Poverty: Concepts, Policies & StrategiesPoverty: Concepts,

Policies & Strategies

Learning ObjectivesLearning ObjectivesDiscuss causes of poverty

Describe models and types of poverty

Outline government fiscal, occupational, and social welfare policies

Share how Campus Compact VISTAs can enhance individual and community assets

What are Some Causes of Poverty?

What are Some Causes of Poverty?

Causes of PovertyCauses of Poverty• Shifts in the global economy and national

recession

• Predatory lending in housing and credit card market

• Lack of affordable housing

• Limited access to quality educational opportunities

• Low minimum wage and declining real wage

• The unequal distribution of income and wealth

• Reduction in union membership

• Natural disasters

• Lack of a national health care system

• Others?

Factors that contribute to Poverty

and Inequality

Factors that contribute to Poverty

and Inequality• Age

• Race & Hispanic origin

• Gender

• Household type

• Employment status

• Educational attainment

• Public Policies

As Campus Compact VISTAs, you have the opportunity to address poverty at the community level and to change a system that perpetuates poverty.

How Can A Campus Compact VISTA build Individual and

community assets?

How Can A Campus Compact VISTA build Individual and

community assets?• Supporting community cooperatives and micro

enterprise through a service-learning course

• Training students to assist individuals filing for an Earned Income Tax Credit (EITC)

• Organizing financial literacy programs in schools and community development organizations

• Instituting SAT, FAFSA, and college application preparation for high school students

• Recruiting volunteers to support community organizations that build social, educational and financial assets

Models of Poverty: Absolute and Relative

Models of Poverty: Absolute and Relative

Two main models used to describe poverty: absolute and relative.

• Absolute poverty: lack of basic human needs.

• Relative poverty: lack of a diet, amenities, housing, or standards that are customary to a society.

• Both absolute and relative poverty limit a person’s capacity to fully engage as a social and economic actor in society.

Relative PovertyRelative Poverty

• The minimum wage does not meet federal guidelines for a family to avoid poverty.

• The poverty line for a family of 4 is $18,100. The minimum wage provides a full time worker with $10,712 at 40 hours a week.

• In order for full time workers to stay above the poverty line, they would need to earn at least $8.70 an hour, far greater than the $5.15 minimum wage.

Situational PovertySituational Poverty

“Trigger events” like changes in employment status, disability status, household composition, and natural disasters are often the cause for entry to or exit from poverty.

Generational Poverty

Generational Poverty

• Of the 34 million Americans living in poverty, about 75 percent are in generational poverty and the remaining are in situational.

• Without interventions, it is very likely that the 25 million living in generational poverty will remain in this state for the remainder of their lives.

• 60% of people in poverty worked full-time in 2003.

• Investing in education, increasing the real wage and reducing income and wealth inequality are key policies for reducing generational poverty.

Concluding thoughts on Models of PovertyConcluding thoughts on Models of Poverty

What are some reasons why it’s helpful for VISTAs to understand the models and types of poverty?

Asset DevelopmentAsset Development

• Many of you are going to be serving in organizations or programs that address poverty through programs that support asset development

• How does asset development relate to addressing poverty?

AssetsAssets• Financial assets include credit, property, health

insurance, savings, and a retirement plan.

• Wealth and savings can be used for emergencies or as a tool to increase advantage and opportunities.

• Inherited wealth is a transformative asset, lifting families beyond what individual income or achievement would allow. Inheritance includes help with college tuition, gifts toward a down payment, or passing wealth to grandchildren.

Examples of Campus Compact VISTAs building community

assets

Examples of Campus Compact VISTAs building community

assets

Second Year VISTAs:How have your programs built community

assets to bring people out of poverty?

• Fiscal Welfare

•Occupational Welfare

• Social Welfare

•Social Insurance

•Social Assistance

Government Welfare Programs

Questions?Questions?

Taking ActionTaking Action• Break into regional groups:

• Massachusetts: Raytheon Theatre

• Michigan: Room 340

• Rhode Island and Connecticut: Room 440

• Each regional group will have one community issue.

• Return to the large group in 30 minutes (11:00) to share their plans to address this issue using campus and community resources.

• Brainstorm! There are no limitations to your program ideas.

Poverty ScenariosPoverty Scenarios

Reflections on PovertyReflections on Poverty

• What part of the session struck you as the most interesting, surprising, or upsetting?

• Second years: how did your first year of service change your expectations about poverty?

• Plus/Deltas

Poverty ResourcesPoverty Resources

•Understanding Poverty, Danzinger and Haveman

•Black Wealth/White Wealth, Oliver and Shapiro

•The Great Risk Shift, Jacob Hacker

•What Government Can Do, Benjamin Page and James Simmons

•Nickel and Dimed, Barbara Erenreich

•The Census Bureau, http://www.census.gov