The
income, poverty and health insurance data released by the Census
Bureau on September 13 confirm what many already knew. President
Obama’s last year was one of economic improvement for many
individuals. The median income rose from $57,230 in 2015 to $59,039
in 2016, an increase of 3.2 percent. Black income rose 5.4 percent,
from $37, 364 in 2015 to $39,400 in 2016, while white income rose
from $63, 745 to $65,041, an increase of two percent. The income gap
narrowed very slightly, with African Americans having 58 percent of
white earnings in 2015 and 60 percent of white earnings in 2016.
This income ratio typically hovers around 60 percent, and this
situation has not improved since 1967! Despite an absolute
improvement in incomes, the racial income disparity remains.
Fewer
than one in ten whites earned less than $15,000 per year, compared to
20 percent of African Americans at that low earning level. While 18
percent of whites earned less than $25,000 a year, fully one-third of
African Americans earned so little. At the same time, while 7.4
percent of whites earned more than $200,000 a year, only 2.8 percent
of African Americans had similarly high earnings. At the top, there
was significant improvement for African Americans – we didn’t
cross the 1 percent line on high earning until 1997, and now our
percentage has more than doubled. Still, it would take hundreds of
years, at the rate we are going, to close the gap with whites.
With
incomes as low as they are, it is unsurprising to find African
Americans more heavily represented among the poor than whites are,
but again, President Obama’s last year in office saw a real
drop in the poverty level. The poverty rate dropped from 13.5
percent in 2015 to 12.7 percent in 2016, and the Black poverty rate
dropped from 24.1 percent to 22.0 percent. There were 800,000 fewer
African Americans in poverty in 2016 than in 2015. That’s good
news! Child poverty was also overwhelming. With 15.1 percent of
white children living in poverty there were nearly twice as many
Black children living in poverty at 29.5 percent. Among elders, 8
percent of white seniors were poor, compared to 18.5 percent of
African American seniors. And when Black women headed households,
34.2 percent of those households lived in poverty.
While
these numbers make a clear case that President Obama improved the
situation for all Americans, it is also clear that his unwillingness
or inability to target programs toward the African American poor
maintained the size of the income gap, and maintained the fact that
African Americans experience twice as much poverty as whites, earning
only 60 percent of the incomes that whites do. This gap will not be
closed unless there is some intervention, some form of reparations,
or some special program that will empower African Americans. If that
didn’t happen in the Obama administration, it is unlikely to
happen in this one!
President
Obama’s singular success, of course, was health care. More
than 93 percent of whites, 92 percent of Asian Americans, 89.5
percent of African Americans and 84 percent of Hispanics had health
care in 2016, continuing an upward trend that began in 2011 with the
introduction of Obamacare. Of course, Republicans have promised to
“repeal and replace” the Affordable Care Act. They have
been unsuccessful because so many use and like the program, even with
it flaws. The program should be tweaked, but not replaced, but we’ll
see what happens in coming months.
Despite
improvements in income data, too many Americans aren’t feeling
the improvements. That’s how 45 was able to manipulate people
into believing that they were worse off than they had ever been, and
that he was going to improve their quality of life. To be sure,
while the unemployment rate is way down, there are also people
sitting on the sidelines of the labor force. Raises seem to be
coming, but quite slowly, and a 3.2 percent increase in income, after
several years of declining income, seems not to be enough.
Additionally, there are millions of millennials who came of age
during the recession, having spent years marginally employed, and are
shouldering the burden of high student loans. Small increases in
income don’t make these folks feel flush. Many still feel that
they are just getting by.
Knowing
45, he will crow about these numbers, though he truly cannot take any
responsibility for them. This data is 2016 data, and the improvement
here can be solely attributed to President Obama. The proof of 45’s
pudding will come next year, when 2017 data are reported. Will we be
better off with the repeal of the Affordable Care Act? Will incomes
rise or fall under 45’s leadership? What will happen with
poverty in an administration that has already taken actions to keep
wages low? Will the Obama momentum come to a skidding halt because
of 45’s policies? We’ll have to wait and see, but it is
clear that 45 has already taken too many steps in the wrong
direction.
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