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From: Sandeep Vaidya (LMI) <[EMAIL PROTECTED]>
To: STOPNATO (E-mail) <[EMAIL PROTECTED]>
Sent: Thursday, May 24, 2001 9:51 AM
Subject: Poor people of America [STOPNATO.ORG.UK]


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Poor people of America
Naomi Klein
Thursday May 24, 2001
The Guardian
A little over a year ago, the New York Times magazine ran a major feature about
poverty in the United States headlined The Invisible Poor. It was a well-reported
piece, with beautiful photographs, but there was something strange about it. It was as
if, at the height of the hi-tech boom, in the richest country in the world, "the poor"
inhabited an exotic foreign country, there for journalists to discover, but not to
cover.
The official story for most of the decade, supported by record low unemployment rates
in the US, was that poverty was yesterday's "old economy" problem. Sure, food bank use
is up 75% in some American cities, one in five US children live in poverty and 44.3m
are uninsured, but you'd never know it as a casual media consumer. The occasional
story may have appeared about the people prosperity "left behind" (as if by some
cosmic typo), but in the major national media, there has been little very little
appetite for these downer tales.
Not when journalists were checking their soaring stock options from their desktops.
Not when their employers were being gobbled up by the same glitzy media conglomerates
that were leading us all to the hi-tech promised land. It became vaguely gauche to
bring up poverty amidst all this plenty - like talking loudly about death at a
wedding, or sex at a funeral.
Little wonder. Journalists (or "content providers") have been at the centre of the
transition from "old economy" to new, a transition that made media, information, ideas
and culture the most valuable and coveted commodities. And the very worst place to get
an accurate picture of a storm is from the relative calm of its eye.
But now that the new economy whirlwind is subsiding, necks are beginning to crane
backwards to see what has been lost. Entire neighbourhoods. The character of cities
like San Francisco. Space for artists, for counter-culture. And perhaps because of
this pause in the action (combined with the swaggering defiance of George Bush's tax
cut), poverty in the US is at last being discussed in less exotic and mysterious
terms.
According to several new reports, it turns out that the reason for deepening US
poverty is rather simple: it's all those rich people. Extreme wealth created in the
top tier of the economy, rather than trickling down and making everyone better off, is
having a direct negative impact on those living in extreme poverty at the bottom.
In her new book, Nickel and Dimed, Barbara Ehrenreich, one of America's most respected
social critics, goes "undercover" in minimum wage USA. She works as a contract maid in
Maine, as a Wal-Mart clerk in Minnesota, as a waitress in Florida. Her challenge is a
simple one: to survive on her wages.
She starts by discovering that she needs two jobs to afford her $625 a month trailer
in Key West Florida, and her odyssey comes to an abrupt end when she can't pay for a
Minneapolis motel room (the only rental available) on her Wal-Mart salary.
Economists in the US measure the poverty level based on how much food you can buy with
your salary. But food prices, Ms Ehrenreich points out, are relatively stable while in
this economy, rental costs "when rental units are available at all" are subject to
super-inflation. So her story becomes less about work than about rent: the struggle to
find a place to sleep when real-estate markets are exploding and the government has
abandoned the project of providing affordable housing. "When the rich and the poor
compete for housing in the open market," Ms Ehrenreich writes, "the poor don't stand a
chance."
The brutal underside of gentrification is also the persistent theme of Secrets of
Silicon Valley, an important new documentary by Alan Snitow and Deborah Kaufman. The
story follows hi-tech temps who assemble computers and printers - and don't earn
enough to make the rent in a city where houses regularly sell for $100,000 more than
the asking price. And where the non-profit agencies that provide services to the poor
are fighting their own wave of evictions.
The question of what constitutes a "living wage" in the US reared its head in another
form last month, when students at Harvard University staged a historic three-week
sit-in of their president's office. At issue was the fact that, on a campus blessed by
limitless research budgets and endowments, caretakers and cafeteria workers earn as
little as $6.50 an hour without benefits. The demand of Harvard's Living Wage Campaign
is for all of the university's workers, including those who have been outsourced to
contractors, to be paid at least $10.25 an hour.
As the invisible class system of the US's new economy becomes more visible, it has
much to teach other countries that are striving to emulate this so-called hi-tech
miracle. I keep thinking about a 50-something software programmer I met in Seattle at
the height of the dot.com frenzy. Barbara Judd worked at Microsoft, but her department
was staffed exclusively by temps - or "perma-temps" as they called themselves. She had
no job security, no stock options, not even, at the time, health insurance.
One day at work, she bumped into a 20-something programmer - a staffer - by the
photocopy machine. Making small talk, the younger woman griped that she was ready to
retire but was shackled to the company with "golden handcuffs". (That's hi-tech lingo
for millions of dollars worth of employee stock options that haven't yet "vested".)
"Yeah, well," Ms Judd replied. "At least you have health insurance."
Guardian Unlimited  Guardian Newspapers Limited


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