POOR RESPONSE TO THE POOR
Posted by jeffreygabriel on October 24, 2007

Above – “How rich is a city when its people sleep on a street?” Creative Commons Attribution-Noncommercial-No Derivative Works 2.0 Generic
Reports yesterday suggest that as many as 1 in 9 Australians are living in poverty. Poverty is defined as living on less than $281 per week for a single adult without children and adjusted figures for other household units. I don’t know how people survive on $40 per day with shelter, clothing, food and health to consider let alone other expenses.
The proportion of people living in poverty has been rising since 1994 despite Australia experiencing economic growth over all those years. It seems the person in the above shot is not alone by any stretch.
Poverty doesn’t get spoken about as much as it should. Maybe people don’t think it is an Australian problem. Maybe people think people that managed to become poor in these prosperous times somehow deserve it. The major parties do not seem to talk about it. It is a far cry from the days when Prime Ministers would promise to eliminate poverty in three years. As unrealistic a promise as it was, at least poverty was on the agenda.
Of course when there is a vote in it, you can be sure that someone will say something. Well almost. John Howard announced a $4 billion boost to pensions but that has nothing to do with poverty. You see, not everyone reaps the benefit and some of the most disadvantaged people miss out. Democrats Senator Andrew Bartlett points out that single parents and the long term unemployed miss out.
Don’t get me wrong. What was promised will go to many deserving people such as people of the disability support pension and the carer’s pension. It’s just when John Howard talks about the benefit of a massive budget surplus and helping people with cost of living pressures you’d think he’d do a little bit more to reach all the people that have been left behind and not just certain sections. You’d think people at the big end of town would cope with a deferred tax cut for a couple of years. Will Kevin Rudd be any better? I doubt it. He set himself down the same path by adopting 91.5% of the Liberal’s tax plan.
Spending time with St Vincent De Paul in Dulwich Hill, I realised how much poverty there was in Grayndler. If it can be so in such a relatively affluent part of the country, it’s clearly a problem more widespread than most people would realise.
The Democrats have a number of practical solutions for combating poverty. These include introducing a national public dental program, boosting Medicare, creating a genuine safety net for workers with at least 8 minimum standards employers must meet, no fee bank accounts for low income earners, increased incentive for affordable housing, increased investment in public housing, raising the tax free threshold to $20,000 so some 2 million low income earners pay no tax, indexing tax rates to the CPI so low income earners do not pay more tax on the same real income, changing welfare guidelines so that people are not punished when they move from welfare to work and they have an incentive to work and pegging student allowances to the Henderson Poverty Line. It may not mean a big bloc of people living in poverty will vote Democrats but that’s not why we do it. We do it because it is the right thing to do.
I hope we get poverty back on the agenda. It is an important issue for me and other Democrats including Laura Chipp whose concern for poverty has seen her take overseas trips to needy communities with volunteer organisations. In such great economic times, it’s important to remember those that have not shared the benefits. Many say that societies can be judged by how we treat our most vulnerable. It’s time we addressed this issue.
Laura Chipp said
Well Done Jeffrey,
All your posts are amazing. It really shows your commitment and all the hard work you are putting in to truly represent the people of Grayndler!
I really enjoy reading your posts. Fantastic work.
Luke said
I agree!
Ben Shurey said
Jeffrey,
Did you happen to see Peter Saunders Article in the Oz on Monday?
http://www.theaustralian.news.com.au/story/0,25197,22662559-7583,00.html
The main points being:
People below the (arbitrary) poverty line tend not to stay there for more than one year.
People tend to change their borrowing and saving trends in accordance with fluctuations in income so spending and essentially lifestyle change very little.
The Melbourne Institute study combines income and consumption into a single measure of poverty. It finds that only 3 per cent of the population comes out as poor at any one time on this measure, and just 1 per cent remains poor over two successive years. The study concludes: “Existing income-based measures (of poverty) are seriously in error. The results they give are much too high.”
I might also add as a response to you that homelessness is typically due to mental health issues, alcoholism and drug dependance. Throwing more welfare money at people is not going to solve any of these problems.
Any comments?
jeffreygabriel said
Hello Ben
Thank you for your comments. It’s great to see people reading my blog.
The Dems’ solutions are not simply to throw money at people. They understand the need to address structural and contextual issues when it comes to the poor. Creating support structures can assist people by providing access to services they would normally not be able to afford. It makes living in this income category more affordable. I left out some of the Dems plans because of space but you can check them out on their website.
Whilst all people may not stay within the defined category for poverty for consecutive years it is worrying that the overall trend is for more people to experience poverty at a stage in their life, however shortlived that may be. I wonder what the wider ramifications are.
Interesting that Saunders refers our unemployment rate when wondering why dependance is so high. People that work for one hour per week or more are not officially listed as unemployed. In other words, the working poor contribute to a picture of prosperity (if unemployment figures are a guide).