Economy and Poverty in California Essay Example
Economy and Poverty in California Essay Example

Economy and Poverty in California Essay Example

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  • Pages: 5 (1367 words)
  • Published: May 13, 2017
  • Type: Case Study
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Although California’s economy is large, strong, and diverse, there are many problems with poverty.   Some major problems include lack of affordable housing, and lack of access to education and health care. Many definitions of poverty exist, but however we define poverty, one thing that remains clear is that it is a problem in the state of California, and needs improvement.  Improvements should include building more low cost housing, improving low performing school districts, and implementing universal health care.California is the 8th ranking economy in the world and has the largest and most diverse economy of any state in the nation.  This includes the information sector, manufacturing, tourism, logistics, and professional services, which continue to grow.

California receives many prime contracts from NASA and from the Defense Department.  In 2006, personal income was more than 1 trillion.  Howev

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er, despite the size and diversity of California’s economy, many problems with poverty exist.Poverty: Current Statistics in CaliforniaWhat is Poverty?There are many definitions of poverty.  Poverty can be defined as a lack of income, but also a lack of access to health, education, and other services.

  Social poverty is defined as exclusion from or lack of social opportunities.   If an individual’s income is so low that they cannot participate in the minimum acceptable way of life in the place that they live, they would be considered poor.  In California, poverty rates are higher among Latinos, African Americans, Native Americans, and East Asian immigrants.  Therefore, these groups may face social challenges both from their poverty and their minority group status.

Absolute poverty uses a dollar value to judge who is poor.  In the 1960’s, Lyndon B. Johnson’s government created a “poverty

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line” which is set at about three times the yearly cost of a nutritionally acceptable diet.  In 2005, California’s rate of absolute poverty was almost one percent higher than the rest of the country.Relative poverty compares individuals or households to others in the society around them.  For example, if an individual’s income is half the mean income of others in their state, they could be considered poor.

   Another way to judge poverty is comparing income to consumption. Income is frequently used to define poverty, but consumption can relate more directly to a person’s wellbeing.  How much are they able to consume?  How much do goods and services cost them?  This can include automobiles, housing, and other items.  Ideally, before retirement, income will exceed consumption, so that saving is possible.   The Catholic Charities of California (2006), state:California is 15th in the states as terms of the percentage of its population in poverty.

  Debates rage over the accuracy of these statistics.  Of most concern is that states such as California have much higher costs of living than others.  Taking that into account, California is the third worst state in the entire Union.  (p. 3)There are many elements which contribute to poverty, whether absolute, relative, or social.

   Some major issues in the state of California are the availability of affordable housing, and lack of access to education and health care.Affordable HousingAffordable housing is a major problem for California.   Christopher Thornberg, from the Beacon Report, (2006) states:Crowded housing is not a minor issue.  Expensive workforce housing puts pressure on our infrastructure system, as middle class families are forced to live far away from jobs in order to afford a

place to live….Low-income families, primarily new immigrants, typically pay 40 to 50 percent of their household income to cover their rent.

  Under these circumstances, both parents need to work 40 hours or more per week, leaving them with neither the financial resources nor the time to support their children’s efforts to obtain an education.  This lack of resources puts a strain on our public education system and our social safety net. (p. 9)Education and Job DevelopmentInadequate housing is not the only thing that can affect education and job development.  Over six million students are currently in California schools.  In some areas, such as South Los Angeles, parents have expressed the view that schools do not represent the local communities and are not accountable for results.

  A good education and job skills obviously increase an individual’s opportunity to avoid poverty or escape from it.  Education is also considered to be a fundamental constitutional right.  Without the proper education, jobs are hard to find.  Even then, jobs need to be available and wages need to be fair.Food Supplies and Health CareFood supplies and affordable health care both affect physical health.  Food is a basic need.

  Not only quantity, but quality of food is important.  Minimum wage agricultural workers in California may not make enough in wages even to buy an adequate quantity of food for their families.  However, even among the poor who have access to an adequate quantity of food, many ingest primarily unhealthy food, increasing rates of diabetes, heart disease, obesity and other ailments.  Malnutrition in infancy and childhood can lead to a low IQ, obviously affecting education and job opportunities.Lack of access to health

insurance is a major problem.

  Health Access California (2007) informs us that:More than six million Californians are uninsured, out of 35 million. These are families that work hard, play by the rules, and pay their taxes, yet don't get basic health coverage.·         More than 80% of the uninsured are in working families – either a worker themselves, or the dependent of a worker.·         Being uninsured is not a choice. More than 85% of the uninsured are either not offered or not eligible for health insurance from their employer.

(UCLA Center for Health Policy Research)·         Nearly 90% of the uninsured are in low income or moderate income families, making less than $34,300 for an individual or $70,000 for a family of four. (UCLA Center for Health Policy Research)·         Insurance is expensive. Buying health insurance as an individual is often not an option since premiums can cost $4,000 for an individual and $11,000 for a family.(California HealthCare Foundation and Kaiser Family Foundation)·         Coverage is often denied to individuals because of “pre-existing conditions” -- from bunions to ear infections as well as conditions such as hay fever, asthma or serious illness like cancer or heart disease.

(Families USA)Inadequate mental health care is also an issue.  Some people would become employable if their mental illness was treated. Illness, whether physical or mental, can lead to or exacerbate poverty.  Michael Moore’s recent film, “Sicko,” emphasizes the financial problems that even individuals who have health insurance can encounter.How the Current Situation can be improvedThere are many areas that could be improved, but housing, education and job development, and health care are major.

   Our focus should be on these three areas.   I

would like to suggest the following actions or changes:Affordable HousingThe state should encourage the building of more low-cost housing instead of high end investment. This would reduce overcrowding, and have effects on many aspects of poverty.  The state should offer incentives to home builders to build this low-cost housing.  Since the housing market is in a slowdown, builders may need these incentives in order to create enough adequate housing.

Education and Job DevelopmentMore focus and help should be given to low performing school districts, such as South Los Angeles.  There are many ideas on what can be done to help the school districts, but often a lack of funds to implement the ideas.   The minimum wage should also be raised.  The minimum wage is not just a wage for high school students working at MacDonald’s for extra change.

There are many minimum wage workers who are head of their household and trying to raise a family.Food Supplies and Affordable Health CareMore nutrition education programs should be financed.  Access to healthy food should be expanded.  The governor’s background in bodybuilding should give him an understanding of the importance of nutrition, and he could perhaps take more of a lead in this area.  Universal health care coverage should be enacted as soon as possible.

  It’s working in Canada, France, and the UK.  Why not California?With the implementation of changes and improvements in these three areas, the poverty level in California should improve, and this will have a positive effect on many other issues in the state.

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