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As for the Masses ...","publishDate":1705357819,"format":"standard","headTitle":"So Far It’s a Great Decade for Billionaires, Says New Report. As for the Masses … | KQED","labelTerm":{},"content":"\u003cp>“Billionaires, for many of them, times have never been better.”\u003c/p>\n\u003cp>That’s a quote from \u003ca href=\"https://www.oxfamamerica.org/explore/people/rebecca-riddell/\">Rebecca Riddell\u003c/a>, the policy lead for economic and racial justice at Oxfam America.\u003c/p>\n\u003cp>“If you’d put their money in a room in 2020, and then you came back at the end of 2023, you would have found that the wealth has grown enormously,” says Riddell. “Three times the rate of inflation.”\u003c/p>\n\u003cp>The success of billionaires is one of the key points in a new report from global charity Oxfam International titled “Inequality Inc.” It’s an annual publication issued to coincide with the meeting of the World Economic Forum in Davos, Switzerland, which begins on Monday, Jan. 15. Each year since 1971, government and business leaders have come to the Swiss mountain resort town to mull over the world’s problems and possibilities.\u003c/p>\n\u003cp>As you might expect, the Oxfam findings have their skeptics.\u003c/p>\n\u003ch2>Oxfam’s assertions\u003c/h2>\n\u003cp>This latest \u003ca href=\"https://webassets.oxfamamerica.org/media/documents/UPDATED_full_English_Davos_2024_embargoed.pdf\">edition of the Oxfam report (PDF)\u003c/a> looks back over the last few years since 2020 and describes the growing unequal distribution of wealth as “the beginnings of a decade of division.”\u003c/p>\n\u003cp>Oxfam spells out just how well billionaires are faring: “The world’s five richest men have more than doubled their fortunes from $405 billion to $869 billion since 2020 — at a rate of $14 million per hour — while nearly five billion people have been made poorer.”\u003c/p>\n\u003cp>(In case you’re wondering, the top five are Bernard Arnault and his family, Jeff Bezos, Warren Buffet, Larry Ellison and Elon Musk.)\u003c/p>\n\u003cp>“You might think there would be little that could surprise us,” says Oxfam’s Riddell. Indeed, their report in 2022 made a very similar point. As \u003ca href=\"https://www.npr.org/sections/goatsandsoda/2022/02/08/1075509346/oxfam-blames-the-rich-for-the-pandemic-plight-of-the-poor-its-a-controversial-cl\">NPR’s headline observed\u003c/a>: “Oxfam says the rich got richer in the pandemic, and the wealth gap is killing the poor.”\u003c/p>\n\u003cp>But there’s something different this time around, says Riddell. “The astronomical nature of gains at the very top since 2020 — during a time when so many suffered — really stood out.”\u003c/p>\n\u003cp>Meanwhile, the report notes that for many “ordinary people” around the world, this decade has so far been tough going.\u003c/p>\n\u003cp>“It opened with a pandemic that devastated lives and economies,” says Riddell. “Add to that the challenges of a really prolonged cost-of-living crisis, climate breakdown and war. Progress against poverty has nearly stalled.”\u003c/p>\n\u003cp>According to Oxfam’s report, since 2020, almost five billion people have lost economic ground — that is, they’ve grown poorer.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch2>What’s happening to the ultra-rich\u003c/h2>\n\u003cp>The gulf between extreme wealth and extreme poverty has always been wide, says Riddell, yet in Oxfam’s view, in this decade, “the ultra-ultra-rich are pulling away from everyone else.”\u003c/p>\n\u003cp>Much of this wealth is concentrated in the Global North — in the U.S., Europe, Australia and parts of Asia. And Riddell says that mega-corporations there generate inequality by funneling profits upward to the ultra-rich.\u003c/p>\n\u003cp>“By squeezing workers, by dodging taxes, they’re doing so at the expense of ordinary people,” she argues.\u003c/p>\n\u003cp>“No corporation or individual should have this much power over our economies and our lives — to be clear, nobody should have a billion dollars,” says \u003ca href=\"https://live.worldbank.org/en/experts/a/amitabh-behar\">Amitabh Behar\u003c/a>, Oxfam International’s interim executive director.\u003c/p>\n\u003ch2>Critics of the Oxfam thesis\u003c/h2>\n\u003cp>No one disputes that the rich are getting richer, but some say Oxfam’s poverty analysis is a bit misleading.\u003c/p>\n\u003cp>“I’m not such a fan of the five-billion-people-are-worse-off number,” says \u003ca href=\"https://www.cgdev.org/expert/charles-kenny\">Charles Kenny\u003c/a>, a senior fellow with the Center for Global Development think tank.\u003c/p>\n\u003cp>[aside postID=news_11941322,news_11906414,news_11895687 label='Income Inequality']He says Oxfam arrived at their number of nearly 5 billion by computing people’s \u003cem>wealth\u003c/em>. It’s a calculation based on taking the value of everything someone owns and subtracting all their debts. But Kenny says there are well-off people in richer countries who may have borrowed money to go to law school, say, or buy a home. When calculating their wealth with all that debt, they may seem poorer by Oxfam’s measure.\u003c/p>\n\u003cp>“But they’re not worse off in terms of their life outcomes,” explains Kenny. “They’re not worse off in terms of how much they can afford to eat or are they getting decent health care? They’ve just borrowed more.”\u003c/p>\n\u003cp>Oxfam pushes back, saying these moneyed individuals with debt represent a small fraction of the 5 billion who are worse off. Most “ordinary people,” they say, are really struggling to get by.\u003c/p>\n\u003cp>But Kenny says if you consider the last two or three \u003cem>decades\u003c/em>, many of the poorest people in the world are actually \u003cem>better\u003c/em> off.\u003c/p>\n\u003cp>“If you look at health,” he says, “worldwide life expectancy \u003ca href=\"https://population.un.org/wpp/Graphs/DemographicProfiles/Line/900\">continues to go up\u003c/a>. If you look at education, the number of people in school continues to \u003ca href=\"https://data.worldbank.org/indicator/SE.SEC.NENR\">go\u003c/a> \u003ca href=\"https://data.worldbank.org/indicator/SE.PRM.NENR\">up\u003c/a>. So if you look at all these measures of the quality of life, they paint a slightly more positive picture. Even though at the very top end, we have extreme concentrations of wealth.”\u003c/p>\n\u003cp>And what about those at the bottom of the economic ladder? “For the poorest people,” the report says, “who are more likely to be women, racialized peoples, and marginalized groups in every society, daily life has become more brutal.”\u003c/p>\n\u003cp>Kenny doesn’t dispute that poverty remains a significant global problem: a total of 700 million people meet the World Bank definition of \u003ca href=\"https://www.worldbank.org/en/topic/poverty\">extreme poverty\u003c/a> as someone who gets by on less than $2.15 per day.\u003c/p>\n\u003ch2>How do you solve inequality?\u003c/h2>\n\u003cp>So what’s to be done about the unequal distribution of resources?\u003c/p>\n\u003cp>The Oxfam report offers a few ideas, like creating businesses based on fair trade and worker cooperatives instead of being structured around benefiting shareholders.\u003c/p>\n\u003cp>Second, it says governments need to step up and better regulate business. “A more equal world is possible if governments shape the market to be fair,” says Riddell.\u003c/p>\n\u003cp>“We need to rein in corporate power directly and that includes breaking up monopolies, empowering workers, calling for a living wage, [and increasing] taxation on corporations and on the ultra-rich.”\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Abby Maxman, Oxfam America\"]‘We must stop normalizing extreme inequality. This is not by accident, but by design.’[/pullquote]Some argue that this approach doesn’t always work. “If you’re going to have tax policy that will redistribute income in favor of the poor, especially in favor of the global poor, you’re going to find it very difficult,” says \u003ca href=\"https://www.weber.edu/goddard/John_Mbaku.html\">John Mukum Mbaku\u003c/a>, an economist at Weber State University who’s originally from Cameroon.\u003c/p>\n\u003cp>The reason for that difficulty, explains Mbaku, is that the wealthy tend to be politically engaged and use campaign contributions to influence policy-making. Instead, he argues that governments should invest in improved public services to propel people out of poverty.\u003c/p>\n\u003cp>He says that improving access to free or low-cost education and medical care, nutritious food, clean water and basic sanitation can put someone on the road to employment and economic self-sufficiency.\u003c/p>\n\u003cp>Considering education more closely, Mbaku says large numbers of children in Africa, many of them girls, are unable to go to school. “In many African countries,” he says, “because of traditions and cultures, girls are not favored when it comes to education and training. Boys are favored.”\u003c/p>\n\u003cp>He’s seen firsthand that there are either no schools available or “their parents are so poor that they cannot afford to provide even the textbooks even if the schools are free.”\u003c/p>\n\u003cp>“Education should be considered by governments as an investment in human capital development, the future of your people, [and] the future of your country,” he notes.\u003c/p>\n\u003cp>It’s an intervention the Oxfam report recommends as well, saying that investing in people and communities provides “the best bulwark against extreme corporate power.”\u003c/p>\n\u003cp>“We must stop normalizing extreme inequality,” summarizes \u003ca href=\"https://www.oxfamamerica.org/explore/people/abby-maxman/\">Abby Maxman\u003c/a>, President and CEO of Oxfam America. “This is not by accident, but by design.”\u003c/p>\n\u003cp>Altering that design is a challenge so large that the 1,600 business leaders and 60 heads of state gathered in Davos may need more than five days to surmount it.\u003c/p>\n\u003cp>\u003cem>Copyright 2024 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">npr.org\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"As the World Economic Forum kicks off in Davos, the charity Oxfam has issued its annual report on wealth, poverty and inequality. It makes some bold assertions. But there are skeptics.","status":"publish","parent":0,"modified":1705429805,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":42,"wordCount":1467},"headData":{"title":"So Far It's a Great Decade for Billionaires, Says New Report. As for the Masses ... | KQED","description":"As the World Economic Forum kicks off in Davos, the charity Oxfam has issued its annual report on wealth, poverty and inequality. It makes some bold assertions. But there are skeptics.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"So Far It's a Great Decade for Billionaires, Says New Report. As for the Masses ...","datePublished":"2024-01-15T22:30:19.000Z","dateModified":"2024-01-16T18:30:05.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"source":"NPR","sourceUrl":"https://www.npr.org/sections/goatsandsoda/2024/01/14/1224507582/davos-oxfam-rich-poor-inequality","sticky":false,"nprImageCredit":"Markus Schreiber","nprByline":"\u003ca href=\"https://www.npr.org/people/297147967/ari-daniel\">Ari Daniel\u003c/a>","nprImageAgency":"AP","nprStoryId":"1224507582","nprApiLink":"http://api.npr.org/query?id=1224507582&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"https://www.npr.org/sections/goatsandsoda/2024/01/14/1224507582/davos-oxfam-rich-poor-inequality?ft=nprml&f=1224507582","nprRetrievedStory":"1","nprPubDate":"Sun, 14 Jan 2024 19:01:00 -0500","nprStoryDate":"Sun, 14 Jan 2024 19:01:21 -0500","nprLastModifiedDate":"Sun, 14 Jan 2024 19:01:21 -0500","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11972671/so-far-its-a-great-decade-for-billionaires-says-new-report-as-for-the-masses","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>“Billionaires, for many of them, times have never been better.”\u003c/p>\n\u003cp>That’s a quote from \u003ca href=\"https://www.oxfamamerica.org/explore/people/rebecca-riddell/\">Rebecca Riddell\u003c/a>, the policy lead for economic and racial justice at Oxfam America.\u003c/p>\n\u003cp>“If you’d put their money in a room in 2020, and then you came back at the end of 2023, you would have found that the wealth has grown enormously,” says Riddell. “Three times the rate of inflation.”\u003c/p>\n\u003cp>The success of billionaires is one of the key points in a new report from global charity Oxfam International titled “Inequality Inc.” It’s an annual publication issued to coincide with the meeting of the World Economic Forum in Davos, Switzerland, which begins on Monday, Jan. 15. Each year since 1971, government and business leaders have come to the Swiss mountain resort town to mull over the world’s problems and possibilities.\u003c/p>\n\u003cp>As you might expect, the Oxfam findings have their skeptics.\u003c/p>\n\u003ch2>Oxfam’s assertions\u003c/h2>\n\u003cp>This latest \u003ca href=\"https://webassets.oxfamamerica.org/media/documents/UPDATED_full_English_Davos_2024_embargoed.pdf\">edition of the Oxfam report (PDF)\u003c/a> looks back over the last few years since 2020 and describes the growing unequal distribution of wealth as “the beginnings of a decade of division.”\u003c/p>\n\u003cp>Oxfam spells out just how well billionaires are faring: “The world’s five richest men have more than doubled their fortunes from $405 billion to $869 billion since 2020 — at a rate of $14 million per hour — while nearly five billion people have been made poorer.”\u003c/p>\n\u003cp>(In case you’re wondering, the top five are Bernard Arnault and his family, Jeff Bezos, Warren Buffet, Larry Ellison and Elon Musk.)\u003c/p>\n\u003cp>“You might think there would be little that could surprise us,” says Oxfam’s Riddell. Indeed, their report in 2022 made a very similar point. As \u003ca href=\"https://www.npr.org/sections/goatsandsoda/2022/02/08/1075509346/oxfam-blames-the-rich-for-the-pandemic-plight-of-the-poor-its-a-controversial-cl\">NPR’s headline observed\u003c/a>: “Oxfam says the rich got richer in the pandemic, and the wealth gap is killing the poor.”\u003c/p>\n\u003cp>But there’s something different this time around, says Riddell. “The astronomical nature of gains at the very top since 2020 — during a time when so many suffered — really stood out.”\u003c/p>\n\u003cp>Meanwhile, the report notes that for many “ordinary people” around the world, this decade has so far been tough going.\u003c/p>\n\u003cp>“It opened with a pandemic that devastated lives and economies,” says Riddell. “Add to that the challenges of a really prolonged cost-of-living crisis, climate breakdown and war. Progress against poverty has nearly stalled.”\u003c/p>\n\u003cp>According to Oxfam’s report, since 2020, almost five billion people have lost economic ground — that is, they’ve grown poorer.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch2>What’s happening to the ultra-rich\u003c/h2>\n\u003cp>The gulf between extreme wealth and extreme poverty has always been wide, says Riddell, yet in Oxfam’s view, in this decade, “the ultra-ultra-rich are pulling away from everyone else.”\u003c/p>\n\u003cp>Much of this wealth is concentrated in the Global North — in the U.S., Europe, Australia and parts of Asia. And Riddell says that mega-corporations there generate inequality by funneling profits upward to the ultra-rich.\u003c/p>\n\u003cp>“By squeezing workers, by dodging taxes, they’re doing so at the expense of ordinary people,” she argues.\u003c/p>\n\u003cp>“No corporation or individual should have this much power over our economies and our lives — to be clear, nobody should have a billion dollars,” says \u003ca href=\"https://live.worldbank.org/en/experts/a/amitabh-behar\">Amitabh Behar\u003c/a>, Oxfam International’s interim executive director.\u003c/p>\n\u003ch2>Critics of the Oxfam thesis\u003c/h2>\n\u003cp>No one disputes that the rich are getting richer, but some say Oxfam’s poverty analysis is a bit misleading.\u003c/p>\n\u003cp>“I’m not such a fan of the five-billion-people-are-worse-off number,” says \u003ca href=\"https://www.cgdev.org/expert/charles-kenny\">Charles Kenny\u003c/a>, a senior fellow with the Center for Global Development think tank.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11941322,news_11906414,news_11895687","label":"Income Inequality "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>He says Oxfam arrived at their number of nearly 5 billion by computing people’s \u003cem>wealth\u003c/em>. It’s a calculation based on taking the value of everything someone owns and subtracting all their debts. But Kenny says there are well-off people in richer countries who may have borrowed money to go to law school, say, or buy a home. When calculating their wealth with all that debt, they may seem poorer by Oxfam’s measure.\u003c/p>\n\u003cp>“But they’re not worse off in terms of their life outcomes,” explains Kenny. “They’re not worse off in terms of how much they can afford to eat or are they getting decent health care? They’ve just borrowed more.”\u003c/p>\n\u003cp>Oxfam pushes back, saying these moneyed individuals with debt represent a small fraction of the 5 billion who are worse off. Most “ordinary people,” they say, are really struggling to get by.\u003c/p>\n\u003cp>But Kenny says if you consider the last two or three \u003cem>decades\u003c/em>, many of the poorest people in the world are actually \u003cem>better\u003c/em> off.\u003c/p>\n\u003cp>“If you look at health,” he says, “worldwide life expectancy \u003ca href=\"https://population.un.org/wpp/Graphs/DemographicProfiles/Line/900\">continues to go up\u003c/a>. If you look at education, the number of people in school continues to \u003ca href=\"https://data.worldbank.org/indicator/SE.SEC.NENR\">go\u003c/a> \u003ca href=\"https://data.worldbank.org/indicator/SE.PRM.NENR\">up\u003c/a>. So if you look at all these measures of the quality of life, they paint a slightly more positive picture. Even though at the very top end, we have extreme concentrations of wealth.”\u003c/p>\n\u003cp>And what about those at the bottom of the economic ladder? “For the poorest people,” the report says, “who are more likely to be women, racialized peoples, and marginalized groups in every society, daily life has become more brutal.”\u003c/p>\n\u003cp>Kenny doesn’t dispute that poverty remains a significant global problem: a total of 700 million people meet the World Bank definition of \u003ca href=\"https://www.worldbank.org/en/topic/poverty\">extreme poverty\u003c/a> as someone who gets by on less than $2.15 per day.\u003c/p>\n\u003ch2>How do you solve inequality?\u003c/h2>\n\u003cp>So what’s to be done about the unequal distribution of resources?\u003c/p>\n\u003cp>The Oxfam report offers a few ideas, like creating businesses based on fair trade and worker cooperatives instead of being structured around benefiting shareholders.\u003c/p>\n\u003cp>Second, it says governments need to step up and better regulate business. “A more equal world is possible if governments shape the market to be fair,” says Riddell.\u003c/p>\n\u003cp>“We need to rein in corporate power directly and that includes breaking up monopolies, empowering workers, calling for a living wage, [and increasing] taxation on corporations and on the ultra-rich.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘We must stop normalizing extreme inequality. This is not by accident, but by design.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Abby Maxman, Oxfam America","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Some argue that this approach doesn’t always work. “If you’re going to have tax policy that will redistribute income in favor of the poor, especially in favor of the global poor, you’re going to find it very difficult,” says \u003ca href=\"https://www.weber.edu/goddard/John_Mbaku.html\">John Mukum Mbaku\u003c/a>, an economist at Weber State University who’s originally from Cameroon.\u003c/p>\n\u003cp>The reason for that difficulty, explains Mbaku, is that the wealthy tend to be politically engaged and use campaign contributions to influence policy-making. Instead, he argues that governments should invest in improved public services to propel people out of poverty.\u003c/p>\n\u003cp>He says that improving access to free or low-cost education and medical care, nutritious food, clean water and basic sanitation can put someone on the road to employment and economic self-sufficiency.\u003c/p>\n\u003cp>Considering education more closely, Mbaku says large numbers of children in Africa, many of them girls, are unable to go to school. “In many African countries,” he says, “because of traditions and cultures, girls are not favored when it comes to education and training. Boys are favored.”\u003c/p>\n\u003cp>He’s seen firsthand that there are either no schools available or “their parents are so poor that they cannot afford to provide even the textbooks even if the schools are free.”\u003c/p>\n\u003cp>“Education should be considered by governments as an investment in human capital development, the future of your people, [and] the future of your country,” he notes.\u003c/p>\n\u003cp>It’s an intervention the Oxfam report recommends as well, saying that investing in people and communities provides “the best bulwark against extreme corporate power.”\u003c/p>\n\u003cp>“We must stop normalizing extreme inequality,” summarizes \u003ca href=\"https://www.oxfamamerica.org/explore/people/abby-maxman/\">Abby Maxman\u003c/a>, President and CEO of Oxfam America. “This is not by accident, but by design.”\u003c/p>\n\u003cp>Altering that design is a challenge so large that the 1,600 business leaders and 60 heads of state gathered in Davos may need more than five days to surmount it.\u003c/p>\n\u003cp>\u003cem>Copyright 2024 NPR. To see more, visit \u003ca href=\"https://www.npr.org\">npr.org\u003c/a>.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11972671/so-far-its-a-great-decade-for-billionaires-says-new-report-as-for-the-masses","authors":["byline_news_11972671"],"categories":["news_8"],"tags":["news_18545","news_27626","news_5096"],"affiliates":["news_253"],"featImg":"news_11972672","label":"source_news_11972671"},"news_11911563":{"type":"posts","id":"news_11911563","meta":{"index":"posts_1591205157","site":"news","id":"11911563","score":null,"sort":[1650410180000]},"guestAuthors":[],"slug":"anti-poverty-advocates-say-california-should-send-2000-per-child-to-states-poorest-families","title":"Anti-Poverty Advocates Say California Should Send $2,000 per Child to State's Lowest-Income Families","publishDate":1650410180,"format":"standard","headTitle":"CALmatters | KQED News","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>As Gov. Gavin Newsom and state lawmakers contemplate how to deliver the state’s surplus dollars back to Californians facing high gas prices and other rising costs of living, one group of advocates is pushing for another stimulus-like payment for the state’s lowest-income residents.\u003c/p>\n\u003cp>A coalition of anti-poverty organizations is calling for the state to send a one-time payment of $2,000 per child to families making less than $30,000 a year. More than 1 million families in the state would be eligible.\u003c/p>\n\u003cp>The proposal, sponsored by Assemblymember Miguel Santiago, a Los Angeles Democrat, is intended to partly make up for the expiration of last year’s expanded federal child tax credit payments, which provided as much as $3,000 per child — and $3,600 per child under 6 — to lower- and moderate-income families.\u003c/p>\n\u003cp>Researchers at Columbia University found that \u003ca href=\"https://www.povertycenter.columbia.edu/publication/monthly-poverty-september-2021\">the expanded tax credit reduced child poverty by more than 26%\u003c/a>, with greater reductions among Black and Latino children. \u003ca href=\"https://www.cbpp.org/blog/9-in-10-families-with-low-incomes-are-using-child-tax-credits-to-pay-for-necessities-education\">Nearly 90% of families spent the money on basic costs such as food, clothing or rent\u003c/a>, according to the liberal-leaning Center on Budget and Policy Priorities (CBPP).\u003c/p>\n\u003cp>Santiago said his proposal is a follow-up act on “the largest anti-poverty program we’ve had.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Advocates have raised alarms since the end of the program's expansion in December, citing CBPP figures showing that 1.7 million California children are now at risk of falling back into poverty.\u003c/p>\n\u003cp>That, along with the Newsom administration’s Golden State Stimulus checks and enhanced unemployment benefits, were among the handful of pandemic relief programs that came to an end last year. \u003ccite>\u003c/cite>\u003c/p>\n\u003cp>“When you’re making $30,000 or less for a family, they need immediate help,” Santiago said.\u003c/p>\n\u003cp>His legislation was heard Monday by the Assembly Revenue and Taxation committee, where it awaits a vote. The measure would cost $3.8 billion.\u003c/p>\n\u003cp>It is the latest of several proposals for how California could spend down the $31 billion budget surplus that the state is projected to have this year, according to the Legislative Analyst's Office.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"child-tax-credit\"]Officials already are considering several rebate ideas that could potentially help a wider pool of Californians deal with sky-high inflation and \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2022/03/gas-tax-rebate-california/\">gas costs\u003c/a>.\u003c/p>\n\u003cp>Newsom \u003ca href=\"https://calmatters.org/politics/2022/03/california-gas-tax-newsom-rebate/\">has proposed sending $400 debit cards \u003c/a>to the owners of every registered car in the state, capped at $800 per individual, as well as $750 million to public transportation agencies to offer free rides for three months.\u003c/p>\n\u003cp>A group of Democratic lawmakers wants to give $400 rebates to all state taxpayers, regardless of car ownership. Both plans would cost around $9 billion.\u003c/p>\n\u003cp>But Democratic leaders have balked at giving tax relief to wealthy Californians.\u003c/p>\n\u003cp>Assembly Speaker Anthony Rendon and state Senate President Pro Tem Toni Atkins favor a $7 billion plan that would give at least $200 rebates to families making up to $250,000 a year. In March, Atkins said she was focused on “ensuring that state money is targeted to those who actually need relief.”\u003c/p>\n\u003cp>Advocates of the child tax credit idea say surplus spending should be even more targeted to help those most affected by rising prices.\u003c/p>\n\u003cp>The lowest earners are hit hardest by inflation and \u003ca href=\"https://www.ppic.org/blog/gas-prices-stretch-family-budgets/\">spend the largest share of their incomes on gas\u003c/a>, according to the Public Policy Institute of California.\u003c/p>\n\u003cp>“We’re really pushing for a focus on doing the most and as much as you can for the lowest-income households,” said Teri Olle, California campaign director for Economic Security Project Action, a group advocating for cash-assistance programs. “We know those are the households that are hurting the most.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This article is part of the \u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem>California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"A new bill would direct some of the state's projected multibillion-dollar surplus to families making less than $30,000 a year.","status":"publish","parent":0,"modified":1650411663,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":21,"wordCount":654},"headData":{"title":"Anti-Poverty Advocates Say California Should Send $2,000 per Child to State's Lowest-Income Families | KQED","description":"A new bill would direct some of the state's projected multibillion-dollar surplus to families making less than $30,000 a year.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Anti-Poverty Advocates Say California Should Send $2,000 per Child to State's Lowest-Income Families","datePublished":"2022-04-19T23:16:20.000Z","dateModified":"2022-04-19T23:41:03.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11911563 https://ww2.kqed.org/news/?p=11911563","disqusUrl":"https://ww2.kqed.org/news/2022/04/19/anti-poverty-advocates-say-california-should-send-2000-per-child-to-states-poorest-families/","disqusTitle":"Anti-Poverty Advocates Say California Should Send $2,000 per Child to State's Lowest-Income Families","nprByline":"\u003ca href=\"https://calmatters.org/author/jeanne-kuang/\">Jeanne Kuang\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11911563/anti-poverty-advocates-say-california-should-send-2000-per-child-to-states-poorest-families","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>As Gov. Gavin Newsom and state lawmakers contemplate how to deliver the state’s surplus dollars back to Californians facing high gas prices and other rising costs of living, one group of advocates is pushing for another stimulus-like payment for the state’s lowest-income residents.\u003c/p>\n\u003cp>A coalition of anti-poverty organizations is calling for the state to send a one-time payment of $2,000 per child to families making less than $30,000 a year. More than 1 million families in the state would be eligible.\u003c/p>\n\u003cp>The proposal, sponsored by Assemblymember Miguel Santiago, a Los Angeles Democrat, is intended to partly make up for the expiration of last year’s expanded federal child tax credit payments, which provided as much as $3,000 per child — and $3,600 per child under 6 — to lower- and moderate-income families.\u003c/p>\n\u003cp>Researchers at Columbia University found that \u003ca href=\"https://www.povertycenter.columbia.edu/publication/monthly-poverty-september-2021\">the expanded tax credit reduced child poverty by more than 26%\u003c/a>, with greater reductions among Black and Latino children. \u003ca href=\"https://www.cbpp.org/blog/9-in-10-families-with-low-incomes-are-using-child-tax-credits-to-pay-for-necessities-education\">Nearly 90% of families spent the money on basic costs such as food, clothing or rent\u003c/a>, according to the liberal-leaning Center on Budget and Policy Priorities (CBPP).\u003c/p>\n\u003cp>Santiago said his proposal is a follow-up act on “the largest anti-poverty program we’ve had.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Advocates have raised alarms since the end of the program's expansion in December, citing CBPP figures showing that 1.7 million California children are now at risk of falling back into poverty.\u003c/p>\n\u003cp>That, along with the Newsom administration’s Golden State Stimulus checks and enhanced unemployment benefits, were among the handful of pandemic relief programs that came to an end last year. \u003ccite>\u003c/cite>\u003c/p>\n\u003cp>“When you’re making $30,000 or less for a family, they need immediate help,” Santiago said.\u003c/p>\n\u003cp>His legislation was heard Monday by the Assembly Revenue and Taxation committee, where it awaits a vote. The measure would cost $3.8 billion.\u003c/p>\n\u003cp>It is the latest of several proposals for how California could spend down the $31 billion budget surplus that the state is projected to have this year, according to the Legislative Analyst's Office.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"child-tax-credit"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Officials already are considering several rebate ideas that could potentially help a wider pool of Californians deal with sky-high inflation and \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2022/03/gas-tax-rebate-california/\">gas costs\u003c/a>.\u003c/p>\n\u003cp>Newsom \u003ca href=\"https://calmatters.org/politics/2022/03/california-gas-tax-newsom-rebate/\">has proposed sending $400 debit cards \u003c/a>to the owners of every registered car in the state, capped at $800 per individual, as well as $750 million to public transportation agencies to offer free rides for three months.\u003c/p>\n\u003cp>A group of Democratic lawmakers wants to give $400 rebates to all state taxpayers, regardless of car ownership. Both plans would cost around $9 billion.\u003c/p>\n\u003cp>But Democratic leaders have balked at giving tax relief to wealthy Californians.\u003c/p>\n\u003cp>Assembly Speaker Anthony Rendon and state Senate President Pro Tem Toni Atkins favor a $7 billion plan that would give at least $200 rebates to families making up to $250,000 a year. In March, Atkins said she was focused on “ensuring that state money is targeted to those who actually need relief.”\u003c/p>\n\u003cp>Advocates of the child tax credit idea say surplus spending should be even more targeted to help those most affected by rising prices.\u003c/p>\n\u003cp>The lowest earners are hit hardest by inflation and \u003ca href=\"https://www.ppic.org/blog/gas-prices-stretch-family-budgets/\">spend the largest share of their incomes on gas\u003c/a>, according to the Public Policy Institute of California.\u003c/p>\n\u003cp>“We’re really pushing for a focus on doing the most and as much as you can for the lowest-income households,” said Teri Olle, California campaign director for Economic Security Project Action, a group advocating for cash-assistance programs. “We know those are the households that are hurting the most.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003cem>This article is part of the \u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem>California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11911563/anti-poverty-advocates-say-california-should-send-2000-per-child-to-states-poorest-families","authors":["byline_news_11911563"],"categories":["news_8"],"tags":["news_29447","news_25866","news_29235","news_22569","news_5096","news_30957"],"affiliates":["news_18481"],"featImg":"news_11911587","label":"news_18481"},"news_11910942":{"type":"posts","id":"news_11910942","meta":{"index":"posts_1591205157","site":"news","id":"11910942","score":null,"sort":[1649806927000]},"guestAuthors":[],"slug":"how-soaring-inflation-forces-stark-choices","title":"How Soaring Inflation Forces Stark Choices","publishDate":1649806927,"format":"standard","headTitle":"NPR | KQED News","labelTerm":{"term":253,"site":"news"},"content":"\u003cp>\u003cstrong>Updated April 12, 2022 at 8:36 AM ET\u003c/strong>\u003c/p>\n\u003cp>From rising rent to higher heating bills, surging inflation impacts everybody, but it poses a particular hardship for people with little extra money to spare.\u003c/p>\n\u003cp>On Tuesday, the Labor Department reported that \u003ca href=\"https://www.bls.gov/news.release/cpi.nr0.htm\">consumer prices in March were 8.5% higher than a year ago\u003c/a> — the sharpest increase since December of 1981.\u003c/p>\n\u003cp>While no one likes paying more for haircuts or hamburgers, high inflation is especially painful for lower-income families, whose spending is heavily weighted toward necessities such as gasoline and groceries, which have seen some of the largest price hikes.\u003c/p>\n\u003cp>Gasoline prices have jumped 48% in the last year while grocery prices are up 10%.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>These families have little fat in their household budgets to start with, so when inflation cuts into their limited spending power, something has to give.[aside postID=\"forum_2010101888006\" hero=\"https://ww2.kqed.org/app/uploads/sites/43/2022/02/inflation-2-1020x816.jpg\"]Take Laura Kemp, a widow in Muldrow, Oklahoma, who says that her heating bill last month was $306, more than double the $125 she paid a year ago.\u003c/p>\n\u003cp>\"I live in a two-bedroom mobile home,\" she says. \"I don't understand what's going on. Every month it's increasing and it's taking up about a third of my income.\"\u003c/p>\n\u003cp>Kemp feels like she's losing ground, priced out of even small indulgences like a McDonald's meal.\u003c/p>\n\u003cp>\"By the 10th of the month, I have $200 left,\" she says. \"The $200 a month is now going into my gas tank.\"\u003c/p>\n\u003cp>\"I'm not making it to the end of the month anymore,\" she adds. \"Even getting a Big Mac now — a Big Mac meal is $8 — I can't afford it.\"\u003c/p>\n\u003cp>When the weather warms up, Kemp plans to plant a vegetable garden in hopes of defraying her food bill. She has picked out seeds for tomatoes, zucchini, peppers and eggplants, and she's eyeing some of the land her brother owns — where her mobile home also sits.\u003c/p>\n\u003ch2>From groceries to rent, prices are surging everywhere\u003c/h2>\n\u003cp>Charlene Rye, who retired after 28 years in the poultry industry — much of that time in chicken-processing plants — finds herself having to make hard choices after chicken prices rose sharply over the last year, like everything else in the grocery store.\u003c/p>\n\u003cp>\"You have to be a little more cautious in what you cook and things you make and things you buy,\" she says.\u003c/p>\n\u003cp>Rye has been getting help from a food pantry in Sallisaw, Okla., which has gotten busier as prices have climbed.\u003c/p>\n\u003cp>\"They open at 10 o'clock, and if you're there at 9, there's already people in line,\" she says.\u003c/p>\n\u003cp>For Terrie Dean, it's the cost of housing that really stings. She and her teenage son are living temporarily in a motel in Sallisaw. She relies on disability payments of about $1,600 a month, which for now puts an apartment out of reach.\u003c/p>\n\u003cp>\"They want first month and deposit, not realizing that may be all this family brings in,\" said Dean.\u003c/p>\n\u003cp>Lower-income families typically spend about 45% of their income on housing, compared with 18% for upper-income families. Shelter costs have risen 5% in the last year.\u003c/p>\n\u003ch3>Gas prices tend to hit especially hard\u003c/h3>\n\u003cp>The disparity for food and transportation is even larger — consuming 9% of high-income households' budgets but 26% for households that are low income.\u003c/p>\n\u003cp>After Russia's invasion of Ukraine, gasoline prices jumped to $4.33 a gallon in March — an all-time high, not adjusting for inflation.\u003c/p>\n\u003cp>The increased gas prices can impact family ties. Soaring energy prices forced Patricia Bridgmon of Chicago to cut back on visits to her elderly mother in Hammond, Indiana, about 25 minutes away.\u003c/p>\n\u003cp>\"It's just horrible with the gas,\" she says. \"I usually go to see her three days out of the week. Now, it's down to one, because of the gas.\"\u003c/p>\n\u003cp>https://youtu.be/dKHDavoB8IU\u003c/p>\n\u003cp>Kemp, the widow with the increased heating bill, has also cut back on driving to Fort Smith, Arkansas., about 35 minutes from her home in eastern Oklahoma.\u003c/p>\n\u003cp>\"I love going to the art museums and thrift store shopping and just getting out,\" she said. \"But I can't even go anymore.\"\u003c/p>\n\u003cp>Meanwhile, Rye, the retired poultry worker, has to weigh the cost of driving to a larger supermarket that's farther away against shopping closer to home, where prices are higher, even in good times.\u003c/p>\n\u003ch3>The Federal Reserve plans to fight inflation aggressively\u003c/h3>\n\u003cp>Federal Reserve officials are well aware of the toll that inflation is taking, especially on lower-income families, a point that Fed Gov. Lael Brainard highlighted in a \u003ca href=\"https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm\">speech last week\u003c/a>.\u003c/p>\n\u003cp>\"While all Americans are confronting higher prices, the burden is particularly great for households with more limited resources,\" Brainard said. \"That is why getting inflation down is our most important task, while sustaining a recovery that includes everyone.\"\u003c/p>\n\u003cp>The Fed began raising interest rates last month in an effort to tamp down consumer demand and bring prices under control.\u003c/p>\n\u003cp>The central bank started slowly, raising rates by a quarter percentage point. But markets anticipate that the Fed will become more aggressive, with a half-point increase now widely expected at the next Fed meeting in early May.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Although forecasters say March could be the high-water mark for inflation, consumer prices are likely to keep climbing at an uncomfortably fast pace for the rest of this year, continuing to put a particular strain on the families that can least afford it.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2022 NPR. To see more, visit https://www.npr.org.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=How+soaring+inflation+forces+stark+choices&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n","blocks":[],"excerpt":"Inflation in March was the highest since December of 1981, with prices up 8.5% from a year ago. Rising prices are especially hard on lower-income people, who spend more of their money on necessities.","status":"publish","parent":0,"modified":1649806971,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":32,"wordCount":951},"headData":{"title":"How Soaring Inflation Forces Stark Choices | KQED","description":"Inflation in March was the highest since December of 1981, with prices up 8.5% from a year ago. Rising prices are especially hard on lower-income people, who spend more of their money on necessities.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"How Soaring Inflation Forces Stark Choices","datePublished":"2022-04-12T23:42:07.000Z","dateModified":"2022-04-12T23:42:51.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11910942 https://ww2.kqed.org/news/?p=11910942","disqusUrl":"https://ww2.kqed.org/news/2022/04/12/how-soaring-inflation-forces-stark-choices/","disqusTitle":"How Soaring Inflation Forces Stark Choices","nprImageCredit":"Stefani Reynolds","nprByline":"Scott Horsley","nprImageAgency":"AFP via Getty Images","nprStoryId":"1092134413","nprApiLink":"http://api.npr.org/query?id=1092134413&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"https://www.npr.org/2022/04/12/1092134413/inflation-food-prices-gasoline-gas-interest-rates?ft=nprml&f=1092134413","nprRetrievedStory":"1","nprPubDate":"Tue, 12 Apr 2022 11:47:00 -0400","nprStoryDate":"Tue, 12 Apr 2022 05:00:26 -0400","nprLastModifiedDate":"Tue, 12 Apr 2022 10:08:27 -0400","nprAudio":"https://ondemand.npr.org/anon.npr-mp3/npr/me/2022/04/20220412_me_how_soaring_inflation_forces_stark_choices_on_low-income_americans.mp3?orgId=1&topicId=1017&d=388&p=3&story=1092134413&ft=nprml&f=1092134413","nprAudioM3u":"http://api.npr.org/m3u/11092251270-89593d.m3u?orgId=1&topicId=1017&d=388&p=3&story=1092134413&ft=nprml&f=1092134413","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11910942/how-soaring-inflation-forces-stark-choices","audioUrl":"https://ondemand.npr.org/anon.npr-mp3/npr/me/2022/04/20220412_me_how_soaring_inflation_forces_stark_choices_on_low-income_americans.mp3?orgId=1&topicId=1017&d=388&p=3&story=1092134413&ft=nprml&f=1092134413","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cstrong>Updated April 12, 2022 at 8:36 AM ET\u003c/strong>\u003c/p>\n\u003cp>From rising rent to higher heating bills, surging inflation impacts everybody, but it poses a particular hardship for people with little extra money to spare.\u003c/p>\n\u003cp>On Tuesday, the Labor Department reported that \u003ca href=\"https://www.bls.gov/news.release/cpi.nr0.htm\">consumer prices in March were 8.5% higher than a year ago\u003c/a> — the sharpest increase since December of 1981.\u003c/p>\n\u003cp>While no one likes paying more for haircuts or hamburgers, high inflation is especially painful for lower-income families, whose spending is heavily weighted toward necessities such as gasoline and groceries, which have seen some of the largest price hikes.\u003c/p>\n\u003cp>Gasoline prices have jumped 48% in the last year while grocery prices are up 10%.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>These families have little fat in their household budgets to start with, so when inflation cuts into their limited spending power, something has to give.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"forum_2010101888006","hero":"https://ww2.kqed.org/app/uploads/sites/43/2022/02/inflation-2-1020x816.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Take Laura Kemp, a widow in Muldrow, Oklahoma, who says that her heating bill last month was $306, more than double the $125 she paid a year ago.\u003c/p>\n\u003cp>\"I live in a two-bedroom mobile home,\" she says. \"I don't understand what's going on. Every month it's increasing and it's taking up about a third of my income.\"\u003c/p>\n\u003cp>Kemp feels like she's losing ground, priced out of even small indulgences like a McDonald's meal.\u003c/p>\n\u003cp>\"By the 10th of the month, I have $200 left,\" she says. \"The $200 a month is now going into my gas tank.\"\u003c/p>\n\u003cp>\"I'm not making it to the end of the month anymore,\" she adds. \"Even getting a Big Mac now — a Big Mac meal is $8 — I can't afford it.\"\u003c/p>\n\u003cp>When the weather warms up, Kemp plans to plant a vegetable garden in hopes of defraying her food bill. She has picked out seeds for tomatoes, zucchini, peppers and eggplants, and she's eyeing some of the land her brother owns — where her mobile home also sits.\u003c/p>\n\u003ch2>From groceries to rent, prices are surging everywhere\u003c/h2>\n\u003cp>Charlene Rye, who retired after 28 years in the poultry industry — much of that time in chicken-processing plants — finds herself having to make hard choices after chicken prices rose sharply over the last year, like everything else in the grocery store.\u003c/p>\n\u003cp>\"You have to be a little more cautious in what you cook and things you make and things you buy,\" she says.\u003c/p>\n\u003cp>Rye has been getting help from a food pantry in Sallisaw, Okla., which has gotten busier as prices have climbed.\u003c/p>\n\u003cp>\"They open at 10 o'clock, and if you're there at 9, there's already people in line,\" she says.\u003c/p>\n\u003cp>For Terrie Dean, it's the cost of housing that really stings. She and her teenage son are living temporarily in a motel in Sallisaw. She relies on disability payments of about $1,600 a month, which for now puts an apartment out of reach.\u003c/p>\n\u003cp>\"They want first month and deposit, not realizing that may be all this family brings in,\" said Dean.\u003c/p>\n\u003cp>Lower-income families typically spend about 45% of their income on housing, compared with 18% for upper-income families. Shelter costs have risen 5% in the last year.\u003c/p>\n\u003ch3>Gas prices tend to hit especially hard\u003c/h3>\n\u003cp>The disparity for food and transportation is even larger — consuming 9% of high-income households' budgets but 26% for households that are low income.\u003c/p>\n\u003cp>After Russia's invasion of Ukraine, gasoline prices jumped to $4.33 a gallon in March — an all-time high, not adjusting for inflation.\u003c/p>\n\u003cp>The increased gas prices can impact family ties. Soaring energy prices forced Patricia Bridgmon of Chicago to cut back on visits to her elderly mother in Hammond, Indiana, about 25 minutes away.\u003c/p>\n\u003cp>\"It's just horrible with the gas,\" she says. \"I usually go to see her three days out of the week. Now, it's down to one, because of the gas.\"\u003c/p>\u003c/p>\u003cp>\u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutube'>\n \u003cspan class='utils-parseShortcode-shortcodes-__youtubeShortcode__embedYoutubeInside'>\n \u003ciframe\n loading='lazy'\n class='utils-parseShortcode-shortcodes-__youtubeShortcode__youtubePlayer'\n type='text/html'\n src='//www.youtube.com/embed/dKHDavoB8IU'\n title='//www.youtube.com/embed/dKHDavoB8IU'\n allowfullscreen='true'\n style='border:0;'>\u003c/iframe>\n \u003c/span>\n \u003c/span>\u003c/p>\u003cp>\u003cp>Kemp, the widow with the increased heating bill, has also cut back on driving to Fort Smith, Arkansas., about 35 minutes from her home in eastern Oklahoma.\u003c/p>\n\u003cp>\"I love going to the art museums and thrift store shopping and just getting out,\" she said. \"But I can't even go anymore.\"\u003c/p>\n\u003cp>Meanwhile, Rye, the retired poultry worker, has to weigh the cost of driving to a larger supermarket that's farther away against shopping closer to home, where prices are higher, even in good times.\u003c/p>\n\u003ch3>The Federal Reserve plans to fight inflation aggressively\u003c/h3>\n\u003cp>Federal Reserve officials are well aware of the toll that inflation is taking, especially on lower-income families, a point that Fed Gov. Lael Brainard highlighted in a \u003ca href=\"https://www.federalreserve.gov/newsevents/speech/brainard20220405a.htm\">speech last week\u003c/a>.\u003c/p>\n\u003cp>\"While all Americans are confronting higher prices, the burden is particularly great for households with more limited resources,\" Brainard said. \"That is why getting inflation down is our most important task, while sustaining a recovery that includes everyone.\"\u003c/p>\n\u003cp>The Fed began raising interest rates last month in an effort to tamp down consumer demand and bring prices under control.\u003c/p>\n\u003cp>The central bank started slowly, raising rates by a quarter percentage point. But markets anticipate that the Fed will become more aggressive, with a half-point increase now widely expected at the next Fed meeting in early May.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>Although forecasters say March could be the high-water mark for inflation, consumer prices are likely to keep climbing at an uncomfortably fast pace for the rest of this year, continuing to put a particular strain on the families that can least afford it.\u003c/p>\n\u003cdiv class=\"fullattribution\">Copyright 2022 NPR. To see more, visit https://www.npr.org.\u003cimg src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=How+soaring+inflation+forces+stark+choices&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/div>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11910942/how-soaring-inflation-forces-stark-choices","authors":["byline_news_11910942"],"categories":["news_1758","news_8"],"tags":["news_18545","news_5096","news_30877","news_30919"],"affiliates":["news_253"],"featImg":"news_11910943","label":"news_253"},"news_11907442":{"type":"posts","id":"news_11907442","meta":{"index":"posts_1591205157","site":"news","id":"11907442","score":null,"sort":[1646772758000]},"guestAuthors":[],"slug":"gavin-newsom-has-a-chance-to-address-californias-inequality-will-he-take-it","title":"Gavin Newsom Has a Chance to Address California's Inequality. Will He Take It?","publishDate":1646772758,"format":"standard","headTitle":"KQED News","labelTerm":{},"content":"\u003cp>Gov. Gavin Newsom is an unlikely champion of California’s down and out. Yet the wine entrepreneur, who built his political career and fortune with help from the state’s wealthy elite, campaigned on a promise to address California’s disparities — and do so boldly.\u003c/p>\n\u003cp>From his \u003ca href=\"https://www.gov.ca.gov/2019/01/07/newsom-inaugural-address/\">first day in office\u003c/a> in January 2019, Newsom called the manifestations of California’s inequality — homelessness, poverty and rising costs — “moral imperatives,” not just policy priorities. “So long as they persist, each and every one of us is diminished,” he declared.\u003c/p>\n\u003cp>Those inequalities persisted and were laid bare by two years of the COVID-19 pandemic, a tumultuous time that saw the governor overcome a Republican-led effort to recall him from office last September.[pullquote size=\"medium\" align=\"right\" citation=\"Chris Hoene, director, California Budget and Policy Center\"]'If the comparison is where we were when he took over as governor, and where we are today, he's facing a ton of headwinds. And the urgency and the need drives expectations about him doing more.'[/pullquote]Now with the pandemic receding, the economy rebounding and no major political opposition standing in his way to reelection this year, Newsom has the opportunity to return to his original priority of reducing the stain\u003cstrong> \u003c/strong>of poverty on the state.\u003c/p>\n\u003cp>He is expected to address the issue today in the final State of the State speech of his first term. ”There is going to be an explicit callout on inequality, and the stakes,” said an aide, who spoke only if not named because they were not authorized to give a preview of the speech. “One of the themes of the speech is going to be democracy, and tying that to how unchecked inequality undermines democracy.”\u003c/p>\n\u003cp>Some experts and advocates say Newsom’s efforts to close the economic divide may determine his legacy — and help set him apart from his predecessor and fellow Democrat, Jerry Brown, who insisted state government could only go so far \u003ca href=\"https://www.wsj.com/articles/the-mixed-ledger-of-jerry-brown-11544803128\">in closing the divide between rich and poor\u003c/a>.\u003c/p>\n\u003cp>“If the comparison is past governors in California, he’s trying to do a lot,” said Chris Hoene, director of the \u003ca href=\"https://calbudgetcenter.org/\">California Budget and Policy Center\u003c/a>, a nonprofit that researches policy affecting lower-income Californians. “If the comparison is where we were when he took over as governor, and where we are today, he’s facing a ton of headwinds. And the urgency and the need drives expectations about him doing more.”\u003c/p>\n\u003cp>Nationally, the jobs recovery is in full swing, and though California has lagged other states, it could at last see improvements as mask mandates loosen and the economy returns more to normal. The pandemic — and record state budget surpluses — have given Newsom the opportunity to address the state’s inequalities. The Democratic leaders of the state Assembly and Senate leaders also say they want to use the budget to \u003ca href=\"https://calmatters.org/politics/2022/01/california-legislature-what-to-expect-in-2022/\">create a more inclusive recovery and more equitable economy\u003c/a>.\u003c/p>\n\u003cp>But Assembly GOP leader James Gallagher of Yuba City said it’s the policies of Democrats that are driving inequality.\u003c/p>\n\u003cp>“We have a huge surplus because the wealthiest are doing so well,” he said. “That doesn’t tell the story of the middle- and low-income earners in this state.”\u003c/p>\n\u003cp>For instance, he said working families are getting hammered by the state’s high cost of gasoline, \u003ca href=\"https://gasprices.aaa.com/state-gas-price-averages/\">which according to AAA\u003c/a> has now topped an average of $5 a gallon — an increase \u003ca href=\"https://twitter.com/CNBCnow/status/1500616012936404998?s=20&t=rVWBoDfE4mpwCbhd1sf3aA\">accelerated by the Ukraine war\u003c/a>, although Gallagher and other \u003ca href=\"https://twitter.com/SenateRepCaucus/status/1500855328396640257?s=20&t=PuXYRJdx071mxt-zKe53Xw\">Republicans also blame the state’s gas tax\u003c/a>, which Democrats \u003ca href=\"https://www.latimes.com/politics/la-pol-sac-gas-tax-signing-20170428-story.html\">raised in 2017 \u003c/a>under Brown to repair roads and bridges and expand mass transit. Newsom has proposed putting off a scheduled July increase, but he has \u003ca href=\"https://calmatters.org/politics/2022/02/california-legislators-debates-preview/\">met resistance\u003c/a> from his own party in the Legislature. The climate change agenda of California Democrats also has driven up the cost of utilities, further deepening inequality, Gallagher said.\u003c/p>\n\u003cp>“I think he genuinely cares about this issue, but I think that his policies — the policies of either he, or Democrats in the Legislature — have made the problem worse,” Gallagher said. “The other problem is that the governor has a lack of follow-through. He’s big on pronouncements and announcing new programs, but pretty short on implementation and results.”\u003c/p>\n\u003ch2>What's Newsom's record?\u003c/h2>\n\u003cp>In his State of the State speech last year, Newsom returned to the \u003ca href=\"https://www.gov.ca.gov/2021/03/09/governor-newsom-delivers-state-of-the-state-address-charting-californias-path-to-a-brighter-future/\">theme of inequality\u003c/a>, indicating his belief the pandemic was “widening gaps between the haves and the have-nots.” “California’s most acute preexisting condition remains income inequality,” he said.\u003c/p>\n\u003cp>In his three years in office, he has pushed through several significant initiatives:\u003c/p>\n\u003cul>\n\u003cli>Steadily expanding Medi-Cal coverage to include undocumented people until they turn 26 and once they turn 50, and in his \u003ca href=\"https://calmatters.org/politics/2022/01/california-budget-newsom/\">January budget\u003c/a> proposing covering those previously excluded. But the expansion would still leave several hundred thousand undocumented immigrants \u003ca href=\"https://calmatters.org/health/2022/02/medi-cal-expansion-immigrants/\">unable to qualify\u003c/a> because they earn above the program’s annual income thresholds.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>In 2019, expanding the state’s earned income tax credit and the young child tax credit to help boost the wages of low-paid workers and families.\u003cstrong> \u003c/strong>In 2020, he signed a law allowing anyone with an individual taxpayer identification number to qualify for the expanded earned income tax credit. That made \u003ca href=\"https://calmatters.org/economy/2020/12/tax-credits-undocumented-workers-california-law/\">undocumented workers\u003c/a> eligible to receive hundreds, or thousands, of dollars each year. Last year, he \u003ca href=\"https://calmatters.org/california-divide/2021/02/california-600-stimulus-checks-undocumented-workers/\">signed a measure\u003c/a> giving $600 one-time payments to those who receive the state’s earned income tax credit, along with an extra $600 for certain undocumented taxpayers not eligible for some federal aid.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>During the pandemic, expanding eligibility for several safety net programs, including food assistance, allowing for more people to participate. In particular, the state \u003ca href=\"https://calfresh.guide/temporary-reporting-and-recertification-changes-because-of-covid-19/\">paused the recertification process\u003c/a> in the state’s CalFresh program, which provides food benefits to some 2.6 million lower-income households. And the state last year created a \u003ca href=\"https://edsource.org/2021/free-school-meals-here-to-stay-in-california/658564\">universal free school meals program\u003c/a>, doing away with a previous income requirement.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>When taking office, \u003ca href=\"https://calmatters.org/economy/2019/01/newsom-paid-family-leave-proposal-analyzed/\">announcing plans\u003c/a> to assist working parents with a six-month, paid family leave program. He has so far extended the program to eight weeks per parent. In 2020, he signed a bill expanding unpaid family leave to include smaller employers, but in 2021 vetoed a bill intended to extend the program to \u003ca href=\"https://calmatters.org/politics/2021/07/california-paid-family-leave/\">lower-income workers\u003c/a>. The governor also has made progress on his goals to expand preschool, with a plan to provide universal transitional kindergarten for 4-year-olds by 2025.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>Experts and activists say making higher education more affordable is important to reducing inequality in the state. Last year, the administration eliminated age and time-out-of-high-school requirements for Cal Grant scholarships to community colleges. But the governor \u003ca href=\"https://calmatters.org/education/higher-education/2021/10/cal-grant-expansion-veto/\">vetoed a bill\u003c/a> that would have made Cal Grants more broadly available. Lawmakers last year also signaled the intent to expand a scholarship for middle-class students in the state, as well as more slots in public universities for California students, though \u003ca href=\"https://calmatters.org/education/2021/06/california-college-budget/\">lawmakers must agree this year\u003c/a> to fund those promises.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>The governor’s efforts with economic recovery, trying to \u003ca href=\"https://opr.ca.gov/economic-development/just-transition/cerf.html#regions\">target funds regionally\u003c/a>, could help the Central Valley and other parts of the state that are struggling. Such work might not be easy; a legislative effort to retrain oil workers already has sparked a \u003ca href=\"https://calmatters.org/california-divide/2022/02/just-transition-bill-for-oil-industry-workers-exposes-labor-rift/\">political fight\u003c/a> among some of the state’s labor unions.\u003c/li>\n\u003c/ul>\n\u003cp>Still, advocates say the state could be doing more to shrink the economic divide.\u003c/p>\n\u003ch2>What do the numbers show?\u003c/h2>\n\u003cp>While recessions \u003ca href=\"https://calmatters.org/california-divide/ca-divide-economic-inequality/2022/02/california-income-inequality/\">tend to widen income disparities\u003c/a> between rich and poor, earnings have increased for lower-income workers while unprecedented government relief kept millions from falling into poverty. That’s despite the sharp downturn in 2020, and the disproportionate number of pandemic-related job losses hitting lower-wage sectors. During the recovery, some of the biggest gains are in the leisure and hospitality sectors, according to \u003ca href=\"https://www.ppic.org/person/sarah-bohn/\">Sarah Bohn\u003c/a>, vice president and policy research chair with the Public Policy Institute of California.\u003c/p>\n\u003cp>“Wages are picking up the most at the low end of the spectrum, even though we’re still in a recovery period with elevated unemployment,” Bohn said. “It might be that inequality is actually decreasing during the pandemic — which is kind of crazy, and we’ll know more soon — but when you just look at the wage statistics, the sectors that are lowest paid have the highest increase in wages.”\u003c/p>\n\u003cp>Nationally, data from the \u003ca href=\"https://www.atlantafed.org/chcs/wage-growth-tracker\">Federal Reserve Bank of \u003c/a>\u003ca href=\"https://www.atlantafed.org/chcs/wage-growth-tracker\">Atlanta \u003c/a>shows typical wages for the bottom 25% of earners growing faster than for those of other income groups. Meanwhile the Biden administration has highlighted research from two influential UC Berkeley economists underscoring that economic growth has been broadly shared since he took office in January 2021.\u003c/p>\n\u003cp>In California, income inequality statistics for 2020 are not yet available, but the trend has been one of dramatic widening over the long run, with the modern economy placing a premium on highly educated workers. Analyzing pretax income and including cash from some safety net programs, the PPIC found income growth for the bottom 10% of families in California lagging significantly behind the top 10% from 1980 to 2019.\u003c/p>\n\u003cp>\u003ca href=\"https://inequality.stanford.edu/about/people/david-grusky\">David Grusky\u003c/a>, director of the Stanford Center on Poverty and Inequality, said that while incomes may be increasing on the bottom end, those with higher incomes were less interrupted by job losses and many saw a significant rise in the value of their assets.\u003c/p>\n\u003cp>“Those people who had money in the stock market fared well, and those are the people who are well off,” he said.\u003c/p>\n\u003cp>With its highest earners doing well, and a major boost in federal aid, California’s budget has been flush with surpluses during the pandemic. And Congress last year passed President Biden’s American Rescue Plan, which California has used to address some of its longstanding inequities. Newsom and legislators have invested billions in homelessness programs, affordable housing, aid to undocumented immigrants and its youth mental health system.\u003c/p>\n\u003cp>The youth mental health system reforms are “transformational and are expected to be permanent,” said \u003ca href=\"https://www.cbpp.org/about/our-staff/ed-lazere\">Ed Lazere\u003c/a>, a researcher who tracks state fiscal policy at the Center on Budget and Policy Priorities in Washington, D.C.\u003c/p>\n\u003ch2>Focus on homelessness\u003c/h2>\n\u003cp>In many ways, much of Newsom’s political career has been defined by one of the most visible manifestations of the state’s extremes — homelessness. He garnered political attention and notoriety from activists with his Care Not Cash initiative as a San Francisco supervisor, a measure intended to cut general assistance programs for the unhoused in exchange for housing and other services. He often walked through the city’s Tenderloin, where he saw homelessness for himself.[aside postID=\"news_11901253,news_11907155,news_11906414\" label=\"Related Posts\"]In 2020, just before COVID, Newsom dedicated his \u003ca href=\"https://www.gov.ca.gov/2020/02/19/governor-newsom-delivers-state-of-the-state-address-on-homelessness/\">State of the State\u003c/a> address solely to the subject. During the pandemic, his administration \u003ca href=\"https://calmatters.org/housing/homeless/2021/05/newsom-end-homelessness-pandemic-lessons/\">converted dozens of run-down motels into shelters\u003c/a> and housing for unhoused people. Last year, he and the Legislature allocated $12 billion to homelessness programs. He’s proposing another $2 billion in the 2022-23 budget. He’s also moving ahead with an ambitious plan to \u003ca href=\"https://calmatters.org/housing/homeless/2021/11/california-homeless-camps-clearing-plan/\">clear homeless encampments\u003c/a> and offer services to people living in them. And last week, \u003ca href=\"https://calmatters.org/health/2022/03/newsom-california-mental-illness-treatment/\">Newsom outlined a plan to allow courts\u003c/a> to force some unhoused individuals with serious mental illness and substance use disorders into treatment, while also providing some services.\u003c/p>\n\u003cp>After all that, \u003ca href=\"https://calmatters.org/housing/homeless/2022/03/california-homeless-count/\">homelessness remains\u003c/a> one of the biggest problems facing his administration. Two-thirds of voters \u003ca href=\"https://escholarship.org/uc/item/6ft4h17c\">in a February poll from UC Berkeley’s Institute of Governmental Studies\u003c/a> said he’s doing a poor or very poor job on the issue, contributing to a lower approval rating than before the recall election last September. And \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2022/02/california-crime-homelessness/\">along with public perception of rising crime\u003c/a>, it may be what gets in the way of a smooth path to a second term in this year’s election.\u003c/p>\n\u003cp>At the same time, Californians care about inequality: In a \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">November survey by the PPIC\u003c/a>, 69% said the gap between rich and poor is growing in their region, and 76% supported increasing government funding so child care is available to more lower-income working parents. And how Newsom decides to lead on inequality will matter politically in Sacramento given the number of moderate Democrats and legislators finding themselves in new districts untested by voters, many of whom could be unlikely to support riskier policies without a push from the governor.\u003c/p>\n\u003cp>Those who advocate for those policies will be watching: “It does seem like Newsom is treating a commitment to reducing poverty as one of his key legacy commitments, and so that’s wonderful,” said Grusky of Stanford. But, he said, “we can do, and should do, even more.”\u003c/p>\n\u003cp>\u003cem>This article is part of the\u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem> California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"With the pandemic receding, the economy rebounding and no major political opposition standing in his way to reelection, Gov. Newsom has the opportunity to return to his original priority of reducing the stain of poverty on the state.","status":"publish","parent":0,"modified":1646783654,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":29,"wordCount":2230},"headData":{"title":"Gavin Newsom Has a Chance to Address California's Inequality. Will He Take It? | KQED","description":"With the pandemic receding, the economy rebounding and no major political opposition standing in his way to reelection, Gov. Newsom has the opportunity to return to his original priority of reducing the stain of poverty on the state.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Gavin Newsom Has a Chance to Address California's Inequality. Will He Take It?","datePublished":"2022-03-08T20:52:38.000Z","dateModified":"2022-03-08T23:54:14.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11907442 https://ww2.kqed.org/news/?p=11907442","disqusUrl":"https://ww2.kqed.org/news/2022/03/08/gavin-newsom-has-a-chance-to-address-californias-inequality-will-he-take-it/","disqusTitle":"Gavin Newsom Has a Chance to Address California's Inequality. Will He Take It?","source":"CalMatters","sourceUrl":"https://calmatters.org","nprByline":"\u003ca href=\"https://calmatters.org/author/alejandro-lazo/\">Alejandro Lazo\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11907442/gavin-newsom-has-a-chance-to-address-californias-inequality-will-he-take-it","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Gov. Gavin Newsom is an unlikely champion of California’s down and out. Yet the wine entrepreneur, who built his political career and fortune with help from the state’s wealthy elite, campaigned on a promise to address California’s disparities — and do so boldly.\u003c/p>\n\u003cp>From his \u003ca href=\"https://www.gov.ca.gov/2019/01/07/newsom-inaugural-address/\">first day in office\u003c/a> in January 2019, Newsom called the manifestations of California’s inequality — homelessness, poverty and rising costs — “moral imperatives,” not just policy priorities. “So long as they persist, each and every one of us is diminished,” he declared.\u003c/p>\n\u003cp>Those inequalities persisted and were laid bare by two years of the COVID-19 pandemic, a tumultuous time that saw the governor overcome a Republican-led effort to recall him from office last September.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'If the comparison is where we were when he took over as governor, and where we are today, he's facing a ton of headwinds. And the urgency and the need drives expectations about him doing more.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Chris Hoene, director, California Budget and Policy Center","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Now with the pandemic receding, the economy rebounding and no major political opposition standing in his way to reelection this year, Newsom has the opportunity to return to his original priority of reducing the stain\u003cstrong> \u003c/strong>of poverty on the state.\u003c/p>\n\u003cp>He is expected to address the issue today in the final State of the State speech of his first term. ”There is going to be an explicit callout on inequality, and the stakes,” said an aide, who spoke only if not named because they were not authorized to give a preview of the speech. “One of the themes of the speech is going to be democracy, and tying that to how unchecked inequality undermines democracy.”\u003c/p>\n\u003cp>Some experts and advocates say Newsom’s efforts to close the economic divide may determine his legacy — and help set him apart from his predecessor and fellow Democrat, Jerry Brown, who insisted state government could only go so far \u003ca href=\"https://www.wsj.com/articles/the-mixed-ledger-of-jerry-brown-11544803128\">in closing the divide between rich and poor\u003c/a>.\u003c/p>\n\u003cp>“If the comparison is past governors in California, he’s trying to do a lot,” said Chris Hoene, director of the \u003ca href=\"https://calbudgetcenter.org/\">California Budget and Policy Center\u003c/a>, a nonprofit that researches policy affecting lower-income Californians. “If the comparison is where we were when he took over as governor, and where we are today, he’s facing a ton of headwinds. And the urgency and the need drives expectations about him doing more.”\u003c/p>\n\u003cp>Nationally, the jobs recovery is in full swing, and though California has lagged other states, it could at last see improvements as mask mandates loosen and the economy returns more to normal. The pandemic — and record state budget surpluses — have given Newsom the opportunity to address the state’s inequalities. The Democratic leaders of the state Assembly and Senate leaders also say they want to use the budget to \u003ca href=\"https://calmatters.org/politics/2022/01/california-legislature-what-to-expect-in-2022/\">create a more inclusive recovery and more equitable economy\u003c/a>.\u003c/p>\n\u003cp>But Assembly GOP leader James Gallagher of Yuba City said it’s the policies of Democrats that are driving inequality.\u003c/p>\n\u003cp>“We have a huge surplus because the wealthiest are doing so well,” he said. “That doesn’t tell the story of the middle- and low-income earners in this state.”\u003c/p>\n\u003cp>For instance, he said working families are getting hammered by the state’s high cost of gasoline, \u003ca href=\"https://gasprices.aaa.com/state-gas-price-averages/\">which according to AAA\u003c/a> has now topped an average of $5 a gallon — an increase \u003ca href=\"https://twitter.com/CNBCnow/status/1500616012936404998?s=20&t=rVWBoDfE4mpwCbhd1sf3aA\">accelerated by the Ukraine war\u003c/a>, although Gallagher and other \u003ca href=\"https://twitter.com/SenateRepCaucus/status/1500855328396640257?s=20&t=PuXYRJdx071mxt-zKe53Xw\">Republicans also blame the state’s gas tax\u003c/a>, which Democrats \u003ca href=\"https://www.latimes.com/politics/la-pol-sac-gas-tax-signing-20170428-story.html\">raised in 2017 \u003c/a>under Brown to repair roads and bridges and expand mass transit. Newsom has proposed putting off a scheduled July increase, but he has \u003ca href=\"https://calmatters.org/politics/2022/02/california-legislators-debates-preview/\">met resistance\u003c/a> from his own party in the Legislature. The climate change agenda of California Democrats also has driven up the cost of utilities, further deepening inequality, Gallagher said.\u003c/p>\n\u003cp>“I think he genuinely cares about this issue, but I think that his policies — the policies of either he, or Democrats in the Legislature — have made the problem worse,” Gallagher said. “The other problem is that the governor has a lack of follow-through. He’s big on pronouncements and announcing new programs, but pretty short on implementation and results.”\u003c/p>\n\u003ch2>What's Newsom's record?\u003c/h2>\n\u003cp>In his State of the State speech last year, Newsom returned to the \u003ca href=\"https://www.gov.ca.gov/2021/03/09/governor-newsom-delivers-state-of-the-state-address-charting-californias-path-to-a-brighter-future/\">theme of inequality\u003c/a>, indicating his belief the pandemic was “widening gaps between the haves and the have-nots.” “California’s most acute preexisting condition remains income inequality,” he said.\u003c/p>\n\u003cp>In his three years in office, he has pushed through several significant initiatives:\u003c/p>\n\u003cul>\n\u003cli>Steadily expanding Medi-Cal coverage to include undocumented people until they turn 26 and once they turn 50, and in his \u003ca href=\"https://calmatters.org/politics/2022/01/california-budget-newsom/\">January budget\u003c/a> proposing covering those previously excluded. But the expansion would still leave several hundred thousand undocumented immigrants \u003ca href=\"https://calmatters.org/health/2022/02/medi-cal-expansion-immigrants/\">unable to qualify\u003c/a> because they earn above the program’s annual income thresholds.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>In 2019, expanding the state’s earned income tax credit and the young child tax credit to help boost the wages of low-paid workers and families.\u003cstrong> \u003c/strong>In 2020, he signed a law allowing anyone with an individual taxpayer identification number to qualify for the expanded earned income tax credit. That made \u003ca href=\"https://calmatters.org/economy/2020/12/tax-credits-undocumented-workers-california-law/\">undocumented workers\u003c/a> eligible to receive hundreds, or thousands, of dollars each year. Last year, he \u003ca href=\"https://calmatters.org/california-divide/2021/02/california-600-stimulus-checks-undocumented-workers/\">signed a measure\u003c/a> giving $600 one-time payments to those who receive the state’s earned income tax credit, along with an extra $600 for certain undocumented taxpayers not eligible for some federal aid.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>During the pandemic, expanding eligibility for several safety net programs, including food assistance, allowing for more people to participate. In particular, the state \u003ca href=\"https://calfresh.guide/temporary-reporting-and-recertification-changes-because-of-covid-19/\">paused the recertification process\u003c/a> in the state’s CalFresh program, which provides food benefits to some 2.6 million lower-income households. And the state last year created a \u003ca href=\"https://edsource.org/2021/free-school-meals-here-to-stay-in-california/658564\">universal free school meals program\u003c/a>, doing away with a previous income requirement.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>When taking office, \u003ca href=\"https://calmatters.org/economy/2019/01/newsom-paid-family-leave-proposal-analyzed/\">announcing plans\u003c/a> to assist working parents with a six-month, paid family leave program. He has so far extended the program to eight weeks per parent. In 2020, he signed a bill expanding unpaid family leave to include smaller employers, but in 2021 vetoed a bill intended to extend the program to \u003ca href=\"https://calmatters.org/politics/2021/07/california-paid-family-leave/\">lower-income workers\u003c/a>. The governor also has made progress on his goals to expand preschool, with a plan to provide universal transitional kindergarten for 4-year-olds by 2025.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>Experts and activists say making higher education more affordable is important to reducing inequality in the state. Last year, the administration eliminated age and time-out-of-high-school requirements for Cal Grant scholarships to community colleges. But the governor \u003ca href=\"https://calmatters.org/education/higher-education/2021/10/cal-grant-expansion-veto/\">vetoed a bill\u003c/a> that would have made Cal Grants more broadly available. Lawmakers last year also signaled the intent to expand a scholarship for middle-class students in the state, as well as more slots in public universities for California students, though \u003ca href=\"https://calmatters.org/education/2021/06/california-college-budget/\">lawmakers must agree this year\u003c/a> to fund those promises.\u003c/li>\n\u003c/ul>\n\u003cul>\n\u003cli>The governor’s efforts with economic recovery, trying to \u003ca href=\"https://opr.ca.gov/economic-development/just-transition/cerf.html#regions\">target funds regionally\u003c/a>, could help the Central Valley and other parts of the state that are struggling. Such work might not be easy; a legislative effort to retrain oil workers already has sparked a \u003ca href=\"https://calmatters.org/california-divide/2022/02/just-transition-bill-for-oil-industry-workers-exposes-labor-rift/\">political fight\u003c/a> among some of the state’s labor unions.\u003c/li>\n\u003c/ul>\n\u003cp>Still, advocates say the state could be doing more to shrink the economic divide.\u003c/p>\n\u003ch2>What do the numbers show?\u003c/h2>\n\u003cp>While recessions \u003ca href=\"https://calmatters.org/california-divide/ca-divide-economic-inequality/2022/02/california-income-inequality/\">tend to widen income disparities\u003c/a> between rich and poor, earnings have increased for lower-income workers while unprecedented government relief kept millions from falling into poverty. That’s despite the sharp downturn in 2020, and the disproportionate number of pandemic-related job losses hitting lower-wage sectors. During the recovery, some of the biggest gains are in the leisure and hospitality sectors, according to \u003ca href=\"https://www.ppic.org/person/sarah-bohn/\">Sarah Bohn\u003c/a>, vice president and policy research chair with the Public Policy Institute of California.\u003c/p>\n\u003cp>“Wages are picking up the most at the low end of the spectrum, even though we’re still in a recovery period with elevated unemployment,” Bohn said. “It might be that inequality is actually decreasing during the pandemic — which is kind of crazy, and we’ll know more soon — but when you just look at the wage statistics, the sectors that are lowest paid have the highest increase in wages.”\u003c/p>\n\u003cp>Nationally, data from the \u003ca href=\"https://www.atlantafed.org/chcs/wage-growth-tracker\">Federal Reserve Bank of \u003c/a>\u003ca href=\"https://www.atlantafed.org/chcs/wage-growth-tracker\">Atlanta \u003c/a>shows typical wages for the bottom 25% of earners growing faster than for those of other income groups. Meanwhile the Biden administration has highlighted research from two influential UC Berkeley economists underscoring that economic growth has been broadly shared since he took office in January 2021.\u003c/p>\n\u003cp>In California, income inequality statistics for 2020 are not yet available, but the trend has been one of dramatic widening over the long run, with the modern economy placing a premium on highly educated workers. Analyzing pretax income and including cash from some safety net programs, the PPIC found income growth for the bottom 10% of families in California lagging significantly behind the top 10% from 1980 to 2019.\u003c/p>\n\u003cp>\u003ca href=\"https://inequality.stanford.edu/about/people/david-grusky\">David Grusky\u003c/a>, director of the Stanford Center on Poverty and Inequality, said that while incomes may be increasing on the bottom end, those with higher incomes were less interrupted by job losses and many saw a significant rise in the value of their assets.\u003c/p>\n\u003cp>“Those people who had money in the stock market fared well, and those are the people who are well off,” he said.\u003c/p>\n\u003cp>With its highest earners doing well, and a major boost in federal aid, California’s budget has been flush with surpluses during the pandemic. And Congress last year passed President Biden’s American Rescue Plan, which California has used to address some of its longstanding inequities. Newsom and legislators have invested billions in homelessness programs, affordable housing, aid to undocumented immigrants and its youth mental health system.\u003c/p>\n\u003cp>The youth mental health system reforms are “transformational and are expected to be permanent,” said \u003ca href=\"https://www.cbpp.org/about/our-staff/ed-lazere\">Ed Lazere\u003c/a>, a researcher who tracks state fiscal policy at the Center on Budget and Policy Priorities in Washington, D.C.\u003c/p>\n\u003ch2>Focus on homelessness\u003c/h2>\n\u003cp>In many ways, much of Newsom’s political career has been defined by one of the most visible manifestations of the state’s extremes — homelessness. He garnered political attention and notoriety from activists with his Care Not Cash initiative as a San Francisco supervisor, a measure intended to cut general assistance programs for the unhoused in exchange for housing and other services. He often walked through the city’s Tenderloin, where he saw homelessness for himself.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11901253,news_11907155,news_11906414","label":"Related Posts "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>In 2020, just before COVID, Newsom dedicated his \u003ca href=\"https://www.gov.ca.gov/2020/02/19/governor-newsom-delivers-state-of-the-state-address-on-homelessness/\">State of the State\u003c/a> address solely to the subject. During the pandemic, his administration \u003ca href=\"https://calmatters.org/housing/homeless/2021/05/newsom-end-homelessness-pandemic-lessons/\">converted dozens of run-down motels into shelters\u003c/a> and housing for unhoused people. Last year, he and the Legislature allocated $12 billion to homelessness programs. He’s proposing another $2 billion in the 2022-23 budget. He’s also moving ahead with an ambitious plan to \u003ca href=\"https://calmatters.org/housing/homeless/2021/11/california-homeless-camps-clearing-plan/\">clear homeless encampments\u003c/a> and offer services to people living in them. And last week, \u003ca href=\"https://calmatters.org/health/2022/03/newsom-california-mental-illness-treatment/\">Newsom outlined a plan to allow courts\u003c/a> to force some unhoused individuals with serious mental illness and substance use disorders into treatment, while also providing some services.\u003c/p>\n\u003cp>After all that, \u003ca href=\"https://calmatters.org/housing/homeless/2022/03/california-homeless-count/\">homelessness remains\u003c/a> one of the biggest problems facing his administration. Two-thirds of voters \u003ca href=\"https://escholarship.org/uc/item/6ft4h17c\">in a February poll from UC Berkeley’s Institute of Governmental Studies\u003c/a> said he’s doing a poor or very poor job on the issue, contributing to a lower approval rating than before the recall election last September. And \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2022/02/california-crime-homelessness/\">along with public perception of rising crime\u003c/a>, it may be what gets in the way of a smooth path to a second term in this year’s election.\u003c/p>\n\u003cp>At the same time, Californians care about inequality: In a \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">November survey by the PPIC\u003c/a>, 69% said the gap between rich and poor is growing in their region, and 76% supported increasing government funding so child care is available to more lower-income working parents. And how Newsom decides to lead on inequality will matter politically in Sacramento given the number of moderate Democrats and legislators finding themselves in new districts untested by voters, many of whom could be unlikely to support riskier policies without a push from the governor.\u003c/p>\n\u003cp>Those who advocate for those policies will be watching: “It does seem like Newsom is treating a commitment to reducing poverty as one of his key legacy commitments, and so that’s wonderful,” said Grusky of Stanford. But, he said, “we can do, and should do, even more.”\u003c/p>\n\u003cp>\u003cem>This article is part of the\u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem> California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11907442/gavin-newsom-has-a-chance-to-address-californias-inequality-will-he-take-it","authors":["byline_news_11907442"],"categories":["news_8"],"tags":["news_756","news_28039","news_27626","news_16","news_5096","news_30762","news_30761"],"featImg":"news_11907484","label":"source_news_11907442"},"news_11906414":{"type":"posts","id":"news_11906414","meta":{"index":"posts_1591205157","site":"news","id":"11906414","score":null,"sort":[1645891260000]},"guestAuthors":[],"slug":"did-the-pandemic-create-more-income-inequality-in-california","title":"Did the Pandemic Create More Income Inequality in California?","publishDate":1645891260,"format":"standard","headTitle":"KQED News","labelTerm":{},"content":"\u003cp>\u003cem>Lea este artículo en \u003c/em>\u003ca href=\"https://calmatters.org/calmatters-en-espanol/2022/02/creo-la-pandemia-mas-desigualdad-de-ingresos-en-california/\">\u003cem>español\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\u003cp>Recessions in California tend to widen the gap between rich and poor. The sharp pandemic downturn of 2020 followed this pattern, with lower-income workers suffering the most. But unprecedented government relief kept millions from falling into poverty, and demand for labor boosted wages when businesses reopened.\u003c/p>\n\u003cp>Now with federal and state stimulus payments gone, and the recovery still underway, researchers are combing through employment statistics, as well as large-scale survey data, asking whether the pandemic resulted in a deepening of California’s divide. Three out of the last four recessions — excluding the bursting of the internet stock bubble — \u003ca href=\"https://www.ppic.org/wp-content/uploads/incoming-inequality-and-economic-opportunity-in-california-december-2020.pdf#page=21\">increased income inequality in California\u003c/a>, the Public Policy Institute of California said.\u003c/p>\n\u003cp>In coming months the institute expects to have its own inequality measure updated with 2020 data. Many Californians already see economic inequality as a facet of life here, with 69% of residents believing \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">the gap between the haves and have-nots is widening\u003c/a>, a November poll by the PPIC found.\u003c/p>\n\u003cp>“The challenge is that the surveys had a difficult time sampling low-income individuals and households during the pandemic,” Sarah Bohn, a researcher who studies the issue for the PPIC, wrote in an email. “So even though the survey data is available, we are doing extra work to validate the income inequality statistics we typically would have in hand by now.”\u003c/p>\n\u003ch2 id=\"h-further-exacerbating-inequality\">'Further exacerbating inequality'\u003c/h2>\n\u003cp>There are other signs the 2020 recession may have deepened the economic divide, said Somjita Mitra, chief economist for the state Department of Finance. The largest contributor to growth in 2020 state personal income was government transfers — including stimulus payments and unemployment benefits, among others. And increases in revenue from higher-income earners was enough to offset losses from lower-income earners.\u003c/p>\n\u003cp>“High-income earners are doing exceptionally well, further exacerbating inequality in the state,” she said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The answer to the inequality question may help shape Sacramento policymaking after a unique recession in which lockdowns resulted in huge job losses, economic stimulus checks buoyed worker paychecks, taxes on capital gains from a surging stock market filled state coffers and the rise of remote work reshaped both the state housing market and its economy.\u003c/p>\n\u003cp>While federal aid may be expiring, Gov. Gavin Newsom said in January that he planned to use the \u003ca href=\"https://calmatters.org/politics/2022/01/california-budget-newsom/\">billions of unanticipated tax dollars to help struggling California families\u003c/a>. Newsom said he has not ruled out measures such as \u003ca href=\"https://calmatters.org/california-divide/2021/07/look-up-california-stimulus-golden-state/\">state-funded stimulus checks\u003c/a> like the ones that went to lower- and middle-income families last year. Fellow Democrats who lead the Legislature are interested in another Golden State stimulus, though they have \u003ca href=\"https://calmatters.org/politics/2022/02/california-legislators-debates-preview/\">doubts about Newsom’s proposed gas tax “holiday.”\u003c/a> Newsom and legislators have already \u003ca href=\"https://calmatters.org/politics/2022/01/california-paid-sick-leave-deal/\">restored paid sick leave for COVID\u003c/a>, though workers at smaller businesses are excluded.\u003c/p>\n\u003cp>[aside postID=news_11904834 hero='https://ww2.kqed.org/app/uploads/sites/10/2022/02/RS53455_003_StockPhoto_AtHomeCOVIDTest_02022022-qut-1038x576.jpg']In his spending plan, the Democratic governor presented several policies aimed at closing the economic divide, including universal health care that includes coverage for the state’s undocumented population, health care subsidies for the middle class, expanding paid family leave, establishing a tax credit for families with young children, universal no-cost meals at schools and more money to house the state’s unhoused. The state last year also funded a \u003ca href=\"https://calmatters.org/california-divide/2021/07/universal-basic-income-california/\">guaranteed-income program\u003c/a>, with a $35 million pool to support current or new pilot programs.\u003c/p>\n\u003cp>California has long struggled with poverty, exacerbated by some of the nation’s highest housing and gasoline costs, though there is evidence that progress was notched during the pandemic thanks to government aid. The state had the highest rate of poverty at 15.4%, as measured by the Census Bureau’s \u003ca href=\"https://www.census.gov/content/dam/Census/library/publications/2021/demo/p60-275.pdf\">supplemental poverty measure\u003c/a>, which accounts for housing and transportation costs, as well as government spending and other factors.\u003c/p>\n\u003ch2 id=\"h-low-income-jobs-lost-during-pandemic\">Lower-income jobs lost during pandemic\u003c/h2>\n\u003cp>From a jobs perspective, lower-wage workers bore the brunt of the pandemic recession, the \u003ca href=\"https://www.nytimes.com/2021/07/19/business/economy/pandemic-recession-over-coronavirus.html\">shortest on record\u003c/a>. And while lower-wage workers are now in high demand, they still have the most ground to make up.\u003c/p>\n\u003cp>Mitra, of the state finance department, said that before the pandemic, the bulk of the jobs created paid about $20,000 a year or less, resulting in people needing to work more than one job, or being underemployed. A study last year by the United Ways of California estimated that \u003ca href=\"https://calmatters.org/california-divide/2021/07/cost-of-living-study-california-families/\">3.5 million California families\u003c/a> didn’t make enough to meet basic needs.\u003c/p>\n\u003cp>“We were already really seeing a lot of inequality in this state,” she said. “When the pandemic hit, those jobs were the first ones to go.”\u003c/p>\n\u003cp>There are signs lower-wage industries in the state are undergoing important changes. Lower-wage jobs such as office administration, security and janitorial services have been slow to recover, likely \u003ca href=\"https://www.capolicylab.org/wp-content/uploads/2021/12/Dec-2021-Analysis-of-Unemployment-Insurance-Claims-in-California.pdf\">pushing workers into other lower-wage industries\u003c/a>, according to an analysis last year by the California Policy Lab, a nonpartisan research center based at the University of California.\u003c/p>\n\u003cp>Lower-wage workers in retail shops, hotels, restaurants, grocery stores and other such customer-facing establishments were hard hit by the pandemic. Meanwhile, the rise in home delivery services has accelerated the rise of warehouse jobs, including at Amazon and other online retailers, in pockets of California’s Central Valley and Inland Empire. But there have not been enough of these jobs to make up for the losses, said Till von Wachter, an economics professor at UCLA.\u003c/p>\n\u003cp>“There are some sectors that have grown, such as transportation and warehousing, but they’re unlikely to have grown enough to absorb that big of a share,” von Wachter said. “They’re also not as ubiquitous as some of these other sectors. If you’re in San Bernardino, that’s a really important industry, but not, say, elsewhere in LA County.”\u003c/p>\n\u003ch2 id=\"h-inflation-housing-hit-poor-the-hardest\">Inflation, housing hit people the hardest\u003cem> \u003c/em>\u003c/h2>\n\u003cp>A spike in \u003ca href=\"https://www.latimes.com/business/story/2022-02-22/california-gas-prices-ukraine-crisis\">energy prices due to the Ukraine crisis\u003c/a> is expected to harm the U.S. economy. Sharp rises in inflation tend to hit lower-income residents the hardest, and there is some initial evidence that this is playing out in California.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>About 2.6 million California households were participating in the state’s \u003ca href=\"https://www.cdss.ca.gov/inforesources/data-portal/research-and-data/calfresh-data-dashboard\">CalFresh program\u003c/a>, which provides food benefits to individuals and families with lower incomes. That’s about the same level as the most recent peak in June 2020.\u003c/p>\n\u003cfigure id=\"attachment_11906416\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11906416 size-medium\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-800x533.jpeg\" alt=\"A Valero Gas Station Sign Showing Gas Prices\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-800x533.jpeg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-1020x679.jpeg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-160x107.jpeg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05.jpeg 1024w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A Valero gas station in Sacramento on Feb. 22, 2022. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Even if people are working again, or more people are working, the cost of food is outpacing their incomes,” said Jacob Hibel, co-director of the Center for Poverty and Inequality Research at UC Davis. “Just having a job is not enough to guarantee that you have enough food to feed your family.”\u003c/p>\n\u003cp>And with housing prices skyrocketing last year, some people are now being cut out of a traditional route to the middle class, which is owning a home, experts said. \u003ca href=\"https://www.car.org/marketdata/data/haitraditional\">Housing affordability\u003c/a>, as measured by the number of Californians who could afford a median-priced, single-family home, hit 23% in the second quarter of 2021, according to the California Association of Realtors. That was the lowest point since prices were approaching their highs during the last bubble, in 2007, when 11% of Californians could own a home.\u003cstrong> \u003c/strong>That measure had risen slightly, to 25%, by the end of last year, according to the association.\u003c/p>\n\u003cp>Higher-income workers, homeowners and people who earn investment income have, on the whole, seen their wealth increase over the last nearly two years, experts noted, likely raising wealth inequality in California. Researchers noted in interviews that the pandemic may have increased inequality in other key ways. Underserved children, for instance, fell further behind academically, \u003ca href=\"https://www.nytimes.com/2020/06/05/us/coronavirus-education-lost-learning.html\">widening the achievement gap\u003c/a>.\u003c/p>\n\u003cp>“When you see those kinds of impacts, they can really lock in inequality,” said Hibel, of UC Davis. “It tends to take young people who are either in poverty — or who are experiencing inequalities — and just make it much, much less likely that they’ll be able to climb out of that social stratum when they reach adulthood.”\u003c/p>\n\u003cp>\u003cem>This article is part of the\u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem> California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Income inequality grew in California during three of the last four recessions before the COVID-19 pandemic. Researchers are trying to figure out whether the same happened in 2020.","status":"publish","parent":0,"modified":1646094714,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":26,"wordCount":1431},"headData":{"title":"Did the Pandemic Create More Income Inequality in California? | KQED","description":"Income inequality grew in California during three of the last four recessions before the COVID-19 pandemic. Researchers are trying to figure out whether the same happened in 2020.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Did the Pandemic Create More Income Inequality in California?","datePublished":"2022-02-26T16:01:00.000Z","dateModified":"2022-03-01T00:31:54.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11906414 https://ww2.kqed.org/news/?p=11906414","disqusUrl":"https://ww2.kqed.org/news/2022/02/26/did-the-pandemic-create-more-income-inequality-in-california/","disqusTitle":"Did the Pandemic Create More Income Inequality in California?","source":"CalMatters","sourceUrl":"https://calmatters.org/","nprByline":"\u003ca href=\"https://calmatters.org/author/alejandro-lazo/\">Alejandro Lazo\u003c/a>","subhead":"Income inequality grew in California during three of the last four recessions before the COVID-19 pandemic. Researchers are trying to figure out if the same happened in 2020.","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","path":"/news/11906414/did-the-pandemic-create-more-income-inequality-in-california","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>Lea este artículo en \u003c/em>\u003ca href=\"https://calmatters.org/calmatters-en-espanol/2022/02/creo-la-pandemia-mas-desigualdad-de-ingresos-en-california/\">\u003cem>español\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\u003cp>Recessions in California tend to widen the gap between rich and poor. The sharp pandemic downturn of 2020 followed this pattern, with lower-income workers suffering the most. But unprecedented government relief kept millions from falling into poverty, and demand for labor boosted wages when businesses reopened.\u003c/p>\n\u003cp>Now with federal and state stimulus payments gone, and the recovery still underway, researchers are combing through employment statistics, as well as large-scale survey data, asking whether the pandemic resulted in a deepening of California’s divide. Three out of the last four recessions — excluding the bursting of the internet stock bubble — \u003ca href=\"https://www.ppic.org/wp-content/uploads/incoming-inequality-and-economic-opportunity-in-california-december-2020.pdf#page=21\">increased income inequality in California\u003c/a>, the Public Policy Institute of California said.\u003c/p>\n\u003cp>In coming months the institute expects to have its own inequality measure updated with 2020 data. Many Californians already see economic inequality as a facet of life here, with 69% of residents believing \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">the gap between the haves and have-nots is widening\u003c/a>, a November poll by the PPIC found.\u003c/p>\n\u003cp>“The challenge is that the surveys had a difficult time sampling low-income individuals and households during the pandemic,” Sarah Bohn, a researcher who studies the issue for the PPIC, wrote in an email. “So even though the survey data is available, we are doing extra work to validate the income inequality statistics we typically would have in hand by now.”\u003c/p>\n\u003ch2 id=\"h-further-exacerbating-inequality\">'Further exacerbating inequality'\u003c/h2>\n\u003cp>There are other signs the 2020 recession may have deepened the economic divide, said Somjita Mitra, chief economist for the state Department of Finance. The largest contributor to growth in 2020 state personal income was government transfers — including stimulus payments and unemployment benefits, among others. And increases in revenue from higher-income earners was enough to offset losses from lower-income earners.\u003c/p>\n\u003cp>“High-income earners are doing exceptionally well, further exacerbating inequality in the state,” she said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The answer to the inequality question may help shape Sacramento policymaking after a unique recession in which lockdowns resulted in huge job losses, economic stimulus checks buoyed worker paychecks, taxes on capital gains from a surging stock market filled state coffers and the rise of remote work reshaped both the state housing market and its economy.\u003c/p>\n\u003cp>While federal aid may be expiring, Gov. Gavin Newsom said in January that he planned to use the \u003ca href=\"https://calmatters.org/politics/2022/01/california-budget-newsom/\">billions of unanticipated tax dollars to help struggling California families\u003c/a>. Newsom said he has not ruled out measures such as \u003ca href=\"https://calmatters.org/california-divide/2021/07/look-up-california-stimulus-golden-state/\">state-funded stimulus checks\u003c/a> like the ones that went to lower- and middle-income families last year. Fellow Democrats who lead the Legislature are interested in another Golden State stimulus, though they have \u003ca href=\"https://calmatters.org/politics/2022/02/california-legislators-debates-preview/\">doubts about Newsom’s proposed gas tax “holiday.”\u003c/a> Newsom and legislators have already \u003ca href=\"https://calmatters.org/politics/2022/01/california-paid-sick-leave-deal/\">restored paid sick leave for COVID\u003c/a>, though workers at smaller businesses are excluded.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11904834","hero":"https://ww2.kqed.org/app/uploads/sites/10/2022/02/RS53455_003_StockPhoto_AtHomeCOVIDTest_02022022-qut-1038x576.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>In his spending plan, the Democratic governor presented several policies aimed at closing the economic divide, including universal health care that includes coverage for the state’s undocumented population, health care subsidies for the middle class, expanding paid family leave, establishing a tax credit for families with young children, universal no-cost meals at schools and more money to house the state’s unhoused. The state last year also funded a \u003ca href=\"https://calmatters.org/california-divide/2021/07/universal-basic-income-california/\">guaranteed-income program\u003c/a>, with a $35 million pool to support current or new pilot programs.\u003c/p>\n\u003cp>California has long struggled with poverty, exacerbated by some of the nation’s highest housing and gasoline costs, though there is evidence that progress was notched during the pandemic thanks to government aid. The state had the highest rate of poverty at 15.4%, as measured by the Census Bureau’s \u003ca href=\"https://www.census.gov/content/dam/Census/library/publications/2021/demo/p60-275.pdf\">supplemental poverty measure\u003c/a>, which accounts for housing and transportation costs, as well as government spending and other factors.\u003c/p>\n\u003ch2 id=\"h-low-income-jobs-lost-during-pandemic\">Lower-income jobs lost during pandemic\u003c/h2>\n\u003cp>From a jobs perspective, lower-wage workers bore the brunt of the pandemic recession, the \u003ca href=\"https://www.nytimes.com/2021/07/19/business/economy/pandemic-recession-over-coronavirus.html\">shortest on record\u003c/a>. And while lower-wage workers are now in high demand, they still have the most ground to make up.\u003c/p>\n\u003cp>Mitra, of the state finance department, said that before the pandemic, the bulk of the jobs created paid about $20,000 a year or less, resulting in people needing to work more than one job, or being underemployed. A study last year by the United Ways of California estimated that \u003ca href=\"https://calmatters.org/california-divide/2021/07/cost-of-living-study-california-families/\">3.5 million California families\u003c/a> didn’t make enough to meet basic needs.\u003c/p>\n\u003cp>“We were already really seeing a lot of inequality in this state,” she said. “When the pandemic hit, those jobs were the first ones to go.”\u003c/p>\n\u003cp>There are signs lower-wage industries in the state are undergoing important changes. Lower-wage jobs such as office administration, security and janitorial services have been slow to recover, likely \u003ca href=\"https://www.capolicylab.org/wp-content/uploads/2021/12/Dec-2021-Analysis-of-Unemployment-Insurance-Claims-in-California.pdf\">pushing workers into other lower-wage industries\u003c/a>, according to an analysis last year by the California Policy Lab, a nonpartisan research center based at the University of California.\u003c/p>\n\u003cp>Lower-wage workers in retail shops, hotels, restaurants, grocery stores and other such customer-facing establishments were hard hit by the pandemic. Meanwhile, the rise in home delivery services has accelerated the rise of warehouse jobs, including at Amazon and other online retailers, in pockets of California’s Central Valley and Inland Empire. But there have not been enough of these jobs to make up for the losses, said Till von Wachter, an economics professor at UCLA.\u003c/p>\n\u003cp>“There are some sectors that have grown, such as transportation and warehousing, but they’re unlikely to have grown enough to absorb that big of a share,” von Wachter said. “They’re also not as ubiquitous as some of these other sectors. If you’re in San Bernardino, that’s a really important industry, but not, say, elsewhere in LA County.”\u003c/p>\n\u003ch2 id=\"h-inflation-housing-hit-poor-the-hardest\">Inflation, housing hit people the hardest\u003cem> \u003c/em>\u003c/h2>\n\u003cp>A spike in \u003ca href=\"https://www.latimes.com/business/story/2022-02-22/california-gas-prices-ukraine-crisis\">energy prices due to the Ukraine crisis\u003c/a> is expected to harm the U.S. economy. Sharp rises in inflation tend to hit lower-income residents the hardest, and there is some initial evidence that this is playing out in California.\u003cstrong> \u003c/strong>\u003c/p>\n\u003cp>About 2.6 million California households were participating in the state’s \u003ca href=\"https://www.cdss.ca.gov/inforesources/data-portal/research-and-data/calfresh-data-dashboard\">CalFresh program\u003c/a>, which provides food benefits to individuals and families with lower incomes. That’s about the same level as the most recent peak in June 2020.\u003c/p>\n\u003cfigure id=\"attachment_11906416\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11906416 size-medium\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-800x533.jpeg\" alt=\"A Valero Gas Station Sign Showing Gas Prices\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-800x533.jpeg 800w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-1020x679.jpeg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05-160x107.jpeg 160w, https://ww2.kqed.org/app/uploads/sites/10/2022/02/022222-Gas-Prices-Station-MG-CM-05.jpeg 1024w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A Valero gas station in Sacramento on Feb. 22, 2022. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“Even if people are working again, or more people are working, the cost of food is outpacing their incomes,” said Jacob Hibel, co-director of the Center for Poverty and Inequality Research at UC Davis. “Just having a job is not enough to guarantee that you have enough food to feed your family.”\u003c/p>\n\u003cp>And with housing prices skyrocketing last year, some people are now being cut out of a traditional route to the middle class, which is owning a home, experts said. \u003ca href=\"https://www.car.org/marketdata/data/haitraditional\">Housing affordability\u003c/a>, as measured by the number of Californians who could afford a median-priced, single-family home, hit 23% in the second quarter of 2021, according to the California Association of Realtors. That was the lowest point since prices were approaching their highs during the last bubble, in 2007, when 11% of Californians could own a home.\u003cstrong> \u003c/strong>That measure had risen slightly, to 25%, by the end of last year, according to the association.\u003c/p>\n\u003cp>Higher-income workers, homeowners and people who earn investment income have, on the whole, seen their wealth increase over the last nearly two years, experts noted, likely raising wealth inequality in California. Researchers noted in interviews that the pandemic may have increased inequality in other key ways. Underserved children, for instance, fell further behind academically, \u003ca href=\"https://www.nytimes.com/2020/06/05/us/coronavirus-education-lost-learning.html\">widening the achievement gap\u003c/a>.\u003c/p>\n\u003cp>“When you see those kinds of impacts, they can really lock in inequality,” said Hibel, of UC Davis. “It tends to take young people who are either in poverty — or who are experiencing inequalities — and just make it much, much less likely that they’ll be able to climb out of that social stratum when they reach adulthood.”\u003c/p>\n\u003cp>\u003cem>This article is part of the\u003c/em>\u003ca href=\"https://calmatters.org/projects/california-divide/\">\u003cem> California Divide\u003c/em>\u003c/a>\u003cem> project, a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11906414/did-the-pandemic-create-more-income-inequality-in-california","authors":["byline_news_11906414"],"categories":["news_1758","news_8"],"tags":["news_18538","news_27350","news_30714","news_5096"],"featImg":"news_11906438","label":"source_news_11906414"},"news_11895687":{"type":"posts","id":"news_11895687","meta":{"index":"posts_1591205157","site":"news","id":"11895687","score":null,"sort":[1636531299000]},"guestAuthors":[],"slug":"most-californians-concerned-about-growing-income-disparity-in-the-state","title":"Most Californians Say Income Inequality Growing and Economic Opportunity Falling, New Poll Finds","publishDate":1636531299,"format":"standard","headTitle":"The California Report | KQED News","labelTerm":{"term":72,"site":"news"},"content":"\u003cp>Californians may be split on many political and social issues, but a solid majority agree that the gap between the rich and poor is growing wider.\u003c/p>\n\u003cp>A new poll from the Public Policy Institute of California (PPIC) finds that \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">nearly 70% of adults across California think income disparities are increasing in the region\u003c/a> where they live. And more than 60% believe that kids growing up in the state today will be worse off than they are.\u003c/p>\n\u003cfigure id=\"attachment_11895759\" class=\"wp-caption aligncenter\" style=\"max-width: 1537px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png\">\u003cimg class=\"size-full wp-image-11895759\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png\" alt=\"Two horizontal bar charts showing opinions on wealth disparities.\" width=\"1537\" height=\"658\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png 1537w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-800x342.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-1020x437.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-160x68.png 160w\" sizes=\"(max-width: 1537px) 100vw, 1537px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But PPIC President Mark Baldassare, who directed the survey, said the results show that even in this highly partisan period, there’s strong consensus among Californians about how to fix the problem, \" ... whether it comes to creating more affordable child care for lower-income workers, improving job training [or] finding ways to provide housing close to work in regions that are more affordable for people.\"\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"income-inequality\"]Not surprisingly, housing is one of the top concerns among adults in California, a quarter of whom say they worry constantly about the cost of it, according to the poll.\u003c/p>\n\u003cp>\"That's a lot of people,\" Baldassare said. \"And this is in the context of people saying that the lack of well-paying jobs in their regions is a big problem.\"\u003c/p>\n\u003cp>In fact, he noted, about 20% of those surveyed say they're seriously considering moving out of state because of a dearth of the kind of well-paying jobs they would need to afford to live here.\u003c/p>\n\u003cp>Roughly one in five Californians say that they or someone in their household over the last year has cut back on food (21%), put off seeing a doctor or purchasing medicine to save money (18%), been unable to pay a monthly bill (17%) or had difficulty paying the rent or mortgage (17%), the poll finds. Interestingly, the results are similar to those from last November's survey, which was conducted when many statewide COVID-19 restrictions were still in effect.\u003c/p>\n\u003cp>The poll also finds significant differences across racial and ethnic groups, with Latinos and African Americans most likely to report any of these issue. Meanwhile the share of people experiencing these difficulties declines as age increases.\u003c/p>\n\u003cfigure id=\"attachment_11895757\" class=\"wp-caption aligncenter\" style=\"max-width: 1216px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png\">\u003cimg class=\"wp-image-11895757 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png\" alt=\"A series of horizontal bar charts showing financial difficulties across racial/ethnic and income groups.\" width=\"1216\" height=\"807\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png 1216w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-800x531.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-1020x677.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-160x106.png 160w\" sizes=\"(max-width: 1216px) 100vw, 1216px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In light of affordability concerns, most Californians are also strongly supportive of more government assistance, the poll finds, with more than 75% of adult residents saying the government should help lower-income families pay for child care. The share of people who say they support increased funding for job-training programs is even higher — at 81%.\u003c/p>\n\u003cp>\"I think people in California will be looking [with] great interest now in terms of what the federal government is going to be able to provide, as well as what the state government might be able to provide, in terms of support for expanding child care for lower-income workers and expanding job training so that more people can find their way to good-paying jobs in California,\" Baldassare said.\u003c/p>\n\u003cfigure id=\"attachment_11895758\" class=\"wp-caption aligncenter\" style=\"max-width: 1213px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png\">\u003cimg class=\"wp-image-11895758 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png\" alt=\"Horizontal bar charts showing overwhelming support for expansive of safety net programs. \" width=\"1213\" height=\"807\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png 1213w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-800x532.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-1020x679.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-160x106.png 160w\" sizes=\"(max-width: 1213px) 100vw, 1213px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The poll results come as Democrats in Washington, D.C., continue to negotiate the terms of a \u003ca href=\"https://www.bloomberg.com/news/articles/2021-11-05/after-decades-of-focus-on-elderly-washington-turns-to-families\">$1.75 trillion social spending package\u003c/a> that could include subsidized child care and universal pre-K for 3- and 4-year-olds.\u003c/p>\n\u003cp>Findings in the survey are based on interviews with 2,292 adult residents throughout California, conducted from Oct. 12–31, 2021.\u003c/p>\n\u003cp>The poll's sampling error is ±3.2%, at the 95% confidence level, meaning that 95 times out of 100, the results will be within 3.2 percentage points of what they would be if all adults in California were interviewed.[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"The poll finds that a solid majority of Californians believes the gap between rich and poor is increasing in their regions, and that more safety net programs are needed to counter affordability challenges.","status":"publish","parent":0,"modified":1636586927,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":14,"wordCount":644},"headData":{"title":"Most Californians Say Income Inequality Growing and Economic Opportunity Falling, New Poll Finds | KQED","description":"The poll finds that a solid majority of Californians believes the gap between rich and poor is increasing in their regions, and that more safety net programs are needed to counter affordability challenges.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Most Californians Say Income Inequality Growing and Economic Opportunity Falling, New Poll Finds","datePublished":"2021-11-10T08:01:39.000Z","dateModified":"2021-11-10T23:28:47.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11895687 https://ww2.kqed.org/news/?p=11895687","disqusUrl":"https://ww2.kqed.org/news/2021/11/10/most-californians-concerned-about-growing-income-disparity-in-the-state/","disqusTitle":"Most Californians Say Income Inequality Growing and Economic Opportunity Falling, New Poll Finds","excludeFromSiteSearch":"Include","path":"/news/11895687/most-californians-concerned-about-growing-income-disparity-in-the-state","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Californians may be split on many political and social issues, but a solid majority agree that the gap between the rich and poor is growing wider.\u003c/p>\n\u003cp>A new poll from the Public Policy Institute of California (PPIC) finds that \u003ca href=\"https://www.ppic.org/publication/ppic-statewide-survey-californians-and-their-economic-well-being-november-2021/\">nearly 70% of adults across California think income disparities are increasing in the region\u003c/a> where they live. And more than 60% believe that kids growing up in the state today will be worse off than they are.\u003c/p>\n\u003cfigure id=\"attachment_11895759\" class=\"wp-caption aligncenter\" style=\"max-width: 1537px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png\">\u003cimg class=\"size-full wp-image-11895759\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png\" alt=\"Two horizontal bar charts showing opinions on wealth disparities.\" width=\"1537\" height=\"658\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/double.png 1537w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-800x342.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-1020x437.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/double-160x68.png 160w\" sizes=\"(max-width: 1537px) 100vw, 1537px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But PPIC President Mark Baldassare, who directed the survey, said the results show that even in this highly partisan period, there’s strong consensus among Californians about how to fix the problem, \" ... whether it comes to creating more affordable child care for lower-income workers, improving job training [or] finding ways to provide housing close to work in regions that are more affordable for people.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"income-inequality"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Not surprisingly, housing is one of the top concerns among adults in California, a quarter of whom say they worry constantly about the cost of it, according to the poll.\u003c/p>\n\u003cp>\"That's a lot of people,\" Baldassare said. \"And this is in the context of people saying that the lack of well-paying jobs in their regions is a big problem.\"\u003c/p>\n\u003cp>In fact, he noted, about 20% of those surveyed say they're seriously considering moving out of state because of a dearth of the kind of well-paying jobs they would need to afford to live here.\u003c/p>\n\u003cp>Roughly one in five Californians say that they or someone in their household over the last year has cut back on food (21%), put off seeing a doctor or purchasing medicine to save money (18%), been unable to pay a monthly bill (17%) or had difficulty paying the rent or mortgage (17%), the poll finds. Interestingly, the results are similar to those from last November's survey, which was conducted when many statewide COVID-19 restrictions were still in effect.\u003c/p>\n\u003cp>The poll also finds significant differences across racial and ethnic groups, with Latinos and African Americans most likely to report any of these issue. Meanwhile the share of people experiencing these difficulties declines as age increases.\u003c/p>\n\u003cfigure id=\"attachment_11895757\" class=\"wp-caption aligncenter\" style=\"max-width: 1216px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png\">\u003cimg class=\"wp-image-11895757 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png\" alt=\"A series of horizontal bar charts showing financial difficulties across racial/ethnic and income groups.\" width=\"1216\" height=\"807\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1.png 1216w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-800x531.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-1020x677.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/the-share-of-californians-experiencing-financial-difficulties-varies-across-racial-ethnic-and-income-groups-nbsp-1-1-160x106.png 160w\" sizes=\"(max-width: 1216px) 100vw, 1216px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In light of affordability concerns, most Californians are also strongly supportive of more government assistance, the poll finds, with more than 75% of adult residents saying the government should help lower-income families pay for child care. The share of people who say they support increased funding for job-training programs is even higher — at 81%.\u003c/p>\n\u003cp>\"I think people in California will be looking [with] great interest now in terms of what the federal government is going to be able to provide, as well as what the state government might be able to provide, in terms of support for expanding child care for lower-income workers and expanding job training so that more people can find their way to good-paying jobs in California,\" Baldassare said.\u003c/p>\n\u003cfigure id=\"attachment_11895758\" class=\"wp-caption aligncenter\" style=\"max-width: 1213px\">\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png\">\u003cimg class=\"wp-image-11895758 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png\" alt=\"Horizontal bar charts showing overwhelming support for expansive of safety net programs. \" width=\"1213\" height=\"807\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs.png 1213w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-800x532.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-1020x679.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2021/11/overwhelming-majorities-support-expansion-of-safety-net-programs-160x106.png 160w\" sizes=\"(max-width: 1213px) 100vw, 1213px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">From findings of the November 2021 Public Policy Institute of California statewide survey. \u003ccite>(Courtesy of PPIC)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>The poll results come as Democrats in Washington, D.C., continue to negotiate the terms of a \u003ca href=\"https://www.bloomberg.com/news/articles/2021-11-05/after-decades-of-focus-on-elderly-washington-turns-to-families\">$1.75 trillion social spending package\u003c/a> that could include subsidized child care and universal pre-K for 3- and 4-year-olds.\u003c/p>\n\u003cp>Findings in the survey are based on interviews with 2,292 adult residents throughout California, conducted from Oct. 12–31, 2021.\u003c/p>\n\u003cp>The poll's sampling error is ±3.2%, at the 95% confidence level, meaning that 95 times out of 100, the results will be within 3.2 percentage points of what they would be if all adults in California were interviewed.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11895687/most-californians-concerned-about-growing-income-disparity-in-the-state","authors":["11200"],"programs":["news_72"],"categories":["news_1758","news_8","news_13"],"tags":["news_26598","news_3651","news_23786","news_30213","news_5096","news_347","news_22362","news_28937","news_5385"],"featImg":"news_11895900","label":"news_72"},"news_11866002":{"type":"posts","id":"news_11866002","meta":{"index":"posts_1591205157","site":"news","id":"11866002","score":null,"sort":[1616551477000]},"guestAuthors":[],"slug":"following-stocktons-lead-guaranteed-income-programs-to-launch-in-oakland-and-marin-county","title":"Following Stockton's Lead, Guaranteed Income Programs to Launch in Oakland and Marin County","publishDate":1616551477,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>Oakland and Marin County this Tuesday became the latest jurisdictions in California to launch a guaranteed income program for hundreds of low-income residents, joining a growing progressive movement around the country that views direct cash payments as a crucial strategy in lifting families out of poverty.\u003c/p>\n\u003cp>Building on \u003ca href=\"https://www.kqed.org/news/11863446/like-being-able-to-breathe-stocktons-universal-basic-income-experiment-paid-off-study-finds\">a high-profile guaranteed income experiment\u003c/a> conducted in Stockton, the pilot programs in Marin County and Oakland will be among the first in the nation to send aid exclusively to residents of color.\u003c/p>\n\u003cp>“Our vision is an Oakland that has closed the racial wealth gap, and where all families thrive,\" Oakland Mayor Libby Schaaf said at a Tuesday morning press conference. \"We believe that guaranteed income is the most transformative policy that can achieve this vision and whose time has come.\"\u003c/p>\n\u003cp>A key premise of the basic income experiments is to let residents use the payments however they see fit, bucking the post-welfare reform trend of placing requirements or restrictions around government aid.\u003c/p>\n\u003cblockquote class=\"twitter-tweet\">\n\u003cp dir=\"ltr\" lang=\"en\">Boosted by Stockton’s results, our goal is to add to the body of evidence that unrestricted cash to our lowest-income residents – and particularly those who’ve suffered from historical racial inequity – can improve outcomes + change systems.\u003c/p>\n\u003cp>— Libby Schaaf (@LibbySchaaf) \u003ca href=\"https://twitter.com/LibbySchaaf/status/1374459810205241347?ref_src=twsrc%5Etfw\">March 23, 2021\u003c/a>\u003c/p>\u003c/blockquote>\n\u003cp>\"Guaranteed income is based on the belief that those in poverty are best able to identify what they need to escape that poverty,\" said Oakland City Councilmember Loren Taylor. \"If someone is tethered to a life of poverty, we can’t untether them by tying them down with more strings.\"\u003c/p>\n\u003cp>The Oakland Resilient Families program will send $500 a month for 18 months to 600 families that identify as Black, Indigenous or as other people of color, chosen at random from a pool of applicants.\u003c/p>\n\u003cp>Half of the spots will be reserved for families with a household income at or below 50% of the area median income (roughly $65,000 a year for a family of four), with the other half for families earning below 138% of the federal poverty level (about $36,000 annually for a family of four).\u003c/p>\n\u003cp>Additionally, the participants will be split into two groups: one comprised of East Oakland residents and a separate group made up of residents from other parts of the city. Residents interested in applying for the basic income program can visit \u003ca href=\"https://oaklandresilientfamilies.org/faqs\">the website of Oakland Resilient Families\u003c/a>.\u003c/p>\n\u003cp>The program will be funded by donations, chiefly from the nonprofit Blue Meridian Partners.\u003c/p>\n\u003cp>Jesús Gerena, CEO of the Family Independence Initiative, an anti-poverty nonprofit, said $6.75 million has been raised so far to begin payments to families this spring.\u003c/p>\n\u003cp>Gerena affirmed that this initiative, with its explicit focus on racial disparities in a \u003ca href=\"https://www.ppic.org/publication/income-inequality-in-california/\" target=\"_blank\" rel=\"noopener noreferrer\">region beset by income inequality\u003c/a>, recognizes \"the value of our under-resourced communities and their contributions.\"\u003cbr>\n[ad fullwidth]\u003c/p>\n\u003ch3>Cash Aid Paired With Social Services\u003c/h3>\n\u003cp>Hours after the Oakland announcement, the Marin County Board of Supervisors signed off on a guaranteed income program for dozens of low-income mothers of color.\u003c/p>\n\u003cp>On a 5-0 vote, the board agreed to spend $400,000 on a two-year pilot initiative, in partnership with the \u003ca href=\"https://www.marincf.org/\">Marin Community Foundation\u003c/a>.\u003c/p>\n\u003cp>Monthly payments of $1,000 would be sent to 125 women whose children are younger than 18.\u003c/p>\n\u003cp>Participants will be chosen at random, but program organizers said they are hoping to source candidates from four underserved areas of the county: Marin City, Novato, the Canal area in San Rafael and West Marin.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Jonathan Logan, vice president of community engagement at Marin Community Foundation\"]'Philanthropy is at its best when it's testing out things, providing laboratories, if you will, to come up with great social policy or proof points that ultimately become policy.'[/pullquote]The novel feature of Marin's program is that the cash aid will be paired with optional wrap-around services for eligible mothers: The county's share of the investment will go to services such as job training and placement.\u003c/p>\n\u003cp>The county, along with MCF, is currently ironing out the details on how eligible residents can apply. \u003c/p>\n\u003cp>“We are still probably in the tail end of the design phase,\" said Barbara Clifton Zarate, director for economic opportunity at MCF.\u003c/p>\n\u003cp>\"The opportunity to test out and be part of new social policy is very exciting and it's the right thing for Marin County to do,\" said Supervisor Stephanie Moulton-Peters.\u003c/p>\n\u003cp>As in Oakland, the Marin payments are financed by significant private investment, mitigating any potential spending concerns on the part of local officials.\u003c/p>\n\u003cp>But Jonathan Logan, vice president of community engagement at MCF said the long-term goal is for the public sector to take an increasing role in funding guaranteed income.\u003c/p>\n\u003cp>\"Philanthropy is at its best when it's testing out things, providing laboratories, if you will, to come up with great social policy or proof points that ultimately become policy,\" he said.\u003c/p>\n\u003ch3>'An Investment Directly to Our People'\u003c/h3>\n\u003cp>Proposals to funnel basic income payments to residents have been \u003ca href=\"https://www.kqed.org/news/11643575/stockton-gets-ready-to-experiment-with-universal-basic-income\" target=\"_blank\" rel=\"noopener noreferrer\">floated for decades\u003c/a> — including by the \u003ca href=\"https://blackpower.web.unc.edu/2017/04/the-black-panthers-10-point-program/\" target=\"_blank\" rel=\"noopener noreferrer\">Black Panther Party\u003c/a> — but this policy idea \u003ca href=\"https://www.kqed.org/news/11818088/stockton-mayor-tubbs-how-residents-are-using-guaranteed-income-during-the-pandemic\">gathered momentum\u003c/a> when the city of Stockton took on a \u003ca href=\"https://www.kqed.org/news/11732253/stocktons-guaranteed-income-experiment-why-mayor-tubbs-is-doing-it\" target=\"_blank\" rel=\"noopener noreferrer\">two-year experiment\u003c/a> of sending $500 payments to residents.\u003c/p>\n\u003cp>[aside postID=\"news_11864244\" hero=\"https://ww2.kqed.org/app/uploads/sites/10/2021/03/iStock_daycare_01-1020x680.jpeg\"]Researchers found that recipients in Stockton had \u003ca href=\"https://www.kqed.org/news/11863446/like-being-able-to-breathe-stocktons-universal-basic-income-experiment-paid-off-study-finds\" target=\"_blank\" rel=\"noopener noreferrer\">increased rates of employment\u003c/a>, along with better physical and emotional health outcomes. And the cash payments seemed to stabilize fluctuations in household incomes from month to month.\u003c/p>\n\u003cp>The pilot in Stockton was spearheaded by the city's former mayor, Michael Tubbs, who has founded the advocacy group Mayors for a Guaranteed Income to encourage the policy's adoption across the country.\u003c/p>\n\u003cp>The promise of a universal basic income was a central plank of Democrat Andrew Yang's run for president in 2020. And the American Rescue Plan Act recently signed into law by President Biden relies on forms of direct aid including $1,400 checks for individuals and a child tax credit for parents.\u003c/p>\n\u003cp>Tubbs, who joined Mayor Schaaf Tuesday for the announcement, said, \"We truly believe the most important investment we can make as a government is an investment directly to our people.\"\u003cbr>\n[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Lawmakers hope monthly payments, with no strings attached, will help close the region's racial wealth gap. ","status":"publish","parent":0,"modified":1623179039,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":29,"wordCount":1048},"headData":{"title":"Following Stockton's Lead, Guaranteed Income Programs to Launch in Oakland and Marin County | KQED","description":"Lawmakers hope monthly payments, with no strings attached, will help close the region's racial wealth gap. ","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Following Stockton's Lead, Guaranteed Income Programs to Launch in Oakland and Marin County","datePublished":"2021-03-24T02:04:37.000Z","dateModified":"2021-06-08T19:03:59.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11866002 https://ww2.kqed.org/news/?p=11866002","disqusUrl":"https://ww2.kqed.org/news/2021/03/23/following-stocktons-lead-guaranteed-income-programs-to-launch-in-oakland-and-marin-county/","disqusTitle":"Following Stockton's Lead, Guaranteed Income Programs to Launch in Oakland and Marin County","path":"/news/11866002/following-stocktons-lead-guaranteed-income-programs-to-launch-in-oakland-and-marin-county","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Oakland and Marin County this Tuesday became the latest jurisdictions in California to launch a guaranteed income program for hundreds of low-income residents, joining a growing progressive movement around the country that views direct cash payments as a crucial strategy in lifting families out of poverty.\u003c/p>\n\u003cp>Building on \u003ca href=\"https://www.kqed.org/news/11863446/like-being-able-to-breathe-stocktons-universal-basic-income-experiment-paid-off-study-finds\">a high-profile guaranteed income experiment\u003c/a> conducted in Stockton, the pilot programs in Marin County and Oakland will be among the first in the nation to send aid exclusively to residents of color.\u003c/p>\n\u003cp>“Our vision is an Oakland that has closed the racial wealth gap, and where all families thrive,\" Oakland Mayor Libby Schaaf said at a Tuesday morning press conference. \"We believe that guaranteed income is the most transformative policy that can achieve this vision and whose time has come.\"\u003c/p>\n\u003cp>A key premise of the basic income experiments is to let residents use the payments however they see fit, bucking the post-welfare reform trend of placing requirements or restrictions around government aid.\u003c/p>\n\u003cblockquote class=\"twitter-tweet\">\n\u003cp dir=\"ltr\" lang=\"en\">Boosted by Stockton’s results, our goal is to add to the body of evidence that unrestricted cash to our lowest-income residents – and particularly those who’ve suffered from historical racial inequity – can improve outcomes + change systems.\u003c/p>\n\u003cp>— Libby Schaaf (@LibbySchaaf) \u003ca href=\"https://twitter.com/LibbySchaaf/status/1374459810205241347?ref_src=twsrc%5Etfw\">March 23, 2021\u003c/a>\u003c/p>\u003c/blockquote>\n\u003cp>\"Guaranteed income is based on the belief that those in poverty are best able to identify what they need to escape that poverty,\" said Oakland City Councilmember Loren Taylor. \"If someone is tethered to a life of poverty, we can’t untether them by tying them down with more strings.\"\u003c/p>\n\u003cp>The Oakland Resilient Families program will send $500 a month for 18 months to 600 families that identify as Black, Indigenous or as other people of color, chosen at random from a pool of applicants.\u003c/p>\n\u003cp>Half of the spots will be reserved for families with a household income at or below 50% of the area median income (roughly $65,000 a year for a family of four), with the other half for families earning below 138% of the federal poverty level (about $36,000 annually for a family of four).\u003c/p>\n\u003cp>Additionally, the participants will be split into two groups: one comprised of East Oakland residents and a separate group made up of residents from other parts of the city. Residents interested in applying for the basic income program can visit \u003ca href=\"https://oaklandresilientfamilies.org/faqs\">the website of Oakland Resilient Families\u003c/a>.\u003c/p>\n\u003cp>The program will be funded by donations, chiefly from the nonprofit Blue Meridian Partners.\u003c/p>\n\u003cp>Jesús Gerena, CEO of the Family Independence Initiative, an anti-poverty nonprofit, said $6.75 million has been raised so far to begin payments to families this spring.\u003c/p>\n\u003cp>Gerena affirmed that this initiative, with its explicit focus on racial disparities in a \u003ca href=\"https://www.ppic.org/publication/income-inequality-in-california/\" target=\"_blank\" rel=\"noopener noreferrer\">region beset by income inequality\u003c/a>, recognizes \"the value of our under-resourced communities and their contributions.\"\u003cbr>\n\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>Cash Aid Paired With Social Services\u003c/h3>\n\u003cp>Hours after the Oakland announcement, the Marin County Board of Supervisors signed off on a guaranteed income program for dozens of low-income mothers of color.\u003c/p>\n\u003cp>On a 5-0 vote, the board agreed to spend $400,000 on a two-year pilot initiative, in partnership with the \u003ca href=\"https://www.marincf.org/\">Marin Community Foundation\u003c/a>.\u003c/p>\n\u003cp>Monthly payments of $1,000 would be sent to 125 women whose children are younger than 18.\u003c/p>\n\u003cp>Participants will be chosen at random, but program organizers said they are hoping to source candidates from four underserved areas of the county: Marin City, Novato, the Canal area in San Rafael and West Marin.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'Philanthropy is at its best when it's testing out things, providing laboratories, if you will, to come up with great social policy or proof points that ultimately become policy.'","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Jonathan Logan, vice president of community engagement at Marin Community Foundation","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The novel feature of Marin's program is that the cash aid will be paired with optional wrap-around services for eligible mothers: The county's share of the investment will go to services such as job training and placement.\u003c/p>\n\u003cp>The county, along with MCF, is currently ironing out the details on how eligible residents can apply. \u003c/p>\n\u003cp>“We are still probably in the tail end of the design phase,\" said Barbara Clifton Zarate, director for economic opportunity at MCF.\u003c/p>\n\u003cp>\"The opportunity to test out and be part of new social policy is very exciting and it's the right thing for Marin County to do,\" said Supervisor Stephanie Moulton-Peters.\u003c/p>\n\u003cp>As in Oakland, the Marin payments are financed by significant private investment, mitigating any potential spending concerns on the part of local officials.\u003c/p>\n\u003cp>But Jonathan Logan, vice president of community engagement at MCF said the long-term goal is for the public sector to take an increasing role in funding guaranteed income.\u003c/p>\n\u003cp>\"Philanthropy is at its best when it's testing out things, providing laboratories, if you will, to come up with great social policy or proof points that ultimately become policy,\" he said.\u003c/p>\n\u003ch3>'An Investment Directly to Our People'\u003c/h3>\n\u003cp>Proposals to funnel basic income payments to residents have been \u003ca href=\"https://www.kqed.org/news/11643575/stockton-gets-ready-to-experiment-with-universal-basic-income\" target=\"_blank\" rel=\"noopener noreferrer\">floated for decades\u003c/a> — including by the \u003ca href=\"https://blackpower.web.unc.edu/2017/04/the-black-panthers-10-point-program/\" target=\"_blank\" rel=\"noopener noreferrer\">Black Panther Party\u003c/a> — but this policy idea \u003ca href=\"https://www.kqed.org/news/11818088/stockton-mayor-tubbs-how-residents-are-using-guaranteed-income-during-the-pandemic\">gathered momentum\u003c/a> when the city of Stockton took on a \u003ca href=\"https://www.kqed.org/news/11732253/stocktons-guaranteed-income-experiment-why-mayor-tubbs-is-doing-it\" target=\"_blank\" rel=\"noopener noreferrer\">two-year experiment\u003c/a> of sending $500 payments to residents.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11864244","hero":"https://ww2.kqed.org/app/uploads/sites/10/2021/03/iStock_daycare_01-1020x680.jpeg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Researchers found that recipients in Stockton had \u003ca href=\"https://www.kqed.org/news/11863446/like-being-able-to-breathe-stocktons-universal-basic-income-experiment-paid-off-study-finds\" target=\"_blank\" rel=\"noopener noreferrer\">increased rates of employment\u003c/a>, along with better physical and emotional health outcomes. And the cash payments seemed to stabilize fluctuations in household incomes from month to month.\u003c/p>\n\u003cp>The pilot in Stockton was spearheaded by the city's former mayor, Michael Tubbs, who has founded the advocacy group Mayors for a Guaranteed Income to encourage the policy's adoption across the country.\u003c/p>\n\u003cp>The promise of a universal basic income was a central plank of Democrat Andrew Yang's run for president in 2020. And the American Rescue Plan Act recently signed into law by President Biden relies on forms of direct aid including $1,400 checks for individuals and a child tax credit for parents.\u003c/p>\n\u003cp>Tubbs, who joined Mayor Schaaf Tuesday for the announcement, said, \"We truly believe the most important investment we can make as a government is an investment directly to our people.\"\u003cbr>\n\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11866002/following-stocktons-lead-guaranteed-income-programs-to-launch-in-oakland-and-marin-county","authors":["227"],"categories":["news_8"],"tags":["news_27626","news_28824","news_5096","news_5605","news_6905","news_3729","news_541","news_18","news_22418","news_19961"],"featImg":"news_11866181","label":"news"},"news_11852649":{"type":"posts","id":"news_11852649","meta":{"index":"posts_1591205157","site":"news","id":"11852649","score":null,"sort":[1608770748000]},"guestAuthors":[],"slug":"with-tandas-small-savings-become-an-economic-lifeline-during-the-pandemic","title":"With Tandas, Small Savings Become an Economic Lifeline During the Pandemic","publishDate":1608770748,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>\u003ca href=\"https://www.kqed.org/news/11854680/con-la-ayuda-de-las-tandas-los-pequenos-ahorros-se-transforman-en-un-linea-de-ayuda-durante-la-pandemia\">\u003cem>Leer en espa\u003cspan style=\"font-weight: 400\">ñol\u003c/span>\u003c/em>\u003c/a>\u003c/p>\n\u003cp>With great speed, Litnis pulls out several sets of shirts and pants from a box and starts folding them. She moves quickly around her new store located in San Francisco’s Mission District, keeping an eye on every detail. She plans to open up for the first time on Sunday, selling clothing, shoes and other accessories.\u003c/p>\n\u003cp>“This is a blessing. To have the opportunity to open up again despite everything,” Litnis says in Spanish. We’re only using her first name due to her immigration status.\u003c/p>\n\u003cp>This summer, \u003ca href=\"https://missionlocal.org/2020/07/2-alarm-fire-breaks-out-at-restaurant-on-mission-street/\">a fire broke out in a restaurant\u003c/a> neighboring her original store on Mission Street. While her particular store wasn’t damaged, her landlord asked her to leave, citing damages to the overall property from the fire. But finding a new site proved very difficult during the pandemic.\u003c/p>\n\u003cp>“With the restrictions and so many people without a job, we were losing so much already. Losing the store felt like a punch I couldn’t get back up from,” she explained.\u003c/p>\n\u003cp>Determined to open up her store again, but with limited cash on hand, she decided the best thing to do was wait. Her turn to collect the tanda was coming up.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation='Litnis']'With the restrictions and so many people without a job, we were losing so much already. Losing the store felt like a punch I couldn’t get back up from.'[/pullquote]\u003c/p>\n\u003cp>For more than five years, Litnis has participated in tandas, first learning about them in her native Honduras. Here in the U.S., her family comes together virtually each month and agrees on an amount each person will contribute to a pot. Each time, a different person in the group gets to keep the money in the pot, and everyone in the circle gets a turn.\u003c/p>\n\u003cp>The amount each participant receives will be equal to the total of what they’ve given each month. While the net gain is zero, the goal of a tanda is not to make a profit.\u003c/p>\n\u003cp>“I get to save money this way by putting away bit by bit an amount I don’t have upfront,” Litnis explains. “After it’s been my turn to receive the tanda, I keep paying my part each month until everyone in the circle has gotten their turn.”\u003c/p>\n\u003cp>When the tanda finally got to her, she invested the funds into a new locale on Folsom Street, just a few blocks away from her original store.\u003c/p>\n\u003cp>“There are so many expenses each month that I can only put away a little. But I wouldn’t have been able to start again during the pandemic without the help of my tanda,” she says.\u003c/p>\n\u003cp>Tandas, juntas, colectas and cundinas are only a few names in Spanish to describe people coming together to support each other financially without relying on banks. They’re not just popular within the Latino community, but with diasporas from all over the world as well — specifically with migrants who don’t have access to formal credit markets.\u003c/p>\n\u003cp>In the U.S., they’re also known as lending circles or clubs, and have become essential tools during the COVID-19 pandemic recession.\u003c/p>\n\u003cp>“We’ve seen that many clients use lending circles as a way to save during the pandemic,” says \u003ca href=\"https://missionassetfund.org/staff/\">Binh Ngo\u003c/a>, communications and engagement manager at Mission Asset Fund (MAF). Based in the Mission District, MAF \u003ca href=\"https://www.kqed.org/news/11785789/changing-lives-by-building-credit-history-one-microloan-at-a-time\">organizes its own lending circles\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_11852669\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11852669 size-medium\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Litnis' original store on Mission Street in San Francisco on Dec. 22, 2020. She now has the chance to reopen her business. 'This is a blessing. To have the opportunity to open up again despite everything,' she says. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Some cut back, others just hang on\u003c/h3>\n\u003cp>The coronavirus health restrictions and a drop in consumer spending have disproportionately affected small businesses and low-income households, specifically their ability to save. While the national personal savings rate shot up this year — 13.6% \u003ca href=\"https://www.bea.gov/data/income-saving/personal-saving-rate\">in October\u003c/a>, almost double from where it was this time last year — not everyone is saving equally.\u003c/p>\n\u003cp>While the richest households are cutting down on expenses, those with the least resources are using up more of their savings as the pandemic keeps dragging on.\u003c/p>\n\u003cp>Stay-at-home orders restrict the operations of high-risk businesses like restaurants and gyms, but also limit employment options for low-income workers. On the other hand, higher-paying white-collar employees have transitioned to working from home, reducing expenses for leisure and eating out.\u003c/p>\n\u003cp>The top quartile of income-earners in the U.S. cut down their spending by 9.2% in October when compared to the same time in 2019, \u003ca href=\"https://tracktherecovery.org/?nosplash=true\">according to data\u003c/a> gathered by Opportunity Insights, a Harvard-based research institute. Households at the bottom 25% of the income distribution have barely had the chance to cut down on spending — saving almost nothing in October 2020 compared to October 2019.\u003c/p>\n\u003cp>In California, both geography and income feed into this inequality. The data from Opportunity Insights \u003ca href=\"https://tracktherecovery.org/?nosplash=true\">for December\u003c/a> shows that in San Francisco, a city with a 2018 median income of $112,376, savings rose by 10.4%, but in places with a much lower median income, like Kern County ($51,579), spending went up instead, by 4.7%.\u003c/p>\n\u003cp>When higher earners spend less, smaller businesses are those that suffer the most, and with them their employees. Opportunity Insights \u003ca href=\"https://opportunityinsights.org/wp-content/uploads/2020/06/tracker-summary.pdf\">compared the revenue losses\u003c/a> of small businesses with the unemployment rates of low-income workers in New York City from January to April of this year and found a positive correlation between the two factors.\u003c/p>\n\u003cfigure id=\"attachment_11852672\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11852672\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Litnis' original store on Mission Street in San Francisco on Dec. 22, 2020. Even before losing her original shop, Litnis saw a drop in business. Like her, many small business owners had to limit their operations because of the state stay-at-home orders. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A drop in consumption at the top and the latest stay-at-home orders have created additional burdens to workers that were already struggling to keep up before COVID-19.\u003c/p>\n\u003cp>“Almost all I made before the pandemic went to rent and food before the pandemic. It’s the same case for the other people who are in my tanda,” Litnis says. “The little we can keep now, we have to make sure it counts.”\u003c/p>\n\u003cp>These expenses can pile up, especially during the holiday season. With unemployment still high, some people like Litnis are teaming up with family or friends to split up costs of gifts, repairs or just to cover the bills as an option, whether that is through the casual tanda or the more formalized lending circle.\u003c/p>\n\u003cp>If you’ve never done something like this, we looked for the best ways to start, while keeping in mind risks and accessibility.\u003cbr>\n[ad fullwidth]\u003c/p>\n\u003ch3>Starting a tanda, while controlling the risks\u003c/h3>\n\u003cp>For Santa Clara County Deputy District Attorney \u003ca href=\"https://www.sccgov.org/sites/da/prosecution/DistrictAttorneyDepartments/Pages/Meet-the-%20Community%20Prosecution%20Team-.aspx\">Hugo Meza\u003c/a>, making sure people go about partaking in tandas safely is not just a part of his job, but also something close to his heart. Growing up, his mother participated in tandas with her coworkers at a printing press in the South Bay.\u003c/p>\n\u003cp>“That was a great way for my mom to save money. To learn how to save money. It was great when she got the pot for her and it was a good way to socialize with other people at work,” he says.\u003c/p>\n\u003cp>Now, some of the cases he investigates are tandas gone wrong: when the person organizing disappears with everyone’s contributions or a participant refuses to pay their part.\u003c/p>\n\u003cp>“There’s no section in the penal code here in California that prohibits people from organizing or partaking in a tanda. However, if the tanda doesn’t go according to plan or someone doesn’t keep up their end of the bargain, those acts related to a tanda could become illegal,” Meza explains.\u003c/p>\n\u003cp>While these kinds of issues with tandas are infrequent, Meza says there’s always a potential risk when exchanging money with a group.\u003c/p>\n\u003cp>“A big part of having a tanda is understanding that there exists the risks of being defrauded, risks that someone could take advantage of the people participating,” he says.\u003c/p>\n\u003cp>[aside tag=\"lending-circles,income-inequality\" label=\"more coverage\"]\u003c/p>\n\u003cp>But there are practices people considering a tanda can adopt to make it safer, Meza says, whether they are newbies or experienced.\u003c/p>\n\u003cp>First, make sure you are close with everyone in your tanda. If a friend or relative is organizing the tanda, check who else will participate.\u003c/p>\n\u003cp>“Keep that circle very close and tight-knit between people you know,” Meza says. Those close relationships can include coworkers, but Meza says it’s best to avoid people you’ve never met in-person or who work in another part of the country.\u003c/p>\n\u003cp>You could also ask those joining to share with the group their contact information, including address, email and even an emergency contact. Each participant could also share why they want to be part of the tanda, which can strengthen the relationships within the group.\u003c/p>\n\u003cp>Once you have your list, Meza suggests you keep it small. And you might want to do the same with the amount of money that tanda members will contribute. While a bigger individual contribution means a bigger pot, it also translates into a bigger risk.\u003c/p>\n\u003cp>“But if the amount is smaller, $50 or $100, your risk is a lot lower,” Meza says.\u003c/p>\n\u003cp>While the informal nature of tandas may appear attractive, Meza says it could be a good idea to add a bit of formality and draft up a document that clearly states out the participants and their roles — despite the fact that that may discourage some participants.\u003c/p>\n\u003cp>“It can be frowned upon to have a document or some kind of contract. Someone might think, ‘Well, if I’m putting my name and signature down, all this information or a copy of my ID, I might as well just go to a bank,’ ” he says.\u003c/p>\n\u003cp>But this document doesn’t have to be overly complex. And since not all tandas are the same — some can pay out each week, others every pay period — putting these distinctions down on paper can avoid possible mix-ups.\u003c/p>\n\u003cp>It’s the ground rules, Meza says: “How much money is going to be involved in the pot? When and how will the money be collected and distributed? What happens if someone doesn’t pay their amount, or someone doesn’t have the money that month?”\u003c/p>\n\u003cp>If someone does break the rules and refuses to amend their actions — or has run away with the tanda — the best thing to do at that point is contact the police. And remember: Just because you agreed to be part of a tanda does not mean that you agreed to be a victim of a possible scam.\u003c/p>\n\u003cp>Depending on how the investigation goes, the prosecution might decide to press charges of embezzlement against the suspect.\u003c/p>\n\u003cp>Meza adds that anyone can report an incident like this, regardless of their immigration status. The \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB54\">California Values Act\u003c/a> prohibits local police departments from sharing information on the immigration status of a victim with federal agencies like U.S. Immigration and Customs Enforcement.\u003c/p>\n\u003cp>“Here in San Jose at least, to us in law enforcement, we don’t care about your immigration status, a victim is a victim no matter where they come from. That information is not relevant at all and we don’t share it with any federal agencies,” Meza says.\u003c/p>\n\u003cfigure id=\"attachment_11852673\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11852673\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mission Asset Fund (MAF) on Mission Street in San Francisco on Dec. 22, 2020. MAF organizes lending circles, a more formal version of a tanda, that can help participants improve their credit score. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Opting instead for a lending circle\u003c/h3>\n\u003cp>While the casual and quick nature of a tanda can be the perfect fit for some, others may be looking for a more structured alternative. That’s exactly the niche that lending circles intend to fill. Around half a dozen of these nonprofit organizations, like Mission Asset Fund, exist in the Bay Area.\u003c/p>\n\u003cp>The participants of a lending circle may not know one another before coming together, but MAF takes on the responsibility of electronically collecting payments each month, distributing the pot to the designated person and providing an accountability mechanism.\u003c/p>\n\u003cp>“We formalize the cultural practice so that every time someone makes a monthly payment, we report that payment activity to the three major U.S. [credit] bureaus. We do this without charging interest. It’s a very simple way for people to establish and improve their credit and save,” Ngo, from MAF, explains.\u003c/p>\n\u003cp>[pullquote size='medium' align='right' citation='Binh Ngo, communications and engagement manager at Mission Asset Fund']'Folks don’t have to have a credit history to join our program. You don’t need a Social Security number to join the program.'[/pullquote]\u003c/p>\n\u003cp>To join a MAF lending circle, you’ll first have to fill out an online application, complete a financial education webinar and sign a promissory note. Once you’re matched with a group, you can discuss what the contribution amount will be. But when you join the lending circle, you’re technically borrowing from MAF — not from your group members. That’s what enables the organization to report your payment history to credit bureaus.\u003c/p>\n\u003cp>While there are a few more requirements to join a lending circle than a tanda, the process is still much simpler than getting a bank loan, especially for those without a bank account or legal immigration status.\u003c/p>\n\u003cp>“Folks don’t have to have a credit history to join our program. You don’t need a Social Security number to join the program,” Ngo says.\u003c/p>\n\u003cp>She points out that even if you don’t live in San Francisco, you can still participate in a lending circle. There are dozens of organizations across the country just like MAF that form part of the Lending Circles Network. The \u003ca href=\"https://lendingcircles.secure.force.com/PublicClientApplication\">Network's website\u003c/a> includes a searchable list of organizations sorted by ZIP code. And all Bay Area ZIP codes are eligible to enroll into one of MAF’s lending circles.\u003c/p>\n\u003cp>If you join a lending circle now, you probably won’t get your turn in the circle before the year ends. But, as Ngo points out, forming part of a lending circle can boost your long-term objectives, like improving your credit score to qualify for a car loan or mortgage.\u003c/p>\n\u003cp>“I would recommend that participants think deeply about their financial goals and what they hope to achieve by joining a lending circle,” she says.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Tandas, informal lending circles, are a helpful way to split up costs of gifts, repairs and bills during this economic downturn. Here's what you need to know to make sure your tanda is safe and accessible.","status":"publish","parent":0,"modified":1610508231,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":58,"wordCount":2521},"headData":{"title":"With Tandas, Small Savings Become an Economic Lifeline During the Pandemic | KQED","description":"Tandas, informal lending circles, are a helpful way to split up costs of gifts, repairs and bills during this economic downturn. Here's what you need to know to make sure your tanda is safe and accessible.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"With Tandas, Small Savings Become an Economic Lifeline During the Pandemic","datePublished":"2020-12-24T00:45:48.000Z","dateModified":"2021-01-13T03:23:51.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11852649 https://ww2.kqed.org/news/?p=11852649","disqusUrl":"https://ww2.kqed.org/news/2020/12/23/with-tandas-small-savings-become-an-economic-lifeline-during-the-pandemic/","disqusTitle":"With Tandas, Small Savings Become an Economic Lifeline During the Pandemic","path":"/news/11852649/with-tandas-small-savings-become-an-economic-lifeline-during-the-pandemic","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003ca href=\"https://www.kqed.org/news/11854680/con-la-ayuda-de-las-tandas-los-pequenos-ahorros-se-transforman-en-un-linea-de-ayuda-durante-la-pandemia\">\u003cem>Leer en espa\u003cspan style=\"font-weight: 400\">ñol\u003c/span>\u003c/em>\u003c/a>\u003c/p>\n\u003cp>With great speed, Litnis pulls out several sets of shirts and pants from a box and starts folding them. She moves quickly around her new store located in San Francisco’s Mission District, keeping an eye on every detail. She plans to open up for the first time on Sunday, selling clothing, shoes and other accessories.\u003c/p>\n\u003cp>“This is a blessing. To have the opportunity to open up again despite everything,” Litnis says in Spanish. We’re only using her first name due to her immigration status.\u003c/p>\n\u003cp>This summer, \u003ca href=\"https://missionlocal.org/2020/07/2-alarm-fire-breaks-out-at-restaurant-on-mission-street/\">a fire broke out in a restaurant\u003c/a> neighboring her original store on Mission Street. While her particular store wasn’t damaged, her landlord asked her to leave, citing damages to the overall property from the fire. But finding a new site proved very difficult during the pandemic.\u003c/p>\n\u003cp>“With the restrictions and so many people without a job, we were losing so much already. Losing the store felt like a punch I couldn’t get back up from,” she explained.\u003c/p>\n\u003cp>Determined to open up her store again, but with limited cash on hand, she decided the best thing to do was wait. Her turn to collect the tanda was coming up.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'With the restrictions and so many people without a job, we were losing so much already. Losing the store felt like a punch I couldn’t get back up from.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Litnis","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>For more than five years, Litnis has participated in tandas, first learning about them in her native Honduras. Here in the U.S., her family comes together virtually each month and agrees on an amount each person will contribute to a pot. Each time, a different person in the group gets to keep the money in the pot, and everyone in the circle gets a turn.\u003c/p>\n\u003cp>The amount each participant receives will be equal to the total of what they’ve given each month. While the net gain is zero, the goal of a tanda is not to make a profit.\u003c/p>\n\u003cp>“I get to save money this way by putting away bit by bit an amount I don’t have upfront,” Litnis explains. “After it’s been my turn to receive the tanda, I keep paying my part each month until everyone in the circle has gotten their turn.”\u003c/p>\n\u003cp>When the tanda finally got to her, she invested the funds into a new locale on Folsom Street, just a few blocks away from her original store.\u003c/p>\n\u003cp>“There are so many expenses each month that I can only put away a little. But I wouldn’t have been able to start again during the pandemic without the help of my tanda,” she says.\u003c/p>\n\u003cp>Tandas, juntas, colectas and cundinas are only a few names in Spanish to describe people coming together to support each other financially without relying on banks. They’re not just popular within the Latino community, but with diasporas from all over the world as well — specifically with migrants who don’t have access to formal credit markets.\u003c/p>\n\u003cp>In the U.S., they’re also known as lending circles or clubs, and have become essential tools during the COVID-19 pandemic recession.\u003c/p>\n\u003cp>“We’ve seen that many clients use lending circles as a way to save during the pandemic,” says \u003ca href=\"https://missionassetfund.org/staff/\">Binh Ngo\u003c/a>, communications and engagement manager at Mission Asset Fund (MAF). Based in the Mission District, MAF \u003ca href=\"https://www.kqed.org/news/11785789/changing-lives-by-building-credit-history-one-microloan-at-a-time\">organizes its own lending circles\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_11852669\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"wp-image-11852669 size-medium\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46461_014_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Litnis' original store on Mission Street in San Francisco on Dec. 22, 2020. She now has the chance to reopen her business. 'This is a blessing. To have the opportunity to open up again despite everything,' she says. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Some cut back, others just hang on\u003c/h3>\n\u003cp>The coronavirus health restrictions and a drop in consumer spending have disproportionately affected small businesses and low-income households, specifically their ability to save. While the national personal savings rate shot up this year — 13.6% \u003ca href=\"https://www.bea.gov/data/income-saving/personal-saving-rate\">in October\u003c/a>, almost double from where it was this time last year — not everyone is saving equally.\u003c/p>\n\u003cp>While the richest households are cutting down on expenses, those with the least resources are using up more of their savings as the pandemic keeps dragging on.\u003c/p>\n\u003cp>Stay-at-home orders restrict the operations of high-risk businesses like restaurants and gyms, but also limit employment options for low-income workers. On the other hand, higher-paying white-collar employees have transitioned to working from home, reducing expenses for leisure and eating out.\u003c/p>\n\u003cp>The top quartile of income-earners in the U.S. cut down their spending by 9.2% in October when compared to the same time in 2019, \u003ca href=\"https://tracktherecovery.org/?nosplash=true\">according to data\u003c/a> gathered by Opportunity Insights, a Harvard-based research institute. Households at the bottom 25% of the income distribution have barely had the chance to cut down on spending — saving almost nothing in October 2020 compared to October 2019.\u003c/p>\n\u003cp>In California, both geography and income feed into this inequality. The data from Opportunity Insights \u003ca href=\"https://tracktherecovery.org/?nosplash=true\">for December\u003c/a> shows that in San Francisco, a city with a 2018 median income of $112,376, savings rose by 10.4%, but in places with a much lower median income, like Kern County ($51,579), spending went up instead, by 4.7%.\u003c/p>\n\u003cp>When higher earners spend less, smaller businesses are those that suffer the most, and with them their employees. Opportunity Insights \u003ca href=\"https://opportunityinsights.org/wp-content/uploads/2020/06/tracker-summary.pdf\">compared the revenue losses\u003c/a> of small businesses with the unemployment rates of low-income workers in New York City from January to April of this year and found a positive correlation between the two factors.\u003c/p>\n\u003cfigure id=\"attachment_11852672\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11852672\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46451_001_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Litnis' original store on Mission Street in San Francisco on Dec. 22, 2020. Even before losing her original shop, Litnis saw a drop in business. Like her, many small business owners had to limit their operations because of the state stay-at-home orders. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A drop in consumption at the top and the latest stay-at-home orders have created additional burdens to workers that were already struggling to keep up before COVID-19.\u003c/p>\n\u003cp>“Almost all I made before the pandemic went to rent and food before the pandemic. It’s the same case for the other people who are in my tanda,” Litnis says. “The little we can keep now, we have to make sure it counts.”\u003c/p>\n\u003cp>These expenses can pile up, especially during the holiday season. With unemployment still high, some people like Litnis are teaming up with family or friends to split up costs of gifts, repairs or just to cover the bills as an option, whether that is through the casual tanda or the more formalized lending circle.\u003c/p>\n\u003cp>If you’ve never done something like this, we looked for the best ways to start, while keeping in mind risks and accessibility.\u003cbr>\n\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch3>Starting a tanda, while controlling the risks\u003c/h3>\n\u003cp>For Santa Clara County Deputy District Attorney \u003ca href=\"https://www.sccgov.org/sites/da/prosecution/DistrictAttorneyDepartments/Pages/Meet-the-%20Community%20Prosecution%20Team-.aspx\">Hugo Meza\u003c/a>, making sure people go about partaking in tandas safely is not just a part of his job, but also something close to his heart. Growing up, his mother participated in tandas with her coworkers at a printing press in the South Bay.\u003c/p>\n\u003cp>“That was a great way for my mom to save money. To learn how to save money. It was great when she got the pot for her and it was a good way to socialize with other people at work,” he says.\u003c/p>\n\u003cp>Now, some of the cases he investigates are tandas gone wrong: when the person organizing disappears with everyone’s contributions or a participant refuses to pay their part.\u003c/p>\n\u003cp>“There’s no section in the penal code here in California that prohibits people from organizing or partaking in a tanda. However, if the tanda doesn’t go according to plan or someone doesn’t keep up their end of the bargain, those acts related to a tanda could become illegal,” Meza explains.\u003c/p>\n\u003cp>While these kinds of issues with tandas are infrequent, Meza says there’s always a potential risk when exchanging money with a group.\u003c/p>\n\u003cp>“A big part of having a tanda is understanding that there exists the risks of being defrauded, risks that someone could take advantage of the people participating,” he says.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"tag":"lending-circles,income-inequality","label":"more coverage "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But there are practices people considering a tanda can adopt to make it safer, Meza says, whether they are newbies or experienced.\u003c/p>\n\u003cp>First, make sure you are close with everyone in your tanda. If a friend or relative is organizing the tanda, check who else will participate.\u003c/p>\n\u003cp>“Keep that circle very close and tight-knit between people you know,” Meza says. Those close relationships can include coworkers, but Meza says it’s best to avoid people you’ve never met in-person or who work in another part of the country.\u003c/p>\n\u003cp>You could also ask those joining to share with the group their contact information, including address, email and even an emergency contact. Each participant could also share why they want to be part of the tanda, which can strengthen the relationships within the group.\u003c/p>\n\u003cp>Once you have your list, Meza suggests you keep it small. And you might want to do the same with the amount of money that tanda members will contribute. While a bigger individual contribution means a bigger pot, it also translates into a bigger risk.\u003c/p>\n\u003cp>“But if the amount is smaller, $50 or $100, your risk is a lot lower,” Meza says.\u003c/p>\n\u003cp>While the informal nature of tandas may appear attractive, Meza says it could be a good idea to add a bit of formality and draft up a document that clearly states out the participants and their roles — despite the fact that that may discourage some participants.\u003c/p>\n\u003cp>“It can be frowned upon to have a document or some kind of contract. Someone might think, ‘Well, if I’m putting my name and signature down, all this information or a copy of my ID, I might as well just go to a bank,’ ” he says.\u003c/p>\n\u003cp>But this document doesn’t have to be overly complex. And since not all tandas are the same — some can pay out each week, others every pay period — putting these distinctions down on paper can avoid possible mix-ups.\u003c/p>\n\u003cp>It’s the ground rules, Meza says: “How much money is going to be involved in the pot? When and how will the money be collected and distributed? What happens if someone doesn’t pay their amount, or someone doesn’t have the money that month?”\u003c/p>\n\u003cp>If someone does break the rules and refuses to amend their actions — or has run away with the tanda — the best thing to do at that point is contact the police. And remember: Just because you agreed to be part of a tanda does not mean that you agreed to be a victim of a possible scam.\u003c/p>\n\u003cp>Depending on how the investigation goes, the prosecution might decide to press charges of embezzlement against the suspect.\u003c/p>\n\u003cp>Meza adds that anyone can report an incident like this, regardless of their immigration status. The \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201720180SB54\">California Values Act\u003c/a> prohibits local police departments from sharing information on the immigration status of a victim with federal agencies like U.S. Immigration and Customs Enforcement.\u003c/p>\n\u003cp>“Here in San Jose at least, to us in law enforcement, we don’t care about your immigration status, a victim is a victim no matter where they come from. That information is not relevant at all and we don’t share it with any federal agencies,” Meza says.\u003c/p>\n\u003cfigure id=\"attachment_11852673\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg class=\"size-medium wp-image-11852673\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg\" alt=\"\" width=\"800\" height=\"533\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-800x533.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-1020x680.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-160x107.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut-1536x1024.jpg 1536w, https://ww2.kqed.org/app/uploads/sites/10/2020/12/RS46460_013_KQED_SanFrancisco_Tandas_12222020-qut.jpg 1920w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Mission Asset Fund (MAF) on Mission Street in San Francisco on Dec. 22, 2020. MAF organizes lending circles, a more formal version of a tanda, that can help participants improve their credit score. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch3>Opting instead for a lending circle\u003c/h3>\n\u003cp>While the casual and quick nature of a tanda can be the perfect fit for some, others may be looking for a more structured alternative. That’s exactly the niche that lending circles intend to fill. Around half a dozen of these nonprofit organizations, like Mission Asset Fund, exist in the Bay Area.\u003c/p>\n\u003cp>The participants of a lending circle may not know one another before coming together, but MAF takes on the responsibility of electronically collecting payments each month, distributing the pot to the designated person and providing an accountability mechanism.\u003c/p>\n\u003cp>“We formalize the cultural practice so that every time someone makes a monthly payment, we report that payment activity to the three major U.S. [credit] bureaus. We do this without charging interest. It’s a very simple way for people to establish and improve their credit and save,” Ngo, from MAF, explains.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"'Folks don’t have to have a credit history to join our program. You don’t need a Social Security number to join the program.'","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Binh Ngo, communications and engagement manager at Mission Asset Fund","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>To join a MAF lending circle, you’ll first have to fill out an online application, complete a financial education webinar and sign a promissory note. Once you’re matched with a group, you can discuss what the contribution amount will be. But when you join the lending circle, you’re technically borrowing from MAF — not from your group members. That’s what enables the organization to report your payment history to credit bureaus.\u003c/p>\n\u003cp>While there are a few more requirements to join a lending circle than a tanda, the process is still much simpler than getting a bank loan, especially for those without a bank account or legal immigration status.\u003c/p>\n\u003cp>“Folks don’t have to have a credit history to join our program. You don’t need a Social Security number to join the program,” Ngo says.\u003c/p>\n\u003cp>She points out that even if you don’t live in San Francisco, you can still participate in a lending circle. There are dozens of organizations across the country just like MAF that form part of the Lending Circles Network. The \u003ca href=\"https://lendingcircles.secure.force.com/PublicClientApplication\">Network's website\u003c/a> includes a searchable list of organizations sorted by ZIP code. And all Bay Area ZIP codes are eligible to enroll into one of MAF’s lending circles.\u003c/p>\n\u003cp>If you join a lending circle now, you probably won’t get your turn in the circle before the year ends. But, as Ngo points out, forming part of a lending circle can boost your long-term objectives, like improving your credit score to qualify for a car loan or mortgage.\u003c/p>\n\u003cp>“I would recommend that participants think deeply about their financial goals and what they hope to achieve by joining a lending circle,” she says.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11852649/with-tandas-small-savings-become-an-economic-lifeline-during-the-pandemic","authors":["11708"],"categories":["news_8"],"tags":["news_5096","news_5605","news_28961","news_28962","news_28844","news_20920","news_28959","news_28960"],"featImg":"news_11852652","label":"news"},"news_11851350":{"type":"posts","id":"news_11851350","meta":{"index":"posts_1591205157","site":"news","id":"11851350","score":null,"sort":[1608156201000]},"guestAuthors":[],"slug":"coronavirus-erases-recent-wage-gains-for-many-california-workers-report-finds","title":"Coronavirus Erases Recent Wage Gains for Many California Workers, Report Finds","publishDate":1608156201,"format":"standard","headTitle":"KQED News","labelTerm":{"site":"news"},"content":"\u003cp>In the five years before the COVID-19 pandemic, low-income Californians had begun to see substantial wage gains that were slowly chipping away at the long-growing income inequality gap between the state's haves and have-nots. But the coronavirus pandemic is “likely stripping away many of these gains,” according to a \u003ca href=\"https://www.ppic.org/wp-content/uploads/incoming-inequality-and-economic-opportunity-in-california-december-2020.pdf\">new report\u003c/a> from the Public Policy Institute of California.\u003c/p>\n\u003cp>The current coronavirus-induced recession has hit low-income workers the hardest, while higher-income workers, largely able to work from home, have escaped relatively unscathed. And the extent of the job losses among low-wage workers — particularly African Americans, Latinos, workers without college degrees and women — has remained worryingly high through the fall, researchers found.\u003c/p>\n\u003cp>This could be “exacerbating that kind of pattern of recession and recovery that’s worse for low-income families,” said lead author Sarah Bohn, PPIC's vice president of research. “In fact, these unemployment rate differences across income are a bit worse today than they were during the Great Recession.”\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4640148/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>The report's findings are underscored by recent troubling new estimates of monthly poverty rates in the Golden State from a group of researchers at Columbia University’s Center on Poverty and Social Policy.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“The monthly poverty rate in October was actually higher than rates during April and May, despite the fact that the unemployment rate declined over that time,” Zachary Parolin, who led the research, said during a \u003ca href=\"https://www.youtube.com/watch?v=KpEDmPgDy34&t=1353s\">livestreamed data release\u003c/a>.\u003c/p>\n\u003cp>That’s because the federal CARES Act stimulus checks and expansion of unemployment benefits have mostly expired. With \u003ca href=\"http://cbrtcfj.createsend1.com/t/ViewEmail/j/EBA4E15BEBE2FE412540EF23F30FEDED\">unemployment ticking up\u003c/a> as California’s new regional shutdown orders go into effect, the picture is likely even worse now.\u003c/p>\n\u003cp>Parolin’s \u003ca href=\"https://www.povertycenter.columbia.edu/news-internal/2020/covid-projecting-monthly-poverty\">estimates\u003c/a> replicate the U.S. Census Bureau’s annual Supplemental Poverty Measure, which unlike the Official Poverty Measure, accounts for safety net benefits and the cost of living — a measure \u003ca href=\"https://www.sacbee.com/news/california/article234920662.html\">California consistently tops\u003c/a>.\u003c/p>\n\u003cp>Taken together, the two sets of research paint an alarming picture of deepening poverty and inequality that could take years, if not decades, for California to dig itself out of.\u003c/p>\n\u003cp>California lawmakers are already mulling solutions, although ambitious proposals made at this time of year often get reined in by fiscal realities later in the spring.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"income-inequality\"]Last week, Assemblymember Phil Ting, a San Francisco Democrat who chairs the budget committee, announced \u003ca href=\"https://a19.asmdc.org/sites/a19.asmdc.org/files/pdf/2021-22-assembly-budget-blueprint.pdf\">his priorities\u003c/a> for the session. They included transitional kindergarten for all 4-year-olds, more financial aid for college students, more money for low-income families through the state’s earned income tax credit and making parents who don’t work eligible for the state’s young child tax credit of up to $1,000.\u003c/p>\n\u003cp>“Our major priority is making sure we do everything to get money into the pockets of the most vulnerable Californians,” Ting said. “So many Californians are struggling. They’re on the brink of homelessness.”\u003c/p>\n\u003cp>Toni Symonds, chief consultant for the Assembly Committee on Jobs, Economic Development, and the Economy, speaking on a panel about the new poverty data, said that lawmakers are considering expanding subsidized child care for essential workers, salary subsidies for part-time workers at businesses reopening after regional shutdowns and food assistance, such as the $365 the state offered to families with children last spring.\u003c/p>\n\u003cp>Matt Fleming, spokesperson for the Assembly Republican Caucus, said that Republican lawmakers, too, are focused on getting money into people’s pockets as quickly as possible. GOP lawmakers are considering bills to redirect funding from California’s floundering high-speed rail to education, fix the state’s beleaguered Employment Development Department and repeal Assembly Bill 5, which makes it harder to classify workers as contractors. Above all, he said, they’ll advocate to keep businesses open and schools in person as much as possible in the coming months.\u003c/p>\n\u003cp>“Governor Newsom’s COVID shutdowns have disproportionately targeted those industries that provide jobs to low-income families,” said Senate Republican Leader Shannon Grove of Bakersfield in a statement. “Democrat policies have left them with fewer jobs, more unpaid bills, and less opportunity for their children.”\u003c/p>\n\u003ch3 id=\"h-a-recent-history-of-economic-inequality\">\u003cstrong>Recent History of Economic Inequality\u003c/strong>\u003c/h3>\n\u003cp>The gap between California’s haves and have-nots has widened markedly since 1980, with the loss of manufacturing jobs, more automation, rising incomes for highly educated workers, declining collective bargaining power and rising numbers of less-educated immigrants, the PPIC report noted.\u003c/p>\n\u003cp>In 1980, wages for the 10% of families with the highest incomes were 7.4 times higher than for families in the bottom 10%. By 2019, that gap had widened to 9.8 times higher.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4640254/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Recessions have historically made inequality worse.\u003c/p>\n\u003cp>The highest-income families generally take a hit of up to 7% then recover within a few years. Meanwhile, the lowest-income families often face “much steeper and deeper declines,” of up to 20% in wages, PPIC’s Bohn explained. In three of the last four recessions, it has taken them a decade on average to recover their pre-recession wages.\u003c/p>\n\u003cp>But following the recovery from the Great Recession, things were looking up. A historically long period of economic growth had seen incomes for the poorest Californians rise from $20,000 in 2014 to $27,000 in 2019, a 34% increase that outpaced income growth for the highest earners.\u003c/p>\n\u003cp>Then the pandemic hit, putting entire low-wage sectors out of work, like restaurants, retail, entertainment, tourism and beauty and barber shops. In the spring, as many as 44% of workers in families with incomes below $30,000 were either unemployed, working part time though they preferred to work full time or had stopped looking for jobs, according to the report. By the fall, that percentage had only dropped slightly, to about 37%.\u003c/p>\n\u003ch3 id=\"h-are-solutions-on-the-horizon\">\u003cstrong>Solutions on the Horizon? \u003c/strong>\u003c/h3>\n\u003cp>The billions of dollars that the CARES Act pumped into California lifted an estimated 3.5 million residents out of poverty in April, Columbia’s Parolin said. But that number dropped to 600,000 in October as unemployment benefits dried up.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4639899/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Another \u003ca href=\"https://calmatters.org/california-divide/2020/11/californians-pandemic-aid-ends-unemployment-eviction/?\">750,000 Californians\u003c/a> stand to lose unemployment benefits on Dec. 26, so if Congress doesn’t agree on a new stimulus package soon, California will see rising poverty rates in January, Parolin said.\u003c/p>\n\u003cp>Whether California’s short-term poverty rates stay high will largely depend on how Congress and the incoming Biden administration negotiate future stimulus packages.\u003c/p>\n\u003cp>Parolin said the federal government could quickly reduce monthly poverty by increasing the maximum benefit for food stamps by at least 15%, which it did during the Great Recession.\u003c/p>\n\u003cp>“What is clear to me is we need another round of stimulus last month and the month before, if not right now,” said Amy Everitt, president of Golden State Opportunity, a nonprofit that has advocated for expanding the state’s earned income tax credit.\u003c/p>\n\u003cp>Bohn emphasized that the state has policy options, too, and that Californians are hungry to fight inequality. In a September survey, PPIC found that 59% of residents thought the state should do more to reduce the gap between rich and poor. The idea was especially popular among African Americans, Asian Americans and Latino residents.\u003c/p>\n\u003cp>The PPIC report included a list of short-term state policy suggestions: targeting relief to hard-hit businesses, expanding safety-net benefits including to undocumented workers, investing in job training for workers in sectors like leisure and hospitality that may not recover, and expanding subsidies for child care.\u003c/p>\n\u003cp>Bohn warned that “over the long term, getting jobs back is not sufficient for improving the score of inequality.” The report recommends that the state improve long-term economic mobility by investing in access to high-quality child care and higher education, and taking “corrective policy actions” to reverse long-standing underinvestment in low-income and communities of color.\u003c/p>\n\u003cp>Riverside County Supervisor V. Manuel Perez said more funding for child care is “essential” to getting families out of poverty, as is improving broadband access, which he called an “issue of civil rights” for children of color.\u003c/p>\n\u003cp>His largely Latino district, which encompasses the Coachella and Palo Verde valleys, is a microcosm of California’s persistent inequality, he said, even though “there’s a picture out there that the Coachella Valley is a playground.”\u003c/p>\n\u003cp>“Quite frankly, it is for those that have, and it’s not for those that don’t,” Perez said.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>This article is part of the \u003ca href=\"https://calmatters.org/projects/california-divide/?\">California Divide,\u003c/a> a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\n","blocks":[],"excerpt":"New research finds the pandemic has likely stripped away most of the wage gains California’s lowest earners made after the Great Recession. State lawmakers from both parties are proposing various solutions, but experts warn jobs alone will not bridge growing inequality.","status":"publish","parent":0,"modified":1608165524,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":true,"iframeSrcs":["https://flo.uri.sh/visualisation/4640148/embed","https://flo.uri.sh/visualisation/4640254/embed","https://flo.uri.sh/visualisation/4639899/embed"],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":37,"wordCount":1472},"headData":{"title":"Coronavirus Erases Recent Wage Gains for Many California Workers, Report Finds | KQED","description":"New research finds the pandemic has likely stripped away most of the wage gains California’s lowest earners made after the Great Recession. State lawmakers from both parties are proposing various solutions, but experts warn jobs alone will not bridge growing inequality.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":"","schema":{"@context":"http://schema.org","@type":"NewsArticle","headline":"Coronavirus Erases Recent Wage Gains for Many California Workers, Report Finds","datePublished":"2020-12-16T22:03:21.000Z","dateModified":"2020-12-17T00:38:44.000Z","image":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png","isAccessibleForFree":"Y","publisher":{"@type":"NewsMediaOrganization","@id":"https://www.kqed.org/#organization","name":"KQED","url":"https://www.kqed.org","logo":"https://cdn.kqed.org/wp-content/uploads/2020/02/KQED-OG-Image@1x.png"}}},"disqusIdentifier":"11851350 https://ww2.kqed.org/news/?p=11851350","disqusUrl":"https://ww2.kqed.org/news/2020/12/16/coronavirus-erases-recent-wage-gains-for-many-california-workers-report-finds/","disqusTitle":"Coronavirus Erases Recent Wage Gains for Many California Workers, Report Finds","nprByline":"Jackie Botts\u003cbr>CalMatters","path":"/news/11851350/coronavirus-erases-recent-wage-gains-for-many-california-workers-report-finds","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>In the five years before the COVID-19 pandemic, low-income Californians had begun to see substantial wage gains that were slowly chipping away at the long-growing income inequality gap between the state's haves and have-nots. But the coronavirus pandemic is “likely stripping away many of these gains,” according to a \u003ca href=\"https://www.ppic.org/wp-content/uploads/incoming-inequality-and-economic-opportunity-in-california-december-2020.pdf\">new report\u003c/a> from the Public Policy Institute of California.\u003c/p>\n\u003cp>The current coronavirus-induced recession has hit low-income workers the hardest, while higher-income workers, largely able to work from home, have escaped relatively unscathed. And the extent of the job losses among low-wage workers — particularly African Americans, Latinos, workers without college degrees and women — has remained worryingly high through the fall, researchers found.\u003c/p>\n\u003cp>This could be “exacerbating that kind of pattern of recession and recovery that’s worse for low-income families,” said lead author Sarah Bohn, PPIC's vice president of research. “In fact, these unemployment rate differences across income are a bit worse today than they were during the Great Recession.”\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4640148/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>The report's findings are underscored by recent troubling new estimates of monthly poverty rates in the Golden State from a group of researchers at Columbia University’s Center on Poverty and Social Policy.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“The monthly poverty rate in October was actually higher than rates during April and May, despite the fact that the unemployment rate declined over that time,” Zachary Parolin, who led the research, said during a \u003ca href=\"https://www.youtube.com/watch?v=KpEDmPgDy34&t=1353s\">livestreamed data release\u003c/a>.\u003c/p>\n\u003cp>That’s because the federal CARES Act stimulus checks and expansion of unemployment benefits have mostly expired. With \u003ca href=\"http://cbrtcfj.createsend1.com/t/ViewEmail/j/EBA4E15BEBE2FE412540EF23F30FEDED\">unemployment ticking up\u003c/a> as California’s new regional shutdown orders go into effect, the picture is likely even worse now.\u003c/p>\n\u003cp>Parolin’s \u003ca href=\"https://www.povertycenter.columbia.edu/news-internal/2020/covid-projecting-monthly-poverty\">estimates\u003c/a> replicate the U.S. Census Bureau’s annual Supplemental Poverty Measure, which unlike the Official Poverty Measure, accounts for safety net benefits and the cost of living — a measure \u003ca href=\"https://www.sacbee.com/news/california/article234920662.html\">California consistently tops\u003c/a>.\u003c/p>\n\u003cp>Taken together, the two sets of research paint an alarming picture of deepening poverty and inequality that could take years, if not decades, for California to dig itself out of.\u003c/p>\n\u003cp>California lawmakers are already mulling solutions, although ambitious proposals made at this time of year often get reined in by fiscal realities later in the spring.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"related coverage ","tag":"income-inequality"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Last week, Assemblymember Phil Ting, a San Francisco Democrat who chairs the budget committee, announced \u003ca href=\"https://a19.asmdc.org/sites/a19.asmdc.org/files/pdf/2021-22-assembly-budget-blueprint.pdf\">his priorities\u003c/a> for the session. They included transitional kindergarten for all 4-year-olds, more financial aid for college students, more money for low-income families through the state’s earned income tax credit and making parents who don’t work eligible for the state’s young child tax credit of up to $1,000.\u003c/p>\n\u003cp>“Our major priority is making sure we do everything to get money into the pockets of the most vulnerable Californians,” Ting said. “So many Californians are struggling. They’re on the brink of homelessness.”\u003c/p>\n\u003cp>Toni Symonds, chief consultant for the Assembly Committee on Jobs, Economic Development, and the Economy, speaking on a panel about the new poverty data, said that lawmakers are considering expanding subsidized child care for essential workers, salary subsidies for part-time workers at businesses reopening after regional shutdowns and food assistance, such as the $365 the state offered to families with children last spring.\u003c/p>\n\u003cp>Matt Fleming, spokesperson for the Assembly Republican Caucus, said that Republican lawmakers, too, are focused on getting money into people’s pockets as quickly as possible. GOP lawmakers are considering bills to redirect funding from California’s floundering high-speed rail to education, fix the state’s beleaguered Employment Development Department and repeal Assembly Bill 5, which makes it harder to classify workers as contractors. Above all, he said, they’ll advocate to keep businesses open and schools in person as much as possible in the coming months.\u003c/p>\n\u003cp>“Governor Newsom’s COVID shutdowns have disproportionately targeted those industries that provide jobs to low-income families,” said Senate Republican Leader Shannon Grove of Bakersfield in a statement. “Democrat policies have left them with fewer jobs, more unpaid bills, and less opportunity for their children.”\u003c/p>\n\u003ch3 id=\"h-a-recent-history-of-economic-inequality\">\u003cstrong>Recent History of Economic Inequality\u003c/strong>\u003c/h3>\n\u003cp>The gap between California’s haves and have-nots has widened markedly since 1980, with the loss of manufacturing jobs, more automation, rising incomes for highly educated workers, declining collective bargaining power and rising numbers of less-educated immigrants, the PPIC report noted.\u003c/p>\n\u003cp>In 1980, wages for the 10% of families with the highest incomes were 7.4 times higher than for families in the bottom 10%. By 2019, that gap had widened to 9.8 times higher.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4640254/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Recessions have historically made inequality worse.\u003c/p>\n\u003cp>The highest-income families generally take a hit of up to 7% then recover within a few years. Meanwhile, the lowest-income families often face “much steeper and deeper declines,” of up to 20% in wages, PPIC’s Bohn explained. In three of the last four recessions, it has taken them a decade on average to recover their pre-recession wages.\u003c/p>\n\u003cp>But following the recovery from the Great Recession, things were looking up. A historically long period of economic growth had seen incomes for the poorest Californians rise from $20,000 in 2014 to $27,000 in 2019, a 34% increase that outpaced income growth for the highest earners.\u003c/p>\n\u003cp>Then the pandemic hit, putting entire low-wage sectors out of work, like restaurants, retail, entertainment, tourism and beauty and barber shops. In the spring, as many as 44% of workers in families with incomes below $30,000 were either unemployed, working part time though they preferred to work full time or had stopped looking for jobs, according to the report. By the fall, that percentage had only dropped slightly, to about 37%.\u003c/p>\n\u003ch3 id=\"h-are-solutions-on-the-horizon\">\u003cstrong>Solutions on the Horizon? \u003c/strong>\u003c/h3>\n\u003cp>The billions of dollars that the CARES Act pumped into California lifted an estimated 3.5 million residents out of poverty in April, Columbia’s Parolin said. But that number dropped to 600,000 in October as unemployment benefits dried up.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe src=\"https://flo.uri.sh/visualisation/4639899/embed?auto=1\" width=\"100%\" height=\"500\" scrolling=\"yes\" class=\"iframe-class\" frameborder=\"0\">\u003c/iframe>\u003c/p>\n\u003cp>Another \u003ca href=\"https://calmatters.org/california-divide/2020/11/californians-pandemic-aid-ends-unemployment-eviction/?\">750,000 Californians\u003c/a> stand to lose unemployment benefits on Dec. 26, so if Congress doesn’t agree on a new stimulus package soon, California will see rising poverty rates in January, Parolin said.\u003c/p>\n\u003cp>Whether California’s short-term poverty rates stay high will largely depend on how Congress and the incoming Biden administration negotiate future stimulus packages.\u003c/p>\n\u003cp>Parolin said the federal government could quickly reduce monthly poverty by increasing the maximum benefit for food stamps by at least 15%, which it did during the Great Recession.\u003c/p>\n\u003cp>“What is clear to me is we need another round of stimulus last month and the month before, if not right now,” said Amy Everitt, president of Golden State Opportunity, a nonprofit that has advocated for expanding the state’s earned income tax credit.\u003c/p>\n\u003cp>Bohn emphasized that the state has policy options, too, and that Californians are hungry to fight inequality. In a September survey, PPIC found that 59% of residents thought the state should do more to reduce the gap between rich and poor. The idea was especially popular among African Americans, Asian Americans and Latino residents.\u003c/p>\n\u003cp>The PPIC report included a list of short-term state policy suggestions: targeting relief to hard-hit businesses, expanding safety-net benefits including to undocumented workers, investing in job training for workers in sectors like leisure and hospitality that may not recover, and expanding subsidies for child care.\u003c/p>\n\u003cp>Bohn warned that “over the long term, getting jobs back is not sufficient for improving the score of inequality.” The report recommends that the state improve long-term economic mobility by investing in access to high-quality child care and higher education, and taking “corrective policy actions” to reverse long-standing underinvestment in low-income and communities of color.\u003c/p>\n\u003cp>Riverside County Supervisor V. Manuel Perez said more funding for child care is “essential” to getting families out of poverty, as is improving broadband access, which he called an “issue of civil rights” for children of color.\u003c/p>\n\u003cp>His largely Latino district, which encompasses the Coachella and Palo Verde valleys, is a microcosm of California’s persistent inequality, he said, even though “there’s a picture out there that the Coachella Valley is a playground.”\u003c/p>\n\u003cp>“Quite frankly, it is for those that have, and it’s not for those that don’t,” Perez said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>This article is part of the \u003ca href=\"https://calmatters.org/projects/california-divide/?\">California Divide,\u003c/a> a collaboration among newsrooms examining income inequality and economic survival in California.\u003c/em>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11851350/coronavirus-erases-recent-wage-gains-for-many-california-workers-report-finds","authors":["byline_news_11851350"],"categories":["news_1758","news_8"],"tags":["news_27350","news_27504","news_5096","news_28936","news_28273","news_28937"],"featImg":"news_11851363","label":"news"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.","airtime":"SUN 2pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Possible-Podcast-Tile-360x360-1.jpg","officialWebsiteLink":"https://www.possible.fm/","meta":{"site":"news","source":"Possible"},"link":"/radio/program/possible","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/possible/id1677184070","spotify":"https://open.spotify.com/show/730YpdUSNlMyPQwNnyjp4k"}},"1a":{"id":"1a","title":"1A","info":"1A is home to the national conversation. 1A brings on great guests and frames the best debate in ways that make you think, share and engage.","airtime":"MON-THU 11pm-12am","imageSrc":"https://ww2.kqed.org/radio/wp-content/uploads/sites/50/2018/04/1a.jpg","officialWebsiteLink":"https://the1a.org/","meta":{"site":"news","source":"npr"},"link":"/radio/program/1a","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?s=143441&mt=2&id=1188724250&at=11l79Y&ct=nprdirectory","tuneIn":"https://tunein.com/radio/1A-p947376/","rss":"https://feeds.npr.org/510316/podcast.xml"}},"all-things-considered":{"id":"all-things-considered","title":"All Things Considered","info":"Every weekday, \u003cem>All Things Considered\u003c/em> hosts Robert Siegel, Audie Cornish, Ari Shapiro, and Kelly McEvers present the program's trademark mix of news, interviews, commentaries, reviews, and offbeat features. 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But is this once sleepy suburb ready for them?","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/American-Suburb-Podcast-Tile-703x703-1.jpg","officialWebsiteLink":"/news/series/american-suburb-podcast","meta":{"site":"news","source":"kqed","order":"13"},"link":"/news/series/american-suburb-podcast/","subscribe":{"npr":"https://rpb3r.app.goo.gl/RBrW","apple":"https://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?mt=2&id=1287748328","tuneIn":"https://tunein.com/radio/American-Suburb-p1086805/","rss":"https://ww2.kqed.org/news/series/american-suburb-podcast/feed/podcast","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkMzMDExODgxNjA5"}},"baycurious":{"id":"baycurious","title":"Bay Curious","tagline":"Exploring the Bay Area, one question at a time","info":"KQED’s new podcast, Bay Curious, gets to the bottom of the mysteries — both profound and peculiar — that give the Bay Area its unique identity. And we’ll do it with your help! You ask the questions. You decide what Bay Curious investigates. 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You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2024/04/Mindshift-Podcast-Tile-703x703-1.jpg","imageAlt":"KQED MindShift: How We Will Learn","officialWebsiteLink":"/mindshift/","meta":{"site":"news","source":"kqed","order":"2"},"link":"/podcasts/mindshift","subscribe":{"apple":"https://podcasts.apple.com/us/podcast/mindshift-podcast/id1078765985","google":"https://podcasts.google.com/feed/aHR0cHM6Ly9mZWVkcy5tZWdhcGhvbmUuZm0vS1FJTkM1NzY0NjAwNDI5","npr":"https://www.npr.org/podcasts/464615685/mind-shift-podcast","stitcher":"https://www.stitcher.com/podcast/kqed/stories-teachers-share","spotify":"https://open.spotify.com/show/0MxSpNYZKNprFLCl7eEtyx"}},"morning-edition":{"id":"morning-edition","title":"Morning Edition","info":"\u003cem>Morning Edition\u003c/em> takes listeners around the country and the world with multi-faceted stories and commentaries every weekday. 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On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. 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