Friday, April 10, 2015

The double-standard of making the poor prove they’re worthy of government benefits

It’s a crime to be poor in America
Even minor scrapes with the law can lead to fines, prison and permanent joblessness

In America, you’re presumed innocent until proven guilty. Unless you’re poor, that is.
Increasingly, it’s a crime to be poor, and the punishment is often further impoverishment.
Fifty years ago, Chuck Berry sang about a brown-eyed handsome man who was “arrested for the crime of unemployment.” Little has changed since then.

For poor people, even minor scrapes with the law can have major consequences, including prison time, probation, endless debt and permanent joblessness. For people of means, those same legal problems are a nuisance, but they aren’t life-changing events.
More cities and states have realized that poverty can be a profit center. Not for poor people, of course, but for government treasuries and for private companies hired to handle the influx into the criminal justice system of people whose only crime was the inability to pay a traffic ticket or a misdemeanor fine.
Cash-strapped cities like Ferguson, Mo., count on fines and court-imposed fees to balance their budgets, and that reliance on the revenue from petty violations was cited by the Justice Department as a contributing factor in Ferguson’s high rates of traffic stops and arrests for minor crimes and misdemeanors.
In many states, offenders are expected to finance the justice system, including court costs, room and board while incarcerated, probation supervision and drug-treatment programs. For anyone living paycheck to paycheck, even a $100 fine can be a challenge, and paying off the debt to the court and to the privatized probation company can be impossible, especially if the arrest has led to the loss of a job or a driver’s license.
Just being arrested can be devastating: Half a million people are languishing in jail awaiting trial because they can’t afford to pay the bail.
People who are let out of prison are often said to have “paid their debt to society.” But in most cases, they haven’t paid their debt for the costs of their imprisonment and probation. More than 80% of people let out of prison leave owing money, according to an investigation by NPR and the Brennan Center for Justice.
Those of us who live sheltered middle-class lives often wonder why anyone would run away from the police or resist arrest. Running away can cost you your life, as what happened to Walter Scott. Why would he risk being shot in the back by a police officer?
Perhaps he feared that an arrest for a minor traffic violation (the tail light on his car was out) would lead to a downward spiral of fines, jail time and permanent joblessness, as it has for others. According to relatives, Scott was behind on his child-support payments, and he may have feared that he’d be jailed for his failure to pay. Which, of course, would have cost him his job and any chance he and his family had of a future.
So he ran, and he died.
There’s a clear racial element to this story, of course. Black and Hispanic men are far more likely to be pulled over by police, and far more likely to be arrested for petty crimes, such as jaywalking, loitering, or sleeping in public or in their car.
“Poor people, especially people of color, face a far greater risk of being fined, arrested, and even incarcerated for minor offenses than other Americans,” according to a survey from the Institute for Policy Studies, “The Poor Get Prison: The Alarming Spread of the Criminalization of Poverty.”
The report details with statistics and shocking anecdotes how the system works to grind up anyone caught in it. A man caught shoplifting a can of beer — let’s call him Jean Valjean — is fined $200 and sentenced to a year of probation. He cannot afford to pay the fees that finance his own probation, so he’s jailed, where more fees rack up.
Don’t for a minute think this is a problem confined to states that fly the Confederate battle flag over the State House. In New York, you can be arrested for putting your feet on the seat in the subway. In Washington, D.C., you can be arrested if your kids skip school.
And in California, the DMV has replaced the INS as the most-feared government agency.
To help balance the state budget after the 2008 recession, California imposed numerous fees on top of the basic fines for traffic tickets, so that a $100 fine for, say, failure to report a change of address now actually costs $490.
The basic $100 fine is doubled for a “state penalty assessment” and another 20% is tacked on for a “state criminal surcharge.” Then there are fees for court operations, court construction, the DNA fund, the Medevac fund, and the EMS fund. Don’t forget the “conviction assessment” and the “county fund,” and there’s even a $1 charge for “night court.”
And if you don’t pay the fine in full, you’ll lose your license. In California, the DMV is the biggest debt collector of all.The Lawyers Committee for Civil Rights of the San Francisco Bay Area figures that about $10 billion in fines and fees haven’t been paid in California, leading to the suspension of 4 million driver’s licenses. Nearly one in six Californians can’t drive legally.
In California, if you can’t drive, you can’t work, as one client told the lawyers committee. “Without a license, I can’t work. Without work, I can’t pay my fines to get my license back.”
Woody Guthrie was right: Stay away from California “if you ain’t got the do re mi.” But where else can you go if you don’t have any dough? Nowhere in America, it seems.




Poverty looks pretty great if you're not living in it. The government gives you free money to spend on steak and lobster, on tattoos and spa days, on — why not? — cruise vacations and psychic visits.
Enough serious-minded people seem to think this is what the poor actually buy with their meager aid that we've now seen a raft of bills and proposed state laws to nudge them away from so much excess. Missouri wants to curtail what the poor eat with their food stamps (evidence of the problem from one state legislator: "I have seen people purchasing filet mignons"). Kansas wants to block welfare recipients from spending government money at strip clubs (in legalese: any "sexually oriented business or any retail establishment which provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment").


Then there are the states that want to drug-test welfare recipients — the implication being that we worry the poor will convert their benefits directly into drugs.


Sometimes these laws are cast as protection for the poor, ensuring that aid is steered in ways that will help them the most. Other times they're framed as protection for the taxpayer, who shouldn't be asked to help people who will squander the money on vices anyway.
But the logic behind the proposals is problematic in at least three, really big ways.
The first is economic: There's virtually no evidence that the poor actually spend their money this way. The idea that they do defies Maslow's hierarchy — the notion that we all need shelter and food before we go in search of foot massages. In fact, the poor are much more savvy about how they spend their money because they have less of it (quick quiz: do you know exactly how much you last spent on a gallon of milk? or a bag of diapers?). By definition, a much higher share of their income — often more than half of it — is eaten up by basic housing costs than is true for the better-off, leaving them less money for luxuries anyway. And contrary to the logic of drug-testing laws, the poor are no more likely to use drugs than the population at large.


The second issue with these laws is a moral one: We rarely make similar demands of other recipients of government aid. We don't drug-test farmers who receive agriculture subsidies (lest they think about plowing while high!). We don't require Pell Grant recipients to prove that they're pursuing a degree that will get them a real job one day (sorry, no poetry!). We don't require wealthy families who cash in on the home mortgage interest deduction to prove that they don't use their homes as brothels (because surely someone out there does this). The strings that we attach to government aid are attached uniquely for the poor.


That leads us to the third problem, which is a political one. Many, many Americans who do receive these other kinds of government benefits — farm subsidies, student loans, mortgage tax breaks — don't recognize that, like the poor, they get something from government, too. That's because government gives money directly to poor people, but it gives benefits to the rest of us in ways that allow us to tell ourselves that we get nothing from government at all.


Political scientist Suzanne Mettler has called this effect the "submerged state." Food stamps and welfare checks are incredibly visible government benefits. The mortgage interest deduction, Medicare benefits and tuition tax breaks are not — they're submerged. They come to us in round-about ways, through smaller tax bills (or larger refunds), through payments we don't have to make to doctors (thanks to Medicare), or in tuition we don't have to pay to universities (because the G.I. Bill does that for us).
Mettler's research has shown that a remarkable number of people who don't think they get anything from government in fact benefit from one of these programs. This explains why we get election-season soundbites from confused voters who want policymakers to "keep your government hands off my Medicare!" This is also what enables politicians to gin up indignation among small-government supporters who don't realize they rely on government themselves.


Mettler raises a lot of concerns about what the submerged state means for how we understand the role of government. But one result of this reality is that we have even less tolerance for programs that help the poor: We begrudge them their housing vouchers, for instance, even though government spends about four times as much subsidizing housing for upper-income homeowners, including in many cases second and vacation homes.
That's a long-winded way of saying that these proposed laws — which insist that government beneficiaries prove themselves worthy, that they spend government money how the government wants them to, that they waive their privacy and personal freedom to get it — are also simply a reflection of a basic double-standard.

6 comments:

  1. This doesn't even begin to address the absolute destruction caused by the Fed wherein rates were slashed to zero, the currency was debased, and a metaphorical gun was put to the head of the seniors and others who used to save money, either put your money in the stock market and take a lot of risk, or put your money in the bank and literally pay the bank to hold it for you while they loan it out and make money on it.

    We wail about poor people getting something for not working, but welcome with both hands that progeny of the rich should be allowed to just inherit millions of dollars without ever working. It goes on and on. When I've brought it up, I've basically been told that the wealthy shouldn't be punished for simply taking advantage of what the Fed is doing, it's not the fault of the wealthy after all. Yet, for the poor person who doesn't have a fucking dime to put in stocks, we seem totally okay with their purchasing power being destroyed in favor of keeping assets inflated.

    I heard you Rick, but nobody right of center does. It's sadly a moot point. If we actually did cut spending, strengthen the dollar and so on, that would absolutely benefit the poor in this country, This is why I don't believe the bullshit that all spending is designed to deliver liberal votes.

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    1. Few people understand the effect that the Fed(that is central banking in general), its monetary policy, fractional reserve banking and its symbiotic relationship with the US federal government has on their day to day lives, wealth and ability to plan a future…. But people at the lower end of the income scale understand quite clearly with the checks stop… Ask our dear president who used it quite effectively in any discussion over a government shutdown… I certainly didn’t hear a whole lot said about the residual effects of having US credit downgraded because of our inability to spend within our means… just that the Tea Party caused the downgrade as if they were the ones who doubled our debt in the matter of a couple of decades….

      It took Ron Paul years to actually get bipartisan support for an audit bill... previous to its passage few on the right actually want to see the Fed audited because of what we might find… fewer still on the left want that to occur.

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    2. TS,

      Is it possible that maybe people just don't like seeing a shutdown of the government? Is it possible that maybe, even people who aren't vile dependents are just tired of the bullshit of shutdowns with no real alternative? Over and over and over people like Paul Ryan and others keep putting these plans out there that have no chance of passage. Not just because Reid blocked them in the Senate, but because Obama won't sign them and they don't have veto override support.

      Near as I can tell, the single biggest impact on your credit is how consistently you pay your bills. When I got into credit trouble in my early 20's, there was no shortage of people wanting to lend me even more money when I was 10k in debt a making 30k a year. China has not seemed to mind lending us money at 0% to keep buying the shit they produce. In essence, there hasn't been any negative impact that I can see from the downgrade. I don't think we got downgraded primarily on how much debt we had, rather, we got the downgrade because it looked like a small group within our congress was willing to say, "F you, we aren't paying our debt until our group gets a budget we want" To me, it's complete farce that S&P had the balls to downgrade us after their complete failure to properly rate anything in the housing debacle. But that's another story.

      As for auditing the Fed, I watched Humphrey Hawkins testimony for years and the main conclusion I came away with was the the vast majority of of congress are kind of idiots who don't have a clue about what the Fed does or what impact it has.

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    3. Ask Greece if credit worthiness matters. While I agree with you that rating agencies were bought off to slant rating of junk tranches doesn’t mean that they didn’t evaluate and know that they were junk. Just because they didn’t sell out to pressure of the US Government who, if you will remember, made some fairly overt threats doesn’t mean that their ratings were wrong.

      You know as well as I do that China’s purchase of US debt has a much more long term and political aspect than whether they lose some on those treasuries… Hell, they are building their entire infrastructure off the back of the US tax payer and consumer and if it all goes to hell in a handbasket, while they may have some civil unrest, nationalism being what it is, they will play the hate America card. And you also know as well as I do that at some point, people stop taking the risk. China is working feverously to detach itself from the US dollar as are several larger economies.. at some point the dollar being a reserve currency will cease to matter and then ‘Full Faith’ will take on an all new meaning cause at this rate the ‘credit’ will be destroyed.

      So you would rather have your elected representative removed from the loop of monetary policy in favour of a for profit enterprise manipulating your money. I don’t mind the fact that they are for profit… a mind that they are a government protected monopoly. It’s an interesting take given your acrimony over the rape of poorer people in support of the assets this arrangement supports… At the same time, I don’t disagree with you about the ignorance of Congress or the multitudes of high paid public employees we pay for… setting the value of the currency should be just about all they are allowed to do but using currency as leverage for everything from inflation to job creation… muh, not so much.

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    4. Bringing up Greece is a red herring. When you have the worlds biggest military, you have the ability to take any resource you want. The United States does not have to play by the rules it imposes on others. That's just the way it is. I disagree with your first premise, I don't think the agencies knew the paper was junk. You can't prove fraud easily, but I think all the major firms knowingly buried ninja loans in the tranches of paper they turned around and sold to the credit markets. Further, the ranks of S&P are full of people who simply weren't good enough to get jobs as traders on Wall Street. I watched that bubble build, pop and destroy a lot of people. Fuck every last one of those shitbags at SP who aided and abetted Wall Street in fleecing the world.

      If you really believe they did know better, then you should welcome an investigation that exposes just how corrupt our markets are. This, IMO, is exactly why an investigation did not happen. We didn't want living proof that unregulated markets and completely crooked.

      I keep going back to the same point, the United States does not have to play by the rules that others do, and it's for multiple reasons. It's not that I don't want oversight from congress, it's a matter that I just think they understand. I think Elizabeth Warren understands it VERY well, but, she's a communist. Over sight did work quite well for decades because it turned banks into stodgy, low profit ventures that were stable, tied to the community and free of speculative leverage. We will never get to put that genie back in the bottle and I feel quite certain that wall street has releveraged up to the hilt again.

      I have forever felt that our China deal is not sustainable, yet it endures. Go back and read the first two para of Francisco's speech to Reardon and explain to me how our nation is able to defy every word of that. We produce little. We consume much. And we borrow to do so. Small countries who do what we do become failed states. But in our case, China just keeps giving us more money. Of course it is political for them, but it hasn't changed anything.

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  2. I wouldn’t say that Greece is a red herring at all… it is exactly what failed fiscal and monetary policy looks like both from the point of Greece and its benefactor, the European Union… does it have the wherewithal to sustain the illusion of prosperity that the US has? No, but it is none the less exactly what poor money management looks like… and like it or not, it is exactly what third stage democracy looks like. …( That includes the EU because while it would like to fancy itself a super state, it hasn’t had the ability to saturate the world with Euros the way the US has Dollars under Bretton Woods.)

    I wouldn’t say that we are defying the passages that you talk about… I would say that the wheels turn slowly and we are in a long but painful transition as a nation. It is true that we still have military might on our side but bigger dragons have been slain by their own arrogance… and who is to say exactly who’s side the military machine is on?(It appears to me that the people of this country are being conditioned to accept a ‘let me see your papers’ mentality of an East Berlin.. or a Communist China and the military from the top down is being repopulated to look domestically for its mission focus rather than abroad.

    This of course gives rise to a lot of conspiracy theory but we know from all of the doomsayers prior to the banking meltdown in 2008 that some conspiracies are in fact true… you just never know which ones. It is of course easier to stick our heads in the sand then ask the hard questions about the road we are traveling.

    You talk about the genie that we can’t put back in the bottle…. The genie of course was let out of the bottle, in the US at least, directly as a result of British banking policies and the backing of its central bank. US banks were struggling to compete global, as you stated, in the big fiat money scam because laws like Glass-Steagal tied its hands against the likes of HSBC and Deutsche Bank.. when people understand the nature of the central banking phenomena… follow its history and look at its overall effects maybe well will put one genie back in the bottle…. The idea that a nation should be the only maker of a currency. By allowing for the competing of currencies, which as I am sure you will point out, has consumer risks, you remove the monopoly power of one, the central bank and more importantly, the federal government. At that point we start reversing who owns America and would force the federal government to act with the same relative responsibility of states in managing its budget. Of course no progressive, statist or warmonger could abide that….

    I ran across an interesting quote about the everyday existence of Darwinism which is inherent in our DNA and that which progressives attempt to futilely change through the funnel of Washington politics..

    “Since winning elections is overwhelmingly a matter of vote buying, and society’s informational organs (education and media) are no more resistant to bribery than the electorate, a thrifty politician is simply an incompetent politician, and the democratic variant of Darwinism quickly eliminates such misfits from the gene pool.” – not attributed

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