August 29, 2007 (LPAC)--The U.S. Census report, released yesterday, has prompted headlines such as this one on the front page of the Indianapolis Star today: "In Indiana, 37,500 sink into poverty," with a kicker, "2006 rise echoes a reality food pantries, social services agencies already know." The Star's analysis reports this rise into poverty in 2006 has cost "the state's economy at least $100 million a year in lost productivity, health care and crime."
The Star used data from an Urban Institute study which estimated that the national economy loses $500 billion a year to poverty. And, that doesn't even factor in the billions spent on public welfare, food stamps and housing programs, or private assistance provided by groups such as churches, shelters, food banks and hospitals, Harry J. Holzer the study's author told the Star.
The smoothed-out U.S. Census data claiming a lowering of the "official poverty rate," now standing at 12.3%, in skews reality. The city of Indianapolis which lies within Marion County is a case in point. The poverty rate here increased to 15.7% in 2006--well above the national average--from the 14.8% it had been in 2005. This is dramatically shown by the 73% increase in number of meals provided by Second Helpings which grew from 173,142 meals provided in 2000 to 651,031 meals in 2006. Statewide, the Family and Social Services Administration director Mitch Roob said there's been a 91% rise in the food-stamp program from 2000 to 2006, resulting in over half a million Hoosiers requiring assistance in 2006.
Likewise, hospitals have extended more and more charity care. At Hendricks Regional Health, Susan Lemon director of the hospital's social services told the Star, "We've seen a lot of people who two or three years ago worked full time and had benefits, whereas now they've cobbled together two or three part-time jobs with no benefits." The Star reports, "In 2005, the hospital provided about $2 million in services for which it was not paid. That jumped to $3 million in 2006." Nearby Clarian County's St. Vincent Community and St. Francis hospitals have provided more than $75 million in charity care in the past year. This is a picture repeated across the nation. People's desperation, witnessed by a supporter, was seen by the vandalizing of a vacant home's electrical wiring to strip out the copper wiring to sell. So U.S. Treasury Sec. Paulson's denials to the contrary, `There ain't no Recovery Here.'