The Working Poor: Invisible in America
Encyclopedia
The Working Poor: Invisible in America is a 2004 book written by Pulitzer Prize winner, David K. Shipler. From talking with real individuals who are considered as the working poor, Shipler filled this book with anecdotes and life stories of them. Using the lives of these people as examples, Shipler illustrates the struggles the working poor face while attempting to escape poverty.
Throughout the book, Shipler mentions numerous economic issues that prevent the working poor to escape poverty.
According to examples from the book, it seems that the working poor, many of whom have never attended colleges, often live in dangerous neighborhoods. Sometimes, the working poor purchase homes with high lead paint toxicity that cheaply priced. However, their investments in this kind of capital are often wasted. As they possess little money to renovate their homes and rid of the lead paint, the working poor usually sell their homes at prices lower or equal to the original prices they had purchased them. In addition to the lack of financial capital
or purchasing power, the working poor also lack of social
and human capital
they needed to escape poverty. Living neighborhoods with atrocious living conditions, the working poor also have to face higher crime rate. With higher crime rate, the working poor living in this kind of neighborhoods often do not trust or care about one and another. With lack of trust and care, these neighborhoods not only are economically inefficient, but the working poor do not have the necessary human network and supports from their communities to escape poverty. Lastly, because many of the working poor do not have college degrees or the proper technical skills, it is extremely difficult for them to obtain high paying jobs and lift themselves out of poverty.
It is not just that the working poor do not have the proper capitals, but it seems society does little to help them to escape poverty. Often, households that are considered to be working poor are headed by mothers. Frequently, when mothers could not find inexpensive and proper child care services, they have to quit their jobs and remain on welfare. Though caring for their children will help to bring next generation of workforce to our society, it seems that these mothers are not only unpaid for their work, but they are also penalized for doing care work. This is the phenomenon known as care penalty. Often, singled mothers cannot afford the replacement cost for child care, so they have to stay home to take care of their children, and pay the opportunity cost
by forgoing their opportunity to earn income for doing care work. As the U.S grown more industrialized, the prices for services such as child daycare are becoming more expensive as production of goods becomes relatively easy and inexpensive. This social phenomenon is known as the Baumol effect, and many of the working poor are at the short end of this effect as they have to spend higher percentage of their incomes for services.
In the chapter of Importing the Third World, Shipler indirectly explores some flaws of comparative advantages. Clothing companies hire contractors. These contractors then hire illegal immigrants who the contractors could pay under the minimal wage to work in atrocious sweatshops for hours exceeding legal limit. Additionally, some American companies even go over sea to acquire even cheaper labor. Because of these flaws, markets often for the sake of saving money and for efficiency, hire workers who accept wages, working hours, and working conditions not on the standard set by the U.S federal government. As more companies go over sea to capture the upside of foreign trade, they provide no jobs for Americans and for the working poor. This lack of job creations for the poor ultimately increases inequality gap between the poor and the rich, and contribute to economic inefficiency.
Last, but not that least, the American consumerists culture seems to encourage the working poor to purchase positional goods. Television and cell phones are so widely spread in America that they are considered as usual home appliances. However, for a poor working class family, these items may seem to be luxury items. However, some of the working poor who are encourage by commercials, still spend large portion of their little incomes to purchase these items in order to demonstrate to the society in large that they are middle class families.
Throughout the book, Shipler mentions numerous economic issues that prevent the working poor to escape poverty.
According to examples from the book, it seems that the working poor, many of whom have never attended colleges, often live in dangerous neighborhoods. Sometimes, the working poor purchase homes with high lead paint toxicity that cheaply priced. However, their investments in this kind of capital are often wasted. As they possess little money to renovate their homes and rid of the lead paint, the working poor usually sell their homes at prices lower or equal to the original prices they had purchased them. In addition to the lack of financial capital
Financial capital
Financial capital can refer to money used by entrepreneurs and businesses to buy what they need to make their products or provide their services or to that sector of the economy based on its operation, i.e. retail, corporate, investment banking, etc....
or purchasing power, the working poor also lack of social
Social capital
Social capital is a sociological concept, which refers to connections within and between social networks. The concept of social capital highlights the value of social relations and the role of cooperation and confidence to get collective or economic results. The term social capital is frequently...
and human capital
Human capital
Human capitalis the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value. It is the attributes gained by a worker through education and experience...
they needed to escape poverty. Living neighborhoods with atrocious living conditions, the working poor also have to face higher crime rate. With higher crime rate, the working poor living in this kind of neighborhoods often do not trust or care about one and another. With lack of trust and care, these neighborhoods not only are economically inefficient, but the working poor do not have the necessary human network and supports from their communities to escape poverty. Lastly, because many of the working poor do not have college degrees or the proper technical skills, it is extremely difficult for them to obtain high paying jobs and lift themselves out of poverty.
It is not just that the working poor do not have the proper capitals, but it seems society does little to help them to escape poverty. Often, households that are considered to be working poor are headed by mothers. Frequently, when mothers could not find inexpensive and proper child care services, they have to quit their jobs and remain on welfare. Though caring for their children will help to bring next generation of workforce to our society, it seems that these mothers are not only unpaid for their work, but they are also penalized for doing care work. This is the phenomenon known as care penalty. Often, singled mothers cannot afford the replacement cost for child care, so they have to stay home to take care of their children, and pay the opportunity cost
Opportunity cost
Opportunity cost is the cost of any activity measured in terms of the value of the best alternative that is not chosen . It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices. The opportunity cost is also the...
by forgoing their opportunity to earn income for doing care work. As the U.S grown more industrialized, the prices for services such as child daycare are becoming more expensive as production of goods becomes relatively easy and inexpensive. This social phenomenon is known as the Baumol effect, and many of the working poor are at the short end of this effect as they have to spend higher percentage of their incomes for services.
In the chapter of Importing the Third World, Shipler indirectly explores some flaws of comparative advantages. Clothing companies hire contractors. These contractors then hire illegal immigrants who the contractors could pay under the minimal wage to work in atrocious sweatshops for hours exceeding legal limit. Additionally, some American companies even go over sea to acquire even cheaper labor. Because of these flaws, markets often for the sake of saving money and for efficiency, hire workers who accept wages, working hours, and working conditions not on the standard set by the U.S federal government. As more companies go over sea to capture the upside of foreign trade, they provide no jobs for Americans and for the working poor. This lack of job creations for the poor ultimately increases inequality gap between the poor and the rich, and contribute to economic inefficiency.
Last, but not that least, the American consumerists culture seems to encourage the working poor to purchase positional goods. Television and cell phones are so widely spread in America that they are considered as usual home appliances. However, for a poor working class family, these items may seem to be luxury items. However, some of the working poor who are encourage by commercials, still spend large portion of their little incomes to purchase these items in order to demonstrate to the society in large that they are middle class families.