“What’s the score in your community?” “What
percentage of households make enough money to pay their annual bills?” “What percentage of 4th graders (9
and 10 year olds) can read at grade level?”
Chances are that you have no idea
what the answers to these questions are.
However, the answers to these two simple questions are the key to peace
and prosperity in your community, your country and the world as a whole.
If someone asked you what the score of the
last game your favorite sports team played you could probably tell them the
score and where your team stands in comparison to their biggest rivals. However, if you were asked “How does your
community compare to the next town over in terms of household incomes or
reading levels?” you could not give a good answer.
According to the Central Intelligent Agency’s
(CIA) The World Fact Book and the
United Nations, more than 50% of the people in the world are unemployed or
underemployed (they do not make enough money to pay their bills). One of the primary reasons for this is that
there is no globally accepted way to keep score on the economic and educational
well-being of local communities around the world. Consequently, the voting public cannot hold
politicians accountable for improving the quality of life in the community they
represent. This
results in lower quality of life for residents.
There are a lot of measures used by global
development agencies. However, they are
so complex and focused on the wrong measures that they are not understood or
accepted by the general public. It is as
if, in major sports competitions, we ignore the number of points scored and
determine the winner of a soccer game by the number of shots on goal or a
football game by the number of yards rushed or a baseball game by the number of
base hits each team has. As sports fans,
we would never accept this type of scoring.
However, in the game of life we do not hold politicians accountable for improving
society because we do not have an easy to understand way to keep score on the trends
in the financial and intellectual health of the people who elected them. The Middle
Class Movement (MCM) was founded
to change the world by keeping score on the economic and educational health of
every municipality in the world. We call
this effort the “Middle Class Movement”
because it is focused on using an unconventional approach to reverse the
shrinking of the middle class by exposing the economic realities of the world.
Looking at Poverty in a New Way
The MCM
will develop and utilize many different indices in the future. However, the Movement is focused initially on two of the areas that are the
foundation of a healthy city, county, state, country and world. We are attempting to reduce two very
important types of poverty. The first,
and most obvious, is “Financial Poverty” which we measure using the Living Wage Index (LWI). This type of poverty
is defined as the state of having inadequate income. People who fall into this category do not
have enough money to pay their bills.
Most social programs around the world are focused exclusively on this
type of poverty and ignore other aspects of poverty.
The second type of poverty, which is
frequently overlooked, is called “Educational Poverty” which we measure using
the Reading Level Index (RLI).
This type of poverty is defined as the state of having an inadequate
education. People who fall into this
category cannot read at grade or job level.
Educators are interested primarily in reading levels in school. However, research based assessments of
reading (i.e. Lexile Framework for Reading) indicate that there are defined
reading levels required for different types of jobs. Tragically, too many adults are so
educationally poor (they don’t read at a certain job level) that they will
never have access to jobs above their very low reading level.
There is a tragic cycle of modern poverty
rooted in the unfortunate reality that too many people grow up in families
experiencing financial poverty which creates an “Emotional Poverty” which leads
to an inadequate education which results in educational poverty which prevents
gainful employment which leads to financial poverty which results in this cycle
continuing for generation after generation.
Sadly, in many families financial and educational poverty is inherited.
This cycle of poverty is a drain on
society because financial and educational poverty is the root cause of
unemployment, illiteracy, violence, emergency room use, hunger, homelessness, crime,
incarceration and even the recruitment of terrorists. In addition, billions of dollars are spent on
safety net programs that treat the results of poverty. A 2008 study entitled The economic costs of childhood poverty in the United States by
Harry J. Holzer, et. al. estimates that childhood poverty costs the US 4% of
GDP or $500 billion annually (which would be $697 billion today). Programs that reduce the two types of poverty
have the potential to save tax dollars and improve society by increasing
employment and reducing the most significant social problems in a
community. These programs can also
enhance national security by limiting the ability of terrorists to recruit the
poor.
The United States (US) is the most
influential country in the history of the world. We have the potential to, without the use of
our military, influence other countries to focus on improving the quality of
life in their local communities by using two simple, yet powerful, measures. The Middle
Class Movement is a global effort to measure the well-being of local
communities. However, because of the
relative influence and easy access of data in the US, our initial efforts are
focused on establishing these measures in America first and then expanding them
throughout the world. Let’s explore the
two ways we are keeping score – the LWI and
the RLI.
Living Wage Index (LWI)
The Living
Wage Index (LWI) is based on the
“Living Wage Calculator” developed by the Massachusetts Institute of Technology
(MIT). The calculator shows the minimum
income required to survive (frequently called the “Living Wage”) in every
county in the United States. In the US,
we utilize US census data to calculate the percentage of households in municipalities
in these counties that earn a living wage.
We are in the process of calculating the LWI in other countries using available data. The LWI is in many ways the most important
measure in a country because it indicates what percentage of people in every
municipality in that nation that are in a “Living Wage Crisis” because they are
not making enough money to pay their bills every month to survive.
The national average of local LWI calculations is a much better
measure of the local economic health of a country than Gross Domestic Product
(GDP) or the national stock market index.
The GDP or stock market index of choice provide information about the
aggregate financial health of the country.
However, they provide little insight into the economic conditions of
municipalities or average citizens.
Communities with a high LWI
will generally have a higher quality of life than communities with a low LWI.
We found the results of our initial calculations to be very
surprising. In most major cities in the
US, more than 30% of the households are in “Living Wage Crisis” (they do not
make enough money to pay their bills).
We list the LWI percentages for some of
the best known cities below and include, in parenthesis, the percentage of
households in that community that don’t make enough to pay their bills (we call
those “Living Wage Crisis Households”).
The US is the wealthiest country in the history of the world. That is why the percentage of households in
living wage crisis in cities is startling.
This is particularly disturbing because the LWI is a measure of household income not individual income. Consequently, it reflects the income of
multiple income earners in a household that, even together, do not earn a
living wage income. Our surprising LWI findings are below:
Living
Wage Index (Percentage of Households in Living Wage Crisis)
· Baltimore
– 58.04% (Living Wage Crisis Households: 41.96%)
· Camden,
NJ – 32.71%. (Living Wage Crisis Households: 67.29%)
· Chicago
– 62.40% (Living Wage Crisis Households: 37.60%)
· Dallas
– 55.81% (Living Wage Crisis Households: 44.19%)
· Detroit
– 44.41% (Living Wage Crisis Households: 55.59%)
· Houston
– 61.25%. (Living Wage Crisis Households: 38.75%)
· Los
Angeles – 56.52% (Living Wage Crisis Households: 43.48%)
· Memphis
– 54.99% (Living Wage Crisis Households: 45.01%)
· Newark,
NJ – 43.81%. (Living Wage Crisis Households: 56.19%)
· New
York City – 60.93% (Living Wage Crisis Households: 39.07%)
· Philadelphia
– 57.86% (Living Wage Crisis Households: 42.14%)
· San
Diego – 66.10% (Living Wage Crisis Households: 33.90%)
These astounding percentages of financial
poverty in a country with a GDP of 17,419 billion dollars provide several
important lessons for public policy makers.
First, financial poverty is not
some arbitrarily contrived government determined income level. The government reports poverty rates that are
a third or half of the LWI. True financial poverty occurs when a
household does not make enough money to pay their monthly bills. Second, even though the national economy is
healthy many local economies are in a deep crisis. Macroeconomic models need to be revised to
include something we call “Neighborhood Economics” (that includes the true
economic health of a municipality instead of top down regional aggregate
analysis).
Third, criminal activity in these cities
is high because large percentages of people have to do illegal things to pay
their basic bills and survive. Fourth,
policies like increasing the number of local police to reduce crime is addressing
a symptom of the living wage crisis not the root cause of the problem which is
the lack of local jobs. Clearly these
households are surviving one way or another. They are paying their bills
through the underground economy of not paying taxes, taking unreported cash
only jobs, selling drugs or stealing.
Hiring more police will not change that.
It will lead to greater conflict between police and people in living
wage crisis and will lead to more violence.
Finally, the solution to financial poverty is the development of
policies that support the growth of local businesses that hire local
residents. Ensuring that local
businesses get meaningful tax breaks for hiring and training local residents is
a powerful way to effectively address the living wage crisis in these cities.
Reading Level Index (RLI)
One of the most eye opening discoveries of
the MCM to date is that there is very
little publicly available and easily accessible data on the reading levels of
local public school students across the nation.
There is plenty of easy to find public information on national
high-stakes standardized test scores.
However, there is very little public information on reading levels of
early learners in specific schools.
Every public school in the US uses one or more assessments to gauge the
reading levels of students in the first, second, third and fourth grades. The report Early Warning: Why Reading by the End of Third Grade Matters
sponsored by the Annie E. Casey Foundation, provides an “eye opening”
explanation of why students who are not reading at grade level in 4th
grade are likely to struggle in school and life. The study confirms that students learn to
read by third grade and read to learn after that. If they are not reading at grade level in 4th
grade they are more likely to drop out of school and experience financial
poverty. The Reading Level Index (RLI) is simply the percentage of 4th
graders who are reading at grade level.
The Casey report and others indicate that the
assessment of 4th grade reading levels is a powerful measure because
it is not only an early indicator of student academic performance through high
school, it is an accurate predictor of future graduation rates, crime rates,
unemployment levels and financial poverty.
In some localities around the world, estimates of future prison
construction needs are based on the reading levels of 3rd and 4th
graders. Communities with a low RLI are likely to struggle for many
years to come because of the lack of an educated local future workforce. Our disturbing findings on the percentage of
students who were “Proficient” or “Advanced Proficient” in reading, based on
the 2013 National Assessment of Educational Progress (NAEP) reading scores, are
listed below. The RLI, the percentage of 4th graders reading at or above
grade level, is the first percentage.
The percentage of 4th graders not reading at grade level,
which we describe as being in “Reading Level Crisis,” is provided in the
parenthesis.
Reading
Level Index (Percentage of 4th Grade Students Reading Below Grade
Level)
· Atlanta
– 27% (Reading Level Crisis: 73%)
· Baltimore
– 14% (Reading Level Crisis: 86%)
· Boston
– 26% (Reading Level Crisis: 74%)
· Chicago
– 21% (Reading Level Crisis: 79%)
· Cleveland
– 9%. (Reading Level Crisis: 91%)
· Dallas
– 16% (Reading Level Crisis: 84%)
· Detroit
– 8% (Reading Level Crisis: 92%)
· Houston
– 20%. (Reading Level Crisis: 80%)
· Los
Angeles – 18% (Reading Level Crisis: 82%)
· Miami-Dade
County – 35% (Reading Level Crisis: 65%)
· New
York City – 28% (Reading Level Crisis: 72%)
· Philadelphia
– 15% (Reading Level Crisis: 85%)
In an extraordinarily wealthy country,
with the most respected higher education system ever developed, it is tragic
that more than 60% of the 4th graders in every major US city do not
read at grade level. Incredibly, in many
of these cities, more than 80% of the 4th graders do not read at
grade level. We believe that once the
general public is aware of the realities of LWI
and RLI they will influence leaders
to make policies that increase these measures their top priority. It is clear that improving the LWI and RLI in every city in America
should be at the top of every politician’s agenda.
We the People
The US Constitution, one of the most
influential documents in human history, begins with the words “We the People, in Order to form a more
perfect union,…” It is time for a
global constitution that reads “We the
People, in Order to form a more perfect world,…” Thanks to social media, “We the People” have never had more influence in the world. When it comes to reducing the two types of
poverty, “We the People” are not
liberal or conservative, male or female, black or white or gay or
straight. “We the People” are citizens of the world committed to leaving
society better off for the children of the world. The Middle
Class Movement is focused on bringing “We
the People” together to improve global society in a measurable positive way.
“We
the People” have the power to demand that world leaders keep score on the
number of households that can’t pay their bills and the number of 9 and 10 year
olds that cannot read on grade level.
The Middle Class Movement was
founded to rally “We the People” to
hold leaders accountable for keeping score and implementing policies like reducing
taxes on local businesses and other job creators to increase the Living Wage Index. We will also influence education officials to
provide incentives to schools and parents for improved reading levels to significantly
increase the Reading Level Index.
The universally accepted scoring system in
every major sport enables teams to develop comprehensive strategies to win a
contest or even the championship. A universally accepted scoring system in
society will help government, corporate and nonprofit leaders develop
comprehensive strategies to “win” by reducing the two types of poverty. The MCM is
leading the effort to reduce the two types of poverty by keeping score in every
municipality in the world in a way that will motivate “We the People” to action. If this approach works for poverty then
it can be a model for solving many other problems in society.
If you are interested in helping us keep
score on society and influence political and other leaders to action against
poverty, please email me at dalegcaldwell@aol.com
or call me personally at (844) 208-9808.
Our website will go live on November 1, 2015. We will ask you at that
time to visit our website www.MiddleClassMovement.com
and sign our petition to support the Living
Wage Index (LWI) and the Reading Level Index (RLI) as measures of global municipal
well-being. We need your help in
changing the world for the better.