Ham on Wry Award-Alarming Level of Income Disparity in the United States

Homelessness Increases in 2011

Ham on Wry chose its weekly award to address the alarming level of income disparity in this country. Yes, I understand these definitions can be a moving target, but no matter how one views the data, it reveals a shrinking middle class that can no longer occupy its place along a normal distribution curve. The latest census data reflect the ravaging effects of high unemployment  and the weakening government safety net . After years of stagnating wages for the middle class, lost jobs, and an economy that continues to founder, millions of workers and families can no longer stretch their budgets to cover the necessary expenses of sheltering and feeding a family.

Sheldon Danziger, a University of Michigan public policy professor who specializes in poverty, explains, "Safety net programs such as food stamps and tax credits kept poverty from rising even higher in 2010, but for many low-income families with work-related and medical expenses, they are considered too `rich' to qualify.  The reality is that prospects for the poor and the near poor are dismal.  If Congress and the states make further cuts, we can expect the number of poor and low-income families to rise for the next several years."

According to a U.S. Conference of Mayors survey released Thursday, 29 cities say more than 1 in 4 people needing emergency food assistance did not receive it. Many middle-class Americans are dropping below the low-income threshold — roughly $45,000 for a family of four — because of pay cuts, a forced reduction of work hours or a spouse losing a job. Housing and child-care costs are consuming up to half of a family's income.  That data makes it hard to ignore the fact that the middles class is truly shrinking, and it's not just a case of smoke and mirrors.

Income inequality in the United States is at an all-time high, surpassing even the levels seen during the Great Depression, notes a recently updated paper by University of California, Berkeley Professor Emmanuel Saez.  The paper, which covers data through 2007, points to a staggering, unprecedented disparity in American incomes.  Saez calculates that in 2007 the top one percent of American earners took home six percent of total U.S. wages, a figure that has nearly doubled since 2000.  Even more disturbing, the top 10% of wage earners pulled in 49.7 percent of total wages, a level, that surpasses any other year since 1917 and even eclipses that of 1928, when the stock market bubble of the 20's hit its peak.

Don't be fooled by the disclaimers some conservative "talking heads" and think tanks are making about these findings.  When 48% of Americans are classified as low income or poor, this country faces a huge problem. The National Center on Family Homelessness shows that the rate of homelessness among children in the U.S. has increased nearly 33 percent since 2007, which equates to more than 1.5 million kids.  Add to this the parents or adults who care for them, and the number increases substantially.

No quick solution exists to return to a healthier distribution of wealth, but not addressing the disparity only worsens the problem.  Ham on Wry decries the attempts of any politician or group that justifies these figures as acceptable.  This country is wasting precious human resources and will suffer dire consequences unless we face facts and stop the political rhetoric.  Pay attention Congress!  The American people have grown weary of your lack of accomplishments this term.  Do something that will help, not hinder, those who are struggling to survive.  Many of you face re-election next year.  Voters can then show their disgruntlement.