Hopeless Poverty In America- The Riots Next Door

Hopeless Poverty In America- The Riots Next Door

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Photo From billmoyers.com 

In the April 30th Red Pill article, ” Baltimore, Furgeson 2- Wash, Rinse Repeat” it was pointed out that the real reason why African American communities in most of America are tinderboxes ready to go up in flames is economic. Today let us drill down on that.

In 1973 the household income of African Americans was only 60% that of Euro Americans. In 2011 with all of the “opportunities” and “advancements” that have been happening for African Americans, as trumpeted by the Mega Bank- Corporate state Media. their income has gone DOWN to 58% of that of Euro Americans.

And as written about in the April 30th article above, the wealth gap between Euro Americans and Afro Americans is huge. As of 2013 the average white household had 13 times as much as the average black household. But that figure includes the net, (after mortgage) wealth of home ownership. If we strip home ownership out of this comparison, and for the 58% of African Americans who do not own homes, (as in ghettos ready to explode) this number is more important, that difference in median wealth as of 2010 was $110,000 for Whites and less than $5,000 for blacks, or 22 times.

But as the income of African Americans was collapsing, for the majority without a home of their own, rental rates were rising. From the beginning of the Great Recession in late 2007 through 2014, (while home prices were collapsing) rental rates were going up by 15%.

Meanwhile Black to White unemployment ratios have been the same or worse since the days of Martin Luther King in the 1960’s.

We could go on and write about the fact that 45% of African American Children grow up in areas of concentrated poverty, but as bad as all of these factors are, they are of secondary importance.

People can accept poverty, even unfair poverty among the wealthy, even periods of sustained poverty, if they have strong families and communities. In the United States that is an environment that exists mostly on television shows and Hollywood films. But even where strong families and communities still do exist in America, they are few and far between in poor areas and still less so in poor Afro American areas.

In these areas of not just deep poverty, but broken homes and communities, the only thing that can prevent riots and explosions is hope. It is poverty without end, poverty without hope, that leads to despair among the old and rage among the young.

And that is what poverty is about today in the United States. It is the creation of a permanent underclass. From a Red Pills article on August 23d, “US Government Transfers And The Permanent Underclass” 

“government structural transfers in the US are designed to keep people on it and out of the labor force.”

Welfare benefits in the US are highly fragmented and vary greatly state to state. But if one can get a full Monty of them, Section 8″ housing assistance, “Food Stamps”, “Medicaid” and some form of direct income transfer, one can typically get a total income greater than what one could get with a starting salary in a job.

From this Wall Street Journal analysis; “In 11 States welfare pays more than the average pretax first-year wage for a teacher [in those states]. In 39 states, it pays more than the starting wage for a secretary. And, in the three most generous states a person on welfare can take home more money than an entry-level computer programmer.”

Many of these programs however are not so easy to get. Most have rigid bureaucratic requirements and can carry with them onerous paperwork as well . While others, like especially housing benefits means being placed on long waiting lists.

As was written in Red Pills relative to people who have gone through the processes and wait times necessary to get a full Monty of government benefits compared to the salaries given in the Wall Street Journal article; “And these are pretax figures. After taxes and the expenses one incurs by getting a job, like transportation and acceptable business clothing, it is hardly worth the effort for all but the most motivated.

And if such a person were to actually put in the effort and cost to find and secure a job, if they were to be laid off afterwards, (depending on how quickly afterwards) they would frequently have to go through the whole arduous and costly process of getting their old social programs back again.

And what would they and their families live on while they fought to get their old programs back?

So social welfare in America is a recipe that creates a disincentive to work and by doing so creates a permanent dependent underclass.”

There are 92 million people out of the US labor force today. Many of course are retired or disabled. But many of the others could be trained for the kind of jobs that employers need, including many of the disabled. But no government in the US is doing it, or at least not in a serious way. Why?

There are three answers. The most important is that up until recently it had been US policy to offshore work to places like China because it was a net- net better deal for US corporations. And now that industry is going to be brought home, it will be robotized with embedded 3d printing. Very little labor will actually be needed in the new industrial model and what will be needed will mostly be low skilled, (IE low paid).

Most other newly created jobs will, as usual be in the service industry, where pay scales are either minimum wage, or using illegal aliens, (a supposedly illegal but institutionalized part of the labor force) below minimum wage. Those will be jobs that pay far less than those people getting a full Monty of social welfare benefits and there for don’t encourage anyone to leave the system.

In fact most of the legal workers at the bottom end of the labor market will usually be eligible for Section 8 housing assistance, food stamps and/ or Medicaid as well. Then their net income for working, (minus taxes, transportation and clothing costs) compared to not working will frequently be zero or less, (IE they are paying for the right to work).

And finally the third reason the government doesn’t want the 92 million people out of the work force to look for work, is that it would vastly raise the official unemployment rate. It would show the public the shocking true unemployment figures in America, which neither of the political parties want their potential constituents to think about or know.

The change in the unemployment rate would happen, because the government’s rate only counts those actively looking for work, not those who have already fallen into the waste bin of the permanent underclass.

The great recession of 2008 through now has disproportionately harmed Afro Americans. That is the reason why Euro Americans have been so quiet, only protesting politely as in the Occupy movements. But today we are enjoying what the government calls a six year economic expansion. WHAT????  But when the next downturn comes as it surely will, it is likely to hit Euro Americans all the harder, because Afro Americans are already at the bottom.

For outsiders then looking for the implosion of the American empire at its roots, the crucial sign will be when Euro Americans start to riot. That is why the surveillance police state is being put in to place. When the disintegration begins Washington, will then be able to disappear any potential resistance leaders while putting the whole country into lock-down.



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