Posts Tagged ‘economics’

Nickle and Dimed: A Review

Tuesday, November 3rd, 2009

I would like to recommend an eye-opening book that is important for anyone to read, but is an especially important read for those who are concerned about changing the world for the better. The book is called Nickel and Dimed by Barbara Ehrenreich.

I am not announcing this as the latest “must read.” In fact it has been around for a while, but it just came to my attention. Here is the backstory.

 Barbara is a writer. The genesis of this book took place over lunch with her editor at Harper’s. Their conversation “drifted” to the question, “How does anyone live on wages available to the unskilled?” In particular, they discussed the difficulties of the roughly four million women who were forced back into the labor market by welfare reform. Whatever your political stand on welfare (and that stand is NOT the point of this blog), this mass migration from public support to $6-7.00 an hour wages, had immediate, practical consequences.

The discussion progressed to the point where Barbara was asked, or told rather, to write about the experience by living it. She was take on the role of a single woman with no support system, in cities she did not know, and live on whatever wage she could secure. The experiment took her to waitressing at a restaurant, cleaning hotel rooms, home cleaning for a national service chain and a shelf-stocker for a major retail chain.

These stories are interesting on the surface, and had I read this book 10 years ago, I would have enjoyed it on merits and likely dismissed it. However, reading it now, with a decade of experience in the public sector, I realize how our misunderstandings of one another continue to sabotage our efforts to improve the lives of others. We still, all too often, do not know how to help because we do not understand the lives and circumstances of those we would choose to help.  

For instance, we view poverty as a choice that was somehow made by each and every person who lives it. While I am well aware of the qualifiers on this subject, and that issues of self-motivation and work ethic often come into play, this book will open your eyes as to how nearly impossible it is for a person living on minimum wage, with no other support, to get out of the cycle.

The author was, and is, a hard-working, intelligent woman who, stripped of her credentials and background, learned how exhausting and hopeless the plight of millions of the “working poor” really is. Her journey brought to light everything from transportation issues to housing, health care, minimum wage and drug testing; not from a public policy standpoint, but rather from a victimization standpoint – a standpoint of what it is like to live in a cycle of working to simply exist.

It is worth a read and it will have an impact on how you view those around you, and perhaps on the manner in which you choose to help others in the future. It will certainly change your view next time you are in a coffee shop, checking out of a hotel room and passing the maid in the hall, or shopping at the world’s largest retailer.

Will Charitable Giving Decline Under Proposed Plan?

Tuesday, March 10th, 2009

Credits: Robert Benincasa and Mor Vimmer / NPR

Credits: Robert Benincasa and Mor Vimmer / NPR

 Have you heard about a White House proposal to eliminate much of the tax benefit for charitable donations?

If you caught the details, it is only for those who make $250,000 a year and above, so you may feel the debate will not affect you either way. It is interesting however to consider two questions:

The first would obviously be for anyone who makes over $250,000 per year,

Would a change in the tax laws cause you to change the way you give?”

The second question we should consider is this:

“If I make far less that $250,000 a year, does this have anything to do with me?

I have been hesitant to weigh in on this particular issue because frankly, much of the chatter in the news and on the web seems to angling away from the concept. However, I cannot stay on the sidelines completely because there is too much at stake. Here is the issue:

Charitable giving is part of this nation’s moral fabric. Non-profits have traditionally been part of our policy making process and an important implementation arm of many government programs. They are also the vehicle which enables us to focus resources and effort toward issues we care about, regardless of government action.

Whether you think of the Salvation Army or a local youth program in your city, there is an important connection between communities and non-profits. It is the one area where we choose, on our own, to make a difference; to improve our community.

We all understand that this economy calls for change; it calls for new thinking. But should new thinking seek to innovate beyond the boundaries of common sense or human values?  It was remarkable for me to learn as I have travelled the world in my current capacity, how “uniquely American” charitable giving really is. There is no other nation on earth that commits so much, so voluntarily, to help those in need. And we seem to have a sense of what real need is.

48% of our giving is in the area of health and human services. The rest is balanced among areas such as education, religion, the arts and the environment. It is a balance we choose because it is important to us as a society; no one forces us to do it. 

I cannot answer the first question posed, but I would certainly welcome comments. On the second question, I fear I do know the answer: 

37% of all charitable donation deductions were taken by people making more than $200k in 2006. Which equates to $109.1 billion of the $295 billion given to charity in 2006. If you impact that giving, what happens to programs? If services and programs in your community were to loose 37% of their funding on top of what is already happening economically, we will all be faced with growing need, diminishing resources and the most painful of questions.

When services and programs in our communities begin to go away because those with a greater capacity to give begin to give less, we will all be faced with growing need, diminishing resources and the most painful of questions. If we are no longer helping ourselves in these areas of need, who will be able to help us then? The government? Probably not. The fact is most government aid programs only work as well as they do because of the charitable and volunteer programs across this country. Can we really afford to loose this “safety net” for society? 

I suppose it would be prudent to consider the wisdom of opening this door at all. Where does it lead? While I am not opposed to the general concept of closing tax loopholes in order to stabilize the economy, I do not view charitable giving as the major method by which the super-rich “beat the system.” In my experience, there is more to giving than that, and I would urge everyone to keep an eye on this issue and be prepared to contact their representatives should it progress.  

In the meantime, now is the time to recognize the enormous amount of good charitable donations provide for all of us – donors, recipients and volunteers.

Would love your thoughts or responses.