If there is one best way to solve the social crisis of homelessness it is this: Our society must pay people a living wage.
Some people balk at this assertion. They try to maintain that paying a living wage is “baloney,” and falsely claim that increasing wages will stifle economic growth. Yet, scores of studies by major economists demonstrates that minimum wage works.
But does the minimum wage in its current form work well enough? Many housing advocates say no. So, too, does a group not generally thought to be supportive of minimum wage hikes: business owners — even giant retailers like Costco.
Forgetting the social and ethical contract of caring for our brothers and sisters in need, let’s consider the economic advantages of switching from a federal, one-size-fits-few approach to minimum wage toward a sliding scale with minimum wages tailored for the local cost-of-living. Let’s review why the concept is gaining a momentum of support.
Why a Living Wage Instead of the Minimum Wage?
The answer is simple: Federal Minimum Wage (FMW) once stabilized incomes sufficiently that working people could afford housing. Not anymore.
The FMW no longer pays workers enough to meet the costs of housing and utilities of minimum-wage earning men, women, and their families in most areas of our country. This conclusion is based on HUD’s review of Fair Market Rents and applies to all housing markets both big and small. The reason? Inflation.
President Obama has proposed that today’s minimum wage be increased from $7.25 an hour to $9.00 an hour. That’s a step in the right direction, but minimum wage should pay a minimum of $9.31 an hour to yield the same purchasing power as minimum wage paid in 1974.
In short, inflation has stolen the present value of minimum wage. Combine that with extremely varied cost-of-living expenses across the country, and simply raising the FMW won’t cut it. Instead, we must adjust hourly wages to the local cost-of-living, rather than a one-size-fits-no-one federal mandate.
“Declining wages, in turn, have put housing out of reach for many workers: a household would need more than one full time minimum wage worker to afford a two-bedroom rental apartment at fair market rent (National Low Income Housing Coalition, 2009),” reports the National Coalition for the Homeless.
Further, with a lack of affordable health care and several states attempting to overturn the Affordable Care Act, medical bills can wipe out a family’s savings and put them on the street. That’s an unwinnable war for someone earning the minimum required by law. To add insult to injury, those earning the least are also the same people plagued with unhealthy diets and multi-generational diseases associated with obesity.
“[M]any apartment complexes run credit checks which can prevent people with poor credit from renting; things like unpaid medical bills can prevent working people from finding a place to rent,” writes Kylyssa Shay, a formerly homeless person now working as freelance writer and homelessness activist.
Once we had a social belief in this country that hard work would be rewarded, at least at a level that permitted the simple dignity of providing for your family. Once it was considered wrong to fire 20% of your staff in order to give yourself a raise, for instance. Not anymore. “Human nature does not change, but social structures can, and they did,” writes George Packer, author of the book, The Unwinding.
This historical shift has brought some seemingly unlikely supporters of a living wage: local business owners.
Local Economies Benefit, Too
One reason for the support of an increased minimum wage to a living wage is that, by default, excludes retailing giants like Wal-Mart whose business model is based on paying the lowest wages possible and allowing the taxpayers to pick up the tab, reports Michael Shuman in the book The Small-Mart Revolution.
Preventing massive players with extractive agendas from entering a local market means that a local economy can stabilize and grow. That is because more money is being retained locally (as opposed to being sent to Arkansas and into the coffer’s of our nation’s best example of wealth inequality). Smaller business owners do not begrudge the success of giants like Wal-Mart.
Instead, they point to the economic destruction caused by companies like Wal-Mart that pass the buck. These companies have no incentive to care for local workers, their environment, or the economic resiliency of the local market to which they and other local business owners contribute.
Paying better wages to employees means that retraining costs are lowered. It also benefits business owners because it builds employee loyalty. What some business owners fear as limiting has been shown to improve the situation for everyone.
“Furthermore, from a historical perspective, every minimum wage increase is spent right back into the economy, so this will stimulate the economy generally too,” says House the Homeless founder Richard R. Troxell.
Raising the minimum wage is necessary to prevent more working people from experiencing homelessness. Implementing a living wage will do even more to prevent homelessness and strengthen our local economies. Learn more about the issue at UniversalLivingWage.org.
Image by STEM Limited.
Like many entertainers, comedian Greg Proops is anti-war but pro-soldier, and believes that a lot of Americans see no choice other than enlistment, because “the economy is so awful and I think that the underclass has to join the service to get three squares and some health care.” And nowadays, the underclass includes just about everybody. Now, what about when the soldiering is over and the person has to reestablish a life at home?
The performer wants his audiences to realize that when veterans are discharged, in many cases their troubles are just beginning. They expect the experience they have gained and the service they have rendered to count for something. Instead, they often find themselves hungry, sick, disabled, mentally confused, emotionally troubled, and experiencing homelessness.
The boring, preachy part
When Proops records shows in front of live audiences, each episode includes a “boring preachy part” where he launches a tirade against whatever current news item has stirred up his indignation. Actually, these rants are far from dull, and in his June 3 podcast he took the opportunity to point out that female veterans are the fastest-growing segment of the American homeless population. Proops was alerted to this dismaying fact by the documentary, War Zone/Comfort Zone, which is now available on YouTube.
For Memorial Day, filmmaker Lizzie Warren described her experience in the pages of Salon:
I followed the story of two women — one of them a Gold Star mother — who fight to establish Connecticut’s first transitional, supportive house for women veterans. The women and their allies faced neighborhood opposition in several towns, and establishing a home with fifteen beds for women veterans and their children took more than four years.
Four years! To get 15 women and kids into a house! There are thousands and thousands of homeless veterans out there, and more arriving every day. This rate of progress is unacceptable. Warren notes that:
Women veterans face a dense constellation of issues: low wages, a lack of childcare and family housing options, inadequate gender-specific services at the Veterans Administration and Post Traumatic Stress Disorder from combat and Military Sexual Trauma.
A February New York Times article by Patricia Leigh Brown hit the same theme:
While male returnees become homeless largely because of substance abuse and mental illness, experts say that female veterans face those problems and more, including the search for family housing and an even harder time finding well-paying jobs.
We would add that a great number of vets suffer from the effects of PTSD, which is not the same as mental illness, being more preventable and more treatable. It is an enormous factor just the same.
At least 10% of the homeless veterans who are known to have spent nights in shelters are women. Transitional housing funded by Department of Veterans Affairs grants are mostly designed for single men, and 60% of them don’t allow children. Yet female veterans are much more likely than males to have custody of children.
California, here we come
Brown points out that a quarter of homeless women vets (and men too) are located in California. One out of every four homeless veterans lives there, yet as House the Homeless recently noted, California is a state whose bureaucracy has not yet caught up with the reporting requirements that were put in place to help the VA keep track of veteran suicides. This too is unacceptable.
Texas is another large state that is both rife with homeless veterans and behind in its statistical reporting. Journalists started noticing at least a couple of years ago that expanded services were needed, especially for women, especially for women with dependent children.
Alex Branch interviewed the director of Fort Worth’s nonprofit organization Grace After Fire. Kim Olson, a retired Air Force colonel, is tuned in to every nuance of the situation. Branch quotes Olson:
Almost all the facilities built to help homeless veterans are built around the male model. You don’t find them with child care, and playgrounds and common areas for women. We are going to need those kinds of places.
At the time when Branch did his research, the homeless veterans program administered by the VA in Fort Worth had housed 117 veterans, of which only 12 were women. He also took care to point out that although female veterans might be better educated than their civilian counterparts, their unemployment rate is twice as high because the skills they learned in the military do not carry over well into civilian life.
On this page, the Government Accountability Office offers a downloadable PDF document called “Actions Needed to Ensure Safe and Appropriate Housing” which addresses the needs of women vets.
Source: “No holidays or parades for homeless women veterans,” Salon, 05/27/13
Source: “Trauma Sets Female Veterans Adrift Back Home,” The New York Times, 02/28/13
Source: “Help hard to find for homeless female veterans,” Star-Telegram.com, 03/09/11
Image by Lizzie Warren.
Karl Marlantes, author of the Vietnam combat novel Matterhorn, also wrote What It is Like to Go to War. He is interested finding a way to stretch out the period of transition from martial existence to civilian life.
In this respect, things were better in the aftermath of World War II when, because of transportation logistics, the journey home might take weeks or months. Something counterintuitive is at work here. Theoretically, it would seem best for everybody to get home as soon as possible.
But in the old, slow days, even without therapy or indeed any special attention to their psychological conditions, veterans had a chance to adjust. During a literal journey, they had a chance to make a mental journey, and process their memories before being expected to act normal. This probably helped with the re-entry period into civilian life, stateside.
Marlantes would also like to see something along the lines of a disarming ceremony, and other public rituals signifying a person’s change from warrior to everyday citizen.
Rodger Ruge, the crisis intervention counselor previously mentioned by House the Homeless, is interested in starting damage control even sooner — in training. As Teresa Shumaker reported, Ruge sees early preparation as a way to dramatically reduce the effects of PTSD:
If we can give everybody an idea of how to inoculate the body from stress, like the breath work we did in the class, if we did as much training on the front end when preparing them to go into service, they would be able to use the techniques they learned while they are having those experiences… Why are we not front-loading when we know what the result is? We already know; we have known since World War II. It doesn’t take that much time. It might be the extension of a couple of weeks in boot camp, in terms of time and it can be integrated into all the things they already do.
At one point, 67 senators of all political persuasions joined in writing a letter to President Obama asking him to do something about the time lag between when a veteran needs help and when she or he gets it, caused by an extreme case load backlog. The website Challenge.gov, in partnership with ChallengePost, is sponsoring the VA Medical Appointment Scheduling Contest.
For the homeless, it’s not easy to hang onto possessions, even vital ones like a DD-214, which documents an honorable discharge from the military. Backpacks get stolen, stuff gets confiscated and burned by the authorities. Sometimes it just plain gets lost.
As things stand, only “lifers” who have completed the time-in-service requirement for retirement, and those who received a medical-related discharge, are issued I.D. Cards. If the bill known as H.R. 1598 passes, a new category of I.D. Card could be purchased by a veteran who did not go all the way to retirement, as long as there is proof of an honorable discharge. It would not entitle the person to any government benefits or services, but would be useful nonetheless.
Here is an excerpt from the congressional findings regarding the Veteran’s I.D. Card Act:
Goods, services, and promotional activities are often offered by public and private institutions to veterans who demonstrate proof of service in the military but it is impractical for a veteran to always carry official DD–214 discharge papers to demonstrate such proof.
Richard R. Troxell of House the Homeless notes that a photo ID would be easier to keep possession of, and more likely to be held onto by its owner.
Source: “What It is Like to Go to War Quotes,” GoodReads
Source: “Retired officer shares his knowledge on homelessness and why many veterans,” The Mendocino Beacon, 05/23/13
Source: “VA Medical Appointment Scheduling Contest,” Challenge.gov
Source: “Veteran’s I.D. Card Act,” SunlightFoundation.com
Image by Maryland GovPics.
Suicide among active-duty military personnel has been a much-discussed topic in the past couple of years. The Department of Defense has a system in place that records suicide data from all branches, and the information is available month by month. They don’t wait until the end of the year to tally up and release the total.
Still, the numbers are uncertain, because authorities are not always sure what happened. Here is a sample from a government press release:
For 2012, there have been 182 potential active-duty suicides: 130 have been confirmed as suicides and 52 remain under investigation… For 2012, there have been 143 potential not on active-duty suicides (96 Army National Guard and 47 Army Reserve): 117 have been confirmed as suicides and 26 remain under investigation.
This is just the Army. Though statistics from the other branches are compiled they are hard to find. And even concerning the Army, it is perhaps not widely realized that the category of “not on active duty” (in the reserves) is counted separately from active duty.
Speaking of the National Guard, some journalists conscientiously keep track. For ABC15 News, Lori Jane Gliha reported on one particular group of nearly 200 Arizona soldiers who had been sent to Iraq together. In 2006, only some of them came back. Gliha wrote:
It was a long, tough deployment. Thirty-six members received Purple Hearts and two were killed in Iraq… Since their return, the unit has lost twice as many soldiers to suicide.
Likewise, “not on active duty” is of course different from discharged. When it comes to veterans, no matter who collects the data, or how, it is bound to be approximate. For one thing, death certificates don’t always note whether the person was a veteran, nor do they always specify that the death was by suicide. The federal government gets its statistics from death certificates, so it only know as much as those documents tell. The latest report from the VA’s Mental Health Services Suicide Prevention Program (59 pages) can be found in downloadable PDF format.
Compiled by Janet Kemp and Robert Bossarte, this report got its information from the State Mortality Project, Suicide Behavior Reports, and the Veterans Crisis Line. Until the system is really up and running, the information only comes in from 21 states. Even more discouraging, the states that have so far caught up with the reporting requirements do not include California and Texas, both of which contain vast numbers of military veterans. So the figures are derived from less than half of the states, and extrapolated to the nation as a whole. In other words, the veteran suicide total is a wild guess.
Writer Pat Shannan looks at the problem from another angle:
Using figures from the National Violent Death Reporting System, Portland State University noted that male veterans kill themselves twice as often as their civilian counterparts and that female veterans are three times more likely to commit suicide than civilian women… Figures gleaned from the two wars showed while 6,460 died in combat in Iraq and Afghanistan in the past 11 years, those United States soldiers who died by their own hand is estimated to be greater than that.
In a little over a decade, more active-duty soldiers took their own lives than were killed in combat. (Has this happened ever in history?) The veteran suicide rate is estimated to be about 8,000 per year, which breaks down to 22 per day, which translates to almost one every hour! Among them, Vietnam veterans are still very present. They sometimes refuse to seek help. At-risk vets who have started the process of seeking help for suicide prevention, sometimes don’t follow up. In Psychology Today, Eric Newhouse wrote about the total number of suicides in America for the time period:
Of the 60 year olds, only 8.1 percent were civilians, but 16.5 percent were vets and 19.6 percent participated in the VA system. Of the 70 year olds, only 4.6 percent were civilians, but 18.6 percent were vets and 20 percent participated in the VA system.
In other words, even though one out of five of those older vets were hooked up with the system, it apparently was not able to prevent their self-destruction. This is bitter news.
The Military Suicide Research Consortium (MSRC) is an entity created by the Denver Veterans Affairs Medical Center and Florida State University, and funded by a $17-million Department of Defense grant. The MSRC’s mandate is to integrate the powers of both governmental and civilian agencies, to turn this trend of military suicide around. It is headed by a colonel and assisted by a military advisory board, so, as the saying goes, “consider the source.” Is it a cosmetic effort to make a bad situation look better?
Apparently not. The MSRC does not seem to be trying to hide a thing. Via its website, a large number of “white papers” are available for consultation, including studies of the efficacy of herbs and nutritional supplements for suicide prevention, and other surprising topics. Also, the site contains such headlines as:
Survivor Suicides: Alarming trend of family members committing suicide after service members die in battle.
Yes, the collateral damage includes the relatives and spouses of the direct-combat casualties. There is yet another layer of complication to cope with, as military courts struggle with the question of whether a suicide attempt by an active-duty service member is a prosecutable crime under the Uniform Code of Military Justice.
Furthermore, those who are considering suicide may be reluctant to seek the help they need because if they live, the unfavorable notations on their permanent records will hinder however much of their military career remains. Another unwelcome surprise is the knowledge that personnel who were assigned to more covert activities when on active duty in, for instance, Iraq and Afghanistan, have an even harder time getting help than the average service member.
When it comes to the next subcategory we will consider, homeless veteran suicides, the numbers are even more fuzzy. As far as anybody knows right now, about 62,000 veterans are experiencing homelessness. Although both the Veterans Administration and the Department of Housing and Urban Development collect data, accuracy is frustratingly elusive. When the suicide of any homeless person is reported to the national database, information about the individual’s military service is provided (or not) to the staff of the funeral home by the family, if there is any family. For many homeless suicides, such information is simply unavailable.
Source: “Army Releases December 2012 and Calendar Year 2012 Suicide Information,” Defense.gov, 02/01/13
Source: “Arizona National Guard soldiers slipping through cracks as veteran suicide rates rise,” ABC15.com, 04/16/13
Source: “Department of Veterans Affairs Mental Health Services Suicide Prevention Program,” VA.gov, 2012
Source: “Military Suicides Hit Epidemic Levels,” American Free Press, 03/27/13
Source: “Soaring Vets’ Suicide Rates,” Psychology Today, 03/06/13
Source: “About the Military Suicide Research Consortium,” MSRC
Image by Greg Watt.
William Dunkelburg, contributor to the Forbes magazine and author of The Minimum Wage: More Baloney, is a special kind of elitist. He is out of step with the times, economists, the Small Business Administration, and the special symbiotic relationship between employers and employees.
He starts off by reflecting upon the small business majority (SBM): “Scientific opinion polls show small business strongly supports raising the minimum wage.” Rather than realizing that countless minimum wage myths been debunked and abandoned as so much “baloney,” he clings to sophomoric perspectives and attacks poll methodologies while ignoring common sense.
For example, on the Small Business Administration website, we found a report by Amy Knaup, “Survival and Longevity in the Business Employment and Dynamics Data Base,” that determined that by the end of the fourth year, 64% of all new business startups fail. The report goes on to announce that by the end of the fifth year, a 90% failure rate occurs.
When examining these failed small business plans, House the Homeless suggests that while adequate attention may be paid to manufacturing, advertisement, transportation, warehousing, etc., when it comes to their minimum-wage workers (restaurant workers, construction laborers, janitors, day care aids, store clerks, bank tellers, fast food workers, theater attendants, farm workers, receptionists, maids, poultry processors, garage attendants, retail salespeople, car washers, manicurists, ambulance drivers, landscape workers, data entry processors, elder care aids, security guards, infant care workers, warehouse, general laborers, etc.), the businesses are setting themselves up to fail by paying less than a stabilizing wage.
They are paying less than a living wage: enough to simply pay for a basic food, clothing, and shelter. That “penny wise and pound foolish” practice destabilizes the business. Many, many small businesses see the pool of unemployed workers as an endless resource for employment. The reality is that the resulting employee turnover attacks the business’ bottom line in terms of retraining costs that are exorbitant. House the Homeless has estimated this to be in the billions of dollars. (See book: Looking Up at the Bottom Line.)
Furthermore, by paying a stabilizing wage (a living wage), we can drastically reduce taxpayer subsidies in the form of excess food stamps, general assistance, temporary assistance to needy families, Earned Income Tax Credit (EITC), Medi-cal, etc., which can also result in billions of dollars in savings to taxpayers. (Again, see book: Looking Up at the Bottom Line: The Struggle for the Living Wage).
Mr. Dunkelburg is correct in that study after study has shown that increased wages to minimum-wage workers have been spent right back into the economy. What he does not realize is that due to businesses paying less than living wages since the 1980s, over 1,000,000 minimum-wage workers now needlessly comprise a portion of 3.5 million people experiencing homelessness in this nation.
Upon passage of the Universal Living Wage, these American workers will instantly be empowered to return to the workforce. Additionally, they all need the same thing: affordable housing. The American housing construction industry, both locally and nationally, will leap at the opportunity to create the affordable housing that this population will again be able to afford.
Mr. Dunkelburg states that: “And geography matters, the minimum wage goes a lot further in Ohio than in New York City.” His core thought is correct but he fails to realize the broader implication and the need to create a stabilized workforce.
The United State Military has adjusted its pay system from Variable Housing Allowance (VHA) to Base Housing Allowance (BAH), recognizing that it costs different amounts to live in different areas of the country, and you must pay accordingly in order to have an economically stable workforce. Similarly, the federal government now pays “Locality Pay” to acknowledge the varying costs and the need to pay living wages, so as to stabilize the workforce across the board.
Mr. Dunkleberg then presents an elaborate (if skewed) observation that there are fewer teenage minimum-wage workers and then makes the assumption that that is due to increases in the minimum wage. The moral standard is to pay a fair wage for a fair day’s work. If the worker successfully completes the unit of work, then it does not matter if they are 17 or 71. It is, however, the prerogative of the employer who is hired, but we don’t discriminate against anyone.
In closing, Mr. Dunkelburg states, “High labor costs ultimately show up in higher prices.” He follows with, “All in all, raising the minimum wage is poor policy.”
An example of the non-inflationary relationship between wages and the cost of goods can be found in the1996 survey report entitled: “Think Again: A Wage and Price Survey of Denver Area Fast Food Restaurants.” The survey focused on four national fast food chains: Arby’s, Burger King, McDonalds, and Taco Bell. The lowest-paid Arby’s employees were found at a franchise charging the second highest price for a meal. Conversely, a Taco Bell, while paying $1.50 per hour above other restaurants for starting wages, had the lowest food prices among the 12 other Taco Bells restaurants surveyed. Overall, the study showed that just because wages rise, there is not, and does not have to be, a corresponding increase in prices.
It would appear that the rise is more of a question of what the market will bear, not what the consumer will tolerate. This is not to say that there will not be economic pressures of an inflationary nature. However, minimum-wage workers deserve to be paid a wage that will afford them a roof over their heads other than a bridge. They are just seeking the bare minimum to afford basic food, clothing, and shelter (such as an efficiency apartment).
Large employers may need to learn to live with a little less profit, and small employers may need to learn to grow at a much more reasonable rate, but by paying a living wage, they will have a stable workforce that may well ensure their business’ survival. At the same time, a generalized increased demand for goods, and a new reasonable profit share, will protect the business’ bottom line from being negatively affected by wage increases that afford their employees a minimal existence.
Source: “The Minimum Wage: More Baloney,” Forbes, 04/29/2013
Twenty years ago, Dr. Roseanna Means looked around Boston and didn’t much care for what she saw — homeless women on the streets. She started volunteering at homeless health clinics, and in 1998 started her own nonprofit, Women of Means, which now encompasses a team of 16 volunteer doctors who collectively chalk up 10,000 professional visits per year with women experiencing homelessness.
For CBS News, Elaine Quijano learned what inspired such activism. Dr. Means told the reporter:
When I see these women, I see this could be me, it could be you, It could it could be any one of us, because there’s nobody that goes through life without having any problems. My own personal life, I’ve been through cancer, I lost a child, I’ve been through divorce, I have steel knees — I’ve been through lots of personal things in my life.
Last year, the same news agency profiled another Massachusetts medic, Dr. Jessie Gaeta of Quincy. This success story, reported by Seth Doane, merits close attention from other cities. Working in the emergency room at the Boston Medical Center made one thing very clear to Dr. Gaeta — for many homeless patients, it was a “revolving door.” She is quoted here:
It wasn’t until I had just a couple of patients housed that I saw this turnaround in their health. Basically I was seeing that if I could write a prescription for keys to an apartment that that was going to do more to improve the health of the patient sitting in front me than the prescription I can write for anything else.
In 2006, Dr. Gaeta got state funding for the program known as “Home and Healthy For Good,” which espouses the “housing first” principle, i.e., first get the person under a roof and between some walls, then bring on the counseling, substance abuse programs, and other measures (a model embraced by House the Homeless at its inception in 1989, as may be guessed from the name).
Here’s what happened in Massachusetts, and watch out, because this part will knock your socks off:
The program has helped reduce homelessness by 63 percent in Quincy and has also cut medical costs for formerly homeless people by more than two-thirds.
‘It was astonishing that a year into this project, we saw such a decrease in medical costs, that we could basically more than afford to pay for the housing,’ said Gaeta.
The “Housing First” philosophy is based on the concept of meeting people where they are, and the reason it works is because where they are is really the only place at which people can be met, no matter how fervently opponents might wish it were otherwise. We hear it again, from Ken Stevens of Waterville, Maine, who says:
My mission is meeting people at their point of need.
The North East Dream Center is where it happens, we are told by journalist Amy Calder. Volunteers pick up or drop off donations for the food warehouse. “Unemployable” people experiencing homelessness and ex-convicts are set to work making furniture and learning skills. Clothes and counseling are also available. The furniture sales help pay for gas to get more donated food so Stevens and his crew can deliver it to food pantries, soup kitchens, and senior citizens all over the surrounding area.
Now Stevens, with the help of Mid-Maine Chamber of Commerce president Kimberly N. Lindlof and other supporters, is raising money for a larger space where these activities can continue with the addition of more ambitious plans. Calder writes:
A big part of the plan is to launch a manufacturing incubator that would provide administrative support and space for 20 startup businesses, as well as jobs and training for people, including those who are ‘unemployable.’
When asked if he has formal training to run such an enterprise, Stevens answers:
Yes. I got trained by the best — God’s spirit.
Source: “Boston doctor’s kindness helps save homeless,” CBS News, 04/23/13
Source: “Mass. doctor’s prescription for homelessness,” CBS News, 02/23/12
Source: “From homeless and hopeless to vital link in the food pantry chain,” KJOnline.com, 03/24/13
Image by Matt Lemon.