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Why Congress Must Lift the Spending Caps to Help Low-Income Families


Why Congress Must Lift the Spending Caps to Help Low-Income Families

Deborah Weinstein

Every year, the Coalition on Human needs compares funding for well over 150 human needs programs starting in fiscal year 2010 and continuing to the current fiscal year (this year, 2019).

CHN uses 2010 as a benchmark because that is the year before the Budget Control Act passed Congress and was signed into law by President Obama. That law called for automatic cuts in spending if Congress could not curtail spending on its own.

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Legislation mandating that for every dollar given to help the wealthy and the highly profitable corporations and the over blown Military, an equal dollar must be allocated for the poor, the needy, and the sick.



The deaths from a thousand cuts



United Way charity’s ALICE report (Asset Limited, Income Constrained, Employed) shows 40% of US households cannot afford seven basics: food, housing, utilities, medical care, child care, phone, transportation. The basic needs income is about $20,000 for a one person household, and $50,000 for a 4 person. 40% means 130 million Americans living in need. The lower-earning half of US workers, 82 million, earns less than $31,561 a year, much less, the average is below $13,000, and the combined income of the lower half is below 8% of the national income. (This comes from the Social Security Administration report on wage income.) It would not be a financial or fiscal strain to tax and spend, but better would be to raise the minimum wage to $15 and place workers on the boards of the largest corporations, increase labor rights to organize and strike. The lower-earning ninety percent of Americans have lost 15 to 17% of the national income share since 1980, and that comes to about $20,000 per worker (see Olivier Giovannoni at Levy Institute, “What We Should Know about Labor and Profit Share, Part III”) Yes, it sounds unbelievable, but his data comes from excellent sources. See my blog also, Economics Without Greed, Part Two (http://benL88.blogspot.com). We need more government assistance because wages are much too low. Private industry, especially the top 1%, are bandits. The nation needs to become educated, register, vote.