If you have lived in America for some time, you have most likely been affected by the recession in some way. The recession has affected my family and I greatly. We have been waiting for improvement since it began and I assume the majority would agree. That is why Poverty Rate Declines for First Time Since Recession really caught my eye. Is this the first step towards recovery?
According to data released late Wednesday from the U.S. Census Bureau’s American Community Survey, the National poverty rate did not change between 2011 and 2012, staying at 15.9 percent after having increased for four years in a row. Not quite the improvement everyone was hoping for, but what about a little closer to home? The percentage of Texans living in poverty dropped from 18.5 percent to 17.9 percent, marking the first decline in the state since the recession began, in 2008. Although Texas’ poverty rate remained above the national rate, and above the state's pre-recession rate, is this small improvement a sign of a brighter future?
Texas’ declining poverty rate is related to the state’s low regulatory burden for businesses and the lack of a state income tax. Because of this, Texas has been a national leader in adding jobs, not to mention a thriving oil and gas industry that has kept unemployment below the national average. Lloyd Potter, Texas State Demographer, said growth in the oil industry is a big factor in decreasing poverty in Texas. Chuck DeVore, vice president of policy at the Texas Public Policy Foundation, said, “We believe [the declining poverty rate] is directly connected to the fact that in Texas, people have the opportunity to work and to create businesses and to participate in the American Dream.” Unfortunately, many people disagree.
Fatima Goss Graves, who tracks poverty and employment stats at the National Women's Law Center, says in today's economy, having a job doesn't necessarily mean you're not scraping by. Francis Deviney, senior research associate at the Center for Public Policy Priorities, agrees with Graves. Deviney said, “Even though Texas has relatively low unemployment, our workers are much more likely to be working in a job paying minimum wage or less compared to most other states.”
The low taxes in Texas is also a controversy. Rick Perry believes so strongly in low taxes that he goes job-poaching in Maryland believing that low taxes was his trump card. Maryland is not convinced. Maryland Gov. Martin O’Malley argued that by holding down both taxes and spending, Perry has left Texas with low graduation rates and high rates of poverty and people without health insurance.
I may have been overly optimistic over a misleading article title. The hard times of recession are tenacious with an arduous process of repair. Although this slight poverty rate decline in Texas might be insignificant, it should not be overlooked. Simply being aware that there is a problem and pointing fingers will never lead to a resolution. By being well informed as well as educating others, we can get involved with getting out of the recession as a community.
References
