It Sucks to be Poor, Part II

BERKELEY — University of California, Berkeley, researchers have shown for the first time that the brains of low-income children function differently from the brains of high-income kids.

In a study recently accepted for publication by the Journal of Cognitive Neuroscience, scientists at UC Berkeley’s Helen Wills Neuroscience Institute and the School of Public Health report that normal 9- and 10-year-olds differing only in socioeconomic status have detectable differences in the response of their prefrontal cortex, the part of the brain that is critical for problem solving and creativity.

Robert Sanders, Media Relations |02 December 2008

When I lived in the Philippines I quickly discovered that poverty had more subtle effects than I had imagined. Like most Americans, I had seen the television images of crumbling houses and starving kids with their swollen bellies. I am not sure if that is exactly what I expected to see in my little town of Conception, Tarlac, but it is pretty close. And there were certainly lots of crumbling houses and ill fed children. The house next door to mine was a single room, about 12 feet by 12 feet (perhaps 4 meters by 4 meters), occupied by an extended family that often included a dozen people.

That’s the least of it, of course. Maybe even more importantly, poverty had to do with infrastructure. There were the ongoing ‘brown outs’ and ‘black outs’ and minimal indoor plumbing. There were lots of bad roads and poorly running buses; there were no dentists in the rural areas, and no optometrists. People went blind with cataracts from the dust and lost their teeth from eating sugar cane raw. There were also families who had brand new cars; my district was the home district of the Aquino family so we had some good new roads, too. After a while, you noticed that many of the kids at school had small wounds that never quite healed.

They certainly had a lot of energy but these wounds were evidence of chronic, low-level malnutrition. As it turns out, you can be half or one-third or one-fourth starved to death. What happens, often enough, is that your body stops working very well. If you’re a kid, and like all kids, you are constantly scratching your knees or something, these tiny cuts never quite heal. Eventually, we also learned that this low-level malnutrition has cognitive effects as well. Among other things, kids don’t concentrate well when they are poorly fed. I wasn’t surprised, then, to find out that poverty also shapes so-called higher cognitive functions, too, such as creativity.

Vet the Maverick for his Bipartisan Views about Socialism

With politics and the economy foremost on the minds of many, it is no wonder that bailout—a word ubiquitously featured in discussions of the presidency and fiscal policy—took home honors as Merriam-Webster’s Word of the Year for 2008.

Bailout, defined in Merriam-Webster’s Collegiate® Dictionary, Eleventh Edition as “a rescue from financial distress,” received the highest intensity of lookups on Merriam-Webster Online over the shortest period of time. As evident from the 2008 Word of the Year contenders list below, the presidential campaign and financial issues factored heavily in the concerns of our online visitors throughout the year.

Traffic to Merriam-Webster Online now exceeds 125 million individual page views per month. This corresponds to approximately ten lookup requests in the Merriam-Webster Online Dictionary or Thesaurus per second. During peak hours, this may increase to more than 100 requests per second.

Merriam-Webster’s #1 Word of the Year for 2008

I don’t think I need to say more…

Bourgeois Economics

Next, back to basics. Remember that houses are homes, not abstract transactions that can be made profitable with unreasonable levels of leverage/borrowing. I am not advocating a return to the horse-and-buggy days of lending. There is still a role for more conservative securitization, in which packages of home mortgages are sold to the restructured Fannie Mae and Freddie Mac, and a well-regulated private market. However, preserving the connection between originator and borrower is more likely to reduce fraud and consumer abuse.

This will require political and economic leadership to encourage Americans to return to the tough, unpleasant discipline of saving. At the heart of the current meltdown is a stark reality: America is the world’s biggest debtor in both the public sector (budget deficits) and the private sector (financial institutions and corporations). The U.S. financial system is now at the mercy of foreign sovereigns and institutions sitting on enormous piles of cash, much of it from the sale of oil and other products to us.

Back To Basics: Restoring the Human Connection in Mortgage Lending, Emma Coleman Jordan

It sounds like standard vulgar Marxist criticism, but this sort of faux economic talk does no one any good at all. It’s not just the awful sentimentality of the ‘it’s a home, not just a house’ variety, although that is bad enough. It’s the pig-headed insistence that the solution to our economic problems, and by implication the origins, lie in individual discipline, or the lack there-of.

It seems only logical to assume that the savings rate must be related to several structural factors, all beyond the control of any individual. Wages, to start, have not exactly been climbing in the last thirty years or so. The ‘Second Gilded Age” initiated by Reagan’s “Morning in America” promoted hyper-consumption as the highest value. Then you have those pesky medical bills.

What we need is strengthened organized labor and higher wages, national health care, and a vigilante government regulation system. The entire point of the current system is to insulate capital from its own excesses by neutralizing the checks and balances in a democracy. It’s capital, not labor, that needs the ‘tough discipline’ of markets designed to meet human need.