The Earned Income Tax Credit and the Lottery

I don't enjoy gambling. I live in a town with several casinos and don't really have any interest in using them for gambling. I've never even bought a lottery ticket before. Maybe a scratch game once or twice, but never a lottery ticket.  Until this week.

It started as a joke. The odds are incredible, but for 48 million dollars, I thought, "why not this once" I've read about how for some people in poverty, playing the lottery is a type of remittance. While it is a small amount to pay out regularly, the sudden infusion of cash ($50-$200) is how they pay for those things they need irregularlly - like new clothes, technology upgrades, and stocking up on personal items or entertainment devices.

Buying the lottery ticket didn't start as a savings plan; it was entertainment. I was surprised by the amount of entertainment that it gave me. It was a tangible thing , this piece of paper, that induced dreams. [The only other piece of paper that inspires such dreams is my voting ballot.] What would I do with 48 million dollars? Daring to dream that big is a place far from the economic reality of my life, and of anybody's life. I spent time dreaming aloud, something that doesn't get to happen often for people trapped in the tyranny of the moment that is poverty.

Then today, I was reading up on current US policies related to asset building and it reminded me about the Earned Income Tax Credit (EITC).

"Despite the curtailed policy agenda, the Fiscal Year 2012 budget includes a set of policies and proposals that allocate $519 billion in resources to asset-building activities. An additional $65 billion in funding for the Earned Income Tax Credit and Child Tax Credit, while not explicitly asset building programs, presents resources that individuals and families can devote to saving."


There is this continuing question in the EITC funders world [and middle-class sensibilities] of why people don't always use their EITC for its intended purpose of family asset building. There is evidence many many families use it to pay off debts - something which is responsible, but that still isn't asset building for the future. Then it dawned on me.  To people living on under $12,000 a year, their tax return is like winning the lottery.

When you think about what you are going to do with your tax return, you dream. You dream of the things which you know are out of reach on a regular basis. You plan on buying cars, televisions, movies, entertainment, restaurant food, vacations, ect. ect. Five-thousand dollars in one lump sum might as well be a million dollars. People in poverty often get unfairly judged for this behavior and called "irresponsible spenders."

While I could imagination how to split up my $48 million dollars so I could live modestly for a lifetime, I still dreamed of what $$ could do that I can't do now. It was a lot of fun.

Take that fun away by talking about asset building won't persuade people to change their behavior. What we need to do is develop a positive dream of the possibility of a secure life. We as a society, and as social service agencies, don't always give people a goal of what to be, only of what NOT to be.

With a new American Dream, maybe then tax returns won't be treated like we won the lottery.

Methodology that Counts in Poverty Alleviation

I was looking for methods of finding common indicators about poverty, and found this. I LOVE this article’ methodologies. If I was independently wealthy, I would just go around the US and do these for folks. But first I’d need some more statistics training and some GIS skills.

Developing a Regional Poverty Profile 

Poverty is relative to localities. We can tell when people are starving in other countries, but in America, poverty is hidden and part of perception. It is hard to measure something in peoples perceptions.  If we can’t measure this real poverty, how do we know our programs are going to be useful by those who they are intended for?

Here is an example of how to use this regional poverty profile in poverty alleviation. In their example study, they showed that being poor, not-so-poor, and not poor mean slightly different things in the three communities. In one places, not being poor was strongly statistically associated with being involved in a trade. They showed 83% of non-poor households were professionals or traders, whereas in the other comparative areas, only %52-53% of the not-poor were professionals or traders. In the other contrasting area, owning land and property was much more prominent means of acquiring “well-being.”  We would be able to see what the people who live in poverty think would work to make their lives better, not use the top-down method of the school, or IWD telling folks how get a “good job,” what that job is, and how to improve their lives.

“Different ethnic groups may have different value systems that, among other things, could influence their perceptions of well-being and poverty.” By building on their existing perceptions we can be sure to have programs that work for the people they are intended for.

Using their quantified knowledge WITH real measures of  industry/sector or work, hours, wage, property ownership, plus access to affordable food and public transportation we could see if something like having a bank account or a car is really a measurable asset to the relief of poverty. We could also know what types of employment would actually benefit folks – not make assumptions that all jobs are good for all populations. “Jobs” are good on the aggregate, but it isn’t “a rising tide floats all boats” for folks in poverty. This can help find the right river for them to put the boat into.

 I think this is especially great on a neighborhood level, both in the flatlands of DBQ and all the way out to Dyersville/Ashbury. How do they define well-being differently than the flatlands? What would benefit their economic success differently, and how do you quantify it? I just love this paper! I hope the ISU people can use it as a base and build policy ideas around it.

This method could also be used to include data that it leaves out, like the source of income for people in poverty, how they spend their money, or measuring the economic inequality of an area -which is a little controversial because Americans don’t really want to know this and feel bad about them doing well.

I've Lived an Interesting Life.

I've been to all but 3 states
I lived in a tent for a summer, in TX and in Idaho - doing archeology
I've lived with a gay legislator from MN for 2 weeks
I've lived with environmental activists
I've moved over 1k miles away to a strange place
I have an art degree - and was an assistant designer in los angeles
I was at the inauguration of our first AA president - where I randomly met people I knew from Idaho.
I was a news director for a local NPR affiliate.
I've met the president - in NV
I've gone to Mexico to do environmental work - and lay on a beach
My best friend lives in another continent!
I've organized a protest with over 500 students
I've been married - and divorced.
I went to Muppetfest
I was a crisis counselor and saw horrific violence
I've worked at a women's center and met some amazing survivors.
I was youth organizer of the year for the state of Idaho
I've won the governor's volunteer award in Iowa
I worked against Michelle Bachman
I elected Mark Dayton - and helped a great female candidate along the way
I survived the 2010 election.
I've gone whitewater rafting
I've jumped off a cliff because everybody else did - and broke my foot
My hair has been blue, pink, purple, green, orange, red, yellow, and white
I've had clothing I made worn by celebrities
I've been on the front page of a national blog (Daily Kos)
I've won scholarships
I've been on the honor roll
I graduated at 17 from high school
I've lived in a Peace House with hippies (Love you David and Matt)
I've been vegetarian
I've had a Dominatrix
Been in Love - had my heart broken
And am practicing for a flash mob.



Things I still want to do
Shave my head
Learn to sing
Be in a play
Teach sewing lessons
Go to India and France
Visit those last 3 states!
Go for an extended bike-ride (several days)
Buy car from the dealer
Have my own garden - and know what I am doing