The Voices Project

Millions of working American families struggle to reach the middle class

In a press release yesterday from the Center for Economic and Policy Research (CEPR), their latest Bridging the Gaps project report shows that “One in Five People in Working Families Unable to Reach the Middle Class.” The press release summarizes CEPR’s new report, "Movin' On Up: Reforming America's Social Contract to Provide a Bridge to the Middle Class," as follows:

“At least 48 million Americans in working families lack the income needed to gain a toehold in the middle class, according to a new report released by the Center for Economic and Policy Research.

"Movin' On Up: Reforming America's Social Contract to Provide a Bridge to the Middle Class" synthesizes recent research by CEPR on job quality, economic security, and unionization, and outlines a set of national policy reforms that would make it possible for more struggling families to join the middle class.

"Only 1 in 4 people in working families have a good job, one that pays $17 an hour, that has an employer sponsored health plan, and offers a pension," said John Schmitt, a report co-author.

Current poverty standards do not accurately reflect the number of people in working families who do not have an income sufficient to maintain a middle class lifestyle. The report finds that nearly half of all working families falling below a middle class standard of living have incomes that put them above the official poverty line.

The authors conclude that to bring some balance back to the economy and ensure that more people share in our nation's economic prosperity, labor market standards and institutions must be strengthened, access to post-secondary education and training must be expanded, and the system of public and private healthcare benefits must be reformed.

"Tremendous increases in economic growth and workers' education levels over the last few decades should have moved millions of Americans into the middle class, but didn't because of policy choices that increased inequality," noted report co-author Shawn Fremstad. "We must update America's social contract to make sure that the economy is working for all Americans."

Interactive:

Have you read the report? What do you think fo CEPR's proposed "New Social Contract" (pages 9 - 14))? They identify:

1. "Restoring Labor Market Institutions"
2. "Providing Universal Health Insurance and Harmonizing the Publicly Financed Structures that Help Workers Make Ends Meet"; and
3. "Provide Workers with Greater Access to Postsecondary Education and Training"

as the most influential factors in helping more Americans reach the middle class. Do you agree or disagree with this conclusion? Comment now and let us know what you think!

Why are our children being left behind?

The cover headline of yesterday's Boston Metro blared "Mass.'s poor children are being left behind" and "Child welfare report ranks state dead last in caring for needy kids." The headline is not nearly as shocking to those, like myself, that have or know children living in poverty unable to gain the early childhood development supports they need from lack of funding, age restrictions, and/or accessibility. The article cites a report by the Baltimore-based Annie E. Casey Foundation, stating:

"The report ranks the Commonwealth 50th in the well-being of low-income children based on over 102,000 interviews nationwide that focused on health status, social and emotional well-being, cognitive development and educational attainment, family activities, family and neighborhood context, and socio-economic characteristics. …Among the six categories, Massachusetts ranked last in health status and in social and emotional well-being for low-income children. It was 49th in cognitive development and educational attainment."

The article adds:

"Despite the state’s dismal showing in terms of low-income children [that is, children living in household that earn less than 200% of the Federal Poverty Level], it ranked 21st for those in high-income families and 26th overall. Because of this Massachusetts had the largest disparity of ranking from high- to low-income children."

According to recent reports, Massachusetts is the 5th wealthiest state in the nation (CNN). So, how can a wealthy state like ours—with one of the lowest percentages of children living in poor households in the nation—be ranked the lowest when it comes to child welfare and well-being in essential categories such as health and cognitive development?!

Interactive:

Why is Massachusetts falling behind in assisting low-income families? What solutions would you propose to rectify this situation? Comment Now!