http://www.nytimes.com/2011/09/14/us/14census.html?_r=1&nl=todaysheadlines&emc=tha2
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"If you can't write your idea on the back of my business card, you don't have a clear idea." (David Belasco)
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Today's Times produced an article based on data released by the Census Bureau yesterday on the number of Americans living below the poverty line: 46.2 million people. This is the highest number in the 52 years the bureau has been publishing figures on it.
Thus, it should not surprise that median household incomes fell last year to levels last seen in 1997. According to Lawrence Katz at Harvard, this is the first time since the Great Depression that median household income, adjusted for inflation, had not risen over such a long period: "This is truly a lost decade. We think of America as a place where every generation is doing better, but we're looking at a period when the median family is in worse shape than it was in the late 1990s."
The two tables which are part of the article are an excellent depiction of the downward spiral. The median household income chart shows the current level (adjusted to 2010 dollars) at $49,445 versus 1999 at $53,252 (with recessions shaded). The percentage of people living below poverty chart shows 15.1% today which is identical to the 15.1% in 1993.
While it is sometimes difficult to set aside politics in circumstances such as these, there are those politicians and economists whose positions are beginning to change in favor of short term spending at the federal level. For them, the concept of "infrastructure spending" is beginning to have an appeal.
Last year, about 48 million people ages 18 to 64 did not work even one week out of the year.
According to Timothy Smeeding (Directorof the Institute for Research On Poverty @ the U of Wisconsin, Madison), "We're risking a new underclass of young, less educated adults, mainly men, who can't support their children and form families because they are jobless."
Last year, about 16.4 million children lived in poverty (22% of the U.S. population).
Is there a higher priority than doing something about this?
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I think it comes back to education: our education system is still stuck in the industrial era, positioned to churn out predictable factory workers. That time is gone, and if a company can do that job cheaper somewhere else, they will.
ReplyDeleteWe need to foster creativity and curiosity. Seth Godin did a wonderful job of covering it here: http://sethgodin.typepad.com/seths_blog/2011/09/back-to-the-wrong-school.html
Part of the rationale to sell this major transformation to industrialists was that educated kids would actually become more compliant and productive workers. Our current system of teaching kids to sit in straight rows and obey instructions isn't a coincidence--it was an investment in our economic future. The plan: trade short-term child labor wages for longer-term productivity by giving kids a head start in doing what they're told.
Large-scale education was never about teaching kids or creating scholars. It was invented to churn out adults who worked well within the system.
Of course, it worked. Several generations of productive, fully employed workers followed. But now?
If you do a job where someone tells you exactly what to do, they will find someone cheaper than you to do it. And yet our schools are churning out kids who are stuck looking for jobs where the boss tells them exactly what to do.
Do you see the disconnect here? Every year, we churn out millions of of workers who are trained to do 1925 labor.
Fortune and NYTimes published articles with similar conclusions too.
ReplyDeleteAnother thing (about manufacturing):
http://www.nytimes.com/2011/09/11/business/is-manufacturing-falling-off-the-us-radar-screen.html?pagewanted=all
About poverty... yeah... the word marginalization comes to mind. I happen work in one of the poorest areas in the DFW area. I have spoken with every age group too. The education level is really bad. Some of my coworkers said they enroll their kids in private schools because they do not trust the schools their areas to give strong education. However, news schools will not change organizational culture and leadership deficiencies. Also, the many social programs do not coordinate well with each other. The many nonprofits and government programs somewhat know everyone is out there, but do not meet with each other. There is not sharing of data. There is no exploration of possible research opportunities. They rarely serve on each others' board of directors. Social networking mostly does not work with poor populations due to no internet access. Their phone number and address change more frequently than the average person, so it is difficult to stay in contact with them too.
Regarding forming families, those can be imported with immigration reform. Many with graduate degrees in China and India would love it here.
I think infrastructure will have to increase by necessity in addition to the need for stimulus. PWHC released study way back when I was taking your class explaining a crisis in public infrastructure approaching due to its decay. Basic stuff like sewage/water systems and bridges need repairs. Cities generally maintain roads. The supply chain management department should publish a study for the DFW area outlining construction project that could increase traffic flow efficiency, eliminate bottlenecks, and create a contract bidding system that facilitates competition.
I dunno. It is really hard hear about all the stories of poverty, but I doubt there will be a fix that takes less that 5 to 10 years. During that time, hopefully we can make our skills resilient to recessions, software, and outsourcing.
Wow. Reading over this, I apologize for the writing errors. I have been working and studying this week with less than 6 hours of sleep a day. Naturally, I am tired. =/
ReplyDeleteMarcelo and Josh: Thank you for your contributions.
ReplyDelete