Blog Assignment 10: Living at the Poverty Line

Making Ends Meet - Without the Meat!

 

 

After reading this chapter and doing additional research on poverty in America and around the World, it is impossible to remain silent and/or complacent about this real problem!

 

Land of the Free, Home of the Broke (youtube)

 

 

Breaking Down the Numbers

For the purpose of this assignment I will begin with providing a comprehensive list of all the goods and services my hypothetical but “all too real” family of four (two working parents, one child (age 7) in elementary school, and another child (age 3) in daycare) needs to survive. According to our government’s calculations, the minimum subsistence level (aka the poverty line) is $22,113 per year which equates to $1,842 per month.

Basic Needs       Monthly Expense

Food                      $433       ($100/wk x 52 = $5200/12= $433.33/mo.)

Rent                      $669       ($669 x 12 = $8,028) – Heat, water, sewer included (need to pay electric)

Electricity             $40         ($40 x 12 = $480)

Used Car              $433       ($100/wk x 52 = $5200/12 = $433/mo.)

Car Maint.           0

Daycare                $810       ($187/wk x 52 = 9724/12 = $810/mo.)($758 at the lowest not a “center”)

____________________________________________________

Subtotal               $2385    Meaning – Living Only (Basic food/shelter/transp. to work/childcare)

Budget                 $1842

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TOTAL                  <$543.00>           ALREADY   OVER    BUDGET!

What on earth could you cut from the above budget? Possibly use the bus as a primary mode of transportation when possible. However, this becomes almost impossible when you have to bring a child to daycare. Daycare cost is definitely a budget buster. Perhaps the parent who has the best pay and stable benefits could keep their job, but the other parent could try to find a different job that is on second shift so that they could "tag-team" parent and eliminate the need for daycare is the only solution that I see. The only way that they could cut food expense is to visit a food pantry. They could also possibly save about $52 per month in daycare if they opt to go to an in-home daycare rather than a daycare center. Every expense above other than day care is pretty firm without housing or food assistance. If you cannot cut any more fat (which there is not an ounce of in the above budget) then another option the family has, if possible, is to have one or both of the parents to take on a part-time job on the weekends. However, this is just wishful thinking for the simple fact that with the recession one job is hard enough to find.

 

Not only would this family need to cut $543 in spending in just the bare minimum realty above, the following is a more comprehensive list of what you would think that a family living the "American Dream" should at least have the means and opportunity to include in their conservative budget. The follow is a continuation of the above list that is not able to be included in the "poverty line budget." I consider this list to be vital necessities and should be a right for all Americans. This is truly a travesty and a black mark on our nation as a whole!.

 

Continuing on, the following are additional expenses that need to be considered in a normal and realistic budget for most of Americans but are not possible for those under, on, and hovering above the poverty line. This continued list will clearly show the level of impossibility of successfully living on the “Poverty Line Budget.”

 

Subtotal               $2385    Subtotal from above

Med Ins.              $250       ($250 x 12 = $3,000) – Employee portion only of medical insurance coverage

Med. Copay        $20         (8 Dr. visits/yr @ $30/each = $240/12 = $20/mo.)

Rx                         $10         (estimate $10 per Rx, estimate 1 monthly Rx = $120/12 = $10/mo.)

Misc A                 $625       See below: plan for the what if

Misc B                 $410       See below: things that we take for granted every day

Cell Phone          $50         Basic plan

Life Ins.                $30        ($15 each parent/mo. For minimal coverage)

Vacations            $0          Luxury that cannot be included 

_________________________________________________________

Total                      $3,780   Conservative Comprehensive Estimated Monthly Expenses 

Budget                 $1,842   Poverty Line Budget

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Shortfall              <$1,938>             

 

This budget is short more than allotted according to the Government’s Idea of what should or should not be considered minimum subsistence level!

 

Misc. A: Not able to budget or save for a hospital stay or even an ER visit, which typically employer medical plans usually require approximately $2500 out of pocket expenses per person, per year for a max of 3 of the 4 people = $7500/12 = 0 - $625/mo if three people maxed this out)

 

 

Misc. B: There is absolutely no room for any unexpected expenses, let alone all of the things that we all take for granted on a daily basis. The following items I list I will provide an estimated monthly, very conservative estimate as well. Thing things include: clothing/shoes ($100), household items (furniture, dishware, towels, lotion, soaps, cleaning supplies, etc.)($50-100), education (field trips, classroom supplies)($10), gifts (Christmas, birthdays)($100), recreation/entertainment (gym memberships, school sports)($100). This rough estimate of expenses total $0 to $410/month additional expenses that are impossibilities to even try to have with the poverty line budget.

Misc. C: Keep in mind that when people are in the mode of constant stress. it can have many devastating affects to your physical, mental, and emotion health. Not being able to release of all life stresses can also put a strain on marriages, especially money problems. People are already unable to afford premiums, but even if they do, they are more likely to skip preventative doctor and dentist appointments. Studies and the new Affordable Care Act are trying to change our behavior in America that prevention in the long-run is more affordable our current "fix it" after the fact.

Please watch the trailer for a movie called Unnatural Causes: Is Inequities Making us Sick?

 

Unnatural Causes: Is Inequities Making us Sick?

 

 

It does not take a mathematician to see that these numbers do not and can never be added up to make it work for families in this situation. As you can see from the "Unnatural Causes" video that disparities in America have dire consequences for people. I indicated in the budget a glimpse of the many things that this family cannot provide for themselves that most of of take for granted. Imagine if your oldest child is growing out of their shoes and pants every few months. This alone could add another $10-$20 month, shopping at a thrift store to your already unbalanced, in the "red" budget. How must their pride feel knowing that they may have to ask others for help or ask people for free hand-me-downs? This is just one simple line item on the budget and look at the financial and emotional strain that it causes. Imagine being put in this situation every time your child asks for a new toy? The guilt of not being able to give your child the basics, let alone a little toy.

 

Another thing that I have yet to mention is the viscous cycle of poverty. Your children are in the front seat of this "motion picture" called life and as they live it, they only see one ending in sight. Therefore, as the learning theory indicates, we tend to model our parents. This may be the daily arguments over money with your spouse. It may be the root of alcohol abuse, wanting to escape reality and numb the pain of hopelessness. Which in turn can be the cause of being fired. Thereby, the merry-go-round continues.

 

The level of hopelessness can also make these parents and children depressed. This can alter your motivation and zest for trying to break the cycle of poverty but according to the stratification model's most of them are set-up for "the rich to get richer and the poor to get poorer" (Newman, 2012). This poverty line budget does not allow for taking care of the basic needs let alone the opportunity to save for all the "what ifs" that come up, or to save enough to have  three  month reserves, or to save for education (parents or children).

It goes without saying that the list is extensive of all the things that an affluent family has and/or takes-for-granted that a family in or around the poverty line lives without. It is the little things like shopping for non-essentials, bowling, a movie, going out to dinner, a vacation or even a stay-cation. The sad thing is they may not even have vacation pay at their job so they may not even be able to take a day off. If that is the case they are in constant fear of losing their job every time they turn around. For example, taking their child to the doctor or what if their car breaks down and they miss work. Their life is inundated with stress, threat, and worry.

In the end, what can we do to help. One thing that I found was an opportunity to take the "

 “Live below the Line” challenge today!" You can go to this link to register https://www.livebelowtheline.com/ and/or view the following video to learn more. 

 

Hugh Jackman talking about taking the challenge!

 

 In closing, the cost of poverty is far more than I listed above in this families budget. It has a lasting effect on the individuals living this life with health issues that manifest in more chronic illnesses over time. For example, many people in impoverished areas do not have enough money to eat a healthy diet or have access to learn how to eat healthy may succumb to the temptation to feed their family form the "dollar menus" at fast-food restaurants are know to be correlated to the growing obesity epidemic. According to the CDC (2012), obesity can lead to diabetes  which can lead to many more problems (amputations, etc.). Another problem that can be fine today but after years of preventative dental care can cause loss of teeth at the very least in the future. The cost  and burden of poverty is not exclusively a problem for the families on the poverty line. Instead these disparities have a trick affect and use many resources in our socially constructed society. All of which imposes a cost to all of us, financially and morally. 

What else can we do to be a part of the solution?

 

References

https://www.livebelowtheline.com/

www.youtube.com

 

Newman, D. (2012. Sociology: Exploring the Architecture of Everyday Life: 9th Edition SAGE Publications.

 

www.cdc.gov