It is time for a new vision for achieving decent standards of living, promoting economic mobility and addressing the root causes of poverty. The national measure of poverty is now so low and disconnected from any reasonable cost of living that operating above it does not necessarily guarantee a sufficient standard of living. States are well positioned to narrow this gap and increase economic prosperity. Many are now seizing this opportunity and enacting goals to achieve economic security and end poverty and taking policy action to ensure these goals are met. Their work, along with similar efforts at the national level, helps set the direction for policymakers, generates momentum and reinforces the belief over time that such a new vision can indeed become a reality. Together government, its people, and business can do better to tap the talents of everyone, strengthening our communities and increasing our productivity and economic security.

A weak state of economic security

American prosperity rests solidly on the strength of American workers. Over the last several years the economy and productivity have grown and yet the wages and prosperity of the majority of the workforce have not. This situation should have signaled a warning about the most serious economic crisis to confront our nation since the Great Depression.

People are working, but not sharing in the economic gains they’ve produced. Anywhere from a quarter up to a third of works are employed in low-wage jobs, which often do not provide benefits that are available in higher-wage jobs, such as paid time off, health care or retirement security. Yet these jobs, including child care, home care, and restaurant and hotel service-sector jobs, are essential in the economy.

It’s no accident

The poor state of economic security is not an accident of the recent economic downturn; public policies have contributed to this situation. The system of public support has become disconnected and outdated. Rather than forming one cohesive vision for a decent standard of living, in too many cases these state and local programs form a complex, haphazard arrangement of supports with varied eligibility levels, rules, and funding streams.

• Many of these supports such as unemployment insurance, Medicaid, Medicare, food stamps and public housing, developed independently at the federal level over a number of years.
• Consequently, programs can be difficult to access.
• People may have a hard time knowing what services are available to them.
• If people do find out about services, they may earn just enough income that they are not eligible.
• And, even when they are eligible, funding may be so limited that they are refused assistance.
• Even if people receive all the supports for which they are eligible, the total still may not be enough to reach a basic standard of living.

What can we do?

Just as policies have contributed to this uneven playing field, so can a bold and far-reaching policy approach restore American ideals of fairness, reduce inequality, and promote economic mobility. Success in these efforts will help set the stage for a stronger economy and, with it, a vibrant democracy.