From: Anonymous <anon@anon.efga.org>
Date: Sun, 26 Oct 1997 09:25:00 +0800
To: cypherpunks@cyberpass.net
Subject: Re: poverty traps (Re: Sa
Message-ID: <b184392f07eae7f189a60d94279832ad@anon.efga.org>
MIME-Version: 1.0
Content-Type: text/plain



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Harka wrote:
>A real-life example:

Violins coming!  ;-)

Let's call the mother Janice.

>A single (divorced) mother, 4 kids (3-12 years), working full-time
>and making in theory $42 000/year. After taxes that comes down to
>$2000 cash per month.

Below you mention she receives $800 in child support, so she is seeing
$2800/month in cash.

The government is not Janice's friend.  It takes away $18,000 from her
each year and plunges her into poverty, sort of.  If you are appealing
to the government to assist Janice, first ask it to get the hell out
of the way.  (I realize you may just be saying that Janice's plight is
unavoidable, not that she should be helped with government money.)

>In order for her to be able to work her two youngest kids go to a
>day-care-center. Wham! $1000 per month (hiring a baby-sitter would
>amount to even more).

Janice should be baby sitting.  Were she to take in 4 kids at
$500/month, she would make as much as her job and be able to watch her
own kids during the same time.  This income need not be reported.  The
parents of the other kids would be getting a good deal because their
kids would get much more attention than at daycare.  Some might even
consider it a good deal to be able to hire someone with a Master's
Degree in Education!

>Her apartment costs $800/month excluding utilities. That leaves $200
>(+ $800 she gets in child-support) per month for _five_ people to
>live on (clothes, food, utilities, school-books, gas for the car,
>etc.etc.)

Uh, doesn't this mean $1000/month for five people after rent has been
paid?

Telephone: $20/month
Electricity: $40/month (?)
Heat: $100/month (?)
Food: $600/month (generous)
Goodwill Clothes: $100/month (generous)
Total: $860/month

The food is generous because four of the five are kids, the oldest
only being 12.  Kids don't each much.  The actual amount should be
much lower.  If Janice joins a food coop and optimizes her buying
choices for cost and nutrition, the actual cost of food could be
dramatically lower.  If Janice does not practice vegetarianism, she
should start.

Clothing at the Goodwill costs next to nothing.  $1200/year should be
more than enough, not even considering that the younger kids can wear
clothing cast off by the older kids.

Janice should not be driving - she cannot afford it.

The cost of schoolbooks is negligible.  (Aren't they provided by the
school, anyway?)

>One thousand dollars per month for five people!! And that in New York
>City!

Of course, there is no law that requires one to live in New York City.

>What efforts has she made to make "herself more marketable"? She has
>been working ever since the age of 16, went 8 years to College (paid
>by herself and paying rent at the same time) and now has a Masters
>Degree in teaching.

It seems pretty clear that making money was not her top priority.
It's never been a secret that teachers are not top earners.  I'm not
seeing a description of somebody who really tried to make money in a
serious way.

Being "more marketable" does not mean "obtain a masters degree in a
field which is renowned for low pay."

>She made a calculation and (confirming your statement) came to the
>conclusion, that she indeed would have _more_ money by not working at
>all and simply going on welfare.

>However, that is not a choice she wants to make.

Good for her.  It sounds like Janice may have the strength of
character to turn her situation around.

>Is she to be called "stupid" and "selfish" because she's poor despite
>her efforts???

You should both read "Your Money or Your Life" from cover to cover.
This book will help teach Janice and yourself how to live efficiently.

Monty Cantsin
Editor in Chief
Smile Magazine
http://www.neoism.org/squares/smile_index.html
http://www.neoism.org/squares/cantsin_10.htm

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