Sharon Cobb and I kinda sorta agree on something, which is noteworthy, because our areas of agreement so far are limited to four things: our support of Israel, rock-and-roll, sports, and photography. On everything else, we’re about 180o out of phase.
Ms. Cobb left a comment to a blog post I made on Saturday about John Edwards’ new digs, which I used to make the point that rich liberals really don’t care about the poor. They just use the poor for political leverage.
At any rate, Sharon disagrees with that assertion, but does note that “What Edwards is saying is a lot of people don’t get the chance to obtain what he did.” Perhaps that is what he believes. The idealist in me hopes so.
Ms. Cobb further opines that “When we are all on equal footing for the basics, then we all have a chance of the American dream. But if you’re too sick to go to school and have no health insurance and your mother is beating you because she never wanted you to begin with, then that child is facing a lot more obstacles. I know I am getting redundant about this, but every child in America must have an equal chance to have love and happiness and education and health care. Invest in these things while they are young, and the vast majority of these kids will more than pay their fair share of taxes which we need to pay for initially.”
I sort of agree with that summation. The problem is that we Americans are never going to be on equal footing for the basics. But I would argue that we’re closer to such equality than any other nation on earth.
I wish more than anything that every child had the benefit of love, happiness, education, and health care. While one can make the argument that the taxpayers are already providing the latter two, the government can never supply love and happiness. The only guarantee is the right to pursue happiness, not happiness itself. I wish Congress could pass a bill today that would effect love and happiness upon everyone, but that, of course, is an impossibility. The best thing government can do is clear the pathway of obstacles that otherwise bar our pursuits.
I once wrote in an op/ed that you can trace just about every social ill we face as Americans back to the failure of men to be fathers to their children, and husbands to the mothers of those children.
And in one of my favorite op/ed pieces, “It’s time to end the war on poverty,” that I published on October 3, 2005, I noted that:
According to the Census Bureau, the poverty rate in the U.S. in 1959 (the first year for which data are available) was 22.4%. By 1965, the year President Johnson declared war on poverty, the poverty rate had already fallen to 17.3%. The next year, it was 14.7%. In 2004, it was 12.7%. Since 1965, the poverty rate has never risen above 15.2%, or fallen below 11.1%. Clearly, the War on Poverty hasn’t worked. It’s time to end it.
A lack of wealth is not the problem. Going back to the Census Bureau, per capita income in 1967 (again, the first year for which such data are available) was $2,464, or $11,500 in 2003 dollars. In 2003, that figure was $23,276, having more than doubled during the intervening 36 years. So if our wealth production continues to increase, then why hasn’t the poverty rate been appreciably lowered?
The answer lies in the breakdown of the two-parent family. Using 2004 data, the poverty rate for people in married-couple families was 6.4%. The poverty rate for people in families with no wife present was 13.8%. And the poverty rate for people in families with no husband present was 30.5%.
In other words, a person living in a home headed by a single woman is nearly five times as likely to be impoverished than in a home headed by a married couple. And, of course, the percentage of families headed by married couples has fallen considerably since 1965. In that year, 87% of all families were married-couple families. By 2004, that number had fallen to 75%.
Thus, as per capita wealth has increased in the U.S., the number of individuals living in single-parent homes has increased so that our wealth-building has been offset by the breakdown of the nuclear family such that the poverty rate during the past four decades has remained largely unchanged. Throwing money at poverty has only treated its symptom — not the disease itself — and has instead produced unintended side effects, namely single parenthood.
We therefore do not need more government. We need more married-couple families. It’s so simple a concept that it’s often dismissed.
This finally brings me to the topic of this post — namely that education matters more than just about anything else if one is to even come close to realizing his God-given potential. (And everyone has God-given potential to do something useful.) Of course, the government guarantees a public education to every child in American, but not every child is guaranteed to receive a good education. You can drag a child to school, but you can’t make him learn. That’s where parents come in, and without a stable home headed, preferably, by a married man and woman who are committed to each other and their children, then, yes, those children will most likely face obstacles that really shouldn’t be there.
Why does education matter? A story that ran in the Tennessean last Thursday gives a perfect example. It has to do with businesses that offer high-fee or high-interest payday and tax refund loans, usually to low-income people. I’m a free market guy, and realize that such businesses wouldn’t exist if there weren’t a demand for their services, but payday loan businesses are insidious for the same reason that the lottery business is insidious; they prey primarily on low-income people who aren’t good at math, and they take advantage of the ignorance and gullibility of others. Here are a few key points from the article:
She gets her W-2, takes it to H&R Block and then applies for the fastest refund method available, a refund anticipation check that helped Brooks take care of bills and other little emergencies last year.
“I don’t really think about it,” Brooks said, waiting to catch a bus at a downtown Nashville bus stop. “I think about my refund, the things I need. And even if I wanted to, I don’t know how to do my own taxes. Where would I start?”
…
Count Germaine Williams, a taxpayer in southern New Jersey, in that number. Williams said she paid $304 to have her taxes professionally prepared this year. That included a fee to create a temporary bank account into which the Internal Revenue Service will electronically deposit more than $3,000.
For $304, I think I could learn how to do my own taxes. Indeed, the quote that bothers me most is “I don’t know how to do my own taxes. Where would I start?” Folks, I’m not a CPA, but I can read and do arithmetic. And I am a product of public schools. I’ve always done my own taxes, even though it continually gets more complicated.
For years, even after I got married, I used the 1040EZ. Then after my wife and I bought our first home and started itemizing, we switched to the 1040 and Schedule A. Then came along the tax deduction known as “our son,” and I started having to do the worksheet that tells us whether or not we can claim him as a tax credit. Then, as our income increased, I started having to figure the alternative minimum tax (which, fortunately, hasn’t hit us yet). Then came the sales tax deduction, for which I am grateful, but it requires even more calculations. Now that my wife is self-employed, we have two more forms to do for the insidious self-employment tax. It’s cumbersome, but it isn’t brain surgery, either.
There are several things I’ve learned along the way, the most significant of which is that if you get back a huge refund every March, then you’re having too much money taken out of your paycheck and are, in effect, giving the IRS an interest-free loan every year. So, a few years ago, I jacked up our deductions to have less money taken out with the goal of having the bottom line on our tax form add up to as close to $0 as possible.
Simple things like doing your own tax forms are the result of having the invaluable abilities to read and write. When I did my first tax form back in 1988, I, too, didn’t know where to start. So I asked someone who did know. I can now keep my $304 and do the forms myself.
This leads me to a comment that Sharon left to a separate post regarding the lottery.
Yes, it is mainly poor people who buy the tickets. However, that is indicative of a much bigger problem where poor people are feeling hopeless and don’t think they can obtain the American dream. Now I won’t blame it all on that. (Almost) everyone is looking for a way to get rich quickly. That comes down to pretty poor values in our country.
Oprah Winfrey recently said it better than I ever could. When asked why she spent 40 million on education in Africa instead of America, she said, “In Africa when I ask young people what they want they tell me they want to go to school and becomes doctors and build up their communities. When I talk to young people in America, they tell me they want a new IPOD or new name brand sneakers.”
First of all, if these kids have iPods and $100 sneakers, how poor can they be? Indeed, I, too, believe our values are misplaced. Again, I look back to the breakdown of the family.
I also agree that almost everyone is looking for a way to get rich quickly, rather than build wealth slowly over the course of one’s lifetime. As Dave Ramsey says, “live like no one else now so that later on you can live like no one else.” What he means is that “normal is broke,” but that even those who live on relatively modest incomes can, if they start saving at an early age and stay out of debt, retire as millionaires after 30 or 40 years.
The fact that the lottery preys primarily on the poor is less the result of hopelessness, and more the result of ignorance. Again, education matters.
I did the math for my op/ed back on December 15, 2005, “Lottery is regressive.” Here’s an excerpt that illustrates my point:
If more people understood the math behind lotteries, there would be far fewer tickets sold. Some do know the math, and choose to play anyway. But some don’t know the math, and play because they honestly believe they are going to win a huge jackpot that will change their lives. The latter is perhaps the lottery’s saddest story.
Minority Wealth Magazine did a survey earlier this year, and discovered the following:
“A larger percentage of men questioned noted they felt playing their state lottery was the best way to build wealth, as compared to women. …[Forty-eight] percent of minority men preferred playing the lottery in lieu of savings as a financial design, compared to 41 percent of minority women surveyed.”
It looks like someone got some bad financial advice. According to the Tennessee Lottery, the odds of winning the Powerball jackpot are 1-in-146,107,962. The odds of winning even the $200,000 prize are 1-in-3,563,609, while the odds of winning $10,000 are 1-in-584,432.
Let’s say a person puts $50 a month into Powerball tickets. He does this for 30 years. He will have “invested” $18,000 in the lottery. Since each ticket produces a 1-in-146,107,962 chance of winning, the odds of his winning the Powerball jackpot at any one time during that 30 years are still 1-in-8,117. Even his odds of winning $10,000 are 1-in-32. And that’s after buying 18,000 lottery tickets. But investing $50 per month for 30 years at 5% interest would give that person a 1-in-1 chance of ending up with $41,612.93.
To put this into even better perspective, you could buy 50 Powerball tickets a week and win the jackpot once every 56,000 years.
If you bought a ticket for every mile you drive, you’d have to make the equivalent of 300 round-trips to the moon before winning.
If you buy one Powerball ticket, you’re 27 times more likely to be killed by a wasp, hornet, or bee sting in the next year than you are to win the jackpot.
And now we come full circle.
Who was it that pushed the lottery here in Tennessee in the first place? It was former State Senator Steve Cohen, who was perhaps the most liberal member of the Tennessee Senate before being elected to Congress last November.
Who is standing in the way of reducing the food tax here in Tennessee? Governor Bredesen and the Democrats in the Tennessee General Assembly — the very same people who also argue that the food tax is too regressive and hurts the poor the most.
Who gave us the War on Poverty, which hasn’t changed the poverty rate but has contributed to a soaring illegitimacy rate, and fights tooth and nail to keep its social programs in place? Democrats.
Who stands in the way of school vouchers, which would allow parents of children who attend failing public schools to spend that money at private schools? Democrats.
Indeed, liberals may care about the poor. But when given the choice of siding with the poor or the government, they will side with the government every single time.
Sadly, the ones who tend to be the most adversely affected by the policies of liberals are the very ones who help keep them in power.