"Poverty Industry" drives Memphis economy. | TigerDroppings.com
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Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2764 posts

"Poverty Industry" drives Memphis economy.

Article in the city's largest paper breaks down the government aid flowing and propping up the city. We talk on this board all the time about takers vs. makers, but this really put it into a numbers perspective I doubt anyone can dispute.

A few notable parts of the article:

quote:

Just over $3 billion flowed from Washington for the 100,000 least well-off households in Memphis in 2010. This tide of cash never diminishes the poverty rate, which is based on earned wages. But the aid is real money.


quote:

the poverty rate doesn't reflect actual living standards. Poor families still consume goods and services.

Across the nation, households with an annual income of less than $10,000 lived on average as if they had made $21,000, according to a consumption survey last year of 122,287 households in all income strata by the U.S. Bureau of Labor Statistics.

Government aid including welfare, food stamps, and rent subsidies accounted for the bulk of the $11,000 difference in the BLS survey. Off the books cash, the survey noted, averaged $1,100 per year, while annual Social Security payments added $2,800 per family.


quote:

Sustained by safety net programs, one unemployed single resident of South Memphis can survive. Add up the food stamps and her parent's rent subsidy and Social Security, and they live as if they earned $400 per week.

She said she left the workforce recently to help her elderly parent in an emergency. She can now return to work. The parent is stable. But she's just comfortable enough to stay home, she said, especially when good wages seem hard to find in a region with a current 8.6 percent unemployment rate.



TL;DR version: Government spends $3 billion for just 100,000 people in Memphis alone, and no one living off the subsidies now has any incentive to work. Add this up to all the other parts of the country...it's draining us.


Scruffy
USA Fan
Member since Jul 2011
36289 posts

re: "Poverty Industry" drives Memphis economy.
:inb4sarcastic"poorpeoplelivinggreat"comment:


90proofprofessional
LSU Fan
Member since Mar 2004
10537 posts

re: "Poverty Industry" drives Memphis economy.
quote:

:inb4sarcastic"poorpeoplelivinggreat"comment:

[lisp]if living on welfare it so awesome why don't you do it[/lisp]


Zed
Alabama Fan
Member since Feb 2010
8259 posts

re: "Poverty Industry" drives Memphis economy.
quote:

Across the nation, households with an annual income of less than $10,000 lived on average as if they had made $21,000
Motherfrickers.


Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2764 posts

re: "Poverty Industry" drives Memphis economy.
The article also includes some estimates on how things like drug trade and other illegal/cash-only endeavors affect this.

Cue a discussion on how legalizing drugs would solve our fiscal problems.


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Bard
LA-Monroe Fan
BR
Member since Oct 2008
17878 posts
Online

re: "Poverty Industry" drives Memphis economy.
quote:

:inb4sarcastic"poorpeoplelivinggreat"comment:


Each of those households received an average of $30k. That's untaxed and is more than many working, middle class people bring home after taxes.

The point of welfare is to help people get back on their feet. The point of the article is that it's being used to prop people up.


RollTide4Ever
Alabama Fan
Nashville
Member since Nov 2006
9778 posts

re: "Poverty Industry" drives Memphis economy.
Link?


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RogerTheShrubber
LSU Fan
Juneau, AK
Member since Jan 2009
99975 posts

re: "Poverty Industry" drives Memphis economy.
quote:

Across the nation, households with an annual income of less than $10,000 lived on average as if they had made $21,000

Motherfrickers.



I wonder how much of this aid reaches the actual people it was intended to reach, and how much is overhead.



dewster
Vanderbilt Fan
Member since Aug 2006
9788 posts

re: "Poverty Industry" drives Memphis economy.
I saw this. Not surprised at how they "estimated" illegal activity in the hundreds of millions of dollars.


beebefootballfan
Arkansas Fan
Member since Mar 2011
7620 posts

re: "Poverty Industry" drives Memphis economy.
I live in a poverty stricken neighborhood in memphis and work with inner city kids as party of my internship. I can tell you that these people have no desire to better themselves. Its sad to watch kids indoctrinated into the lifestyle and know that they will never be any different than what their parents are.


real
LSU Fan
Dixieland
Member since Oct 2007
13157 posts

re: "Poverty Industry" drives Memphis economy.
I know people who make 100 grand a yr actually over that who get their benefits. Why is this and who do we report frauds to?


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Patrick_Bateman
USA Fan
Member since Jan 2012
12907 posts

re: "Poverty Industry" drives Memphis economy.
quote:

Across the nation, households with an annual income of less than $10,000 lived on average as if they had made $21,000, according to a consumption survey last year of 122,287 households in all income strata by the U.S. Bureau of Labor Statistics.

Fricking wow. Just. . . wow. I shouldn't be surprised anymore, I guess. It's just absurd.

If there were NO government assistance of any kind, I bet people would find a way to get to work really quick.


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beebefootballfan
Arkansas Fan
Member since Mar 2011
7620 posts

re: "Poverty Industry" drives Memphis economy.
Also in the commercial appeal today was a breakdown of how Shelby County (Memphis) voted in the presidential election. It was pretty telling. Obama split or was in the 60% range in the liberal white midtown, Was upward of 90% in each precint in the poverty stricken minority precints. And in the suburbs which is mainly white he only won 2 precincts and pulled around 30% in the rest.


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Azazello
Tennessee Fan
Member since Sep 2011
1150 posts

re: "Poverty Industry" drives Memphis economy.
Was this in the Commercial Appeal?

Can you post a link?


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ruzil
Southeastern LA Fan
Baton Rouge
Member since Feb 2012
6096 posts

re: "Poverty Industry" drives Memphis economy.
quote:

[lisp]if living on welfare it so awesome why don't you do it[/lisp]


Let's see, if all workers decided to take your advice, where would the money come from?

You must work in the administration.


Revelator
Member since Nov 2008
18165 posts

re: "Poverty Industry" drives Memphis economy.
quote:

Article in the city's largest paper breaks down the government aid flowing and propping up the city. We talk on this board all the time about takers vs. makers, but this really put it into a numbers perspective I doubt anyone can dispute.



Hey Pelosi and the Dems tried to tell you things like food stamps and unemployment spur the economy.
This post was edited on 12/31 at 4:22 pm


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dewster
Vanderbilt Fan
Member since Aug 2006
9788 posts

re: "Poverty Industry" drives Memphis economy.
That's the case in most delta towns. The ghettos end up culturally bankrupt while the economy leaves them behind.

I work in Memphis and lived in town for a while. Parts of town will seriously start to resemble Detroit within 30 years. I'm not sure I'd buy anything in town that was not between Poplar and Walnut Grove.

The Hickory Hill section is shocking. That part of town was pretty desirable as late as the 1990s. It went from an "okay" area to complete crap within 15 years.

The Mall of Memphis is another interesting story....the whole thing lasted 22 years before crime was so bad that the whole mall had to be shut down. Think about that. 22 years from grand opening to demolition.

The whole Cordova section of town may be next. They were recently annexed and the housing stock contains both single family as well as an abundance of multi family rental housing (much of which is subsidized). The main thoroughfare is developed much the way Florida Blvd or Siegen Lane in Baton Rouge was with way more retail that the surrounding neighborhood can support without being a regional draw. There is nothing appealing there other than the availability of cheap, relatively new, large homes.
This post was edited on 12/31 at 4:39 pm


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90proofprofessional
LSU Fan
Member since Mar 2004
10537 posts

re: "Poverty Industry" drives Memphis economy.
quote:

if all workers decided to take your advice, where would the money com

the stash, brah


Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2764 posts

re: "Poverty Industry" drives Memphis economy.
Wow I suck and forgot the link this morning.

I'm on my phone so this may show up as a mobile site but here it is: LINK


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DaGarun
Northwestern St. Fan
NashVegas
Member since Nov 2007
18868 posts

re: "Poverty Industry" drives Memphis economy.
quote:

Each of those households received an average of $30k.

Almost exactly the equivalent of double the minimum wage at $14.42/hr. Why get a job again?


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