Is this any way to treat the economy?

I was going to write about what is sometimes referred to as “the poverty trap”, but today is the last day of the government’s fiscal year. As of right now, we expect the government to shut down tomorrow because there is no continuing resolution, much less a federal budget to authorize government spending.

 

USA Today’s story “66 questions and answers about the government shutdown” ended with the following points about what it means in the long run:

 

“64. How much money would a shutdown save taxpayers? Most likely, it wouldn't. The Committee for a Responsible Federal Budget says shutdowns cost money in terms of contingency planning, lost user fees and back pay. A government estimate after the shutdown in 1995-96 estimated its cost at $1.4 billion.

 

65. What effect would a shutdown have on the economy? Economists say even a short shutdown — of three or four days — would begin to shave decimal points off economic growth. A sustained shutdown of three or four weeks "would do significant economic damage," economist Mark Zandi told USA TODAY.

 

66. What about the stock market? The Standard & Poor's 500 fell 3.7% during the 1995-96 government shutdown, according to S&P Capital IQ. Stocks quickly rebounded after the government got back to work, rising 10.5% the month after the shutdown ended.”

 

The economic recovery hadn’t really trickled down to very low income people like the homeless families we serve, so we’re fervently hoping a fragile economy isn’t dealt another setback.

 

You've Got a Friend

Having a friend, or more formally, a support system, is something that differentiates poor mothers who don’t slide into homelessness from those who do.

The fifth policy brief from the Institute for Children, Poverty & Homelessness (ICPH) on the characteristics of fragile families who become homeless makes a number of points. But, the key role of family and friends is the one that struck me the most.

If a poor mother has support from family and friends, she will be able to work more, she will earn more, and she will rely less on welfare than those with weaker bonds.

So, why would that be the case?

The safety net of family and friends relieves some of the financial strains of poverty – they help with groceries, diapers, clothing, and rent. Family and friends who can help out in an emergency with child care or transportation make it possible for a poor mom to get to work and can mean the difference between keeping and losing a job.

The picture for poor mothers who have weak or erratic support is bleak. They struggle to get a foothold in the labor market and end up homeless more often than their counterparts with strong support.

It’s hard to prove or disprove, but we’ve always felt that one of the reasons our program is so successful in transitioning families out of homelessness, is that we give them a readymade community of support. The families live together on a single campus. The adults attend life skills classes and mental wellness groups together. The children play and study together in their classes. They meet other people at the same place in their lives and making the same life changes. They watch out for each other’s kids. They give each other rides.

First they have new neighbors and then they have new friends. And, now we know how important those friendships can be.

What else makes homeless families different than other poor families?

The fourth in the ICPH series on families with young children who become homeless identifies still another trait that distinguishes them from poor families who never become homeless.

How old was mom when she gave birth?

Poor women who never became homeless gave birth when they were older. Mothers who became homeless were around 20; under 20 if they were unmarried and lacked a high school education. Mothers who never became homeless were 22-23.

One of the really unfortunate side effects is the impact on the children of young mothers. They are more likely “to have academic and behavioral problems, to display delinquent behaviors such as truancy and fighting, to be incarcerated, and to initiate early sexual activity and become young mothers themselves.”

Homeless and at risk mothers had children with more partners than those who did not become homeless. Having multiple partners “has become increasingly prevalent, particularly among the poor, minority, and unmarried. This growth is alarming; multiple-partner fertility is associated among both mothers and fathers with relationship instability, decreased rates of marriage, lower social support from friends and family, and higher rates of depression.” Their children exhibit poor physical health and more externalizing behaviors like aggression, defiance, theft, vandalism, etc.

While we see the family when the mother and child or children are older, the homeless children who come through our program show the academic, behavioral and health problems the study describes.

The brief goes on to recommend that policy makers interested in reducing child and family homelessness consider programs promoting responsible family planning. We would add, and promote the value of education, and parenting, and job skills, … The list goes on and on.