Documentary Raises Four Big Issues About Poverty

May 14, 2014 by Sean Miskell in Blog, Economic Opportunity

Last week, the Maryland Center on Economic Policy participated in a screening of the documentary “American Winter,” an evocative film that captures the nature of poverty in contemporary America. Along with our friends at Fuel Fund of Maryland, Maryland 211, and the Johns Hopkins School of Public Health, we participated in a panel discussion and audience Q&A about the issues raised by the film. While much of the film’s power comes from its stories of real families struggling in the economy, both the film and the conversation that followed raised four important issues about poverty in America.

1) The economy is volatile, and many families are barely hanging on.

 The phrase “I never expected this to happen to me” was common among the families whose experiences were chronicled by “American Winter.” Many of these families had plans for the future that were disrupted by sudden, unfortunate events, such as being laid off  during the Great Recession or the sudden illness of a family member that entailed costly medical bills. The idea that otherwise ‘‘middle class’’ working families can slide into poverty because of events outside of their control defies stereotypes that cast those in poverty as lazy or poor decision makers. While panelist and Johns Hopkins professor Janice Bowie noted that the film shows how commonplace poverty has become in our society, the film’s co-director and co-producer Harry Gantz argued that this indicates we need to change the focus of our discussion about poverty from  who is deserving and undeserving of help toward figuring out  how to improve the economy for everyone.

2) The causes of poverty are complex.

Similarly, “American Winter” showed that that families find themselves in poverty for a variety of reasons. A family’s economic prospects may suddenly change due to  forces beyond their control, such as a recession or ingrained racism. Others may suffer a catastrophic event, such as the death or sickness of a family member.

American Winter also exposed inequality of opportunity. In particular, the film gave voice to children growing up in families living in poverty. These children expressed concern that housing instability was making it hard to exceed in school and worried about their ability to be successful later in life when they were not sure if college would be an affordable option for them. These stories exposed the barriers to economic mobility posed by entrenched and inherited poverty

3) Getting help can be difficult for those in need.

Just as many of the families shown in “American Winter” were surprised to find themselves in need of social services and programs designed to help those in need, many also had difficulty navigating the bureaucracy to get these resources. Doing so can be a full-time job itself, and this can limit access for families that spend their time either working multiple jobs to make ends meet or simply looking for work.

Fortunately, “American Winter” also highlighted the resources families can use to get the help they need. For example, Maryland’s 211 system can help direct those in need to the appropriate services.

4) Policies can relieve or worsen inequality

Much of the discussion following the showing focused on what can be done to address poverty. MDCEP’s executive director, Benjamin Orr, pointed out that addressing poverty involves both enacting targeted policies to assist and provide opportunities to those in need as well as reversing policies that contribute to the growing inequality in the United States and in Maryland.

The 2014 legislative session in Maryland provides an example of this dynamic. While lawmakers took some steps that will help working families, such as increasing the minimum wage and expanding the state Earned Income Tax Credit, other things they did will harm working families. Workers who rely on tips were left out of the minimum wage and millionaires will be able to deduct more of their wealth from the estate tax, which will reduce state resources for schools and other services and increase inequality. The panel concluded by naming policies that can help reduce inequality, including providing incentives for businesses to hire more workers, sustainable and affordable solutions to meet residents’ energy needs, a more equitable tax system that treats investment income the same as income from work, policies to help families stay in their homes, and programs that help low-income families understand how to save and invest.