Are Economics and Social Progress Related to Each Other?

 

“Your (last post) is one of the most active and positive that I have read of yours. You do put your time to where your values are. Those of us who see you as too economically focused and ourselves as more humanely concerned need to act as well. Thanks for your focus and attention.”
from a reader of my blog

I am a fiscal conservative and a social moderate. The primary reason I write this blog is because I am so concerned about the fiscal recklessness of our national leaders. Our national debt is much too large and still growing too fast. We need to either cut spending or raise taxes (or do both).
But I am also a social progressive. I voted in favor of Nebraska raising its minimum wage last fall. I support gay marriage as a civil right. I support having Nebraska expand Medicaid in order to cover more low-income people (where Medicaid needs to be fixed is at the federal level).
CaptureThere is in fact a very close connection between having a sound economy and social progress. As the above chart shows, the U.S. ranks very high in both GDP per person and social progress. All of the countries which are most socially progressive also have sound economies. This is not a coincidence.
My last post talks about what society can do to help blacks improve their socio-economic status. This includes improving educational opportunity in the inner city. But improved educational opportunity needs to be closely directed toward improved economic opportunity. This means, for example, having good jobs available for new high school and community college graduates. But this, in turn, means having strong economic growth with intelligent tax and regulatory policies to encourage entrepreneurship and business expansion.
In short, a sound economy is essential for social progress.

Honoring Martin Luther King’s Legacy

 

Every year at this time, our nation is reminded of the progress our country has made in race relations as well as the work which remains to be done.  Here are three different approaches to concrete actions which can be taken to help black Americans improve their lot.
Not too long ago I quoted the black scholar, John McWhorter, as follows “Today’s struggle should focus on three priorities.  First, the war on drugs, a policy that unnecessarily tears apart black families and neighborhoods.  Second, community colleges and vocational education, which are invaluable for helping black Americans get ahead.  And third, the AIDS and obesity epidemics, which are ravaging black communities.”
An extensive report by the Hamilton Project (associated with the Brookings Institute), “Policies to Address Poverty in America,” focuses on four discrete areas where progress can be achieved:

  • Promoting Early Childhood Development
  • Supporting Disadvantaged Youth
  • Building Skills
  • Improving the Safety Net and Work Support

Capture Finally, the Budget Committee of the House of Representatives has recently released a new plan, “Expanding Opportunity in America,” proposing to redesign the American welfare system to help more people move off the bottom rung.  The idea is to let selected states experiment in consolidating separate means-tested programs such as SNAP, TANF, childcare and housing assistance programs, into a new holistic Opportunity Grant Program.  Here’s how it would work:

  • Each participating state will approve a list of certified providers who are held accountable for achieving results such as moving people to work, out of poverty and off of assistance.
  • Needy individuals will select a provider who will conduct a comprehensive assessment of that person’s needs, abilities and circumstances.
  • The provider and the recipient will develop a customized plan and contract both for immediate financial needs and also for long term goals towards self-sufficiency.
  • Successful completion of a contract will include able-bodied individuals obtaining a job and earning enough to live above the poverty line.

Here are three very distinct sources addressing the issue of black poverty in America. All three approaches are looking for practical solutions to a very difficult problem and they have a lot in common. This suggests that it should be possible for national leaders to come together and take effective action!

Why Nebraska Needs a Learning Community III. High Black Unemployment

 

Omaha’s Metropolitan Area Planning Agency has just released a comprehensive report, “Equitable Growth Profile of the Omaha-Council Bluffs Region,” describing the challenges facing the Omaha area economy in the next 25 years.
CaptureAs also reported in the Omaha World Herald  MAPA says that:

  • Racial minorities currently make up 21% of the area’s population, up from 9% in 1980. Under current trends minorities will comprise 39% of the population by 2040.
  • Minorities are less likely than whites to have high school degrees, associate degrees, or four-year college degrees.
  • The education gap contributes to a skills gap which in turn contributes to a jobs and income gap. As shown above, black unemployment at 12.2% (in March 2014) is much higher than the unemployment rate for any other racial group.

MAPA has several suggestions for improving job prospects for blacks such as more and better job training, better public transit, and helping minority owned businesses.  It also suggests building “cradle to career” pipelines for underprivileged youths.
This last suggestion is precisely what the Omaha area Learning Community is focused on.  As I reported  several months ago, the superintendents of the 11 school districts in the Learning Community have approved a comprehensive plan for Early Childhood Education whose purpose is to make sure that children from low-income families are well prepared to succeed in school.  It will be funded by a ½ cent levy approved by the Learning Community Coordinating Council.
These same 11 superintendents are highly supportive of the overall mission of the LC to close the academic achievement gap between low-income students and middle class students.  They have recently submitted a report to the Education Committee of the Nebraska Legislature suggesting ways to make the LC even more effective than it is already.
Achieving improved educational outcomes for minorities has been called America’s big new civil rights challenge of the 21st century.  Omaha is making significant strides in addressing this problem thanks to a huge communitywide effort by many different organizations including the Learning Community.