Last week, the United Way of Michigan published an interesting and potentially powerful economic study about the financial status of families in Michigan. Their conclusion is that about 40% of all households in the state qualify as ALICE households: that is,
as Asset Limited, Income Constrained, Employed ... households with income above the Federal Poverty Level but below the basic cost of living. [from the Glossary, p. 5]
The opening paragraph of the Executive Summary of the report explains in part why this study was undertaken:
While it is well recognized that Michigan has faced daunting economic times with the decline of the auto industry and the Great Recession, the official poverty rate of 16 percent obscures the true magnitude of the financial instability in the state. The official U.S. poverty rate was developed in 1965, has not been updated since 1974, and is not adjusted to reflect cost of living differences across the U.S. A lack of accurate measurements and even language to frame a discussion has made it difficult for states – including Michigan – to identify the extent of the economic challenges that so many of their residents face. [emphasis added; Executive Summary, p. 1]
Just as a refresher, let me remind you that the
federal poverty guideline is $11,170 for a single person, and $23,050 for a family [of four]. Now, I don't expect that many of our Michigan Kossacks would blanch at the notion that these levels are laughably low, but for reference it's useful to have them here. And, of course, families and some individuals whose income is this low do qualify for state and federal programs. But the goal for most reasonable people would seem to have enough well-paying jobs available for able-bodied adults to earn a sufficient amount of income for them and their family to be self-sustaining. After all, that's why we object to the low wages of workers at Walmart or at fast-food outlets, because most of those employees must still rely on safety-net programs even as they work as many hours as they can possibly get.
And that's where this ALICE program comes in: to define a level of income that is necessary on a county-by-county basis for food, housing, child care, health care, and transportation. So please go take a look at your county's "survival" budget, and then the "stability" budget, to see whether you're below the ALICE threshold for either category. I'll wait.
By the way, though I don't have the proficiency to post tables here, I can at least give you some examples from my county, Washtenaw. For a single adult, an annual income of $19,127 would qualify as meeting the survival budget, while an income of $22,342 would meet the minimum stability budget. For a family of four (two adults, two children), the figures are $51,075 and $91,274.
Before you scoff, if that's your response, I suggest you look at the monthly itemization of costs they provide at each county's sites, and consider them in comparison to your own budgets. Or, you could check out the tool that the Economic Policy Institute offers to calculate a budget somewhere in between these two levels. From their page:
EPI’s Family Budget Calculator measures the income a family needs in order to attain a secure yet modest living standard by estimating community-specific costs of housing, food, child care, transportation, health care, other necessities, and taxes. The budgets, updated for 2013, are calculated for 615 U.S. communities and six family types (either one or two parents with one, two, or three children).
For myself, with two adults and one child, the annual income of almost $61,000 is a pretty good estimate--though we've had no child care costs for years, those potential expenditures have been far outweighed by medical costs.
The United Way is by no means a radical group; they're about as middle-of-the-road Establishment as you can get. But they do see from a distinct perspective just how awful the situation is in Michigan. People struggle; their communities struggle; the downward cycle intensifies if there is no positive intervention.
I don't know how much of an impact this study will have, even under the best of circumstances. On the other hand, I do not object to a project that attempts to quantify the gap between what we have and what we need, if that will help get us closer to what we need.
The whole concept started out a few years ago with one study in New Jersey, when United Way staff in a wealthy county were struck by the pockets of poverty and relative hardship for some residents. Overall, the rate of ALICE households in NJ is around 30%, a figure sufficiently shocking to cause some strong reactions, and to pique the interest of United Way organizations in other states. This year, New Jersey has been joined by Michigan, Connecticut, California, Florida and Indiana. No doubt policy makers in each of those states will find much to surprise them as well.
Please join me in the comments with your reaction to this report, and with any other observations about Michigan politics and activism you care to add.
7:58 PM PT: We have more than enough compelling topics for coverage in the run-up to the November election. Just to name two: GOTV efforts (with some great diaries with local interest coming up from ShoshannaD) and the Detroit bankruptcy hearings in progress since yesterday.
If anyone would like to volunteer for these topics--or others--during one of the next several Wednesdays, please send me a Kosmail. We have a couple of folks already planning Open Thread diaries, and I do want to avoid duplication of effort.
Edit Th. 9/4 2:21 PM ET:
I almost forgot, I wanted to include this information as well.
Sign up For the People's Climate March Now!
New York City, Sunday, September 21
Have you signed up yet to participate in the Peoples' Climate March? The September 21 March is being held two days before the UN Climate Summit, where government and corporate leaders will convene to discuss taking action to address climate change.
Tens of thousands are expected to march in New York City and over 700 groups and organizations are participating.
Let's make September a game-changer for the climate movement. Sign up now for a bus, train, or ride shares (or volunteer transport.) Individuals, campuses, churches and organizations are registering to host marchers.
Sign up here!!! --> People's Climate March
The other day I spoke with a young woman working as a barista near my house and might have helped her make a connection to go. Several different buses are going from Michigan; here's a link to the info from the Ann Arbor Ecology Center. (That page also has a link to the national effort.) I can't go on the march myself, but I will contribute to help someone else go.