published Wednesday, September 29th, 2010

Recession toll: Poverty up, income flat

  • photo
    Staff photo by Dan Henry/Chattanooga Times Free Press - Jeffery Turner sits outside of Metropolitan Ministries with over thirty others waiting for assistance paying for utility bills and food on September 28, 2010.

With his jobless benefits depleted months ago, Calvin Hill rode his bike more than two miles in the middle of the night Monday to get in line for extra food to feed his family.

Hill, a 53-year-old Chattanoogan who lost his job at Koch Foods more than a year ago, joined scores of others this week waiting for help from Metropolitan Ministries.

“Being 53 years old is hard because it seems like everybody today wants to hire young kids,” he said.

Hill considers himself lucky this week because he got to the McCallie Avenue mission in time to make the cutoff for those getting help. Others are not so lucky.

“My electricity is supposed to be cut off today and I don’t know what I’m going to do,” said Beverly Davis, a 48-year-old woman who was too late to get in at Metropolitan Ministries because the lines were too long.

Despite recent signs of economic improvement, the slumping economy pushed more Chattanoogans like Hill and Davis into poverty last year. The U.S. Census Bureau reported Tuesday that one of every four persons living in the city of Chattanooga last year fell below the poverty level, up nearly 5 percent from the previous year.

Poverty income limits

The government defines the poverty level based upon family size and income:

* One person, up to $10,830

* Two-person family, up to $14,570

* Three-person family, up to $18,310

* Four-person family, up to $22,050

* Five-person family, up to $25,790

* Six-person family, up to $29,530

* Seven-person family, up to $33,270

Source: U.S. Department of Health and Human Services

In the broader six-county Chattanooga metropolitan area, the poverty rate jumped from 13 percent in 2008 to 17.7 percent in 2009.

“Too many people can’t find work and there just aren’t enough places to help out the poor,” said Jeffrey Turner, a 51-year-old preacher who waited Tuesday at Metropolitan Ministries for his monthly food voucher.

According to census estimates, the poverty rate exceeded the national average in all three of the major counties in and around Chattanooga. The share of persons living in households with incomes below the federal poverty level also grew faster than the U.S. average in Hamilton, Bradley and Whitfield counties.

Economists blame the growth in poverty on both a long-term trend toward greater income inequality and the recent effects of the worst economic downturn since the Great Depression.

“There has been serious downward pressure for decades on jobs and wages for low-skilled workers who are being squeezed by competition from machines, technology and their counterparts in other parts of the world,” University of Tennessee economist Matt Murray said. “The recession aggravated that trend by decimating much of the manufacturing and construction industries and weakening other parts of the economy.”

Stagnant wages

The economic slump not only has pushed poverty higher, it has also cut the inflation-adjusted wages for the average worker, according to census data. In the Chattanooga metropolitan area, the median earnings of workers edged up by a mere $83 for all of 2009 to $25,774.

But median annual pay was still an average of $391 less last year than the $26,365 earned by the average Chattanooga area worker in 2006, according to government estimates.

Adjusted for inflation, median earnings for Chattanoogans last year were down 8.1 percent from the level of 2006. Median earnings in Chattanooga last year also were $2,591, or 9.2 percent, below the U.S. average, according to census figures.

“Chattanooga is doing better economically than many metro areas, but there is still a significant number of people living in poverty and many are working full-time in jobs that simply don’t pay enough to lift them out of poverty,” said David Eichenthal, president of the Ochs Center for Metropolitan Studies in Chattanooga.

Because poverty levels are the same nationwide, some of Chattanooga’s poor may fare better than those living in cities with more expensive costs of living.

But many of those still working in Chattanooga say they are struggling to pay their bills.

“Utilities are going up and my pay is going down,” said Linda Rose, a 46-year-old waitress who lives in Rossville and works in Fort Oglethorpe. “People aren’t eating out as much or tipping as much these days. I made more 20 years ago than I do now.”

Rising relief

The drop in income has swelled the number of Tennesseans getting food stamps. Last month, a record 1.26 million Tennesseans received food stamps, up nearly 10 percent from August 2009 and more than 43 percent higher than the food stamp rolls three years ago, according to the Tennessee Department of Human Services.

The 211 “Call for Help” program administered by the United Way of Greater Chattanooga has received 34,800 requests for assistance already this year, officials said.

Although the number is down slightly from the 2009 peak, program director John Hayes said the agency handles about as many calls each day as its four-operator staff can handle.

“We’re at capacity in terms of the number of calls we can take,” he said. “We had been seeing a 15 to 20 percent increase each year in our call volume prior to this year. Our agents are answering 30 to 40 calls an hour.”

Hayes said 211 is usually able to provide some help to those who request assistance.

“But it’s harder to find the resources today,” he said.

At Metropolitan Ministries, the number of persons the agency can help has been cut from 40 to 30 a day due to budget constraints.

“The need is overwhelming, but unfortunately we don’t have the resources to serve as many people,” said Rebecca Whelchel, executive director for Metropolitan Ministries, an organization of Episcopal Diocese of East Tennessee.

Contact Dave Flessner at dflessner@timesfreepress.com or (615)-757-6340.

Continue reading by following these links to related stories:

Article: Census: 1 in 7 Americans lives in poverty

Article: School lunches show poverty bite

Article: Poverty grows as does economy

4
Comments do not represent the opinions of the Chattanooga Times Free Press, nor does it review every comment. Profanities, slurs and libelous remarks are prohibited. For more information you can view our Terms & Conditions and/or Ethics policy.
harp3339 said...

I assume those mentioned in this article is why Our sensitive mayor and council made, in their words, only modest increases as follows: o 19% property rates o 5.5% sewer rates o 19% storm water run off fee o 600,000 annually for inspections, permits etc. o EPB utility rates increased o Other less publicized increases

TAWC has requested a 28% increase in water charges which may be more justified than the city government increases.

The people mentioned in this article and others with similar or worse dilemmas need opportunities and deserve assistance until an opportunity is available. However,

Our disingenuous leaders fail to recognize the negative impact on local businesses and citizens their country club management style has. They prefer to ignore the fact that these increases reduces spendable income while prices and sales tax increase on goods and services purchased in the city. People have to reduce spending and their support of charitable organizations.

Businesses will have less money to expand, businesses are less likely to locate here, some will make reductions and others will close.

Their contention that the city is growing and prospering begs an answer to some simple questions about how city business is conducted: o Why does organic growth not keep up with spending. o Are departments and staff like EAC critical to attracting and retaining businesses and jobs? How many finder organizations did not recommend Chattanooga to their client because the city had no Arts and crafts department? How many moved from the city for that reason? o Are all departments "right sized"? o Are city wages and benefits similar to and no greater than provided for like work in the private sector? Does an objective survey validate that compensation is appropriate? o Is all city work "right sourced"? o Are independent work effectiveness audits routinely made and corrective action taken where indicated? o Has an independent financial audit by a nationally known and accredited firm been considered?

City ownership of significant unimproved and uncommitted real estate and the cost vs. benefit of the city owning it plus several businesses paying no taxes and competing with privately owned business is an area that should be analyzed by a knowledgeable independent firm with the conclusions provided to the council and published to the public.

September 29, 2010 at 1:29 a.m.
TwinkleTN said...

This can only go on so long. Don't they teach about St. Petersburg in 1917 in the schools anymore? The situation is getting dangerous and we are whistling by the graveyard. People preach about the constitution and don't seem to realize the document provides for corrections. If poverty and lack of opportunity continue to rise the solution will not be pretty.

September 29, 2010 at 6:19 a.m.
harp3339 said...

TwinkleTN What constitutional solution do you recommend? I agree the situation must be addressed. Do you agree these people need an employment opportunity? Would you be receptive to using tax dollars to train, educate and make them more employable?

I have no problem and support helping provide food, clothing and shelter to those willing to help themself if reasonable effort is made for a better long term solution. My ability to help was reduced by an insensitive mayor and city council when they recently confiscated more of my modest income to support their countty club management style.

Would you support reducing legislatively imposed cost on businesses as an incentive to expand and hire? How would you increase the demand for their goods and services Identifying a problem and insisting someone else fix it is easy, solutions are more difficult.

September 29, 2010 at 7:05 a.m.
sideviews said...

Food stamp participation in Tennessee rose 43 percent in the past four years, all courtesy of Uncle Sam. I guess those running for Congress like Chuck Fleischmann who say "just stop the spending" want to cut back on food assistance to the poor.

September 29, 2010 at 8:50 a.m.
please login to post a comment

videos »         

photos »         

e-edition »

advertisement
advertisement
400 East 11th St., Chattanooga, TN 37403
General Information (423) 756-6900
Copyright, permissions and privacy policy, Ethics policy - Copyright ©2012, Chattanooga Publishing Company, Inc. All rights reserved.
This document may not be reprinted without the express written permission of Chattanooga Publishing Company, Inc.