In Amerika Today: Rising Poverty, Lengthening Bread Lines, Flooded Food Pantries

America on $195 a Week

How the working poor get by. Barely.

—By Sasha Abramsky Mother Jones
January/February 2009 Issue

"I'll take a sandwich to work and that's about it," says Aubretia Edick, who is 58 and works in the pharmacy department of a Wal-Mart in Hudson, New York. "I drink a lot of tea. Once in a blue moon I'll go into Save-A-Lot and I'll get some meat. Eggs is kinda like a luxury kind of thing."

Edick first landed a $6.40-an-hour gig at Wal-Mart back in 2001, and over time her wages inched upward, reaching $10.50 last year. But with inflation factored in, it isn't that much better than when she first started. To make matters worse, while Edick was technically full time, her manager often slashed her hours due to the slowing economy. In mid-2008, she was grossing roughly $297 a week—$195 after taxes and deductions.

It's not just the unemployed who are hurting. Across the country, unskilled, nonunionized workers like Edick are barely scraping by on stagnant or declining wages. Bob Pollin, codirector of the Political Economy Research Institute at the University of Massachusetts, calculates that a single person needs about $400 a week, pretax, to achieve even a semblance of economic security—the ability to pay bills on time, eat three square meals a day, and set aside a small rainy-day fund. By Pollin's calculation, tens of millions of American workers fall short of that minimum.

You'll find many of them in food prep, where more than 11 million Americans command a median hourly wage of $8.24, according to the Bureau of Labor Statistics. There are another 4.5 million workers doing maintenance-related tasks for $10.18 an hour, 3.3 million in "personal care" at $9.50, and 14.5 million in retail jobs that pay $11.41. Last year, Wal-Mart said its employees averaged $10.83 an hour, although labor-activist group Wal-Mart Watch claims that many longtime workers still make less than $10. These meager wages have helped push 6.2 million more Americans into poverty between 2000 and 2007. And that was before the banking industry imploded.

The fallout can be seen in breadlines across the country. Dozens of food-pantry workers I've interviewed for my upcoming book on hunger report a flood of working-poor clients. Feeding America (formerly America's Second Harvest), a nonprofit that supplies 63,000 pantries and once primarily served "the poorest of the poor," learned in 2006 that more than one-third of its beneficiaries come from working households. "We're seeing faces we've never seen before," says spokesman Ross Fraser. At a pantry in Gallup, New Mexico, visited back when gas prices were soaring, one 29-year-old Navajo woman told me how the grueling drive to her 7-Eleven job in the town of Cuba came to burn up nearly half of her $6.80-per-hour take. In the end, the math didn't make sense, so she quit. "I feed my three boys potatoes," she said. "We eat two meals a day—just breakfast and dinner. Usually oatmeal for breakfast, and in the evening, gravy potatoes with tortillas."

Edick's monthly take-home pay—about $800 at the time I visited—doesn't go far either. She lives in a tiny apartment with a broken stove and mostly empty fridge that barely works. Rent and utilities run about $450 a month; when it's cold outside, she often sets the thermostat to 50 degrees to lower her bill. Gas and car insurance cost another $160 or so, depending on prices at the pump. And then there are the doctor visits, covered only after a $1,000 deductible—plus medicines for a thyroid problem, chronic anxiety, and osteoporosis.

To balance the budget, Edick often skimps on food, some weeks spending little more than $10 on groceries, about one-quarter what the federal food stamp program calculates is needed for three "thrifty meals" a day. She patronizes the grimy discount stores whose prices run even lower than Wal-Mart's, and can tick off their notable sales going back for months. "I had some oranges," she recalls with a self-deprecating smile. "A couple of months ago, they had grapes on sale." And, "If it's less than three dollars for a package of six steaks, that looks like a good deal to me." (She tries not to think too hard about the quality of a 50-cent steak.) Her staples include PB&J, canned ham salad, soup: "I'll get chicken noodle or Campbell's Chunky. There's meat in there. You can pour it over noodles and put butter on it. It's like a delicacy."

In essence, the nation's biggest employers of unskilled labor often leave workers having to feed from the public trough. In 2004, a year in which Wal-Mart reported $9.1 billion in profits, the retailer's California employees collected $86 million in public assistance, according to researchers at the University of California-Berkeley. Other studies have revealed widespread use of publicly funded health care by Wal-Mart employees in numerous states. In 2004, Democratic staffers of the House education and workforce committee calculated that each 200-employee Wal-Mart store costs taxpayers an average of more than $400,000 a year, based on entitlements ranging from energy-assistance grants to Medicaid to food stamps to WIC—the federal program that provides food to low-income women with children.

For her part, Edick, unlike many Americans, hasn't resorted to handouts. (An estimated 28 million people were on food stamps as of last April, up from 17 million in 2000.) "There's times I'm hungry, and I'll look in the refrigerator for something—I'll find a snack pudding. Some leftover rice," Edick says softly. "I'm not starving or anything like that."

Sasha Abramsky's new book, Breadline USA, is due out in May from PoliPoint Press.

And The War Machine Keeps Turning...

More Americans joining military as jobs dwindle

By Lizette Alvarez, International Herald Tribune
Monday, January 19, 2009

As the number of jobs across the nation dwindles, more Americans are joining the military, lured by a steady paycheck, benefits and training.

The last fiscal year was a banner one for the military, with all active-duty and reserve forces meeting or exceeding their recruitment goals for the first time since 2004, the year that violence in Iraq intensified drastically, Pentagon officials said.

And the trend seems to be accelerating. The army exceeded its targets each month for October, November and December — the first quarter of the new fiscal year — bringing in 21,443 new soldiers on active duty and in the reserves. December figures were released last week.

Recruiters also report that more people are inquiring about joining the military, a trend that could further bolster the ranks. Of the four armed services, the army has faced the toughest recruiting challenge in recent years because of high casualty rates in Iraq and long deployments overseas. Recruitment is also strong for the Army National Guard, according to Pentagon figures. The Guard tends to draw older people.

"When the economy slackens and unemployment rises and jobs become more scarce in civilian society, recruiting is less challenging," said Curtis Gilroy, the director of accession policy for the Department of Defense. Read On

2700 American Dreams Shattered Per Day

Other woes makes foreclosure crisis hard to break
By ALAN ZIBEL, AP Business Writer
October 26, 2008

WASHINGTON - Each day from July through September, more than 2,700 Americans lost their homes in foreclosure.

That number, up from 1,200 a day a year ago, is a sign that the mortgage industry and government programs have done little to help troubled homeowners.

The mortgage market's troubles have proved to be far more serious and intractable than most in government or the private sector had predicted a year ago.

"We are behind the curve. We are falling behind," Sheila Bair, head of the Federal Deposit Insurance Corp. told a Senate hearing Thursday. "There has been some progress, but it's not been enough, and we need to act. And we need to act quickly, and we need to act dramatically to have more wide-scale, systematic (loan) modifications...."

More than 4 million homeowners with a mortgage were at least one month behind on their payments at the end of June, according to the latest data from the Mortgage Bankers Association, and a record 500,000 had entered the foreclosure process. Read On

Meanwhile, the rich are rewarded for their contributions to the foreclosure crisis:

"Wall Street Bankers In Line For $70 Billion Payout"
"CEOs Parachute to Safety"
"After Bailout, AIG Execs Lounged At Resort"
"As Lehman Collapsed, Execs Were Rewarded"
"Bailout No Bar To Bonus At Banks"

Both leading presidential candidates support the $850 billion wall street bailout, er, rescue package. Is it a quid pro quo exercise?

Top Contributors to Barack Obama
University of California
$777,593
Goldman Sachs
$743,371
Harvard University
$505,989
Citigroup Inc
$499,598
Google Inc
$493,705
JPMorgan Chase & Co
$478,462
National Amusements Inc
$437,669
Microsoft Corp
$434,156
UBS AG
$419,350
Lehman Brothers
$391,624
Time Warner
$388,063
Wilmerhale Llp
$383,024
Sidley Austin LLP
$371,166
Skadden, Arps et al
$361,409
Morgan Stanley
$344,130
Stanford University
$342,749
Latham & Watkins
$328,879
Jones Day
$314,760
General Electric
$299,434
University of Chicago
$294,237

Top Contributors To John McCain

Merrill Lynch
$349,920
Citigroup Inc
$290,101
Morgan Stanley
$249,377
Goldman Sachs
$220,045
JPMorgan Chase & Co
$210,992
AT&T Inc
$181,813
Credit Suisse Group
$175,503
PricewaterhouseCoopers
$163,670
Blank Rome LLP
$161,576
US Army
$150,470
Wachovia Corp
$150,006
US Government
$149,818
Bank of America
$142,776
UBS AG
$141,365
Greenberg Traurig LLP
$141,137
US Dept of Defense
$127,325
FedEx Corp
$123,654
Gibson, Dunn & Crutcher
$122,546
Lehman Brothers
$115,707
Bear Stearns
$108,000

source: http://www.opensecrets.org/pres08/contrib.php?id=N00006424&cycle2=2008&goButt2.x=10&goButt2.y=6