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5 A New Definition of Poverty By necessaries I understand not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without. —Adam Smith, Wealth of Nations Any new definition of poverty in America must be a reflection of our national commitment to justice, fairness, and the dignity of each and every human being. As Adam Smith noted in the Wealth of Nations in 1776, a country’s definition of what the necessities of life are is also a test of our national sense of decency.1 No doubt there are a few in our nation who think that the avoidance of starvation is enough, and their definition of decency and poverty reflect that. I, on the other hand, believe that a majority of Americans takes seriously our national commitment, that all of us are created equal and entitled to certain inalienable rights such as life, liberty, and the pursuit of happiness. I also believe that a majority of Americans is committed to justice, fairness, and the inherent dignity of each and every human being. Finally, I believe that the majority of America supports the idea that each person should be entitled to the opportunity to be self-supporting and self-sufficient. This means that everyone is entitled to the chance for self-determination. The lack of these rights in a country, as Adam Smith said, “renders it indecent for creditable people, even those of the lowest order, to be without.” That is poverty. I believe that most Americans want a nation where everyone has a real opportunity to live lives of human dignity. Therefore, we need to craft a new definition of poverty that incorporates this shared understanding , so that all people have the right and the opportunity to 43 44 Chapter 5 provide for themselves and their families. We need to focus not only on economic deprivation, but also on what justice demands. What we want for ourselves and our families is what we want for others: not a free ride, not a handout, but the right to work ourselves out of poverty, with a realistic chance to be self-sufficient. A new definition of poverty is called for if we as a nation are going to address poverty. A real understanding of poverty requires that, apart from whatever formula the government uses at the time, we as a nation recognize that all humans have a basic dignity and a set of rights that should enable them to survive. As Patricia Ruggles said, “in the final analysis setting the poverty level requires a judgment about social norms, and such a judgment cannot be made on statistical grounds alone.”2 Poverty is not just numbers, it is the lack of opportunity. A real understanding of poverty demands that, apart from any of- ficial formulaic calculation, the definition includes people who do not have the ability to provide for the basic needs of themselves and their families. Poverty is something everyone can recognize. The official government poverty line is inadequate and outdated. Our official determination of poverty needs to be revised to be more in line with contemporary understandings and contemporary reality. More than anything else, we need to recognize that poverty is, at its heart, the inability of people to provide for themselves and their families . As we grow to understand that the lack of self-sufficiency is the true test of poverty, we will also understand that ending poverty means not only providing income support and services to people, but providing everyone with the opportunity to support themselves and their families by giving them the right to a job that pays a living wage. People who are working and yet are still too poor to adequately provide for their families present America with its greatest challenge. If work doesn’t really provide a way out of poverty, how can we expect people in the neediest groups to choose or accept work? If we cannot make work pay, how can we expect to motivate realistic change? The standard of living for the majority of Americans has moved up while the standard for what we call poor has declined. That is out of step with what most people think of as poverty—the inability to provide the basics for one’s family. The current...

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