Out of touch

One thing that most people would agree on across the political spectrum is that West Virginia would be better off if more of us were working and earning a living wage. I know I’m down with that.

Unfortunately, some of the ways that have been proposed for working towards that goal are counterproductive and just mean. Possibly cynical, too.

For example, Seema Verma, head of the federal Medicare and Medicaid program under the current regime, recently proposed to solve that problem by clamping down on Medicaid, specifically on those millions of people who gained coverage under the Affordable Care Act. Most of whom work. Go figure.

In a speech to state Medicaid directors, she said things that have at best a tenuous connection with reality. She seemed indignant that some of those who have gained health coverage in recent years are people who “are physically capable of being actively engaged in their communities.”

Let’s start with the basics. They already are. People who gained coverage due to Medicaid expansion had to come from families that had income, although it was under 138 percent of the federal poverty level. That means they weren’t receiving TANF (welfare) or disability payments, in which case they would have qualified for traditional Medicaid.

Generally speaking, that means they work.

Let’s be more specific. These are the people who do the grunt work of society. They wait on us in stores and restaurants. They change our oil. They clean our motel rooms. They wash our dogs. They clean up our messes. And, most importantly, they take care of our children and elders.

It would take a lot to persuade me that Verma didn’t know better when she said that. But if she, and the regime she serves, didn’t, it only shows how out of touch they are with the reality of millions of working people.

According to the Center on Law and Social Policy, around 60 percent of working-age adults on Medicaid have jobs. And around 80 percent are in families with at least one worker. The few that aren’t are usually seeking work, dealing with illness or disability, or caring for other family members.

In her speech, Verma seemed to imply that people like this who get Medicaid coverage enjoy wallowing in poverty and “government dependence.”

(Ever notice that many of the people who complain about this receive some form of health care from the federal government?)

I guess one of the innumerable advantages of being well-off is being spared the knowledge that less than half of all Americans are covered by work-based insurance. According to the Census Bureau, in 2016 only 58.3 percent of West Virginians of prime working age (19-64) get coverage from their jobs.

Here’s the reality in West Virginia. Since 2001, the percentage of low-wage jobs (earning under 150 percent of the poverty level for a family of two) has grown by 14.5 percent, even as jobs in high-wage industries have declined. These jobs typically don’t offer health coverage.

Nearly one in four West Virginians works in such a job. Around 55 percent of West Virginia’s children live in a family with at least one low-wage worker. For many, low-wage jobs are no longer a temporary steppingstone to a better gig but are rather a lifetime path.

Most low-wage workers are white, although blacks make up a disproportionate share. Fifty-six percent are women. Younger workers are more likely to earn low wages, but nearly half of workers above age 35 work in low-wage jobs.

Behold the face of “the enemy.” It may look a lot like our friends, neighbors, relatives and even ourselves.

I think what’s really driving this push at the federal level to cut back on things like health care is the desire of the administration and its allies in Congress to pass a massive “tax reform” package that would give huge breaks to the very wealthy — who don’t need them — at the expense of everyone else. That $1.5 trillion giveaway to the rich has to come from somewhere.

And, under what must be huge pressure from the federal administration, there are officials in West Virginia who seem eager to push for bogus “reforms” that will ultimately reduce the number of people with health care. Cutting Medicaid rolls may seem attractive to some people, even if it means taking away coverage and increasing the costs of uncompensated care for everyone else.

Some options now under consideration include unnecessary and redundant “work requirements” for Medicaid that would wind up taking millions of dollars out of the state’s economy and harming those sectors that are actually providing and increasing jobs.

In the past, Gov. Jim Justice has eloquently defended vulnerable West Virginians. I hope he continues to hold the line.

At this point, no one can say how far these proposed changes will go. But we’d be better off if they didn’t go anywhere.

(This ran as an op-ed in yesterday's Gazette-Mail.)

Raising the floor

Recently, I worked on a report about the state of West Virginia's low-wage workers with the West Virginia Center on Budget and Policy. Some results weren't surprising. The number of low-wage jobs, defined in this case as 150 percent of the federal poverty level for a family of two ($11.59 per hour or under $24,108 per year) has grown by 14.5 percent since 2001, while employment in high wage industries has declined by 2.8 percent.

Key industries employing low-wage workers include grocery stores, retail, food services and personal care for children or the elderly. Nearly one in four West Virginians works at such a job. For many, these jobs are no longer a stepping stone to a better gig but rather a lifelong path. Fifty-five percent of the state's children (200,900 in all) live in a household with at least one low-wage worker.

While most such workers in West Virginia are white, African-Americans are more likely to earn low wages. The rates are 23 and 31 percent, respectively. Fifty-six percent of low-wage workers are women. Younger workers are more likely to earn low wages than those in their prime. Rates shoot up again for workers 65 and older. Still, nearly half of all workers over 35 have low-wage jobs.

One major factor affecting wage levels is, unsurprisingly, educational attainment. Fully 44 percent of those without high school diplomas earned low wages. For high school graduates and those with some college, the rate dropped to 28 percent. Rates of low earners dropped to 12 percent for people with associate's degrees and less than 10 percent for those with a bachelor's degree or more.

One obvious policy change to raise earnings and our state's abysmal statistics would be to put more resources into affordable post-secondary education rather than unproductive tax cuts. Indeed, cuts enacted over the last 10 years were more than enough to pay tuition and fees for a public college education for every student in the state.

It's pretty clear that anything that helps people move from low to living wages - or keeps people from sinking lower -would strengthen West Virginia's economy, boost demand for goods and services provided by local businesses, and help increase the state's chronically low workforce participation rate.

Some other steps in that direction include:

*Protecting West Virginia's Medicaid program. This federal-state partnership provides care to nearly one out of three West Virginians, including 170,000 people from working families earning under 138 percent of the federal poverty level. It also supports thousands of jobs in health care and other sectors. Losing that would be a huge hit to the state's economy and drive thousands of West Virginians into deeper levels of poverty and misery.

*Enacting a refundable state earned income tax credit (EITC). So far 29 states and the District of Columbia have enacted such credits to help people build assets, pay off debts and offset the impact of regressive taxes. The EITC is a proven tool to fight poverty, increase labor-force participation and help workers in low-wage jobs afford necessities. This is no radical idea - recently, the WestVirginia Bankers Association came out in support of a state EITC.

*Protecting and enhancing child care assistance. Child-care assistance is crucial to helping low-income families maintain employment, stay off public assistance and have higher earnings. Without assistance, it is simply unaffordable, forcing workers to choose between child care and a job. Increasing the eligibility level for families from 150 percent to 200 percent of the poverty line could reduce the "cliff effect," which discourages parents from advancing in their jobs and careers.

*Raising and indexing the minimum wage. In 2014 West Virginia passed legislation to increase its minimum wage to $8.75 per hour, $1.50 more than the $7.25 federal rate. That was a step forward but is still not a living wage. It's high time for another hike, which could be phased in over several years and indexed to the rate of inflation.

*Preserving and expanding early childhood education and voluntary home visiting programs. Evidence suggests there is a critical period in early childhood, roughly equivalent to the first 1,000 days of life, which can make a huge difference in cognitive, emotional, social and physical development. These in turn can impact health and economic well-being across the lifespan.

Bottom line: Workers in low-wage jobs constitute a large and important segment of West Virginia's population. These are the people who do some of the most important work in our communities, such as caring for children and the elderly. The steps we take to help them improve their economic status is critical to ensuring a better future for all West Virginians.

(This appeared as an op-ed in Sunday's Huntington Herald-Dispatch.)

HAPPY OR LUCKY?

Caption: It's hard to say if this couple is happy, but they're probably going to get lucky pretty soon.


You can find lots of topics in this week's Goat Rope but the guiding thread is a story about happiness from the Histories of Herodotus. If this is your first visit, please scroll down to the earlier posts.

The story goes that when the very wealthy King Croesus of Lydia (in modern Turkey) entertained the Athenian sage Solon as guest, he had his servants display his vast wealth and then asked Solon who was the happiest of men.

He was fishing for a compliment, as La Cabra sometimes says (although she's not above doing that herself).

And, like many fishermen, he was disappointed. As discussed in the last two posts, Croesus wasn't a winner or even a runner up on Solon's list. Finally in anger, he said

That's all very well, my Athenian fried; but what of my own happiness? Is it so utterly contemptible that you won't even compare me with mere common folk like those you have mentioned?

Solon replied

My lord, I know God is envious of human prosperity and likes to trouble us; and you question me about the lot of man. Listen then: as the years lengthen out, there is much both to see and to suffer which one would wish otherwise...You can see from that, Croesus, what a chancy thing life is. You are very rich, and you rule a numerous people; but the question you asked me I will not answer, until I know that you have died happily. Great wealth can make a man no happier than moderate means, unless he has the luck to continue in prosperity to the end. Many very rich men have been unfortunate, and many with a modest competence have had good luck...mark this: until he is dead, keep the word "happy" in reserve. Till then, he is not happy but lucky...

Look to the end, no matter what it is you are considering. Often enough God gives a man a glimpse of happiness, and then utterly ruins him.

Croesus sent Solon on his way, convinced that he was a fool. But that wasn't the end of the story, as we'll see tomorrow.

GRATUITOUS ANIMAL FEATURE FILM: Fresh from Goat Rope Studios, here is a brief feature film called Dueling Peacocks. (Fear not, the duel involves voices rather than pistols or sabres.) By the way, this is a talking picture. Just don't turn it up too loud.

TAX PROPAGANDA. Don't tell him I said anything nice about him, but Antipode had a good post about "Tax Freedom Day" in his Mountain State Review blog.

EXPANDING THE MIDDLE CLASS is an idea that resonates with many Americans. According to Shawn Fremstad and Margy Waller of the virtual think tank Inclusion, the best way to do that is to improve low wage jobs.

GOAT ROPE ADVISORY LEVEL: ELEVATED