The War on Poverty and. its Effects on the Wealth Gap ######### History. Word Count: [Model P.E.E., pp. 5-6] [see p.8 and apply P.E.E.

Transcription

1 The War on Poverty and its Effects on the Wealth Gap ######### History Word Count: 3299 [Model P.E.E., pp. 5-6] [see p.8 and apply P.E.E.]

2 ####### 1 Abstract The United States, although a developed country, experienced high levels of poverty during the 1960s. By 1964, President Johnson metaphorically declared a domestic war against poverty in the U.S.. This became known as the War of Poverty and it was part of larger concept President Johnson envisioned, the Great Society, in which all individuals had the same opportunities to succeed. In order to lower the poverty rate, President Johnson and his administration created several welfare programs and policies that aided the poor. This essay will not only investigate the success of the War on Poverty, but it will also determine how the War on Poverty regulated the differences in attaining wealth between the rich and poor. This closing of the wealth gap was analyzed through the policies that President Johnson and his administration created. By 1964, programs like the Economic Opportunity Act and Community Action Agencies gave individuals the opportunity to achieve a better living. In addition to these program, policies like the Food Stamp Act and Medicare were also created as allowed low income families to have economic stability. Through these policies and programs, there was also a sense of empowerment to those who were in the lower class. The War on Poverty became controversial through the policies and programs that were created. However, the main reason that it became controversial is because it gave power to the powerless through opportunity and welfare. They had the resources to succeed and that directly attacked the wealth gap. The War on Poverty was also successful by lowering the poverty rate in the United States within the first 10 years. Although poverty and the wealth gap still exists to this day, President Johnson s policies gives the framework necessary to combat both. Word Count: 290

3 ####### 2 Table of Contents Introduction 3 Background 4 Policies from the Johnson Administration 6 Experience 9 Statistical Analysis 10 Success and Conclusion 11 Works Cited 14

4 ####### 3 Introduction [1. Attention getter; 2. Background/Context (5 Ws); 3. Introduces opposing viewpoints; 4. Thesis] During the 1960s, President Lyndon B. Johnson discovered how difficult it was for many to achieve a decent living in the United States. In the 1964 State of the Union, President Johnson introduced the War on Poverty, which aimed to improve the quality of life of those who were below the poverty line in the United States. He stated, this administration today, here and now, declares unconditional war on poverty in America (State of the Union Address, 1964). He continued his State of the Union address by pinpointing the several goals that he had for the United States in order to defeat poverty. The 1960s was a new era for Americans in the United States as it was a time of change and a time for equality. President Johnson knew for a fact the United States had the potential to become a great society. A society that would give everyone an opportunity to succeed. During his presidency, President Johnson and his administration created a multitude of programs to aid those who were disadvantaged, including the Economic Opportunity Act and the Food Stamp Act. Although these policies in the 1960s were created to improve the lifestyle of Americans below the poverty line, these policies manage to affect the wealth gap as well. The wealth gap, according to Institute for Policy Studies, refers to the unequal distribution of assets in a population (Wealth Inequality). In the United States, minorities and the lower class were more prone to falling into poverty making social mobility difficult for the lower class as well. President Johnson not only wanted to decrease the poverty rate in the United States, but also eliminate the wealth gap to create the Great Society that he envisioned. The War on Poverty closed the wealth gap based from the policies, the experiences and the statistics that reduced the poverty rate in the United States.

5 ####### 4 Background In his 1964 State of the Union speech, President Johnson detailed his ambitions to improve the United States: We must expand our small but our successful area redevelopment program. We must enact youth employment legislation to put jobless, aimless, hopeless youngsters to work on useful projects. We must distribute more food to the needy through a broader food stamp program. We must create a National Service Corps to help the economically handicapped of our own country as the Peace Corps now helps those abroad. We must modernize our unemployment insurance and establish a high-level commission on automation. If we have the brainpower to invent these machines, we have the brainpower to make certain that they are a boon and not a bane to humanity. We must extend the coverage of our minimum wage laws to more than 2 million workers now lacking this basic protection of purchasing power. We must, by including special school aid funds as part of our education program, improve the quality of teaching, training, and counseling in our hardest hit areas (State of the Union Address, 1964). The United States, although considered a powerful nation after the Second World War, was not seen as a great nation by many of its residents. President Johnson saw the capability the United States had to become a great society. According to the Heritage Foundation, Johnson combin[ed] the then-filibustered Civil Rights Act of 1964 and ambitious federal programs into a vision he call[ed] the Great Society (LBJ Launches the Great Society). It marked a new era in

6 ####### 5 American history, as racial injustice still continued in the United States. The War on Poverty was a subset of the Great Society and President Johnson understood that if the lower class had assistance and representation in society, then the poverty rate would decrease. [P] During the 1950s and 60s, many families in the United States struggled to find and maintain a middle class lifestyle. [E] Although the United States was a country that was rising economically, the number of individuals who fell below the poverty line increased. According to the U.S. census in 1959, there were about 40 million people below the poverty line (Consumer Income). African Americans and other minorities were the largest groups that represented those below the poverty line (Consumer Income). [E] In a time of both racial and economic inequality, minorities in the United States were the primary victims who struggled to move up a social class. By the early 1960s, there was a major economic wealth gap between minorities and more privileged Americans. The wealth gap and poverty levels for African Americans in the U.S. were key factors that contributed to the rise of the Civil Right Movement in the 1960s. The poverty line during the War on Poverty was used to determine the number of families and individuals who were economically incapable of maintaining a stable life. According to the U.S Census Bureau, the poverty line threshold for a family of four was $3,001 (U.S. Census Bureau). In order to decrease the poverty rate, President Johnson increased the budget of spending on economic welfare. However, President Johnson also realized that welfare alone would not be the key to a better society. Larger than the War on Poverty, the Great Society attempted to create a society in which there was no racial injustice and beneficial opportunities were available to every resident in the United States. Minorities had to be given the same opportunities as others to eliminate poverty. Their racial identity limited them from being

7 ####### 6 successful in the United States and to fulfill the American Dream. The policies that were implemented by the Johnson Administration were direct attacks on the War on Poverty, but they also were aimed to eliminate injustice and the wealth gap. The policies created by the Johnson administration ultimately were proven to benefit many people in the United States, regardless of race or wealth. Policies from the Johnson Administration [P] One of the many policies that were signed during the Johnson administration was the Economic Opportunity Act. [E] According to Joseph Pollack, author of Major Acts in Congress, the main goal of the Economic Opportunity Act was not to distribute wealth all throughout the United States, but to ensure that the government of the United States provide aid to the poor to achieve a stable living (Pollack 220). In the book Lyndon B. Johnson, edited by Scott Barbour, he states that the Economic Opportunity Act...included Head Start, an early education program; the Job Corps, a job training program for poor, inner-city youths; and the Community Action Program (CAP), an effort to mobilize poor communities for change (Barbour 30-31). [E] Although this act was not directly aimed at the wealth gap, the Economic Opportunity Act allowed the poor to be able to achieve a living and income of higher quality for their families. It also provided an opportunity for them to be able to move up an economic class. [CA] Many politicians view the Economic Opportunity Act negatively partially because it made the poor become depended on the government to succeed. However, the Economic Opportunity Act gave resources for the poor to succeed onto a higher level. The Job Corps is a major example of how the lower class had the appropriate resources to succeed on their own. Employing young adolescents provided experience and also empowered poor individuals in creating their own

8 ####### 7 future for themselves and their community. With minorities having a greater chance of social mobility, the wealth gap began to tightened as they were able to improve their income with opportunities that were enhanced for a better living. Along with the Economic Opportunity Act, the Community Action Agencies were also created by the Johnson Administration in order to decrease the poverty rate in the United States. According to the Community Action Agencies website, Community Action Agencies help people to help themselves in achieving self-sufficiency (Community Action Partnership). For more than 50 years, the Community Action Agencies have continued to help people through the private and nonprofit organizations. Created with the Economic Opportunity Act of 1964, the Community Action Agencies provide several programs that include Head Start, job training, housing and financial education (Community Action Partnership). Critics, however, consider the Community Action Agencies to be one of most controversial aspects of the War on Poverty, stating that, the CAPs and CAAs proved problematic precisely because they threatened real change. They challenged existing power structures Their potential for change was real because they promised to empowered the powerless (Barbour 48). A wealth gap exists because of an unequal distribution of power. The Community Action Agencies allowed for the powerless to have the responsibility to succeed when given the proper resources. These participants, however, did not heavily depend on these programs. They were only given the chance to receive the adequate materials necessary to succeed in the United States. The CAAs introduced the problem in societal changes and the idea of a correlation between power and wealth is a causation of the wealth gap. Social mobility is challenging as many minorities along with the lower class did not have the opportunity to receive a proper education. President Johnson understood that the War

9 ####### 8 on Poverty was a way to educate minorities along with the poor. If these programs were fully implemented, then they were able to succeed. On August 31, 1964, President Johnson signed the Food Stamp Act. After signing it into law, Johnson stated in a speech, Likewise, this year we anticipate that 17 million children--3.2 million more than in will enjoy hot lunches in their schools, many of them for the first time (The American Presidency Project). Along with feeding 17 million children in the United States, the Food Stamp Act allowed for low income families to spend more money on education, housing and other vital necessities (The American Presidency Project). According to the Institute of Child Nutrition News, Johnson said in his 1964 Food Stamp Act signing that it is one of many sensible and needed steps we have taken to apply the power of America s new abundance to the task of building a better life for every American As a permanent program, the food stamp plan will be one of our most valuable weapons for the war on poverty (NFSMI). President Johnson considered the Food Stamp Act as the strongest weapon for the War on Poverty. When the Food Stamp Act was signed, families in the United States were able to save their personal income and consequently close the wealth gap economically. The Social Security Act Amendments, often referred to as Medicare, was signed by President Johnson on July 30, 1965 (Social Security Act Amendments). Medicare, although not in direct correlation with the wealth gap, provided health insurance and other medical resources for the poor and the elderly. The National Archives for the U.S. states that in the first three years of the program, nearly 20 million beneficiaries enrolled in it (Social Security Act Amendments). According to the Brooking Bulletin, who reviewed the work Health and the War on Poverty: A Ten-Year Appraisal by Karen Davis and Cathy Schoen, it stated that, these

10 ####### 9 programs have increased the availability of health care to the poor, helped families avoid financial ruin from catastrophic medical expenses, and improved the general health of many of the poor (The Brooking Bulletin). The Social Security Act Amendments and the Food Stamp Act were similar weapons used to tackle the War on Poverty, as they helped close the wealth gap through the connections that it has towards the economy. The poor were now able to afford the proper medical care and save themselves from medical expenses. Like the other policies in the Johnson Administration during the War of Poverty, these programs gave the poor more income to spend on other aspects that could aid them in different way. This increase not only allows families to escape poverty but to be able to maintain a middle class life. Experience The War on Poverty can be seen differently, especially towards those who have were in different economic classes. Al From, who worked in the Office of Economic Opportunity a who now works for Politico magazine, stated that he learned that that if you wanted to help the poor, the most effective strategy with the broadest reach was to empower them, to give them a chance to get ahead by helping themselves (From). From continues to explain in his article how the War on Poverty was not about giving welfare to the poor, but a way to make the poor feel empowered. In all the southern counties where From worked, he noticed the same trend about the poor:all the poor, who were usually African Americans, took advantage of the opportunities that were given. In addition to the opportunities that were given, From explains that there was shift in power in all the counties he worked in, where poor African Americans volunteered and control the programs in the country (From). Conceptually, the wealth gap does not necessarily refer to the amount of income or luxuries one obtains, it also means the amount of power on has

11 ####### 10 to make a change in their lives. The War on Poverty allowed African Americans and poor minorities to have the opportunity to have power and take advantage of it to move up an economic class that leads to change in the wealth gap. Statistical Analysis Within 4 years after the speech that was given in the 1964 State of the Union, the War on Poverty changed the lives of many in the United States. The 1968 U.S. Census Bureau provided the number of families and individuals of all races who were below or above the poverty line. According to the U.S. Census Bureau reports in 1968, between 1959 and 1968 the number of poor persons in the United States declined from 39 million to 25 million (Consumer Income). Also, the poverty level decreased from 22 percent to 13 percent within the same years of the study (Consumer Income). Although it showed some success of the War on Poverty, some statistics that showed that there was still racial injustice. The U.S. Census Bureau also explained that the African Americans and other minority groups were three times more likely to be in poverty than whites (Consumer Income). The wealth gap has its connection with racial injustice and it shows that although there was an effect on the wealth gap, there is still a problem in the United States and the way power is distributed among all races. Despite President Johnson s effort to create a Great Society, there were also many other obstacles that prevented the United States to achieve an easy victory against the War on Poverty. During the War of Poverty, President Johnson began to have other economic challenges in the United States. By the 1960s, the United States began to intervene in the Vietnam War to prevent the spread of communism in Southeast Asia. According to the Gale Encyclopedia of U.S. Economic History, President Johnson was forced to raise taxes in order to support the military in

12 ####### 11 Vietnam and the policies for the War on Poverty (Bonk and Carson). By the late 1960s, after Johnson presidency, there was a decrease of funding for the War on Poverty. However, the poor were not as affected by this decrease of funding. According to the book Lyndon B. Johnson, it states that, In 1971, 43 percent of the otherwise poor were lifted out of poverty by income transfers, compared with 30 percent in 1965 (Barbour 103). Within a few years of War on Poverty, it was not the amount of funding that provided a change in poverty rate, but the amount of opportunities that were given to the poor and minorities. This continuation of service allowed the poor to be able to affect the wealth through empowerment and opportunity, eventually leading to success. Success and Conclusion [1. Summary of points and major findings; 2. Implications; 3. Needed work for future; 4. Final thoughts and recommendations] There were many aspects that succeeded within the first 10 years after the declaration on the War on Poverty. The Johnson Administration was never seen as a great administration due to the controversial involvement of the United States in the Vietnam. However, many politicians argued that the declaration of War on Poverty was controversial as well. According to the Gale Encyclopedia of U.S. Economic History, President Reagan once stated that, Today the phrase refers only to a bundle of welfare programs that have helped make the federal budget a chronic problem (Bonk and Carson). On the other hand there were many other politicians who have made the argument that President Johnson s War on Poverty in pursuit of a Great was the most successful aspect of his administration. According to From, in those four counties and so many other places I visited during my nearly three years chronicling the War on Poverty, I learned how economic and political empowerment could change lives when people took advantage of their

13 ####### 12 new opportunities (From). In addition to this support, the book Lyndon B. Johnson also states that if victory in the war on poverty means providing the minimal standard of living, then the war has very nearly been won, though some battles remain to be fought (Barbour 103). The War on Poverty, although as controversial as it may have been, provided several opportunities to the poor and minorities. Minorities were able to achieve economic wealth even with discrimination. Yet today, the wealth gap in the United States continues to grow and politicians still believe that the War on Poverty was a massive failure for people in the 1960s. According to Time Magazine, it stated, The White House released a report showing that the percent of the population in poverty has declined from 25.8% in 1967 to 16% in 2012 (Rogers). Although statistics show that there is a decrease in poverty, some politicians still believe that the War on Poverty was a failure in American policy. Republican Representative Steve Scalise opposed the success of the War on Poverty stating,...that all the government had to show for the 50 year War on Poverty was $15 trillion spent and 10 million more people in poverty (Rogers). The main reason the War on Poverty was controversial was because it made the government seem like it is a welfare system instead. However, the War of Poverty was enacted to give people power and spread power to everyone to achieve financial stability in the United States. This balance of opportunity and equity was a major change in the United States and it was difficult for many to accept. President Johnson understood that the in the Great Society he wanted to create in the United States must be equal in every aspect, a concept that was only thought of but not yet accomplished in a well developed country like the United States. Change is inevitable and for many, change is also frightening. The War on Poverty decreased the poverty rate within the first ten years as it also closed the wealth gap. Today, the United States still

14 ####### 13 struggles with a high poverty rate for a well developed country all due to decreases in funding in many welfare programs. There are many people who still struggle to maintain stability in their lives, and these welfare programs created by the Johnson administration helped many have a sense of empowerment to succeed. These policies today would decrease the wealth gap and the poverty rate, but most importantly, it would also provide opportunity to the powerless. It would eliminate racial injustice and would excel in the goals that President Johnson called for 52 years ago in his 1964 State of the Union speech. The War on Poverty led to a fundamental change in the role of the government in people s lives. It demonstrated that government could lead to a shrinking wealth gap along with providing a better living for all residents in the United States.

15 ####### 14 Works Cited "Assessing Federal Health Programs for the Poor." The Brookings Bulletin 15.3 (1979): 5-6. Web. Barbour, Scott. Lyndon B. Johnson. San Diego, CA: Greenhaven, Print. "Community Action Partnership." Community Action Partnership - Fact Sheet. Community Action Partnership, Web. 03 June "Consumer Income." Consumer Income - Current Population Reports(1969): n. pag. Poverty in the United States United States Census Bureau, Web. 28 Apr "Economic Opportunity Act." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, Biography in Context. Web. 2 June From, Al. "The War on Poverty Was Not About Welfare. That s Why It Worked." POLITICO Magazine. Politico LLC, 8 Jan Web. 02 June "The Great Society." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, Biography in Context. Web. 2 June 2016 "LBJ Launches the Great Society." The Heritage Foundation. The Heritage Foundation, Web. 03 June Johnson, Lyndon B. "Remarks Upon Signing the Food Stamp Act." Signing of the Food Stamp Act. White House, Washington DC, USA. 31 Aug Remarks Upon Signing the Food Stamp Act. Web. 01 May Johnson, Lyndon B. "State of the Union Address, 1964." PBS. PBS, Web. 15 Apr

16 ####### 15 NFSMI NEWS. "Looking Back at the Food Stamp Act of 1964." Institute of Child Nutrition News. National Food Service Management Institute, 15 Oct Web. 02 May Pollak, Stephen J. "Economic Opportunity Act of 1964." Major Acts of Congress. Ed. Brian K. Landsberg. Vol. 1. New York: Macmillan Reference USA, Gale Virtual Reference Library. Web. 2 June "Poverty." Thresholds United States Census Bureau, Web. 03 June Rogers, Alex. "Conservatives Say War On Poverty Failed." Time.Com (2014): 1. MasterFILE Complete. Web. 11 Oct "Social Security Act Amendments (1965)." Our Documents. National Archives, n.d. Web. 29 Apr "Wealth Inequality Inequality.org. Institute for Policy Studies, Web. 15 Dec