poor

Stopping Exploitation with a Living Income Guaranteed

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by Fidelis Spies 

imagesgr_thumb[1] When you hear about drivers that got their licenses suspended you probably think it was because of reckless driving, but it is not the case.

In Florida 88% of suspensions were due to failure to comply with summons or fines.

Now here is things get extremely problematic and nonsensical – Most people drive to work so losing your car affects everything in your life. In New Jersey a Survey was done that found that 63% of low income drives that lost their car also lost their jobs.

How are they supposed to pay their fine if you take away their means of paying it?

It gets worse:

There are private probation companies that supervise people that have minor offenses and collect their outstanding fines at no costs to the courts, instead they get their money from the probationers in exchange for their services.

Here is an example of how that works based on an actual event:

One Woman was fined $25 for not wearing a seat belt as well as $16 for the court costs – a total fine of $41. She was unable to pay the fine at that stage and thus was handed over to one of these private probation Companies. Now here is where things get really messed up:

 

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She was then put on a monthly payment plan in order to pay the fine, but the costs of this payment plan was $35 per month. All moneys that the woman sent in was applied to the service fees first before going to the actual fine, meaning she first has to pay the $35 before she is able to pay the actual $41 fine. Now, she I not able to afford that $35 monthly fee, so this is starting to accumulate – eventually she sat with a $299 bill PLUS the $41 fine. Eventually if you  cannot afford the bill you can be sent to jail because you cannot afford the bill.

Here is another terrifying example of this Ruined Hariet Cleveland’s Life:

“Cleveland’s $140 monthly payment – $40 of which went to fees – was a terrifying burden. She lost her day care job during the recession and was barely scraping by. She paid what she could, even when it meant her money was only going toward the company’s fees.

Finally, Cleveland didn’t have any more money to give. She received a notice in the mail: Pay $2,714 or go to jail. Not long after, a police officer arrived and arrested her while she was babysitting her grandson. A judge sentenced her to 31 days in jail because she was too poor to pay.” – https://www.splcenter.org/news/2014/08/26/splc-lawsuit-closes-debtors%E2%80%99-prison-alabama-capital

These Companies are making money out of people who have none. Why are we punishing people for being poor? This is an Impossible situation for low income people where they really have no way out. This kind of exploitation is something that must be stopped.

This is something that we can change with a better system, one that considers the individual needs of people in different situations. Not only would these people above live far better lives with the Living Income Guaranteed, but we can implement solutions to stops the obvious exploitation of people in these situations so that no person’s life get ruined just because they are poor.

 

Investigate the Living Income Guaranteed Proposal

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Closing the Achievement Gap with Living Income Guaranteed

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Various studies show that early language acquisition plays a major role in setting the stage for a child’s future achievement course.

By the age of 24 months, one can already gauge by the size of the child’s vocabulary, how smoothly the child’s cognitive development will unfold and whether the child may face a challenging learning and growth trajectory. As early as 18 months of age, a lag may already become apparent between children of the same age in terms of their information processing capacities. From there – the gap either grows or remains proportionately consistent. How well the child’s processing skills and vocabulary are established as babies and toddlers, in turn plays a detrimental role in whether or not the child will reach its full potential at adulthood.

What causes a child’s processing skills and acquired vocabulary to be underdeveloped? The direct answer would be: How much a child is being talked to and the range of vocabulary used when being talked to. However, the condition that rules this variable (how much one is being talked to and what range of words) is the socio-economic environment that the child finds itself within.

Parents from mid to higher levels of socioeconomic status generally have more time to spend with their children and they themselves possess a richer vocabulary than parents of lower socioeconomic status.

Closingtheachievementgap

Parents coming from a lower economic status may be working several jobs to make ends meet and have a more limited vocabulary. Having to cope with more stress and anxiety due to every day struggles can lead one to be more taciturn. All of this adds up to less words from a limited range being spoken towards the child(ren).

Besides being externally disadvantaged due to lower economic status limiting future opportunities, children are also internally disadvantaged in how well they will be able to exploit the opportunities that will be available to them because of stunted vocabulary acquisition and cognitive skills.

“By 2 years of age, these disparities are equivalent to a six-month gap between infants from rich and poor families in both language processing skills and vocabulary knowledge,” Fernald said. “What we’re seeing here is the beginning of a developmental cascade, a growing disparity between kids that has enormous implications for their later educational success and career opportunities.”
http://news.stanford.edu/news/2013/september/toddler-language-gap-091213.html

As discussed in other blogs (Living Income Guaranteed and Raising Children, The Self-Perpetuating Cycle of Homelessness and Living Income Guaranteed), the implementation of a Living Income Guaranteed will provide an opportunity for parents to stay at home and take care of their children, or have financial security knowing that any job would at least provide an income at double the Living Income rate.

In fact, a survey polling to find out how many mothers would want to stay at home ‘if money was not an object’, shows that 75% of new mothers would want to stay at home, 12% would not want to be a full-time mother and 13% did not know what they would do. Of those mother who did go back to work, just over half indicated that the reason for doing so was because money was tight, and 3% indicated that they had to go back because pregnancy had left them in serious debt.

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With the implementation of a Living Income Guaranteed we can raise the conditions necessary to stimulate, enhance and foster our children’s development and utmost potential. By creating a financially stable environment, parents are able to tend to both a child’s physical and mental needs to ensure optimal growth and well-being. Financial worries put aside with a Living Income safety net, promotes peace of mind for parents which leads to better parent-child relationships and reducing the incidence of conflict at home .

By having this foundation in place, we set the stage for success in our children’s education and future careers.

For more information on what the Living Income Guaranteed entails, read the Living Income Guaranteed Proposal.

 

Recommended articles:
Educreation
Evolving Humanity through Education
Parents Need a Living Income Now
Should You Send Your Child to Preschool?
Why Do We Go To School?
The Skills We Need to Change the World
Where Will Following China’s Example Lead Us?
Are Longer School Days in the Best Interest of Our Children?
A Political Awakening of the Young Generation or a Return to 1950′s Survival Strategies?

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The Butterfly Effect and Living Income Guaranteed

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Flowing Economy

The economy in any given location, can be likened to the dynamics of water. If the water in a river flows, then the river is healthy, life thrives in its waters and supports the surrounding terrestrial ecosystems.

Water evaporates from the Earth’s surface, transforms into clouds, travels with the wind, and lands in a new area where it can support life.

When water stagnates, it can become stale. Bacteria and disease start brooding and life stops thriving. Water, and more specifically flowing water – is an essential element and resource in sustaining life.

In our society, we have made the primary element that supports life: ‘money’. If you have money, you can eat, you can drink, you can live in a nice house, you can educate yourself, you can start new ventures, you can support a family, you can participate in leisure time. Money is used, and money is spent – and each expense in turn becomes a flow of income for someone else in society.

Money like water – can be stored for the future. Water-grabs in the form of excessive damming can threaten the vitality of an entire ecosystem: as water is held back, not enough water flows and the area that was once supported by its flow is now faced with a condition of lack, resulting in the degradation of the environment. Dams, when properly regulated and monitored, can be a beneficial factor in the environment. In the same way, we know that saving money can be beneficial to get us through a future ‘rainy day’.  However, when we hog money, like water, we create averse conditions within the economic environment (=ecosystem) around us.

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The Marginal Propensity to Consume, Save and the Multiplier Effect

Within the realm of economics, you may sometimes hear of the term ‘multiplier effect’ and ‘marginal propensity to consume’ or ‘marginal propensity to save’. Although these terms sound daunting, their meaning is actually very simple.

All these above-mentioned terms, relate to changes in the economy when an influx of income (and resulting spending) occurs.

Whenever we have money/an income, we will tend to save some of it and spend the rest. The amount we spend in contrast to how much we save for each unit of additional income, is our ‘marginal propensity to consume’ (MPC). If our MPC is 0.8, then this means that for every additional increase of income, we will spend 80% of it. In turn, the ratio of how much we save over how much we spend for each additional unit of income, is our ‘marginal propensity to save’ (MPS). If our MPC was 0.8, then our MPS is 0.2, which means we will save 20% of any additional income.

When you have little money, your propensity to save will be very low as money will primarily be spent on everyday needs. As your income goes up, your propensity to save will go up as you feel secure enough to ‘put something away’ and still be able to tend to your everyday needs. Once you’re well off, you will be more likely to save a higher portion of additional increments of income, leading to a lower marginal propensity to consume.

The multiplier effect, refers to an effect in the economy where an increase in spending will bring about a ripple effect which results in a greater amount of value as an outcome than the initial amount spent. In a way, one can look at it as ‘returns on an investment’. Here, we can go back to the example of the river, where additional flowing water in a river is not just ‘additional water’. It is also the drinking water for animals downstream whose presence is absolutely vital to the local biome [See ‘How Wolves Change Rivers’ to see how a change in a single variable can have a huge impact]. The same way, money spent in the economy is not just ‘some money spent’, but also the income of another human being who in turn can utilize this income to employ the services of someone else and again contribute to someone’s livelihood.

We can see from the following excerpt, that these propensities matter when it comes down to economic health and vitality:

“Wall Street banks handed out $26.7 billion in bonuses to their 165,200 employees last year. That amount would be enough to more than double the pay for all 1,085,000 Americans who work full-time at the current federal minimum wage of $7.25 per hour.

Purveyors of luxury goods always welcome the Wall Street bonus season, but a raise in the minimum wage would give America’s economy a much greater boost. To meet basic needs, low-wage workers tend to spend nearly every dollar they make. The wealthy can afford to squirrel away more of their earnings.

All those dollars low-wage workers spend create an economic ripple effect. Every extra dollar going into the pockets of low-wage workers, standard economic multiplier models tell us, adds about $1.21 to the national economy. Every extra dollar going into the pockets of a high-income American, by contrast, only adds about 39 cents to the GDP.”

Bang-for-the-Buck

http://www.ips-dc.org/reports/wall_street_bonuses_and_the_minimum_wage

This article nicely illustrates the power of money movement, and where this ‘current’ is the strongest.

By bringing Living Income Guaranteed into the economic picture, we can bring in a gush of fresh new water and transform our stagnant pool into a thriving flowing river. Besides fulfilling our moral duty towards our fellow men through securing each one’s Basic Human Rights, we also put into motion a new economic drive from which will sprout new opportunities of innovation and entrepreneurship.

It becomes possible to have a nice life and to enjoy the latest comfort and tech that science and creativity have to offer, whilst simultaneously making sure that everyone’s livelihood is guaranteed. The principle behind an economy like this is really a simple one: Give, as you would like to Receive.

By changing the money composition in the economy by a fraction, we can bring about tremendous changes. These changes in turn, will bring about their own effects. Even if one might not agree with a Living Income Guaranteed for political reasons, we cannot ignore the ample economic benefits that are coupled with its implementation; to name but just a few: economic growth and expansion, higher living standards, better skilled labor force, lower debt levels and better employment conditions. These in turn translate into social, cultural and psychological benefits such as lower crime rate, lower levels of stress, increased personal freedom, social cohesion, enhanced personal growth and development and overall happiness.

Let’s unleash the wave of economic, social, cultural and personal potential with Living Income Guaranteed.

 

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