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What is the Government’s Role in Fighting Poverty

Part of a Discussion on Economic Development for the Village Square’s Take-out Tuesday event.

Learn more about our May 3rd event on “What is the Government’s Role in Fighting Poverty?” here.

What is the Government’s Role in Fighting Poverty?

Written By: Cindy Arenberg Seltzer

According to the Preamble to the Constitution the role of Government includes to “….promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity…” Accomplishing this responsibility requires addressing poverty as one cannot enjoy the “Blessings of Liberty for ourselves and Posterity” if one is trapped in an endless cycle of poverty.

While political rhetoric seems to continually pit a false choice of government intervention vs personal responsibility, it is not only possible but proven that government can provide the conditions and opportunity to support personal responsibility. Programs like subsidized child care, the Supplemental Nutrition Assistance Program (SNAP), the Earned Income Tax Credit have given millions of people the boost they need to work themselves out of poverty and have mitigated the effects of poverty on millions more.

Unfortunately, the narrative that these are giveaways to the lazy and underserving often result in program limitations that actually provide incentives to remain in poverty rather than advance. Benefits often end abruptly at 100% of poverty or may extinguish gradually until 185 or 200% of poverty. That may sound reasonable until you look at what those numbers actually mean. In 2015, the Federal Poverty Level (FPL) for a single person in the 48 contiguous states was $11,770 and for a family of four was $24,250. Which means most support is completely extinguished by the time a single person earns approximately $23,000 and a family of four earns $48,000.

…we need to continually examine our policies and look for ways to ensure that they are providing a runway to success rather than a cliff to an endless cycle of poverty.

The excellent ALICE report recently updated and released by the United Way demonstrates clearly that even $48,000 is not a living wage in Broward County. It also puts a human face on this challenge. ALICE stands for Assets Limited Income Constrained Employed. These are our school teachers, fire fighters, police, waitresses, housekeepers, etc. who keep our children educated, our streets safe and our economy humming. Even as they work harder and strive to increase their income, modest gains in income can cost them thousands more in losses in benefits. And the big losers here are children who also can be key to breaking the cycle of poverty.

In the US, children are more likely to be poor than any other age group, with nearly one in five in poverty in 2015 (19.7 percent, down from 21.1 percent in 2014). While their parents struggle to pay for necessities, children in poverty pay in other ways: damage to brain development, poorer physical and mental health, and inferior education and employment outcomes. Child poverty results in a less-educated workforce, which reduces productivity and economic output for years to come. It raises the incidence – and cost – of crime, while also increasing physical and mental health costs.

Only government has the scope and resources to effect major changes and positive impact on society. Rather than demonizing those who have yet to achieve the American Dream, we need to continually examine our policies and look for ways to ensure that they are providing a runway to success rather than a cliff to an endless cycle of poverty. That is how our government will continue to strive to “form a more perfect Union”.

What is the Government’s Role in Fighting Poverty?

Written By: Commisioner Chip Lamarca

Fighting poverty is a nationwide issue that many states, counties and local governments are working diligently to find solutions. Broward County is also facing this issue and providing assistance in many different areas, but more needs to be done. Fifteen percent of Broward County’s residents are considered “poor” – including one in five children. Family poverty rates continue to increase even though 60 percent of poor families have at least one working adult. Individual, family and child poverty rates have been steadily increasing since 1980 in Broward County. The statewide average is only slightly higher at 17 percent. In comparison, the rate in Palm Beach County is relatively the same (15 %) and higher in Miami-Dade (21%). Poverty levels are defined nationally by the U.S. Bureau of the Census by family size and composition. In 2014, the poverty threshold for a family of four with two children was an annual income of $24,008; for a single parent with two children it was $19,073; and for a single person aged 65 and over it was $11,354. With the poverty levels increasing, it is vital for government, as well as various stakeholders in the community, to lead the effort against poverty by working together to find solutions to this nationwide crises.

A rising issue in our community today, which can assist in decreasing the poverty level, is making sure the workforce has the skills necessary to fill the jobs of companies in Broward County. There is a skills gap crises in our community, where employers have job vacancies but cannot find qualified candidates to meet the qualifications. Bridging this skills gap and addressing underemployment can have a very meaningful effect on workers, businesses and the communities they serve. Broward County, in partnership with the Greater Fort Lauderdale Alliance, as well as several other partners have begun to work on bridging this skills gap, which can ultimately assist in the efforts to decrease the poverty level in our community. One of these initiatives is the development and implementation of the Six Pillars Broward County Project.

…there is a tremendous opportunity to bridge the skills gap, ultimately decreasing unemployment rates and decreasing the poverty levels in Broward County.

In 2011, more than 350 Broward County business, civic, academic and government leaders, volunteers and community residents began the process of developing a strategic visioning plan through the year 2030. The plan was developed over the next year and launched in October 2012. Six Pillars is meant to help communities thrive by developing and implementing a visioning process that will impact our future success by creating high wage jobs and creating a community prepared for the future. The Six Pillars are: 1. Talent Supply & Education, 2. Innovation & Economic Development, 3. Infrastructure & Growth Leadership, 4. Business Climate & Competitiveness, 5. Civic & Governance Systems and 6. Quality of Life & Quality Places. With 22 goals, 82 strategies and nearly 400 tactics of the Six Pillars, a great deal of early planning has been made within the pillars. Significant progress continues to be made in the implementation of the Six Pillars goals, strategies and tactics. This plan follows the Six Pillars program that the Florida Chamber of Commerce launched in 2011 and provides a gauge that allows leaders in the State of Florida to make comparisons to the individual metrics within each county.

As we begin to understand the workforce skills gap and begin to collaborate with the education community, as well as the business community, there is a tremendous opportunity to bridge the skills gap, ultimately decreasing unemployment rates and decreasing the poverty levels in Broward County. Therefore, establishing these collaborations between the workforce, employers, educators and policymakers is an essential opportunity in the fight against poverty.

Learn more about our May 3rd event on “What is the Government’s Role in Fighting Poverty?” here.