Friday, February 10, 2012

Poverty in Appalachia

Community Engagement

Class Notes

02-08-2012

Jim Ziliak: Labor Economist/ Professor at UK/ Quantitative studies to help reform policy for programs targeting poverty areas in the U.S.

He got the idea for his book because little work had been done by economist on the economic situation in Appalachia. He wanted to see if things had improved since the 1960s.

Poverty measurements: Same since the 1960s, adopted from a 1955 survey on American spending habits.

- How much did the typical family spend on food? (was 1/3 of income at that time, now about 15% of income)

- The $$ amount spend on food x 3 = poverty line

- There is no adjustment for the poverty line depending on where you live

In 1960 about 22% of Americans were poor – In Appalachia it was 50% of Americans were poor.

10 years later national poverty average went to 11-12% and its pretty much stayed there.

Central Appalachia: Eastern KY, Mississippi Delta, Rio Grand, Black Belt Region, and a few Native American reservations. All persistently poor, which means that more than 20% of people there are persistently below the poverty line.

Very different ethnically across different regions, but still persistently poor.

In order to keep young, educated people in central Appalachia, should the government invest in people or places?

-If we invest in a place who is going to benefit? If we invest in Harlem County, it might drive people into the region but make life there more difficult for the locals.

-When you invest in people, people become more mobile.

Provide affordable higher education there? : Convert University of Pikeville from private to public? Research shows that higher education institutions help local economies. Might not do much in the short run, but it may help in the long run.

KENTUCKIANS NEED TO TAKE CONTROL OF APPALACHIA KENTUCKY.

Leadership matters in “growing your own” projects.

Eastern KY is lacking initiative and leadership by the state of Kentucky. It needs support from the individuals at the top and push from the bottom.

Is marriage the solution to poverty? Strictly economically speaking…

-45% of births in the US are out of wedlock

-1 in 2 babies are born on the WICK program. A lot of poor babies

-Single headed families are likely to be poor.

Families structures explain a lot about poverty structures in a area overall

Education can combat economic inequality in Kentucky.

Short run in combating poverty: economic stimulus and government spending money.

Long run in combating poverty: Equipping people and community with the capacity to address and attack poverty. Education must start young – preschool is critical

WE MUST OVERCOME SENSE OF HOPLESSNESS FOR EASTERN KENTUCKY – IT’S A HUGE MISTAKE. THEY ARE AMERICANS. THEY ARE KENTUCKIANS.