Tuesday, September 27, 2011

Austin Poverty Rate: A Demand for Change?


             In the Austin American Statesman's editorial “Bumper-stickers policy no way to fight poverty,” the author challenges the notion poverty is caused by unemployment. Instead, the author proposes poverty is a matter of underemployment. The author goes on to confront the belief Austin has survived the recession unscathed, when in fact, Austin leads the state in the rate of poverty. The author credits some of the local economic hardships to the cuts in government jobs. Per the author, this leads to a ripple affect impacting the economy negatively  (e.g. increased service demands, particularly social services, yet limited manpower). The author insights policymakers to produce change (e.g. improved education, training, job creation, and economically diverse housing) that will mitigate poverty and increase prosperity. 
            The author’s main audience appears to be policymakers. This seems flawed because in the end it is the public who elect policymakers, and since the status quo predominantly remains unchallenged, as exhibited by Governor Perry’s re-election time and again, it seems most appropriate to persuade the community to demand change. On some level the author does this by referring to “anyone who read a newspaper, watched a television report or read a blog,” which implies the general public cannot claim ignorance to the economic climate of Austin.
Despite the above, much of the author’s content is appears credible. Evidence from the US Census Bureau provides comparable findings to the poverty rate of 19.2% quoted in the editorial. However, the US Census Bureau findings reported data from 2010 and the numbers diverge by 0.8% (18.4% per the US Census Bureau). Granted, the difference is statistically significant, however, the rate of poverty is severe nonetheless. One thing the author’s findings do not reveal is the breakdown of poverty by work experience. While I agree having a job does not mean someone is earning a living wage, the status of employment (e.g. full-time, part-time or unemployed) is significant. According to city-data.com the majority of individuals and families living in poverty were employed part-time or unemployed. The question then becomes is their employment status primarily a reflection of job availability or lack of motivation?
Overall, I agree with the editorial’s message. The local poverty rate is not only morally troubling but also alarming due to the negative implications it has on society (e.g. monetary costs, the potential correlation to crime, and long-term economic prosperity). If the only goal of the editorial is to educate and persuade the public poverty a serious issue, then I feel it was successful. However, if the goal was to produce change I question the author’s success. The author provides no specific examples of how the general population can propagate change. Instead, the author refers to generally accepted means to improve the economy (e.g. job creation, education, etc.). Without specifics it seems difficult for the public to lobby for change, they don’t know where to begin. It seems more appropriate for the author to target specific policies (e.g. taxes) and their impact on poverty instead of poverty in and of itself. 

Saturday, September 10, 2011

Tax increase, fair or foul?


The Austin American Statesman’s Editorial “No such thing as ‘minimal’ tax hike
is aptly named. It uses City Manager Marc Ott’s $2.8 billion budget proposal as a backdrop for discussing Austin residents’ annual taxes, which are anything but inexpensive per Rodolf Gonzales. Gonzales beseeches the City Council members to truthfully divulge the extent and rate of residences’ annual taxes and accordingly, to consider them when proposing tax hikes. Currently, Austin residences annual taxes include property taxes, city taxes (e.g. for local school districts), utility fees and taxes that pay for city employees’ salary, including raises. Gonzales concludes, what appears to be a superficial tax hike in reality has a significant impact on people’s total taxes. Considering the hardship a “minimal” tax hike would have on Austin residence, some of which are unemployed and struggling in today’s economy, Gonzales proposes postponement of the anticipated “2 percent across-the-board pay raises for regular city employees, the mayor and council members.” This would significantly reduce the tax burden for Austin residences.
            This editorial is important because it illustrates the need to be educated and involved in local government. Additionally, the editorial’s lesson, minimal is sometimes considerable, translates to other topics as well.