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36 pages 1 hour read

Kathryn J. Edin, H. Luke Shaefer

$2.00 a Day: Living on Almost Nothing in America

Nonfiction | Book | Adult | Published in 2015

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Introduction-Chapter 1Chapter Summaries & Analyses

Introduction Summary

The opening pages introduce us to Susan Brown, a woman who lives on the South Side of Chicago with her husband, daughter, and three other family members. They live together in a crumbling three-bedroom house with little more in their refrigerator than a small amount of baby formula. The neighborhood was once comfortably middle class with plentiful stable jobs—but then the jobs dried up, and the drugs and the violence moved in. Susan and her husband, Devin, have had little success in finding work. Without an income, they are too destitute to move away.

 

Susan and her family are just one of the roughly 1.5 million American households who survive on an income of less than $2 per person, per day. A welfare reform in 1996 dramatically reduced the cash assistance system, replacing it with a safety net that is designed to serve the working poor. People like Susan would like nothing more than to have a full-time job paying a living wage, but there simply aren’t enough jobs for everyone who needs one. When a low-wage labor market is combined with a lack of cash assistance for the unemployed and underemployed, the result is $2-a-day poverty.

 

Kathryn J. Edin has spent decades talking with people from low-income communities across the country. In 2010 she noticed that many of the people she talked to had virtually no cash income at all—a stark difference compared to her research from 15 years before. H. Luke Shaefer corroborated Edin’s observations by analyzing data from a nationwide survey called SIPP, or the Survey of Income and Program Participation. Shaefer’s analysis showed that government programs like SNAP (which provides food stamps) are reaching many of the poorest members of society. But even counting benefits like SNAP and housing subsidies as though they were cash, he found that $2-a-day poverty has been rising over time in households with children. Since the 1990s, the families at the very bottom of the socioeconomic ladder have increasingly come to experience cashless poverty.

 

Edin and Shaefer set out to learn more about the people who live in these circumstances. Starting in 2012, they visited and talked with 18 families over several months. Eight of those families’ stories are discussed in this book. The authors interviewed people in four locations across the country: Chicago; Cleveland; Johnson City, Tennessee; and rural communities in the Mississippi Delta. The authors believe the government is currently failing to help these families in crisis, while many Americans remain unaware that this level of extreme destitution even exists in the United States.

Chapter 1 Summary: “Welfare Is Dead”

Modonna Harris and her teenage daughter Brianna are Chicago residents who have endured some difficult times. They managed to get by when Modonna had a stable cashier job, but things went downhill when she was fired for something outside her control. They lost their apartment and stayed with family members who didn’t want them there. Modonna couldn’t find a new job despite sending out dozens and dozens of applications. With the little money they had left, they took a small vacation at a hotel in downtown Chicago, then headed to a homeless shelter.

 

Modonna and Brianna receive meals during the week, but they tend to go hungry on weekends. After some persuading from a friend, Modonna reluctantly tries to apply for welfare but is turned away because there are too many people in line for the office to handle. She becomes increasingly convinced that the government simply isn’t providing any cash to the poor.

 

Before the 1996 reform, poor families had the legal right to receive cash assistance through Aid to Families with Dependent Children, or AFDC, a welfare program that was created in 1935 during the Great Depression. It was expanded over time to provide greater help to those in need while demanding nothing in return. Given the strong emphasis on self-sufficiency in the United States, the welfare system came to be demonized as rewarding laziness. Ronald Reagan popularized a narrative in the 1970s about “welfare queens” who chose to depend on government handouts instead of working or marrying. Although research found that most families only received welfare on a temporary basis to get through difficult times, evidence sometimes “doesn’t stand a chance against a compelling narrative” (14).

 

Harvard professor David Ellwood believed that the welfare system could be made more palatable to the American public if it did more to encourage recipients to join the workforce. He proposed several ways the system could be changed, but his ideas became distorted and oversimplified as policymakers latched on to only two of his suggestions: time limits on how long a person can receive welfare during their lifetime, and a requirement that they obtain work.

 

These changes came about in the 1990s. Bill Clinton campaigned on a promise to “end welfare as we know it” (21), wishing to instead focus on helping the working poor. A Republican-led Congress passed a bill in 1996 that Clinton signed into law. AFDC was replaced with a program called Temporary Assistance for Needy Families, or TANF, which imposed time limits and work requirements. At the same time, benefits for poor working families were expanded, most notably through the Earned Income Tax Credit (EITC), which provided an income boost to those who had formal employment. This new emphasis on the working poor meant that Modonna Harris received more government benefits when she had a job than when she was unemployed and needed help the most.

 

To a large extent, the welfare system seems to have faded from public consciousness. Even the people who could benefit from it the most, like Modonna, believe that the government simply doesn’t give out welfare anymore. While AFDC served 14.2 million people shortly before its demise, TANF served only 3.8 million people as of 2014. Edin and Shaefer claim that policymakers did not replace welfare—they killed it.

Introduction-Chapter 1 Analysis

Both of these chapters begin with the story of a family living in $2-a-day poverty. Most Americans aren’t aware that there are people in the United States who must survive with so little, and most would certainly struggle to imagine living in such conditions. By telling the stories of Susan Brown and Modonna Harris, the authors give extreme poverty a human face. They provide glimpses of what it is like to be the poorest of the poor. Modonna is shown waiting outside in the rain, standing in a long line for half an hour before the welfare office opens in the morning. Susan is seen sitting in her dilapidated house in the stifling summer heat, with matted carpet, broken furniture, and windows that won’t open.

 

We also catch glimpses of their emotions, especially their pain, despair, and exhaustion. Both women have suffered one defeat after another. Despite their distressing circumstances, we can see the small ways that the poor maintain their dignity and find moments of happiness. In the middle of Susan’s crumbling home sits a pristine dining table with an embroidered tablecloth and elegant china. Modonna and Brianna allowed themselves a few days at a hotel to forget their worries—it could be argued that it was a poor use of the little money they had, but it could also be argued that it was important for their mental wellbeing.

 

Telling their stories serves to humanize the poor, but it also serves to dispel negative stereotypes about them. There is an enduring narrative that the poor are lazy or otherwise responsible for their situation, and the authors make a point of showing how these families are actually quite normal. They are not without their flaws, but all of them work hard. Susan earned her GED and has taken classes at a community college. Her husband Devin graduated from high school. He has a clean record and work experience. Both of them desperately search for work, and Susan is crushed each time her search ends in failure. Modonna worked as a cashier for eight years and loved her job. She was fired when $10 went missing from the till—the money was later found, but she was never offered her job back. Modonna, Susan, and Devin are people who want nothing more than the chance to work and support their families.

 

While Susan and Modonna’s experiences are a central part of the opening chapters, the purpose of the book is not just to tell their stories. Edin and Shaefer also explore the government policies that affect the poorest members of society. In the Introduction the authors analyze survey data to support their claim that $2-a-day poverty has been on the rise in households with children. Chapter 1 then dives into a brief history of the welfare system in the United States, particularly the events leading up to the 1996 reform. The authors investigate the people involved in changing the welfare system, the mindsets and attitudes they held, and the effects the reform has had on the poor.

 

One of the key themes to emerge in Chapter 1 is that the poor, especially those on welfare, are often demonized or forgotten about. The 1996 reform largely came about because numerous Americans were taken aback that money was being given out to people who abused the welfare system—even though most of the money went to people who genuinely needed it. Once the reform was achieved, the matter was quickly forgotten about, as was the question of whether the needy were actually better off under the new system. While the final decades of the 20th century saw a considerable amount of public anger that people were getting money without working for it, there is not the same level of anger about the fact that people are suffering in extreme poverty.

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