Introduction
New York City is one of the wealthiest cities in the United States, where the largest number of homeless and poor Americans live. Over the past five years, the level of poverty in the region has increased significantly.
Wages do not rise with inflation and people who have low wages struggle to meet basic needs.
More specifically, about 2.5 million New Yorkers currently live below the poverty line, especially the elderly and people with no college degree. The poverty rate for seniors in New York is twice the poverty rate in the United States.
There are also significant racial differences among people living in poverty. New York City’s blacks and Hispanics have a much higher poverty rate than whites and Asians in the metropolitan area.
Reasons for Poverty
- Social inequality. The growing gap between rich and poor in New York has further highlighted and exacerbated existing socio-economic inequalities in society, leading the lower strata of the population to an extremely difficult situation.
- Income gap between the rich and the poor. The income of the 20 percent richest New Yorkers is 40 times higher than the income of the 20 percent poorest ones (Reilly et al., 2019).
- Unemployment. New York’s overall unemployment rate is 19.9% (Local Area Unemployment Statistics – New York City: New York–New Jersey Information Office: U.S. Bureau of Labor Statistics, n.d.).
- Increase in prices: expensive medicine, education, and housing.
In general, there is an extremely high level of income polarization in the United States. The middle class continues to shrink and poverty levels remain high. The incomes of the poor are insufficient to meet basic needs such as food, health care, housing, childcare, and utilities (Slotnik, 2021).
Health insurance coverage is inadequate for low-income populations. The stress of poverty has led to a deterioration in the health of Americans. Those who have lost their jobs and health insurance, or have low incomes, cannot afford medical expenses (Haken, 2021). The gap between the rich and the poor has led to lower life expectancy and higher suicide rates. The number of homeless people remains high.
The increase in the number of unemployed people is also associated with the deterioration of the epidemiological situation in the country and the tightening of quarantine measures taken by the authorities of the city. Organizations working in the catering, entertainment, and hospitality sectors suffer primarily from restrictive measures.
Counterarguments
- New York is on the top of 10 richest cities in the world.
- 84 billionaires in the city have a combined net worth of $ 469.7 billion.
- The local government of New York is raising taxes for wealthy citizens (Reilly et al., 2019).
- Unemployed persons have the right to receive Unemployment Insurance (UI).
During a pandemic, persons eligible for unemployment insurance benefits may be eligible for a temporary increase in benefits. If the individuals have worked in New York in the past 18 months, they can apply for a UI, weekly benefits for up to 25 weeks until they find a job (New York Report, 2020).
Unemployed New Yorkers also receive an additional $ 300 weekly benefit and extended pandemic unemployment benefit or pandemic emergency unemployment compensation.
Application of Progressive Taxes
New York Governor Andrew Cuomo and state legislators have reached a tentative agreement to raise taxes for New York City’s richest residents.
The richest New Yorkers will be subject to the highest income tax rate in the country.
Residents of the city who earn more than a million dollars will pay 13.5% to 14.8% in taxes, higher than the 13.3% tax for California millionaires, which is currently the highest in the country.
The agreement provides for two new tax categories: those earning between $ 5 million and $ 25 million will pay 10.3%, and those who earn more than $ 25 million will pay 10.9%.
A Register of Financial Assets
The New York authorities should think about a tax on those who got rich during the pandemic and use the money to reduce social inequality.
The registration of financial assets will allow the identification of wealth owners and deal a blow to tax evasion and money laundering.
The day has come when American business and the wealthiest Americans, the richest 1% of the population, should already start paying their fair share. The idea of the compilation of a register of financial assets of wealthy citizens and businesses is not new, but now it has a chance to come true at least partially.
The additional tax revenue will be used to increase spending on schools, provide funds for illegal workers, small businesses, and tenants who cannot pay their rent.
Equal Access to Education and Work
Children from poor and rich families do not have equal educational opportunities. At the same time, the sustainable development goals of New York declare the availability of education for all. The local government must invest in education and strengthen economic growth to combat poverty.
Income inequality remains an indicator of inequality of opportunities, including quality education. However, improving the quality and accessibility of social services in general and education in particular is recognized as one of the leading measures to reduce poverty.
Experts point to increasing the availability and quality of social services, in particular education, as one of the leading measures to reduce poverty and inequality in New York. Public policies, seen as social security policies, should have a tangible impact.
Reducing excessive inequalities and leveling the starting conditions for children and young people is an important area of social policy.
Conclusion
In a rich country such as the United States, perpetuating extreme poverty is a political choice made by those in power.
That is why New York City lawmakers have to raise billions of dollars in taxes for the wealthiest people and big businesses. This move will force wealthy New Yorkers to pay the highest taxes in the country.
The facts show that American interest groups are focused only on protecting the interests and improving the wealth of the rich, without giving priority to the poor. The rapidly widening gap between rich and poor in the United States in general and New York in particular is a sign of a deep crisis in the neoliberal capitalist order. Privatization, marketization, and liberalization are going on quite actively, which meet the interests of the rich and their groups of influence, and not the wishes of the majority.
The monetary concept has led to the fact that poverty in the country is becoming more commonplace every year.
Currently, due to the next economic crisis in the country, the unemployment rate is rising sharply and over 2,5 millions of New Yorkers live below the poverty line.
However, the revolutionary new budget that will includes tax increases and additional revenues has to improve the current situation.
References
Haken, J. (2021). Opinion: New York City has a homelessness problem—But it’s not what you think. City Limits. Web.
Local Area Unemployment Statistics – New York City: New York–New Jersey Information Office: U.S. Bureau of Labor Statistics. (n.d.). Www.bls.gov. Web.
New York Report – 2020. Talk Poverty. Web.
Reilly, K. H., Zimmerman, R., Huynh, M., Kennedy, J., & McVeigh, K. H. (2019). Characteristics of mothers and infants living in homeless shelters and public housing in New York City. Maternal and Child Health Journal, 23(5), 572-577.
Slotnik, D. E. (2021). She works in a homeless shelter, and she lives in one, too. The New York Times. Web.