Posts Tagged 'poverty'

The real invasion of Africa is not news and a licence to lie is Hollywood’s gift

Dandelion Salad, February 3, 2012

The real invasion of Africa is not news and a licence to lie is Hollywood’s gift
by John Pilger

Global Research

http://johnpilger.com

January 30, 2013

A full-scale invasion of Africa is under way. The United States is deploying troops in 35 African countries, beginning with Libya, Sudan, Algeria and Niger. Reported by Associated Press on Christmas Day, this was missing from most Anglo-American media.

The invasion has almost nothing to do with “Islamism”, and almost everything to do with the acquisition of resources, notably minerals, and an accelerating rivalry with China. Unlike China, the US and its allies are prepared to use a degree of violence demonstrated in Iraq, Afghanistan, Pakistan, Yemen and Palestine. As in the cold war, a division of labour requires that western journalism and popular culture provide the cover of a holy war against a “menacing arc” of Islamic extremism, no different from the bogus “red menace” of a worldwide communist conspiracy.

Reminiscent of the Scramble for Africa in the late 19th century, the US African Command (Africom) has built a network of supplicants among collaborative African regimes eager for American bribes and armaments. Last year, Africom staged Operation African Endeavor, with the armed forces of 34 African nations taking part, commanded by the US military. Africom’s “soldier to soldier” doctrine embeds US officers at every level of command from general to warrant officer. Only pith helmets are missing.

It is as if Africa’s proud history of liberation, from Patrice Lumumba to Nelson Mandela, is consigned to oblivion by a new master’s black colonial elite whose “historic mission”, warned Frantz Fanon half a century ago, is the promotion of “a capitalism rampant though camouflaged”.

A striking example is the eastern Congo, a treasure trove of strategic minerals, controlled by an atrocious rebel group known as the M23, which in turn is run by Uganda and Rwanda, the proxies of Washington.

Long planned as a “mission” for Nato, not to mention the ever-zealous French, whose colonial lost causes remain on permanent standby, the war on Africa became urgent in 2011 when the Arab world appeared to be liberating itself from the Mubaraks and other clients of Washington and Europe. The hysteria this caused in imperial capitals cannot be exaggerated. Nato bombers were dispatched not to Tunis or Cairo but Libya, where Muammar Gaddafi ruled over Africa’s largest oil reserves. With the Libyan city of Sirte reduced to rubble, the British SAS directed the “rebel” militias in what has since been exposed as a racist bloodbath.

The indigenous people of the Sahara, the Tuareg, whose Berber fighters Gaddafi had protected, fled home across Algeria to Mali, where the Tuareg have been claiming a separate state since the 1960s. As the ever watchful Patrick Cockburn points out, it is this local dispute, not al-Qaida, that the West fears most in northwest Africa… “poor though the Tuareg may be, they are often living on top of great reserves of oil, gas, uranium and other valuable minerals”.

Almost certainly the consequence of a French/US attack on Mali on 13 January, a siege at a gas complex in Algeria ended bloodily, inspiring a 9/11 moment in David Cameron. The former Carlton TV PR man raged about a “global threat” requiring “decades” of western violence. He meant implantation of the west’s business plan for Africa, together with the rape of multi-ethnic Syria and the conquest of independent Iran.

Cameron has now ordered British troops to Mali, and sent an RAF drone, while his verbose military chief, General Sir David Richards, has addressed “a very clear message to jihadists worldwide: don’t dangle and tangle with us. We will deal with it robustly” – exactly what jihadists want to hear. The trail of blood of British army terror victims, all Muslims, their “systemic” torture cases currently heading to court, add necessary irony to the general’s words. I once experienced Sir David’s “robust” ways when I asked him if he had read the courageous Afghan feminist Malalai Joya’s description of the barbaric behaviour of westerners and their clients in her country. “You are an apologist for the Taliban” was his reply. (He later apologised).

These bleak comedians are straight out of Evelyn Waugh and allow us to feel the bracing breeze of history and hypocrisy. The “Islamic terrorism” that is their excuse for the enduring theft of Africa’s riches was all but invented by them. There is no longer any excuse to swallow the BBC/CNN line and not know the truth. Read Mark Curtis’s Secret Affairs: Britain’s Collusion with Radical Islam (Serpent’s Tail) or John Cooley’s Unholy Wars: Afghanistan, America and International Terrorism (Pluto Press) or The Grand Chessboard by Zbigniew Brzezinski (HarperCollins) who was midwife to the birth of modern fundamentalist terror. In effect, the mujahedin of al-Qaida and the Taliban were created by the CIA, its Pakistani equivalent, the Inter-Services Intelligence, and Britain’s MI6.

Brzezinski, President Jimmy Carter’s National Security Adviser, describes a secret presidential directive in 1979 that began what became the current “war on terror”. For 17 years, the US deliberately cultivated, bank-rolled, armed and brainwashed jihadi extremists that “steeped a generation in violence”. Code-named Operation Cyclone, this was the “great game” to bring down the Soviet Union but brought down the Twin Towers.

Since then, the news that intelligent, educated people both dispense and ingest has become a kind of Disney journalism, fortified, as ever, by Hollywood’s licence to lie, and lie. There is the coming Dreamworks movie on WikiLeaks, a fabrication inspired by a book of perfidious title-tattle by two enriched Guardian journalists; and there is Zero Dark Thirty, which promotes torture and murder, directed by the Oscar-winning Kathryn Bigelow, the Leni Riefenstahl of our time, promoting her master’s voice as did the Fuhrer’s pet film-maker. Such is the one-way mirror through which we barely glimpse what power does in our name.

Copyright © John Pilger, JohnPilger.com, 2013

Short link to this post: http://wp.me/p3xLR-uk

Spaniards Protest Health Care Reforms: privatization, closures of public facilities

Spaniards Protest Health Care Reforms

By HAROLD HECKLE
Associated Press

Protestors march as they carry a banner reading, “Public health care” and “24 hours strike” during a demonstration against regional government imposed austerity plans to restructure and part privatize health care sector in Madrid, Spain, Sunday, Jan. 13, 2013. Madrid proposes selling off the management of six of 20 public hospitals and 27 of 268 health centers. Spain’s regions are struggling with a combined debt of 145 billion euro ($190 billion) as the country’s economy contracts into a double dip recession triggered by a 2008 real estate crash. Andres Kudacki / AP Photo

MADRID — Thousands of people marched in Madrid on Sunday to protest plans to privatize parts of their public health care system, with some questioning the motives behind the government’s actions.

The march by employees and users of the system is the year’s second large “white tide” demonstration, named after the color of the medical scrubs many protesters wear. Several similar marches took place last year.

Demonstrators thronged main boulevards in the center of the Spanish capital, carrying banners saying, “Public health care should be defended, not sold off.”

The Madrid region has proposed selling the management of six of 20 large public hospitals in its jurisdiction and 10 percent of its 268 public health centers. It says these reforms are needed to secure health services during Spain’s economic crisis.

A protestor carries a banner reading, “Spanish Prime Minister Mariano Rajoy, serial fraudster” during a demonstration against regional government imposed austerity plans to restructure and part privatize health care sector in Madrid, Spain, Sunday, Jan. 13, 2013. Madrid proposes selling off the management of six of 20 public hospitals and 27 of 268 health centers. Spain’s regions are struggling with a combined debt of 145 billion euro ($190 billion) as the country’s economy contracts into a double dip recession triggered by a 2008 real estate crash. Andres Kudacki / AP Photo

But protesters were skeptical.

“This measure is politically inspired and not financial,” said mechanical engineer Mario Sola, 47. “If public hospitals were unsustainably loss-making as we’re being told, private enterprise wouldn’t be interested.”

Health care and education are administered by Spain’s 17 semi-autonomous regions rather than by the central government.

Many regions are struggling financially as Spain’s economy has shrunk due to a double-dip recession following the 2008 implosion of the once-prosperous real estate and construction sectors.

Some regions overspent during boom years, but are now excluded from borrowing on the financial markets to repay their accumulated debts, forcing them to seek savings and even request rescue aid from the central government.

Regional health councilor Javier Fernandez-Lasquetty called the protests irresponsible and said that “everyone has their point of view, but we are all fighting to defend the same thing.”

Jose Gabriel Gonzalez Martin, president of Spain’s Independent Civil Service Trade Union Center, said many people’s suspicions were aroused when former government health officials acquired jobs with private companies lining up to take over medical analysis functions.

“It might be purely coincidental, but some coincidences are surprising,” Gonzalez said.

Protestors shout slogans during a demonstration against regional government imposed austerity plans to restructure and part privatize health care sector in Madrid, Spain, Sunday, Jan. 13, 2013. Madrid proposes selling off the management of six of 20 public hospitals and 27 of 268 health centers. Spain’s regions are struggling with a combined debt of 145 billion euro ($190 billion) as the country’s economy contracts into a double dip recession triggered by a 2008 real estate crash. Andres Kudacki / AP Photo

 

Short link to this posting:  http://wp.me/p3xLR-uc

Can We Please Stop Pretending Obama is “Capitulating” on Social Security?

Firedoglake, Wednesday, December 19, 2010

Can We Please Stop Pretending Obama is “Capitulating” on Social Security?

By: Jane Hamsher

Everywhere you look, the media narrative is that President Obama is “capitulating” to Republicans by agreeing to cuts in Social Security benefits.

And I have to ask, where is this collective political amnesia coming from?

Obama has made a deliberate and concerted effort to cut Social Security benefits since the time he took office.  FDL reported on February 12, 2009 that the White House was meeting behind closed doors to consider ways to cut Social Security benefits, and that the framework they were using was the Diamond-Orszag plan, which was co-authored by OMB Director Peter Orszag when he was at the Brookings Institute.

The birth of the now-ubiquitous “catfood” meme came on February 18, 2009 with this FDL headline:

“Hedge Fund Billionaire Pete Peterson Key Speaker At Obama “Fiscal Responsibility Summit,” Will Tell Us All Why Little Old Ladies Must Eat Cat Food”

As I wrote in August of 2010, Peterson’s keynote spot was the worst kept secret in town; I knew about it because I had been on a conference call with about 40 representatives of various DC interest groups, many of whom had received written notice from the White House that Peterson was scheduled to headline the event. But nobody wanted to go on the record for fear of jeopardizing their relationship with the administration in its early days.

After FDL broke the news, Peterson was “disinvited” from the summit. Both he and the White House denied everything, but Robert Kuttner subsequently confirmed in the Washington Post that Peterson had, in fact, been scheduled as the keynote speaker that day.

The administration backed off its immediate plans for reforming Social Security. The New York Times reported that they were “running into opposition from his party’s left” who are “vehement in opposing any reductions in scheduled benefits for future retirees.” But NYT columnist David Brooks reported that shortly after the summit, “four senior members of the administration” called him to say that Obama “is extremely committed to entitlement reform and is plotting politically feasible ways to reduce Social Security.”

Undeterred, the White House began telling journalists off the record that they were interested in “establishing an independent commission (outside the congressional committee structure) to look at creating a specific reform plan.”

In January of 2010, a bill sponsored by committed Social Security slashers Judd Gregg and Kent Conrad which would have created an official commission to make recommendations about the nation’s deficit was defeated by the Senate on a bipartisan vote — 22 Democrats and 24 Republicans voted no.

After the Senate defeat, on February 18, President Obama issued an executive order creating what subsequently became known as the “Catfood Commission” anyway.

Unlike Bill Clinton’s Danforth Commission, which ended in deadlock, Obama set this commission up in such a way that it was stacked with deficit hawks who largely agreed on what needed to be done: 12 of the 18 members were to be appointed by Senate and House leaders in each party, and 6 would be appointed by the President. This virtually guaranteed that Social Security privatization fetishist Paul Ryan would be on the commission, as would Gregg and Conrad.

Among the President’s six appointments:

  • As Bowles’ Republican Co-Chair, the President appointed loose cannon Alan Simpson, the former rich kid GOP Senator from Wyoming once famously said that those who were complaining that Social Security needed protection were “people who live in gated communities and drive their Lexus to the Perkins restaurant to get the AARP discount.”
  •  David M. Cote, the Republican CEO of defense contractor Honeywell

The composition of the Commission was conveniently stacked with 14 of the 18 members committed deficit hawks looking to start balancing the federal budget on the backs of old people.

And who supplied the staff to the commission? Why, Pete Peterson.

Are we to believe that the President was blissfully ignorant of the agendas of the people he appointed to this commission, created with the goal of bypassing Congressional process?

With the exception of a few public dog and pony shows, the Commission conducted its deliberations in secret.  But on June 16 of 2010, Alex Lawson of Social Security Works blew a hole in that secrecy on the front page of FDL when he caught Alan Simpson on live streaming video as he was exiting a meeting of the Catfood Commission.   In real time, Alex got Alan Simpson to say what everyone in the room was thinking but wouldn’t say publicly. Simpson told Alex that the commission was “really working on solvency”:

“We’re trying to take care of the lesser people in society and do that in a way without getting into all the flash words you love dig up, like cutting Social Security, which is bullshit. We’re not cutting anything, we’re trying to make it solvent.”

The Catfood Commission ultimately failed it is mission, due in no small part to the work of people like Alex, Nancy Altman and Eric Kingson of Social Security Works who have consistently been out there informing and uniting interest groups and educating the public to the fact that, yes, the White House has an agenda of cutting Social Security benefits.

I don’t know why Obama wants to cut Social Security benefits. I do know that Obama has been honest about it from the start. In January of 2009, even before he took office, he told the Washington Post that he believed Social Security was a broken system and that “entitlement reform” was something he wanted to achieve during his tenure in office:

“Obama said that he has made clear to his advisers that some of the difficult choices–particularly in regards to entitlement programs like Social Security and Medicare – should be made on his watch. “We’ve kicked this can down the road and now we are at the end of the road,” he said.”

Perhaps Obama wants to do what Bill Clinton couldn’t do.  It’s clear the oligarch class has decided that this is what must happen, and that in order to be considered a “serious” person, this is what a President must do.  Perhaps Obama simply wants to be considered a “serious person” by those in the ruling class.

But it’s clear that he did not arrive at the decision to “reform” Social Security and cut benefits because he is a poor negotiator, or because of Republican arm twisting.  It defies all logic and reason to look at his actions over the years and think that the President is now “capitulating” on Social Security.

The President has been very forthcoming about the fact that cutting Social Security benefits is something he wants to do.  When he said during the debate that he didn’t differ from Mitt Romney on entitlement reform, he meant it.   It’s time for people to remove the rose-colored glasses and stop projecting their own feelings on to the man.  It’s time to take him at his word.

Short link to this posting:  http://wp.me/p3xLR-u5

Here’s Real History in the Making: Fighting to Save SF City College

Here’s Real “History in the Making”:
The People Fight Back to Save City College
Friday, January 11, 9–10:30 AM
SF City College, Ocean Campus
Between Diego Rivera Theater & Visual Arts Bldg.
MUNI # 9X, 9AX, 9BX, 29, 36, 43, 49, 54, and K
Balboa Park BART 3 blocks away on Geneva
See map of campus: http://tinyurl.com/aoq7yp6

Contact:
Allan Fisher, afisher800@gmail.com
Wendy Kaufmyn ,(510) 714-8687, kaufmyn@aol.com

628x471

Students cross Phelan Avenue at the main campus of S.F. City College, which is under fire by the accrediting commission. Photo: Megan Farmer, The Chronicle / SF

City College of San Francisco students, staff, teachers and department chairs will picket and boycott the interim chancellor’s welcome address which traditionally kicks off the new semester. Instead of listening to Dr. Thelma Scott-Skillman’s speech, “History in the Making”, City College’s community will make its own history by conducting a press conference and rally addressing the people of San Francisco.

The people of San Francisco overwhelmingly showed a vote of confidence in CCSF by passing Proposition A, a parcel tax specifically dedicated to offset budget cuts, prevent worker layoffs, maintain essential classes, programs and student support services. However, the district is intending to use the funds for other purposes, namely paying high-priced consultants and bolstering reserves.

During this event people will be asked to sign a Pledge of Resistance stating their intention to take drastic action if the district doesn’t spend Proposition A funds (or reserves) as intended.

“San Francisco voters sent a clear message of affirmation for City College’s mission to serve the whole community,” said Leslie Simon, instructor in Women’s Studies and former department chair. “We denounce the district’s downsizing our mission, downsizing our college and limiting student accessibility.”

Allan Fisher, ESL instructor, insisted that, “The administration has failed to promote student enrollment, thereby creating a ‘budget crisis’. Meanwhile they are spending excessive amounts on administrative salaries, high paid consultants and lucrative interim administrative positions.”

Wendy Kaufmyn, Engineering instructor of 29 years, said, “ We need to remain steadfast in our commitment to the California Master Plan and its vision of free education for all and to AB1725, legislation which encourages an administrative role by department chairs elected by their peers.”

We accept the accreditation commission’s legitimate suggestions, we will not accept the Accrediting Commission for Community and Junior Colleges undermining of mission of our community college. We demand a commitment to the California Master Plan and its vision of free education for all, and to AB1725, encouraging an administrative role by peer-elected department chairs.

Speakers at the action will denounce:

* how Proposition A funds are not being used as the voters intended for classes, programs, and student services, and to prevent layoffs

* the limiting of student accessibility through the downsizing of CCSF

* the narrowing of CCSF’s mission to serve the whole community

* the failure of the administration to effectively promote student enrollment, thereby creating a “budget crisis”

* the administration efforts to limit democratic culture and institute an authoritarian, top-down business model for CCSF

* the dismantling of the Department Chair structure, and the negative impact on the “diversity departments”

* the excessive spending on administrative salaries and high paid consultants

* the unilateral take-backs (an additional 9% salary cut from employees on top 2.85%) after six years of employee pay freezes and concessions

* the district proposals to limit or terminate health benefits and pro-rata pay for part-time employees

* the use of CCSF funds for lucrative interim administrative hiring positions

* the mantra of productivity expressed by the administration under the name “enrollment management” that negatively impacts educational quality

* the chronic misrepresentation of CCSF in the media

* the taking away of power from the elected local Board of Trustees

Short Link to this posting:   http://wp.me/p3xLR-tW

Fight Foreclosures and Evictions: Take Your Money Out of Wells Fargo

Indybay Media, December 18, 2012

Take Your Money Out of Wells Fargo

by Patricia Jackson

Gray Panthers leaving WF Bank after closing account

On Tuesday, December 18, two senior organizations took their money out of Wells Fargo and joined a protest rally outside at Grant and Market in San Francisco. James Chionsini of Senior Disability Action and Michael Lyon of Gray Panthers addressed the rally after they had closed their organizations’ accounts and called on other organizations to also take their money out of predatory banks. Prior to the rally and while members of Gray Panthers and Senior and Disability Action were inside closing their accounts, a Wells “undercover spy” approached several protesters and took our pictures. He then tried to pass himself off as “one of us.” All morning Wells Fargo customers had to show ID and Wells ATM cards before guards would allow them into the bank. Protesters engaged in conversations with customers and passersby to talk about alternative ways of banking, local credit unions. Speakers educated them about Wells Fargo’s foreclosures.

Senior & Disability Action is welcomed by WF Bank undercover men

Setting up for the protest

Tony Robles, a member of Senior and Disability Action and a 4th generation San Franciscan, started the rally citing case after case of folks who are in foreclosure, forced out of homes they have lived in for decades. Like Larry Fox being thrown out of his home he has lived since as a child when his father took him watch as it was being built.And Robert Moses, 92. year old WWII Veteran, refinanced his nearly paid-off loan with Deutsche Bank to bring his home up to city code. Deutsche raised his interest rate and payment to $3,400 a month. Many seniors living on Social Security and/or fortunate enough to have a pension usually average far less that that amount a month to live on.

Foreclosure Fighters speaking out

Another Foreclosure Fighter

Wells Fargo has been fraudulently processing mortgage documents with a practice called robo-signing for years. Placing quotas on employees and forcing them to sign a certain number of foreclosure files each day. While other documents required for homeowners to avoid foreclosure were ignored, left sitting on unattended fax machines. Wells Fargo has double the number of foreclosures of other banks- a despicable record of evicting record numbers of seniors, disabled and people of color with a $4.8 billion profit. Protesters call for them to negotiate with the 27 families who are in foreclosures.

Archbishop Franzo King, of St. John Coltrane African Orthodox Church and NAACP told us that Wells Fargo made money off trading slaves and now it is foreclosing on the African American decedents of slaves. These banksters have no morality if they continue to put seniors and poor people out of their homes and on to the streets!

Tommi Avicolli Mecca told us to come to a rally Wednesday, December 19th, at 8th & Castro to protest the evictions caused by the Ellis Act- currently 25 buildings in the Mission are being “Ellised”, throwing out people with AIDS, parents and children.

Henne Kelly of California Alliance of Retired Americans (CARA) warned us about the ads Wells Fargo is running in the SF Chronicle offering $20,000 loans, which would not have to be paid back if people stay in a home for 5 years. “Do we trust Wells Fargo?” We roared back, “No!” Chants followed- “Wells Fargo’s impunity Destroys Community!”

It feels good to fight back!

Speaking out against the Grinch that stole our homes.

All groups should take their money out of Wells Fargo!

John Stumpf, Wells Fargo CEO

Short link to this post:  http://wp.me/p3xLR-tO

Senior and Disability Groups Protest Wells Fargo Evictions, Shutter Accounts

Fog City Journal, December 18, 2012

Senior and Disability Groups Protest Wells Fargo Evictions, Shutter Accounts

By Christopher D. Cook

A fiery crowd of as many as 50 seniors and their supporters including green-clad, Doctor Seuss-styled grinches, rallied this afternoon in front of Wells Fargo Bank at the intersection of Market and Grant streets, calling on the national bank to halt its evictions of struggling homeowners and to change its foreclosure practices.

“Wells Fargo, I had a home but you took it back and sold it—you’re a grinch!” activists from the San Francisco Grey Panthers and Senior & Disability Action yelled under crisp clear winter skies. “I’m a kid who had a warm house to live in but you took that away from me—you’re a Grinch!”

An hour earlier, representatives from the two groups entered the bank and closed their Wells Fargo accounts to protest home foreclosures that have “disproportionately shuttered the homes of seniors, people with disabilities, and people of color,” the groups stated.

“Too many families have lost their homes due to predatory lending, dual tracking, and simple greed,” the groups said in a media release. Dual tracking involves the selling of a house even while the current homeowners are negotiating a new loan to try to keep their home. “Wells Fargo is at the center of the foreclosure crisis in San Francisco.  They have more foreclosures in their name than any of the other banks.”

Grinch-clad protesters.

Evelyn Luluquisen, Executive Director of Manilatown Heritage Foundation, admonishes Wells Fargo over its foreclosure and eviction practices.

According to their research, Wells Fargo has held 92 auctions on foreclosed homes in San Francisco—more than double the combined total of JP Morgan Chase and Bank of America.

The groups demand “immediate action to stop the holiday foreclosures and evictions,” listing 27 San Francisco families who are at risk of eviction over the holidays.

“We’re encouraging all other organizations” to close their Wells Fargo Accounts, said James Chionsini, director of healthcare advocacy for Senior & Disability Action (SDA). “We can’t in good conscience support an organization that’s displacing our members, it’s just unethical.”

The rally was supported by an array of local labor and social justice groups including Occupy Bernal, Causa Justa: Just Cause, Housing Rights Committee, California Alliance for Retired Americans, Jobs with Justice, the Coalition on Homelessness, OPEIU Local 3, Poor Magazine/Prensa Pobre, Occupy Action Council of SF, Alliance of Californians for Community Empowerment and the Manilatown Heritage Foundation.

The groups are joining forces for a “Happy Holidays, Now Get the Hell Out!” press conference and rally tomorrow at noon at 18th and Castro to share their stories about people facing evictions during the holidays. Learn more at http://www.ellishurtsseniors.org.

Christopher D. Cook is a San Francisco author and journalist who has written for Harper’s, The Economist, The Nation, Mother Jones, the Los Angeles Times and elsewhere. He is the author of Diet for a Dead Planet: Big Business and the Coming Food Crisis. You can find more of his work at www.christopherdcook.com.

Short link to this posting: http://wp.me/p3xLR-tD

Social Security Chained CPI explained


Under pressure from seniors, people with disabilities, anti-racists, women, and unions, Obama had finally conceded that Social Security did not contribute to the debt and should not be part of a discussion on the debt.  He is now prepared to ditch that position and embrace cost-of-living cuts to Social Security benefits in exchange for (weakened) restoration of higher taxes on the rich.  This NT Times article explains the “chained CPI,”  the cut in Social Security inflation adjustments.

New York Times, Dec. 18, 2012

Social Security Checks Enter the Debate

Annie Lowrey

WASHINGTON — As part of a deal being negotiated by President Obama and Speaker John A. Boehner to avert the worst of the year-end tax increases and spending cuts, Social Security payments might be lower in the future for millions of Americans.

On Tuesday, Democrats and Republicans were examining a multitrillion-dollar deficit reduction package put forward by the president, though the two sides were trading barbed remarks and aides were emphasizing that nothing was final until the whole deal was done.

But the White House seemed willing to make a concession to Republicans with a switch in the formula that ensures that Social Security payments keep up with the pace of inflation — an idea that immediately proved unpopular with its liberal base.

“Any talk of shrinking the program to save money is flawed from the start because Social Security is not part of the national budget in the same way as military spending,” Representative Raúl M. Grijalva of Arizona said in a statement. “It’s paid for through a dedicated payroll tax separate from general budgeting.”

Representative Charles B. Rangel of New York was among many on the left who echoed that sentiment. “Everyone has a grandparent, a friend or a neighbor who relies on the Social Security benefits they earned to pay for medical care, food and housing,” he said in a statement. “A move towards chained Consumer Price Index would be a long-term benefit cut for every single person who receives a Social Security check.”

Democrats and Republicans are considering switching Social Security payment adjustments to a “chained” Consumer Price Index. The Consumer Price Index tracks the price of a basket of commonly purchased household goods. A chained index accounts for consumers’ tendency to substitute similar items for one another as prices fluctuate. A consumer might buy more apples when the price of oranges increases, for instance.

Though it sounds like nothing more than a technical fix, adopting a chained index would squeeze benefits over time. The chained index ends up, in a given year, about 0.3 percentage points lower than the unchained index. That difference accumulates, so after five years, it might be 1.5 percentage points lower. Using a chained index would cut Social Security spending by about $112 billion over a decade, according to an estimate by the Congressional Budget Office.

AARP, the lobbying and research group for older Americans, immediately criticized the proposal. “We would rather see a broader discussion addressing retirement security,” said Debra Whitman, an executive vice president at AARP. “We object to the context in which it’s being discussed, which is a few weeks before Christmas, without people understanding what the change really means.”

Because the payment reductions would accumulate over time, AARP and other groups argue that they would hit the oldest Americans disproportionately hard. They might also unduly burden women, who tend to live longer than men, and the lowest-income older people, who are most dependent on Social Security checks, the groups warned.

Some economists and policy experts have also argued that both the current and the chained indexes underestimate the inflation that older Americans experience. The government produces an experimental “elderly index,” for instance, that tries to capture the consumption habits of people over 62 more accurately than other measures. For instance, older people buy more health care and less education than the average family, so the elderly index puts more weight on the former and less on the latter.

In no small part because of spiraling health care costs, inflation as measured by the elderly index has grown faster than inflation as calculated by the standard index that Social Security uses. That implies that the purchasing power of Social Security payments linked to a chained index would erode more over time, given what older Americans buy.

Andrew G. Biggs of the American Enterprise Institute.Jason Reed/Reuters Andrew G. Biggs of the American Enterprise Institute.

Still, other economists and policy experts from across the political spectrum have argued that a chained index is a more accurate measure of the inflation that households actually experience, and therefore is a better policy tool. They note that the elderly index is still experimental, and that not just older people receive or spend Social Security payments.

“We know that the current measure of inflation is not adequately measuring experienced inflation, and we should hence go with the better measure,” said Christian E. Weller, a senior fellow at the Center for American Progress, a liberal research group based in Washington, and the author of a plan to modernize Social Security.

Both liberals and conservatives have at times argued against making changes to Social Security outside the context of a broader overhaul. Many analysts — particularly Democrats — argue that Social Security does not contribute to long-term deficits because it has its own financing stream in payroll taxes. But it does have a long-term fiscal challenge, as payouts would eventually overwhelm its trust fund and revenues.

“Back when the system started, the demographics were really favorable,” said Andrew G. Biggs of the American Enterprise Institute, a right-leaning research group in Washington. “You could provide decent benefits for the rich and poor alike at low cost. You can’t do that anymore, mathematically. We could provide decent benefits for the rich and the poor by raising taxes a lot, but we need to raise taxes for other things.”

Mr. Biggs said Social Security changes that provided more ample benefits to vulnerable low-income older people and less to the well-off might prove to be a better path forward.

“We oppose chained C.P.I.,” Representative Peter Welch, Democrat of Vermont, said in an interview. “But I think all of us are waiting to see the details in the final package, and we’ll make our determination then.”

Short link to this posting:  http://wp.me/p3xLR-tx

Healthcare Crisis: Not Enough Specialists For The Poor, but Calif to Cut Medi-Cal Spending

Healthcare Crisis: Not Enough Specialists For The Poor

LA Times, December 15, 2012

With months-long waits for Medi-Cal patients to see specialists, some turn to emergency rooms — exactly what healthcare reform is banking on avoiding.

By Anna Gorman, Los Angeles Times

The blurry vision began early last year. Roy Lawrence ignored it as long as he could. But after falling off a ladder at his construction job, he knew he had to see a doctor.

He went to a community health clinic in South Los Angeles, where doctors determined he had diabetes and cataracts. The clinic could manage his illness but referred him early this year to the county health system for eye surgery.

Nearly a year later, Lawrence, a Jamaican immigrant without insurance, still is waiting for the operation. His vision has deteriorated so much he is considered legally blind.

PHOTOS: Waiting in vain to be seen

“I want to see again,” he said. “I’ve been waiting a long time.”

Lawrence, 49, and patients like him are posing a critical challenge for the planned overhaul of the nation’s healthcare system. Federal officials are investing billions in community health centers like the To Help Everyone (T.H.E.) Clinic, where Lawrence’s problem was diagnosed, with the hope that they can keep more patients out of high-cost emergency rooms.

But a dearth of specialists available to low-income patients presents one of the bigger hurdles facing the country as it tries to bring spiraling healthcare costs under control. Doctors say meeting new government mandates to keep patients healthy and out of hospitals — a linchpin in reducing medical spending — will be virtually impossible without the ability to make timely patient appointments with specialists.

By the end of the decade, the nation will be short more than 46,000 surgeons and specialists, a nearly tenfold increase from 2010, according to the Assn. of American Medical Colleges. Healthcare reform is expected to worsen the problem as more patients — many with complex and deferred health needs — become insured and seek specialized treatment.

Many of the newly insured will receive Medi-Cal, the government plan for the needy as administered through the state of California. Clinics already struggle to get private specialists to see Medicaid patients because of the low payments to doctors. Last week, an appellate court decision that authorized the state to move forward with 10% cuts in Medi-Cal reimbursement, which could make finding doctors for those patients even more difficult.

“Specialists are paid so poorly that they don’t want to take Medi-Cal patients,” said Mark Dressner, a Long Beach clinic doctor and president-elect of the California Academy of Family Physicians. “We’re really disappointed and concerned what it’s going to do for patient access.”

The healthcare overhaul includes initiatives aimed at reducing shortages of general medicine professionals but does little to increase the availability of specialists.

In Los Angeles County, the sheer volume of poor or uninsured patients needing specialist services has long overwhelmed the public health system, creating costly inefficiencies and appointment delays that can stretch as long as a year and half.

Patients’ conditions often must be dire for them to see a neurologist, cardiologist or other specialist quickly. Community clinics try to bypass the backed-up formal government referral system by pleading, cajoling and negotiating to get less critically ill patients like Lawrence moved up on waiting lists.

“Where needs are absolutely critical, we are able to work out special arrangements,” said Rise Phillips, chief executive of T.H.E. Clinic. “That is not the norm. That is, rather, the exception.”

At times, clinic staff members are forced to work against one of their key missions by sending patients to emergency rooms to increase the odds of their seeing a specialist more quickly.

The challenge can be seen in Belinda De Leon’s cubicle in a small, windowless back corner of T.H.E. Clinic. A referral specialist, De Leon spends her days trying to speed up appointments for the center’s clients — and fielding calls from patients wanting to know how much longer they have to wait. At any given time, she’s juggling more than 1,000 pending referrals.

One involves uninsured housekeeper Juana Barrera. Barrera, 45, has been waiting since April 2011 to see a gastroenterologist and get a colonoscopy. She has had bleeding off and on and recently started having pain in her stomach.

On a recent visit, she told De Leon she is scared to wait any longer. But she can’t afford to pay for the test out of pocket. “I’m hoping it’s not anything like cancer,” she said.

De Leon promised to update Barrera’s referral paperwork to indicate she is experiencing pain. “Hopefully that will help,” she said.

Waits for specialist appointments vary dramatically, depending on the type of specialist needed. Patients willing and able to travel across L.A. County to specialty clinics may be able to see a doctor within a month or two. Others who lack transportation and must go to a nearby facility can wait up to a year for a dermatologist or neurologist and up to 18 months for a cardiologist or ophthalmologist.

The county is trying to make the system more efficient, reduce wait times and ensure that those who don’t need more advanced care don’t overburden the system, said Mitch Katz, head of the L.A. County Department of Health Services. County officials risk losing newly insured patients, along with government funding, if they can’t find ways to reduce the bottleneck.

One focus is using technology to improve communication and better screen patients. A pilot program, for example, is allowing primary care doctors at community and public clinics to quickly transmit patients’ medical information via computer to a public health specialist for a consultation.

The electronic consults are streamlining referrals and helping clinic doctors make better treatment choices, said Louise McCarthy, executive director of the Community Clinic Assn. of Los Angeles County.

During an August visit to T.H.E. Clinic, Lawrence saw nurse practitioner Sandeep Lehil for the first time. He told her he was controlling his diabetes with medication and a modified diet. But his vision wasn’t getting any better.

“My eyes are really bad,” he told Lehil. “I can barely see.”

Lawrence’s medical record showed that he wouldn’t be seeing an ophthalmologist for many months.

“That’s a long time to live with blurry vision,” Lehil said.

“By that time, I’ll be blind maybe,” Lawrence responded.

Lawrence, who has a soft voice, an accent and a lanky frame, arrived in the U.S. nearly 20 years ago to pick apples, and overstayed his visa. He can’t work or drive, and he relies on others to cook meals to avoid burning himself. His immigration status prevents him from getting health insurance or unemployment benefits. He lives with a friend, spending most days listening to a television he can barely see. When the phone rings, he lifts it almost to his nose to see who is calling.

In mid-October, Lawrence was back at the clinic and saw a different, fill-in doctor who knew nothing about his situation, nor when his surgery would be scheduled. “You haven’t received any notice?” asked physician David Hwang. “No, not yet,” Lawrence answered, adding that he checks his mailbox every day.

De Leon, the referral clerk, later gave Lawrence unwelcome news: The wait to see an ophthalmologist at the county’s Harbor-UCLA Medical Center was still about a year. She said she was trying to get him an appointment elsewhere sooner.

Weeks later, Lawrence took matters into his own hands. With the help of a friend, he took three buses to reach the emergency room at Los Angeles County/USC Medical Center northeast of downtown. He waited several hours but finally saw an emergency room physician, who managed to get him an appointment the next day with an eye doctor.

“You have to do what you have to do,” Lawrence said.

At the medical center’s specialty clinic, ophthalmologist Simon Bababeygy told Lawrence his cataracts probably were caused by his diabetes, high blood pressure and high cholesterol.

He described the surgery he would perform, on one eye at a time. And he spoke the words Lawrence had been waiting for: He should be seeing much more clearly by the end of the year.

Preparing for the surgery, doctors got an abnormal result on a heart test. Now, Lawrence has to wait to see a county cardiologist before going back to Bababeygy to schedule the eye operation. He has no idea how long that could take.

“Every time, it’s something else,” he said. “My eyes are getting worse. And now it’s my heart.”

anna.gorman@latimes.com

Times staff writer Anna Gorman reported aspects of this story while participating in the California Endowment Health Journalism Fellowships, a program of USC’s Annenberg School of Journalism.

Copyright © 2012, Los Angeles Times

- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – -

LA Times, December 13, 2012

Court Ruling Could Cut California Spending On Medi-Cal

A 9th Circuit appeals panel decides California can reduce its Medi-Cal reimbursements to doctors, pharmacies and others. Providers say the doctor shortage will worsen.

By Maura Dolan and Chris Megerian, Los Angeles Times

SAN FRANCISCO — In a potential windfall for the state, a federal appeals court decided unanimously Thursday that California may cut reimbursements to doctors, pharmacies and others who serve the poor under Medi-Cal.

A three-judge panel of the 9th Circuit U.S. Court of Appeals overturned injunctions blocking the state from implementing a 2011 law that slashed Medi-Cal reimbursements by 10%. Medi-Cal, a version of Medicaid, serves low-income Californians.

The ruling could make it harder to find doctors for as many as 2 million new patients who could become eligible for Medi-Cal under President Obama’s healthcare law — a possible 25% expansion of the program. California already provides one of the lowest rates of reimbursement in the nation for medical services to the poor, and there is a shortage of doctors to serve those patients.

Lynn S. Carman, an attorney for a group of pharmacies, said the decision would be costly for providers, worsen the doctor shortage and would be appealed.

“If this decision stands it will not only destroy the Medicaid program in California, but it will destroy the Obamacare program for millions of Americans who are now being shoved into the Medicaid program under the Affordable Care Act,” Carman said.

“They will not be able to obtain quality healthcare or access to services because providers cannot provide services at less than what it costs to furnish them,” Carman said.

The ruling could make it considerably easier for the state to close its budget gap.

The state is facing a $1.9-billion deficit next year, although Proposition 30’s temporary tax hike and an improving economy are projected to shift the state back into surpluses in the near future.

Medical providers said Thursday that the cutback should be lifted now that the state’s fiscal outlook has improved. The ruling can be applied retroactively to June 1, 2011.

“Now that the state has money, it would be like Scrooge for Gov. Brown not to pass a bill to eliminate at least the retroactivity part of it,” Carman said.

For the governor, Medi-Cal cuts could serve one policy aim at the expense of another.

Balancing the budget has been Brown’s first priority since taking office, and cutting healthcare — the state’s second-biggest cost after education — has been key to his fiscal goal.

But at the same time, he has wanted California to be out front in healthcare reform, and lead the country in efforts to put the federal law into place.

A spokesman for Gov. Brown released a statement Thursday that implied that Brown was inclined to put his budget priorities first, and was not likely to rescind the cuts.

“Today’s decision allows California to continue providing quality care for people on Medi-Cal while saving the state millions of dollars in unnecessary costs,” the spokesman wrote.

In a ruling written by Judge Stephen S. Trott, appointed by President Reagan, the panel said the lower court injunctions were unwarranted because the federal government had approved the cuts.

“Neither the State nor the federal government ‘promised, explicitly or implicitly,’ that provider reimbursement rates would never change,” Trott wrote.

California has estimated that the 10% cut to medical providers and pharmacies would save the state $50 million a month.

Medi-Cal typically covers families and disabled Californians. The federal law will extend its coverage to single, childless adults beginning in 2014.

The California Medical Assn., which joined dentists, pharmacists, medical suppliers and medical response companies in trying to block the cutbacks, urged Brown to repeal them.

Dr. Paul R. Phinney, president of the doctors’ association, said the cuts shrink the number of providers who could afford to serve both existing Medi-Cal patients and the new ones who could become eligible for coverage in 2014.

“We need to ensure that health insurance isn’t just an empty promise for these patients,” Phinney said.

According to the California HealthCare Foundation, Medi-Cal patients already have difficulty finding doctors.

A foundation study published in July 2010 said 25% of physicians provided care to 80% of Medi-Cal patients.

Although 90% of physicians told the foundation they were accepting new patients, only 57% said they were taking on new Medi-Cal patients.

Dr. Ted Mazer, a San Diego ear, nose and throat surgeon, said he had to stop taking fee-for-service Medi-Cal patients several years ago because the reimbursements didn’t cover his costs and Medi-Cal patients were inundating his practice.

“So few doctors will see Medi-Cal patients that I was seeing them from the Mexican border to Riverside County to Orange County,” said Mazer, an officer of the California Medical Assn. “The reimbursement costs are so poor they don’t even cover costs, let alone pay for the administrative hassle. I can only see so many until I go under.”

Chris Perrone, deputy director of the foundation, said Thursday’s ruling will make it harder to block rate cuts in the future.

“The hurdles for people who want to block these rate cuts are little higher,” said Perrone.

maura.dolan@latimes.com

chris.megerian@latimes.com

Dolan reported from San Francisco and Megerian from Sacramento.

Times staff writer Anna Gorman contributed to this report.

Shortlink to this posting:  http://wp.me/p3xLR-to

CARA Flash Mob: Hands Off Social Security, Medicare, Medicaid! Tax the Top 2%!

The nation’s richest banks and corporations have rung up billions in deficits with wars, tax cuts for the richest, bank bailouts, and reckless speculation, and now they want us to pay by sacrificing Social Security, Medicare, Medicaid, and every other part of the Safety Net!

Democrats and Republicans alike are burning the midnight oil in search of a bi-partisan Grand Bargain to screw seniors, people with disabilities, kids, and low-income workers.

No Way! Join our Flash Mob for social justice: We demand:

* No cuts to Social Security, Medicare, Medicaid, or services to low-income people.

* End the tax cuts for the rich

* Create millions of jobs

Our goal is to video our flash mob and have it go VIRAL – so the whole country puts pressure on Congress to demand that we do not cut our essential programs in order to make the Grand Bargain on the deficit and avoid sequestration before the end of the year.

Sponsored by the California Alliance for Retired Americans (CARA) and Jobs With Justice (JwJ).

See the Resolution on Social Security, Medicare, and Medicaid written by SF Gray Panthers and passed by the SF Central Labor Council.

Shortlink to this posting:  http://wp.me/p3xLR-tg

Clinton’s savage program of Welfare Reform, effects on women and children

Sunday’s New York Times has a significant article on women’s’ and children’s poverty, and Welfare Reform of the 1990s.  It’s reprinted below, and is available at http://tinyurl.com/cubfjcn .

The next time you hear liberal Democrats prattle about the good old days under Clinton, with his budget surpluses, remember his 1996 Welfare Reform, the savage program that stole billions from welfare recipients and gave the money to the rich, who invested it in the stock market,  driving up stocks and giving us our vaunted “prosperity”.  Extreme poverty has doubled since Welfare Reform, and poverty and near-poverty have jumped hugely, but Obama and Pelosi say nothing about this, only talking about the “middle class.”  Clearly Democrats are as devoted to corporate profits and enriching the rich as Republicans.

Here’s the facts of the New York Times article in a nutshell

This is the fallout from the 1996 Welfare Reform, which was

  • promoted by Clinton as “ending welfare as we know it,” and
  • supported by Obama in his 2008 campaign, when he bragged about his role cutting welfare rolls as an Illinois legislator.

Welfare Reform replaced AFDC (Aid to Dependent Children) which

  • dated from New Deal,
  • gave states unlimited matching funds
  • with no time limits and little requirements for recipients
  • with TANF (Temporary Assistance for Needy Families), which
    • imposed time limits on how long you could receive welfare, (usually 5 years)
    • imposed work requirements on recipients,
    • capped payments.
    • Gave states fixed federal payments, which encouraged states to withhold aid. Since then:
      • 32 states have reduced rolls by at least 66%
      • Welfare rolls are now down 68% from the 1990s peak

Those dropped or turned away were mostly single moms and their kids. Now

  • 25% of low-income single moms are without jobs or welfare;
    This is 4 million women and children, twice the rate under AFDC.
    Over 40% of them are jobless and without assistance for over one year.
  • Since 1996, the share of households with kids living on a average of $2 per person per day has almost doubled, to almost 4%.
  • Only 20% of poor children get welfare money, lowest level in 50 years.
  • 10%  of households headed by women are in “deep poverty” (under $4,500 for family of three)

Since start of 2007 recession:

  • Welfare roles have risen only 15% during the worst unemployment since 1930s
  • 16 states have cut welfare rolls
  • 11 states cut welfare rolls by 10% or more, including states with highest unemployment
  • Benefits are cut to a national average of $350/mo for family of three
  • Arizona alone
    •  Cut welfare rolls by 50%, is using federal welfare money to plug state deficits
    • Shortened time limit from five to two years
    • Cut benefits 20%

For more information on the growth of poverty and its effects on women and children read

Center on Budget and Policy Priorities: “Poverty Rate Second-Highest in 45 years” Sept 14, 2011

Available at http://tinyurl.com/3ct69xs

World Socialist Web Site: “Extreme poverty in US has more than doubled since 1996” Feb 25, 2012

Available at http://tinyurl.com/82t6wyk

World Socialist Web Site: “(California Budget Project) Study shows harmful impact of economic crisis on California’s women.”  Available at http://tinyurl.com/7jxdoah

++++++++++++++++++++++++++++++++++++++++++++++++++++++

The article:

New York Times, Sunday, April 08, 2012

Welfare Limits Left Poor Adrift as Recession Hit

Welfare Limits Left Poor Adrift as Recession Hit

By JASON DePARLE

PHOENIX — Perhaps no law in the past generation has drawn more praise than the drive to “end welfare as we know it,” which joined the late-’90s economic boom to send caseloads plunging, employment rates rising and officials of both parties hailing the virtues of tough love.

But the distress of the last four years has added a cautionary postscript: much as overlooked critics of the restrictions once warned, a program that built its reputation when times were good offered little help when jobs disappeared. Despite the worst economy in decades, the cash welfare rolls have barely budged.

Faced with flat federal financing and rising need, Arizona is one of 16 states that have cut their welfare caseloads further since the start of the recession — in its case, by half. Even as it turned away the needy, Arizona spent most of its federal welfare dollars on other programs, using permissive rules to plug state budget gaps.

The poor people who were dropped from cash assistance here, mostly single mothers, talk with surprising openness about the desperate, and sometimes illegal, ways they make ends meet. They have sold food stamps, sold blood, skipped meals, shoplifted, doubled up with friends, scavenged trash bins for bottles and cans and returned to relationships with violent partners — all with children in tow.

Esmeralda Murillo, a 21-year-old mother of two, lost her welfare check, landed in a shelter and then returned to a boyfriend whose violent temper had driven her away. “You don’t know who to turn to,” she said.

Maria Thomas, 29, with four daughters, helps friends sell piles of brand-name clothes, taking pains not to ask if they are stolen. “I don’t know where they come from,” she said. “I’m just helping get rid of them.”

To keep her lights on, Rosa Pena, 24, sold the groceries she bought with food stamps and then kept her children fed with school lunches and help from neighbors. Her post-welfare credo is widely shared: “I’ll do what I have to do.”

Critics of the stringent system say stories like these vindicate warnings they made in 1996 when President Bill Clinton fulfilled his pledge to “end welfare as we know it”: the revamped law encourages states to withhold aid, especially when the economy turns bad.

The old program, Aid to Families with Dependent Children, dates from the New Deal; it gave states unlimited matching funds and offered poor families extensive rights, with few requirements and no time limits. The new program, Temporary Assistance for Needy Families, created time limits and work rules, capped federal spending and allowed states to turn poor families away.

“My take on it was the states would push people off and not let them back on, and that’s just what they did,” said Peter B. Edelman, a law professor at Georgetown University who resigned from the Clinton administration to protest the law. “It’s been even worse than I thought it would be.”

But supporters of the current system often say lower caseloads are evidence of decreased dependency. Many leading Republicans are pushing for similar changes to much larger programs, like Medicaid and food stamps.

Representative Paul D. Ryan of Wisconsin, the top House Republican on budget issues, calls the current welfare program “an unprecedented success.” Mitt Romney, who leads the race for the Republican presidential nomination, has said he would place similar restrictions on “all these federal programs.” One of his rivals, Rick Santorum, calls the welfare law a source of spiritual rejuvenation.

“It didn’t just cut the rolls, but it saved lives,” Mr. Santorum said, giving the poor “something dependency doesn’t give: hope.”

President Obama spoke favorably of the program in his 2008 campaign — promoting his role as a state legislator in cutting the Illinois welfare rolls. But he has said little about it as president.

Even in the 1996 program’s early days, when jobs were plentiful, a subset of families appeared disconnected — left with neither welfare nor work. Their numbers were growing before the recession and seem to have surged since then.

No Money, No Job

While data on the very poor is limited and subject to challenge, recent studies have found that as many as one in every four low-income single mothers is jobless and without cash aid — roughly four million women and children. Many of the mothers have problems like addiction or depression, which can make assisting them politically unpopular, and they have received little attention in a downturn that has produced an outpouring of concern for the middle class.

Poor families can turn to other programs, like food stamps or Medicaid, or rely on family and charity. But the absence of a steady source of cash, however modest, can bring new instability to troubled lives.

One prominent supporter of the tough welfare law is worried that it may have increased destitution among the most disadvantaged families. “This is the biggest problem with welfare reform, and we ought to be paying attention to it,” said Ron Haskins of the Brookings Institution, who helped draft the 1996 law as an aide to House Republicans and argues that it has worked well for most recipients.

“The issue here is, can you create a strong work program, as we did, without creating a big problem at the bottom?” Mr. Haskins said. “And we have what appears to be a big problem at the bottom.”

He added, “This is what really bothers me: the people who supported welfare reform, they’re ignoring the problem.”

The welfare program was born amid apocalyptic warnings and was instantly proclaimed a success, at times with a measure of “I told you so” glee from its supporters. Liberal critics had warned that its mix of time limits and work rules would create mass destitution — “children sleeping on the grates,” in the words of Senator Daniel Patrick Moynihan, a New York Democrat who died in 2003.

But the economy boomed, employment soared, poverty fell and caseloads plunged. Thirty-two states reduced their caseloads by two-thirds or more, as officials issued press releases and jostled for bragging rights. The tough law played a large role, but so did expansions of child care and tax credits that raised take-home pay.

In a twist on poverty politics, poor single mothers, previously chided as “welfare queens,” were celebrated as working-class heroes, with their stories of leaving the welfare rolls cast as uplifting tales of pluck. Flush with federal money, states experimented with programs that offered counseling, clothes and used cars.

But if the rise in employment was larger than predicted, it was also less transformative than it may have seemed. Researchers found that most families that escaped poverty remained “near poor.”

And despite widespread hopes that working mothers might serve as role models, studies found few social or educational benefits for their children. (They measured things like children’s aspirations, self-esteem, grades, drug use and arrests.) Nonmarital births continued to rise.

But the image of success formed early and stayed frozen in time.

“The debate is over,” President Clinton said a year after signing the law, which he often cites in casting himself as a centrist. “Welfare reform works.”

The recession that began in 2007 posed a new test to that claim. Even with $5 billion in new federal funds, caseloads rose just 15 percent from the lowest level in two generations. Compared with the 1990s peak, the national welfare rolls are still down by 68 percent. Just one in five poor children now receives cash aid, the lowest level in nearly 50 years.

As the downturn wreaked havoc on budgets, some states took new steps to keep the needy away. They shortened time limits, tightened eligibility rules and reduced benefits (to an average of about $350 a month for a family of three).

Since 2007, 11 states have cut the rolls by 10 percent or more. They include centers of unemployment like Georgia, Indiana and Rhode Island, as well as Michigan, where the welfare director justified cuts by telling legislators, “We have a fair number of people gaming the system.” Arizona cut benefits by 20 percent and shortened time limits twice — to two years, from five.

Many people already found the underlying system more hassle than help, a gantlet of job-search classes where absences can be punished by a complete loss of aid. Some states explicitly pursue a policy of deterrence to make sure people use the program only as a last resort.

Since the states get fixed federal grants, any caseload growth comes at their own expense. By contrast, the federal government pays the entire food stamp bill no matter how many people enroll; states encourage applications, and the rolls have reached record highs.

Among the Arizonans who lost their checks was Tamika Shelby, who first sought cash aid at 29 after fast-food jobs and a stint as a waitress in a Phoenix strip club. The state gave her $176 a month and sent her to work part time at a food bank. Though she was effectively working for $2 an hour, she scarcely missed a day in more than a year.

“I loved it,” she said.

Her supervisor, Michael Cox, said Ms. Shelby “was just wonderful” and “would even come up here on her days off.”

Then the reduced time limit left Ms. Shelby with neither welfare nor work. She still gets about $250 a month in food stamps for herself and her 3-year-old son, Dejon. She counts herself fortunate, she said, because a male friend lets her stay in a spare room, with no expectations of sex. Still, after feeding her roommate and her child, she said, “there are plenty of days I don’t eat.”

“I know there are some people who abuse the system,” Ms. Shelby said. “But I was willing to do anything they asked me to. If I could, I’d still be working for those two dollars an hour.”

Diverting Federal Funds

Clarence H. Carter, Arizona’s director of economic security, says finances forced officials to cut the rolls. But the state gets the same base funding from the federal government, $200 million, that it received in the mid-1990s when caseloads were five times as high. (The law also requires it to spend $86 million in state funds.)

Arizona spends most of the federal money on other human services programs, especially foster care and adoption services, while using just one-third for cash benefits and work programs — the core purposes of Temporary Assistance for Needy Families. If it did not use the federal welfare money, the state would have to finance more of those programs itself.

“Yes, we divert — divert’s a bad word,” said State Representative John Kavanagh, a Republican and chairman of the Arizona House Appropriations Committee. “It helps the state.”

While federal law allows such flexibility, critics say states neglect poor families to patch their own finances. Nationally, only 30 percent of the welfare money is spent on cash benefits.

“It’s not that the other stuff isn’t important, but it’s not what T.A.N.F.” — the Temporary Assistance program — “was intended for,” said LaDonna Pavetti of the Center on Budget and Policy Priorities, a Washington research and advocacy group. “The states use the money to fill budget holes.”

Even in an economy as bad as Arizona’s, some recipients find work. Estefana Armas, a 30-year-old mother of three, spent nine years on the rolls, fighting depression so severe that it left her hospitalized. Once exempt from time limits because of her mental health, Ms. Armas joined support groups, earned a high school equivalency degree and enrolled in community college.

Just as her time expired last summer, Ms. Armas found work as a teacher’s aide at a church preschool.

“It kind of pushed me to get a job,” she said.

Supporters of Temporary Assistance cite stories like that to argue that it promotes a work ethic. Despite high unemployment, low-skilled single mothers work as much now, on average, as they did under the old welfare law — and by some measures, a bit more. As a group, their poverty rates are still lower. And those without cash aid, they say, can turn to other programs.

“We have reduced our caseload, and we don’t have people dying in the street,” Mr. Kavanagh said. “There were an awful lot of people who didn’t need it.”

But the number of very poor families appears to be growing. Pamela Loprest and Austin Nichols, researchers at the Urban Institute, found that one in four low-income single mothers nationwide — about 1.5 million — are jobless and without cash aid. That is twice the rate the researchers found under the old welfare law. More than 40 percent remain that way for more than a year, and many have mental or physical disabilities, sick children or problems with domestic violence.

Using a different definition of distress, Luke Shaefer of the University of Michigan and Kathryn Edin of Harvard examined the share of households with children in a given month living on less than $2 per person per day. It has nearly doubled since 1996, to almost 4 percent. Even when counting food stamps as cash, they found one of every 50 children live in such a household.

The Census Bureau uses a third measure, “deep poverty,” which it defines as living on less than half of the amount needed to escape poverty (for a family of three, that means living on less than $9,000 a year). About 10 percent of households headed by women report incomes that low, a bit less than the peak under the old law but still the highest level in 18 years.

Some researchers say the studies exaggerate poverty by inadequately accounting for undisclosed income, like help from boyfriends or under-the-table jobs. They note that asking poor people about their consumption, rather than their income, suggests that even the poorest single mothers have improved their standard of living since 1996.

Mr. Haskins, the Temporary Assistance program’s architect, agrees that poverty at the bottom “is not as bad as it seems,” but adds, “It’s still pretty darn bad.”

Trying to Make Do

Asked how they survived without cash aid, virtually all of the women interviewed here said they had sold food stamps, getting 50 cents for every dollar of groceries they let others buy with their benefit cards. Many turned to food banks and churches. Nationally, roughly a quarter have subsidized housing, with rents as low as $50 a month.

Several women said the loss of aid had left them more dependent on troubled boyfriends. One woman said she sold her child’s Social Security number so a relative could collect a tax credit worth $3,000.

“I tried to sell blood, but they told me I was anemic,” she said.

Several women acknowledged that they had resorted to shoplifting, including one who took orders for brand-name clothes and sold them for half-price. Asked how she got cash, one woman said flatly, “We rob wetbacks” — illegal immigrants, who tend to carry cash and avoid the police. At least nine times, she said, she has flirted with men and led them toward her home, where accomplices robbed them.

“I felt bad afterwards,” she said. But she added, “There were times when we didn’t have nothing to eat.”

One family ruled out crime and rummaged through trash cans instead. The mother, an illegal immigrant from Mexico, could not get aid for herself but received $164 a month for her four American-born children until their time limit expired. Distraught at losing her only steady source of cash, she asked the children if they would be ashamed to help her collect discarded cans.

“I told her I would be embarrassed to steal from someone — not to pick up cans,” her teenage daughter said.

Weekly park patrols ensued, and recycling money replaced about half of the welfare check.

Despite having a father in prison and a mother who could be deported, the children exude earnest cheer. A daughter in the fifth grade won a contest at school for reading the most books. A son in the eighth grade is a student leader praised by his principal for tutoring younger students, using supplies he pays for himself.

“That’s just the kind of character he has,” the principal said.

After losing cash aid, the mother found a cleaning job but lost it when her boss discovered that she was in the United States illegally. The family still gets subsidized housing and $650 a month in food stamps.

The boy worries about homelessness, but his younger sisters, 9 and 10, see an upside in scavenging.

“It’s kind of fun because you get to look through the trash,” one of the girls said.

“And you get to play in the park a little while before you go home,” her sister agreed.

Shortlink to this posting:  http://wp.me/p3xLR-sM


Archives

Categories

RSS Gray Panthers in the News

  • An error has occurred; the feed is probably down. Try again later.

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 370 other followers


Follow

Get every new post delivered to your Inbox.

Join 370 other followers

%d bloggers like this: