The lingering effects of the 2007-2008 Financial Crisis are still felt by many Americans, but as of this year, economists predict that things are taking a turn for the better. In its latest “Employment Situation Summary,” the US Department of Labor stated that more jobs were created in this past year than in any year since 1999—approximately 147,000 jobs in November and December alone. However, other economic markers, like wage-gain, tell a different story. In fact, a 2012 brief by the National Employment Law Project reported that while 21% of the jobs lost during the recession were low-wage jobs, 58% of the jobs recovered post-recession were low-wage jobs—meaning there was an increase in low-wage jobs during this period. With inflation-adjusted wages remaining practically flat and low-wage jobs representing the majority of the employment gain, it does not seem things will be much better for the average working American.
A 2011 study, commissioned by Wide Opportunities for Women, found that the federal minimum wage (which has remained at $7.25 from 2011 to 2014) was not enough for economic stability, much less things like saving for retirement or emergency funds. Thus, while more people might be employed, the types of jobs available and the wages received will not be enough to make ends meet. Based on the study, a single worker needs an annual income of $30,012 to achieve economic stability; a single worker with two children needs an annual income of $57,756, and a family of four needs an annual income of $67,920. These rates are about three times higher than the 2015 federal poverty line at $11,770 for an individual and $24,250 for a household of four—based on the unrealistic federal lines alone, the percentage of Americans living in poverty has increase from 14.3% in 2009 to 14.5% in 2014.
Despite these telltale signs of deeper economic issues, some states have made policy changes that will remove supplemental food stamp benefits allowed during the recession. According to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) SNAP (previously known as Food Stamp) benefits are limited to a three-month period every 36 months for abled bodied adults without dependents (ABAWDs) who are unemployed or fail to comply with the 20 hours per week work program requirement. However, this act also allows states to request a waiver of this time limit for unemployed ABAWDs when beneficiaries live in a state or neighborhood with more than 10% unemployment or a low employment to population ratio. During the recession, the number SNAP beneficiaries increased substantially due to economic strains on previously ineligible families and states qualifying for said waiver. As of 2014, 33 states and the District of Columbia were implementing Statewide Waivers, 10 were implementing partial waivers, and 9 opted out of the waiver. As more states choose to opt out of this waiver on the basis of the recovering economy, more and more ABAWDs will be unable to afford basic a full diet—according to the Center on Budget and Policy Priorities, by 2016 approximately 23 states will no longer qualify for this waiver causing about 1 million adults to lose these much needed benefits. While the economy might be picking up, further steps need to be taken to resolve the deeper issues faced by marginalized groups in America.
This post was written by a student enrolled in the Capstone Seminar course in the undergraduate program in public policy at Hunter College. Any opinions expressed here are solely those of the student.
