Food Stamps Are an Investment in the Future

That, in essence, is the finding of one of the largest studies of its kind on what is officially known as the Supplemental Nutritional Assistance Program (SNAP). Since being nationally mandated in 1975, SNAP has remained the largest national anti-hunger program: last year along, more than 40 million poor working families, people with disabilities and seniors received assistance averaging to about $125 monthly; 70 percent live in households with children.

Whatever the moral case for supporting SNAP, there is certainly an economic one, as one of the largest studies of its kind recently proved.

From Bloomberg:

The economists focus on people born between 1956 and 1981, who were young children when the program was expanding, and who grew up in families with a parent with less than a high school education. They find that access to the program as a young child significantly improved economic outcomes and health status as an adult.

In particular, food stamp access as a child was associated with much lower risk of metabolic syndrome as an adult and, especially for women, higher levels of educational attainment and income along with lower participation on means-tested benefit programs. For example, food stamp access during childhood is linked to a 5 percentage point reduction in heart disease and an 18 percentage point increase in high school completion rates, compared to those who lacked access.

This evidence contradicts some critiques of food stamps, which misleadingly argue that it’s an inefficient and ineffective program.

The authors also highlight that access seems to matter most in utero and up until age 5. Gaining access to food stamps after age 5, by contrast, didn’t improve health outcomes as an adult, perhaps because the person had already been put on a particular health trajectory by that age.

As typical in such studies, there is a question of “correlation versus causation”, but the gradual rollout of SNAP allowed the researchers to account for this because “children living in otherwise similar families either did or didn’t receive benefits depending on whether their county voluntarily participated at the time. (The researchers show that county choice seems to be unrelated to other factors that may have substantially affected children living there.)”

The study also demonstrates the importance of taking a long-term view of these sorts of programs, especially when children are involved. Various other studies suggest that investing in the formative early years of one’s life pays huge dividends later; that is obviously lost on those who focus only during the year the benefit is received. 

The Three Richest Americans Hold More Wealth Than Bottom 50 Percent

Using data from Forbes’ annual ranking of the 400 richest Americans, the Institute for Policy Studies, a left-leaning D.C. think tank, published a report last fall finding incredible wealth disparities in the United States. As Forbes reported:

Most dramatically, it found that the country’s three richest individuals—Bill Gates, Warren Buffett and Jeff Bezos—collectively hold more wealth than the bottom 50% of the domestic population, “a total of 160 million people or 63 million American households.” Roughly a fifth of Americans “have zero or negative net worth,” the authors wrote.

Bezos, Gates and Buffett held a combined fortune of $248.5 billion in mid-September, when numbers were locked in for the 2017 Forbes 400list. Since then that figure has risen to an estimated $263 billion, thanks largely to Bezos, whose worth has jumped more than $13 billion as the result of a surge in Amazon’s share price.

“If left unchecked, wealth will continue to accumulate into fewer and fewer hands, a trend we’ve been witnessing for decades,” wrote Josh Hoxie, one of the study’s co-authors.

Continue reading

The Cities and Countries with the Most Super Rich

According to a report from Bloomberg, Hong Kong surpassed New York City with the highest population of people worth at least $30 million:

The former British colony saw its number of ultra-wealthy increase 31 percent last year, to about 10,000, research firm Wealth-X found, higher than the nearly 9,000-strong population of the U.S.’s largest city. Tokyo came third, while Paris beat out London to take the European crown as Brexit weighed down the U.K. capital.

The number of ultra-rich worldwide rose 13 percent last year, according to Wealth-X, totaling about 256,000 people with combined assets of $31.5 trillion. Asia saw the fastest growth, driven by mainland China and Hong Kong, the study’s authors wrote. Reflecting the region’s rise, its share of the global population of people with at least $30 million rose to just over one-fourth, up from around 18 percent a decade ago.

[…]

Women accounted for about 35,000 of the ultra-rich last year, a record-high share of nearly 14 percent, the study found.

While Hong Kong topped the city rankings, nowhere in mainland China made the top 10, despite the country being third in the list of nations. That’s because China’s wealthy are widely dispersed, illustrated by the fact it was home to 26 of the 30 fastest-growing cities for the ultra-rich.

screenshot-www.bloomberg.com-2018.09.20-16-16-47

Although the world’s wealthiest tend to concentrate in major cities — since they are centers of global trade, politics, and commerce, as well as leisure and recreation — they are dispersed enough to change the results when one looks at a national level: for example, countries like Canada and Germany are home to some of the world’s largest communities of millionaires, even though none of their cities are in the top ten:

screenshot-www.bloomberg.com-2018.09.20-16-15-56

 

Similarly, no city in mainland China made the top ten, despite the country being third in the list of nations. That is because China’s wealthy are widely dispersed throughout the numerous economic and metropolitan hubs across the country — in fact, all but four of the 30 fastest-growing cities for the ultra-rich are Chinese.

Moreover, Bloomberg notes that the sheer scale of wealth is being pushed ever upward: though billionaires are of course still rare, they are less so than they used to be; the same goes for millionaires of all levels.

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One should ask how it is that the global economy can produce such unfathomable concentrations of wealth into a sliver of individuals and communities, when literally half the world remains mired in poverty (and most of the remaining half teetering). Around the same time that Hong Kong climbed to the top spot as home to the ultra-wealthy denizens, its poverty rate has increased to one out of five residents.

Fifty Cents to Avoid a Lifetime of Debilitation

Some weeks ago, I read a piece in The Economist that has stayed with me. It was about the efforts of Sierra Leone, among the world’s poorest countries, to combat “neglected tropical diseases” (NTD), a family of 17 diverse communicable diseases that afflict over 1.5 billion in tropical and subtropical areas worldwide.

It featured one victim named Hannah Taylor, who woke up one day with a fever, followed by her legs swelling up to four times their normal size. The physical damage was irreversible, and the subsequent appearance and putrid smell led to her being ostracized by her community. She was a victim of lymphatic filariasis (a.k.a. elephantiasis), a mosquito-borne infection that could have been treated safely with a pill costing no more than fifty cents before it progressed.

But instead, the microscopic worms infested her body, debilitating her. For years she thought she had been a victim of evil witchcraft and was deeply depressed.

Eventually, Taylor put on a brave face and campaigned to raise awareness about the disease, its causes, and why victims shouldn’t be stigmatized. She passed away some weeks prior to the publishing of the article; she was quoted as expressing  happiness that her children would not suffer the way she would, thanks to Sierra Leone’s remarkable progress in fighting the disease.

Progress or not, it is incredible to think that billions of lives are negatively impacted by something as mundane to most of us as a mosquito bite. It is even more incredible that a mere fifty cents – spare change we’d throw in a tip jar without a thought – is all that stands between someone and a debilitating disease. It is utterly senseless that in a world with so much wealth and resources sloshing around that we have not been able to address this vast disparity in health outcomes and quality of life.

 

Finland’s Basic Income Trial Ends — But New Ideas Emerge

I previously discussed the Finland’s basic income experiment, which was one of several being conducted across the world. After a little over a year, the Finnish trial — which involved 2,000 unemployed citizens receiving a flat monthly payment of $685 — has come to an abrupt close following the government’s lack of interest. As the BBC reported:

 

Finland’s two-year pilot scheme started in January 2017, making it the first European country to test an unconditional basic income. The 2,000 participants – all unemployed – were chosen randomly.

But it will not be extended after this year, as the government is now examining other schemes for reforming the Finnish social security system.

“I’m a little disappointed that the government decided not to expand it,” said Prof Kangas, a researcher at the Social Insurance Institution (Kela), a Finnish government agency.

Speaking to the BBC from Turku, he said the government had turned down Kela’s request for €40-70m extra to fund basic income for a group of employed Finns, instead of limiting the experiment to 2,000 unemployed people.

It is unfortunate that a government otherwise open to bold new solutions to social problems has opted out of taking this trial to the next level. Continue reading

Nearly Half of All Americans Avoid Health Care Due to Costs

Courtesy of Forbes comes a depressing yet not entirely surprising report:

Cost continues to be a barrier to treatment with 40% of Americans who say they “skipped a recommended medical test or treatment in the last 12 months due to cost.”Another 32% were “unable to fill a prescription or took less of a medication because of the cost,” the West Health/NORC poll of more than 1,300 adults said.

“The high cost of healthcare has become a public health crisis that cuts across all ages as more Americans are delaying or going without recommended medical tests and treatments,” West Health Institute chief medical officer Dr. Zia Agha said in a statement accompanying the poll results. The survey is being released at this week’s American Society on Aging 2018 Aging in America Conference in San Francisco.

The West Health-NORC poll is the latest national survey showing Americans continued frustration with high healthcare costs even as the U.S. spends more than $3.3 trillion annually on healthcare.

Note that those who skipped doctor’s visits and medication did so despite being sick or injured — such is the state of both the U.S. healthcare system and the national economy.

Also consider the following comparative analysis of maternal healthcare from The Economist:

In 2015, the Lindo Wing [where the third royal baby was born] charged £5,670 ($8,900) for 24 hours in a deluxe room and a non-Caesarean delivery. A survey in the same year by the International Federation of Health Plans found that the average fee for such a delivery in the United States was $10,808. That rises to roughly $30,000 after accounting for care given before and after a pregnancy, according to Truven Health Analytics. Insurers cover most of the cost, but parents are still left with an average bill of about $3,000. In many European countries, free maternity care is available.

A visual of this disparity really drives the point home:

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With all the wealth and economic potential of our $18 trillion-plus economy, one would think we could figure out a way to make having a baby, or getting routine treatment at a clinic, more accessible and affordable.

Executive Bonuses as Motivation

As much of the country laments the demise of Toys R Us — a source of much nostalgia for generations of Americans since the late 1950s — it is worth taking a look at one way the company tried to climb out of bankruptcy just a few months prior: giving its top executives millions of dollars. Quoting a December 2017 article of USA Today: Continue reading

The World’s 2,000 Billionaires Could End Extreme Poverty Seven Times Over

According to the latest report from Oxford International, a U.K.-based confederation of twenty independent charities, the world’s 2,000 or so billionaires saw their collective wealth surge by $762 billion — enough to end abject poverty seven times over.  As Time.com reported: Continue reading

The Rare Privilege of Education

Fewer than 7 percent of the world’s population (6.7 percent) has a college degree of any kind. (This is up from 5.9 percent about two decades ago.) An even smaller proportion of this population has earned a degree beyond a Bachelor’s, and an even tinier fraction of those people have attained a degree from a reputable or good quality institution.
 
As much as I obviously lament student debt, the financial inefficiency and inaccessibility of our education system, etc., I must acknowledge that I am still extremely privileged to be able to pursue a fulfilling career at a fairly prominent law school. I am fortunate to have been born in the right time and place where such opportunities are available; I am lucky to have enjoyed relatively good health, no major family tragedies, good parenting, and an overall stable socioeconomic environment that facilitated my educational attainment and development up to this point.
 
I must never forget how much good luck played a role in where I am today. It is a humbling and effective motivator for working hard and not squandering this rare opportunity, by global and historical standards. (And also a good cause of action to help more people get access to these opportunities..)

Why Do Millions of Children Have to Die?

It is fitting that following my previous post on the growth in the global millionaire community, I decide to reflect on the moral travesty that is child mortality. I say moral because it is a problem that need not still exist to the degree that it does, and that only persists because our global economic system are not sufficiently guided by ethical principles.

Historically, around 43 percent of children died before the age of five; as fairly recently as the 19th century, every second or third child would perish, even in relatively developed Western countries. Although child mortality has declined rapidly over recent decades — down to 4.3 percent globally, compared to 8 percent in 2000 and 18 percent in 1960 — it is still far higher than it should be.

Nowadays, anywhere from 6 to 9 million children die before their fifth birthday, and nearly half of them die within a month of their birth. (This does not include millions more that die before adulthood.) About 42 countries, mostly in sub-Saharan Africa, account for 90 percent of these deaths. Two-thirds of these children die from causes that are easily preventable, namely diarrhea, pneumonia, malnutrition, and malaria. Continue reading