This post may contain affiliate links. Please read our disclosure for more information.
The biggest screwer of poor Americans is poor Americans themselves. Poor Americans vice too much, television too much, and camouflage too much (i.e., they try to look rich).
But, sadly, self-sabotage isn’t the only obstacle poor Americans have to contend with. Poor Americans also have to contend with our vaunted elites. Yep, our all-knowing, all-caring elites are doing much to hurt the poor. Here are five examples.
Our Handout-Centric Safety Net
I’m all for a safety net, providing it’s limited, of course. In a free country, no group of tax-eaters—whether they’re defense contractors or unwed mothers—should have an unlimited claim on the paychecks of the tax-feeders.
I also think a safety net needs to strike a balance between handouts and jobs. You can help struggling people with handouts (food stamps, housing subsidies, Medicaid, Head Start, etc.), or you can help struggling people with factory jobs.
For fifty years, our safety net has become increasingly handout-centric. We’ve dramatically increased the size and scope of safety-net handouts while simultaneously allowing millions of factory jobs to move overseas. Poor Americans are thus being squeezed by a diabolic pincer movement: fewer factory jobs on one side and readily available handouts on the other side. And the results of these policy moves have been anything but kind to our poor brothers and sisters—unless, of course, you think dependency, wage-stagnation, and the absence of social mobility are the hallmarks of a life well-lived.
To revive American manufacturing and give poor Americans better employment options, I propose the following:
- No corporate and property taxes for manufacturers.
- In order for a manufacturer to escape corporate and property taxes, however, it must meet the following conditions:
- At least 50 percent of the goods it sells in America must be made in America.
- No employee can be compensated more than 15 times the lowest compensated employee. If the lowest compensated employee for Manufacturer X makes $30,000 a year in salary and benefits, the CEO of Manufacturer X can’t make more than $450,000 a year in salary and benefits.
- A corporate manufacturer must pay at least a five percent dividend to its shareholders.
- Tariffs high enough to maintain a robust manufacturing base. If China wants to sell stuff here, it can build factories here.
College Education
For the vaunted bachelor’s degree, America’s premier credential, you need to take 40 courses. But here’s the rub. Of those 40 courses, 15 or fewer will pertain to your major. The rest will be totally frivolous.
Now a question. Who do you suppose is better able to handle the cost of 25 or more frivolous courses? College students with rich parents? Or college students with poor parents? If you said college students with rich parents, go straight to the head of the class.
The bachelor’s degree credential is a total joke. Fifteen courses are all that’s needed for most entry-level jobs in most fields. If our college leaders really cared about our young people—especially our poor young people—they would give our young people a choice: go full-monty on the bachelor’s degree (take 15 relevant courses and 25 irrelevant courses) or go two-fifths-monty on the bachelor’s degree (take 15 relevant courses only).
That would be the noble thing to do, of course, so I’m not holding my breath. Our college leaders fancy themselves as paragons of virtue, but in reality, they’re as slimy as collection-agency reps. And they will thus continue to make our most vulnerable students take 25 courses they can’t afford and don’t need.
K-12 Education
According to one news outfit, New York City’s public school system spends an average of $28,808 per pupil. Let that sink in. For a child starting kindergarten in New York City today, the cost of his or her high school diploma will easily exceed 375 thousand dollars. THREE HUNDRED AND SEVENTY-FIVE THOUSAND DOLLARS!
Now, call me a curmudgeon, but I have one simple question for New York’s elites: what exactly are New York City’s public school students getting out of the huge sums of money being tossed their way? How many 18-year-old New Yorkers can handle college-level math? How many 18-year-old New Yorkers can craft a grammatically correct sentence that cogently expresses a single thought? Finally, how many 18-year-old New Yorkers have a skill that can garner more than 1.5 times the minimum wage in the labor market?
My point here is not to pick on New York City. New York City just represents an extreme example of a nationwide problem. We’re spinning our wheels when it comes to public education and poor students are suffering the brunt of this wheel-spinning.
Not everyone is college material. Very few jobs require math beyond algebra. So why are our elite educators trying to adorn every student in America with knowledge few can grasp and even fewer need?
When it comes to public education, it’s time to embrace the “less is more” adage. Rather than prepare every kid for college, or for world citizenship, or for some other lofty bullshit, how about making sure every kid enters adulthood with basic numeracy and literacy and one worthwhile skill. If I were the grand poobah of public education, here’s what 13 years of public education would get you:
- Proficiency in basic algebra.
- The ability to read at the eighth-grade level and write a grammatically correct sentence.
- And one concrete skill that can garner more than 1.5 times the minimum wage in the labor market. There’s no reason why our high schools aren’t pumping out tons of junior plumbers, junior electricians, junior lab techs, junior bookkeepers, and junior programmers.
For roughly 50 years now our public schools have pursued a college-for-everyone business model. This model has worked reasonably well for the kids who are actually capable of college-level work (roughly 20 percent of our kids). For the kids who aren’t capable of college-level work, however, this model has been a dismal failure. Such kids leave high school useless and have little choice but to give college a try. But because they’re really not college material, college does little to advance their prospects. They find themselves at 22 very much in debt and still useless.
Being 22, in debt, and useless is tragic for anyone. But it’s especially tragic for those 22-year-olds who started out life poor. Public education should be advancing social mobility—not making a mockery of it.
Promiscuity
In the 1930s, this is the way our elites said a single young lady should conduct herself regarding sex.
And this is the way our elites today say a single young lady should conduct herself regarding sex.
For the life of me, I don’t know why our elites are determined to transform America into the land of horny hook-ups. Has it ever occurred to them that sex isn’t always rainbows and unicorns—especially when it’s done outside the confines of marriage?
Here’s a chart from one of my earlier posts that shows the perils of self-sabotage.
| Race/Ethnicity | Percentage of Births to Unmarried Women | Average SAT Score | Arrests Per Million of Population | Median Household Income |
|---|---|---|---|---|
| Asian | 11.7 | 1223 | 5,655 | $87,194 |
| White | 28.2 | 1123 | 21,348 | $70,642 |
| Hispanic | 51.8 | 990 | 20,178 | $51,450 |
| Black | 69.4 | 946 | 50,112 | $41,692 |
The biggest driver of poverty, poor academics, and crime are girls and women from any background having kids they can’t afford. But the consequences of procreating irresponsibly fall hardest on the poor. And the biggest driver of poor girls and women having kids they can’t afford is our elite’s relentless efforts to glamorize sex and promiscuity and poo-poo chastity and marriage.
Completely divorcing sex from any sense of propriety or restraint may be “empowering” for Cardi B, but for Germania, the young lady featured in the below video, and millions of other poor, unwed mothers, it’s been anything but “empowering.”
Subsidizing Self-Sabotage
Question: If you tell certain people that nothing’s ever their fault, that their lamentable circumstances have nothing to do with their failure to learn valuable skills (i.e., impulse control, discipline, an in-demand job credential, budgeting, etc.) and everything to do with a malevolent “system” that’s hellbent on their economic demise, what’s the likelihood that these certain people will give up and wallow in self-pity? If you answered that the likelihood is great, you get a gold star.
And this is precisely what our elites are doing to poor Americans. Our elites are the best in the world at manufacturing “science-backed” excuses and delivering those excuses to the doorsteps of the poor. And poor Americans devour these excuses with extreme gluttony—for one perfectly understandable reason: It’s far easier to blame the “one percent,” the “system,” or any number of “isms” that supposedly ravage the American landscape than it is to take stock of their lives and admit their screw-ups.
Our elites, in effect, are expert at subsidizing the self-sabotage of the poor—at lowering the psychic costs of the bad decisions poor people make. And as the old economic saw teaches us, whatever you subsidize, you get more of. And so the cycle of poverty goes on and on.
Final Thoughts
Okay, groovy freedomist, that’s all I got. What say you? Am I being too hard on our elites? Or are our elites making life even harder for our poor brothers and sisters? Let me know what you think when you get a chance. Peace.
Couldn’t agree more – wish they taught more of the FIRE stuff and life lessons earlier in life. Not sure how we turn this around because there is a financial incentive for the “elite” to keep this going.
Mr. 39 Months recently posted…Is it the 4% rule, or the 5% rule?
See below. These teachers are onto something.
https://www.donorschoose.org/blog/charles-schwab-fin-lit/
Thank you, JK! It is good to be reminded that there is hope, that the worm is starting to turn.
Agreed. We seem far more adept at inculcating incompetency rather than competency. And this is especially true when it comes to money.
Just a few weeks ago, you were singing the praises of the rich, and their positive contribution to society in your post “Why the Rich Are Awesome”. I mostly agree with your assessment.
Therefore, we should be careful not confuse the “Rich” with the “Elites”. Sure, there is a lot of overlap, but they are NOT the same. We shouldn’t just assume that if someone is wealthy, they are contributing to societal ruin.
Plenty of rich folks devote substantial resources, including their own time and effort, to combat many of the ills caused by the “Elites”. These same people often earn the scorn of the “Elites” as well. Lets also not confuse the truly charitable rich folks with the “Elites” who put their name and $ behind a cause merely to hide their complicity – or to buy influence.
Excellent point, EG. Our rich and our elites are not necessarily the same people. I should have pointed that out at some point in my post. Thanks for correcting my oversight. You got a keen mind, my friend, and I always appreciate your contributions to our discussions. Cheers.
I really enjoy your posts; your analytical view is very enlightening. Keep up the deep thoughts and good work.
Thank you, Sarah. Appreciate it.
“Completely divorcing sex from any sense of propriety or restraint may be “empowering” for Cardi B, but for Germania, the young lady featured in the below video, and millions of other poor, unwed mothers, it’s been anything but “empowering.””
One of my favorite quotes from this article. But there are honestly too many to count. My brother is a garbage hauler. He makes decent money (nearly $30 an hour) and is forced (more or less) to work 60 hours a week.
Why? The company can’t find anyone willing to work. As another commenter mentioned, the trades and blue collar jobs are BEGGING for workers and paying them well!! But it’s just too damn easy to collect a buck from the system and wander around aimlessly committing crimes.
My mom was on welfare after my parents divorced. She used the time to brush up on her typing skills and learn how to work in office settings after being home for 15 years with us kids. She retired with a small but sustainable retirement fund and survives frugally but happily on social security and her small retirement fund.
Not today. People are “too good” for many of the jobs out there. They are convinced that they “deserve” a life that’s all about seeking their own pleasures. How sad, and how destructive to our nation.
“My brother is a garbage hauler. He makes decent money (nearly $30 an hour) and is forced (more or less) to work 60 hours a week…Why? The company can’t find anyone willing to work. As another commenter mentioned, the trades and blue-collar jobs are BEGGING for workers and paying them well!! ”
Amen, Laurie. The stigmatizing of blue-collar work is another way our elites are screwing the poor. I remember my parents saying to me and my brother and my sister that they didn’t care what we did for a living as long as it was legal, of course, and as long as we were the “best in the world at it.” Do parents even say things like this to their children anymore? Do they even attempt to make the case that a first-rate plumber is just as valuable to society as a first-rate doctor?
“There are no such things as menial jobs–only menial attitudes.”
I don’t know if I heard this from the economist Walter Williams or the economist Thomas Sowell. Either way, the message is spot on. And I wish our elites were embued with such wisdom. You’re the best, Laurie. Thanks for stopping by.
I’d add another way – consumerism. Our elites are very good at convincing people that they are failures unless they have the latest and greatest of everything being sold. This includes $100+ sneakers, $1000+ cell phones and so many other things that are made for a small fraction of the cost in China and other places, but not here in the U.S.
Home programs show first time buyers insisting they get a move in condition open floor plan house with an en suite master and a kitchen that has stainless steel appliances and granite counters. It used to be a starter home was smaller and required a bit of elbow grease and fixing, something young couples looked forward to. It used to be that you bought a car that fit your family’s needs, not one big enough to transport the entire soccer team. The end result is people buy way too many things that don’t need (even if they can afford them), buy a house too big to store that stuff (or pay for a storage unit), buy cars that are too big to even fit in some garages, take too much time cleaning and maintaining those things (and having to buy stuff for that effort) and then ultimately send too much unwanted but oftentimes still useful stuff to our landfills. When this changes so that we buy what we need and only occasionally what we want, people can live on much less income in smaller homes and have less of a negative impact on our environment. They’ll have time to spend with their families and on hobbies they enjoy than working overtime or a second job to pay the bills or spending their precious time off maintaining all the things they have bought. The elites like to perpetuate excess consumption because it gives them reasons to make people think they need to be bailed out, protected and otherwise taken care of. This needs to be stopped. Thanks for the great post as usual.
“It used to be a starter home was smaller and required a bit of elbow grease and fixing, something young couples looked forward to. It used to be that you bought a car that fit your family’s needs, not one big enough to transport the entire soccer team. The end result is people buy way too many things that don’t need (even if they can afford them), buy a house too big to store that stuff (or pay for a storage unit), buy cars that are too big to even fit in some garages, take too much time cleaning and maintaining those things (and having to buy stuff for that effort) and then ultimately send too much unwanted but oftentimes still useful stuff to our landfills.”
Thank you, Pat. Consumerism is another elite-pushed vice that our poor brothers and sisters can least afford. You got an awesome mind, and I love your contributions to our discussions.
Speaking as a high school English teacher, I’d be appalled if graduates only had a year 8 level of literacy. That’s a very low bar for reading and writing and appreciation of literature. Eighteen-year-olds should definitely have a higher level of proficiency and understanding than that.
The Maths thing though? When I was a student, I got as far as quadratic equations and then that was it. Never could understand anything further. Didn’t affect my career in any way…
I feel really sorry for young kids growing up in this age that is awash with porn, explicit lyrics and all the boundary issues that it entails. They think that all of this stuff is normal and expected and that’s not a good thing.
“I’d be appalled if graduates only had a year 8 level of literacy. That’s a very low bar for reading and writing and appreciation of literature.”
Excellent point, FDJ. It is an extremely low bar. But for America, it would be a huge improvement. And it’s not because American kids aren’t capable of more ambitious language skills. The problem is America’s culture sucks big time and most kids are repulsed by fine literature–especially if it was written by a dreaded white male. Count your blessings that you’re a teacher in Australia rather than America. Your kids are much stronger culturally and are much more receptive to mastering the King’s English. It’s going to take us generations to catch up. Sigh.
Mr Groovy,
You must run for president!
It is remarkable that in this rich country, so many individuals feel that they are victims. Everyone born in the United States has a huge advantage. What needs to be emphasized and taught to all children, is not to throw away the great gift they have received, merely by being born in this country.
Thank you, Heather. You are too kind. And I couldn’t agree more with your comment. What the hell happened to America? Why do so many Americans covet the “victim” tag?
Please run for President!
Made my day, Luisa. I read your comment to Mrs. Groovy and she spit out her coffee in laughter.
There you go using logic and reason again…..
Jobs in the trades are going begging, simply because no one is willing to learn, work, and do what I told my kids is 90% of success….”show up on time, and sober”.
I spent decades in the medical “system”, and your observations are precise on the birth trends.
I predict angry pushback, but you, sir have stated truth.
Higher education has become a farce. A self-perpetuating bureaucracy in its own right, it extracts dollars from young people who do not know better, just to feather their own nests.
A department chair of “English” at a university convinced my daughter that a degree in English would serve her well. Now, 15 years into her career as a program manager, she finds it laughable, even as she pays her student loans.
I hear ya, my friend. So many things have to change. And how we procreate and educate our young should be our top priorities. We get those two things right and most of our most vexing problems go away. Here’s one for you. I was a data analyst for a company that had cost-containment contracts with 40 state Medicaid agencies. I spent most of my days manipulating data and writing code. And I was considered a “guru” by many of my co-workers. And do you know what level the math in my code reached? Basic algebra. Not once did I ever have to include aspects of geometry, trigonometry, or calculus in my code. Most of my code boiled down to loops, simple if-else statements, and basic addition or subtraction. All the math I ever needed in life I learned in the 8th grade. And yet we spend hundreds of thousands of dollars obtaining high school diplomas and bachelor degrees. Sigh.
Many points to like–especially the promiscuity. The lack of a father figure is detrimental. I currently see it in my own personal circles here where the dad leaves and wants nothing to do with his children.
Single moms can only do so much and parenting is tough. A cash handout might buy an additional degree of financial stability as the single mom doesn’t have to work two jobs to make ends meet, but doesn’t prevent therapy sessions for grade school children or replace having two parents under the same roof.
For K-12 education, my hope during this year is that people realize our entire education needs to be reformed and simplified. Get rid of the fluff and get more substance. We intend on having our children learn a hard skill–that’s probably one of my biggest regrets from growing up.
Excellent comment, Josh. Couldn’t agree more. And I also regret not learning any hard skills growing up. Learning basic carpentry or plumbing would have been mighty handy considering the several homes I’ve owned.