Book Summary$2.00 a Day, by Kathryn J. Edin and H. Luke Shaefer

1-Page Summary1-Page Book Summary of $2.00 a Day

The rise in severe poverty, marked by individuals living on less than the equivalent of two dollars daily within the United States, is linked to modifications in the approach to social assistance initiatives.

There has been a significant rise in the number of families with children who manage to live on extremely limited financial means.

Edin and Shaefer delve deeply into the alarming escalation of severe impoverishment within the United States, highlighting the plight of those who must make do with a mere two dollars daily for their subsistence. It was once considered inconceivable that families could survive on an individual daily cash income of only two dollars in the wealthiest nation on earth. Their investigation uncovers a harsh truth—countless families with children find themselves ensnared in this severe predicament, battling to fulfill their fundamental necessities. Their study challenges the prevailing notion that society is progressing by highlighting the growing challenges a segment of the population encounters in achieving wealth and accomplishment in America.

Shaefer and Edin argue that the marked increase in extreme poverty signifies a profound shift in the living conditions of the most impoverished families, not merely an anomaly in the data. The authors ascribe the increase in severe poverty to the 1996 overhaul of the welfare system, noting that the restructuring of financial assistance programs eliminated a crucial layer of support for households during periods of hardship. The authors also highlight the precarious nature of poorly paid employment and the lack of affordable housing as key elements that exacerbate the hardships faced by families with minimal income, highlighting the convergence of these common problems into a substantial hardship crisis.

The Survey of Income and Program Participation (SIPP) data reveals a concerning rise in the number of individuals subsisting on less than two dollars daily, especially after the 1996 changes to welfare policies.

The authors derived their analysis from data gathered through a survey that represents the national population, which was carried out by the U.S. Census Bureau. The dataset comprehensively tracks every type of revenue received by American households, including everything from monetary gifts from family members to earnings from various sporadic employment. The SIPP is a unique tool for examining the complexities of poverty, particularly the most extreme levels of economic hardship, as it uncovers fluctuations in income that could go unnoticed by alternative data collection strategies.

Through meticulous analysis of the SIPP data, Shaefer identified a troubling rise in the instances of families with children earning less than two dollars per day, a trend that aligns with modifications to the welfare system. In 2011, nearly 1.5 million households, which included about 3 million children, survived on cash incomes that fell below an extremely low monetary threshold. Extreme financial hardship, characterized by subsistence on a mere two dollars per day, impacts a wide spectrum of people, encompassing single parents, those in matrimonial unions, and individuals from multiple ethnicities including White, Black, and Hispanic. Moreover, the authors found that this trend continued even after accounting for assistance received from federal programs like food stamps and tax incentives for low-income workers.

Context

• The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 significantly altered the welfare system in the United States. It replaced Aid to Families with Dependent Children (AFDC) with Temporary Assistance for Needy Families (TANF), imposing work requirements and time limits on benefits.
• The survey uses a large, nationally representative sample, which means it includes diverse demographic groups across different regions, ensuring that the findings are reflective of the broader U.S. population.
• SIPP uses a panel design, interviewing the same set of households over several years. This approach allows researchers to observe changes in income and program participation over time, offering insights into the dynamics of poverty and economic hardship.
• The SIPP data considers all forms of income, including irregular and non-traditional sources, which provides a more comprehensive picture of financial resources than some other surveys that might focus solely on regular wages or salaries.
• The threshold of living on less than two dollars a day is often used as a benchmark for extreme poverty, typically associated with developing countries, making its presence in the U.S. particularly alarming.
• Poverty rates and access to resources can vary significantly by region, with rural areas and certain urban neighborhoods experiencing higher levels of poverty and fewer opportunities for economic advancement.
• Some eligible individuals may not receive benefits due to barriers such as lack of information, complex application processes, or stigma associated with receiving aid. This can result in...

$2.00 a Day Summary The substantial expenses associated with housing play a major role in driving families into extreme economic distress.

Families often remain below the poverty line even though they work in various positions within the service industry, because these jobs do not offer sufficient pay.

The writers argue that the primary cause of extreme financial distress among households stems from the job market, which is marked by low pay, unpredictable work schedules, insufficient working hours, and minimal benefits. Numerous people discover that the earnings from working full-time in the service sector are insufficient to meet their families' basic needs. Employees constantly face the threat of financial instability and are vulnerable to the smallest economic fluctuations. The book points out that the overhaul of the welfare system, designed to promote self-sufficiency through work, frequently traps many families with low incomes in a continuous cycle of economic struggle, thereby undermining the goals of the reform.

The book presents persuasive instances demonstrating that the instability of low-income employment forces families into a situation where they survive on only two dollars each day. Jennifer Hernandez, a single mother in Chicago, diligently sought out work and was considered a good employee by...

$2.00 a Day Summary People surviving on a mere two dollars daily utilize various strategies, some of which are not sanctioned by law, to sustain their livelihoods.

Families in extreme poverty must resort to a variety of strategies to generate any cash income, including selling plasma, scrap metal, and even SNAP benefits.

The authors describe the resourceful and sometimes drastic steps taken by families who manage to survive on a mere $2 daily to navigate their economic circumstances. The book highlights the absence of a reliable economic safety net, which forces families to rely on a range of informal and occasionally illegal activities to scrape by financially. The authors contend that while such strategies are essential for fulfilling fundamental necessities, they frequently entail substantial legal, physical, and psychological dangers, driving families deeper into societal exclusion.

The book outlines the diverse strategies that households in severe financial distress employ to ensure they have enough income. Individuals surviving on a mere $2 daily frequently adopt different tactics to make ends meet, including participating in plasma donation for compensation, collecting items to recycle in exchange for cash, and occasionally trading food stamps for currency. These efforts, while providing a small sum of income, fail to...