Challenges in Achieving Economic Mobility
GETTING AHEAD IS
HARD TO DO
Kristin S. Seefeldt
UM School of Social Work and
Gerald R. Ford School of Public Policy
Assumptions about poverty
■
Deeply engrained beliefs that poverty is often the result of
personal failings
■
Embedded in anti-poverty policy is that people experiencing
poverty should emulate behavior of the middle class:
–
Work steadily
–
Become educated
–
Save and invest
■
Much of our safety net is structured as programs of “last
resort”
Why is Getting Ahead So Difficult?
■
Economic, policy, and political changes have altered the
structures of opportunity
■
Labor, post-secondary, and housing markets do not offer the
same opportunities for advancement and wealth building
■
Social protections have been stripped away, leaving families
exposed to great financial risk
■
Families are not only unable to move up economically, but
they are left in debt from both their investments in the
future and their struggles to make ends meet.
Employment and Stalled Mobility
■
Changes in the labor market – “just in time” scheduling;
contingent employment; “gig economy” etc
■
Working alone
■
Workplace violations
Working Alone
Why does working alone matter?
■
Invisible to employer (easier to fire?)
■
No connections to others (harder to
learn from others, harder to organize,
harder to form bonds?)
■
Many low wage jobs are isolating
Workplace Violations
■
Unjust firing can be litigated
■
In the low wage labor
market, workers are unlikely
to go this route
■
Having previously endured
abusive behavior in the
workplace, they may not
know that recourse could be
available
■
With workplace isolation- few
ways to learn about options
The Failed Promise of
Higher Ed
■
Different educational markets=>
–
For-profit institutions
–
Community colleges
–
Online coursework
■
Degree completion is low
■
Completing a degree does not
necessarily provide upward
mobility
Abandoned by the American Dream of
Home Ownership
■
Redlining
■
Arson
■
Predatory Lending
■
No $ for home improvements
(including improving energy
efficiency)
Unreliable Safety Net
■
Families could not count on benefits
■
Obtaining them often entailed fighting
with lawyers, employers, and
bureaucrats
■
Employers and their lawyers contested
filings for Unemployment and other
work-related benefits
Debt
■
Insufficient income from work and safety net leads to debt
–
Use of credit cards to pay basic expenses
–
Non-payment of some bills to pay others-
DTE bills
■
Upward mobility attempts contributed to debt
■
High interest rates and low income prevented paying down
of debt
Assumptions surrounding poverty often shape policies, hindering individuals from moving up economically. Economic, policy, and political changes have further complicated the path to advancement, with labor market shifts, lack of social protections, employment issues, workplace violations, and shortcomings in higher education exacerbating the challenges faced by families striving to secure financial stability.
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Presentation Transcript
GETTING AHEAD IS HARD TO DO Kristin S. Seefeldt UM School of Social Work and Gerald R. Ford School of Public Policy
Assumptions about poverty Deeply engrained beliefs that poverty is often the result of personal failings Embedded in anti-poverty policy is that people experiencing poverty should emulate behavior of the middle class: Work steadily Become educated Save and invest Much of our safety net is structured as programs of last resort
Why is Getting Ahead So Difficult? Economic, policy, and political changes have altered the structures of opportunity Labor, post-secondary, and housing markets do not offer the same opportunities for advancement and wealth building Social protections have been stripped away, leaving families exposed to great financial risk Families are not only unable to move up economically, but they are left in debt from both their investments in the future and their struggles to make ends meet.
Employment and Stalled Mobility Changes in the labor market just in time scheduling; contingent employment; gig economy etc Working alone Workplace violations
Working Alone Why does working alone matter? Invisible to employer (easier to fire?) No connections to others (harder to learn from others, harder to organize, harder to form bonds?) Many low wage jobs are isolating
Workplace Violations Unjust firing can be litigated In the low wage labor market, workers are unlikely to go this route Having previously endured abusive behavior in the workplace, they may not know that recourse could be available With workplace isolation- few ways to learn about options
The Failed Promise of Higher Ed Different educational markets=> For-profit institutions Community colleges Online coursework Degree completion is low Completing a degree does not necessarily provide upward mobility
Abandoned by the American Dream of Home Ownership Redlining Arson Predatory Lending No $ for home improvements (including improving energy efficiency)
Unreliable Safety Net Families could not count on benefits Obtaining them often entailed fighting with lawyers, employers, and bureaucrats Employers and their lawyers contested filings for Unemployment and other work-related benefits
Debt Insufficient income from work and safety net leads to debt Use of credit cards to pay basic expenses Non-payment of some bills to pay others- DTE bills Upward mobility attempts contributed to debt High interest rates and low income prevented paying down of debt DTE bills
