesn’t solve the problem, we’re done. I agree it does make life better. Even if it is just looking at porn - saves money for other things, after all.

You’re right that my data doesn’t address that, though fixed percentiles aren’t the reason, but rather, trying to answer the OP’s question as repeatedly stated was. If his cites are about the middle class, then it’s his cites that are not on point.

But let’s look at the question you’ve stated. The answer is: up until about 2000, that was true, but it’s stopped being true since.

Table A-1 of the report I linked to earlier has percentages of households in different income ranges. Taking, say, $75,000 as the line of demarcation between middle class and, well, upper middle class, we see that 24.2% of households made at least that amount in 1973, and that had increased to 35.7% in 2000, but has dropped to 32.5% in 2011. (If we use $100K as our dividing line instead, the lessons are the same, just with smaller numbers: 11.6% in 1973, 22.7% in 2000, and 21.0% in 2011.)

Sorry if my initial statement was confusing, or poorly formed. I’m really trying to get at the validity of the commonly held ‘feeling’ that the poor are getting poorer, not if they’re stagnant, or questions about the middle class. I do understand that the situation is complex, but I’m trying to just get a handle on that specific aspect. The question of how the middle class is faring, and the question of income inequality are similarly (or more) complex issues.

The most current data I can find that extrapolate the wikipedia graph that only went to 2007 seems to indicate that the numbers started to go up slightly again in 2011.

Sorry, I misread the spreadsheet!

Looks like the decline for the bottom three fifths continued in 2011.

To repent, I’ve created an updated graph.