Author: ajohnstone

US Child Poverty

 In the United States, children are more likely to experience poverty than people over 18.

In 2020, about 1 in 6 kids, 16% of all children, were living in families with incomes below the official poverty line – an income threshold the government set that year at about US$26,500 for a family of four. Only 10% of Americans ages 18 to 64 and 9% of those 65 and up were experiencing poverty, according to the most recent data available.

The official child poverty rate ticks down when the economy grows and up during downturns. It stood at 17% in 1967 – just about the same as in 2020. In many recent years the rate hovered even higher – around 20%.

Researchers calculate the official poverty rate by adding up a household’s income and comparing it with a threshold of what is needed to survive. The government has calculated this rate the same way since the 1960s.

One of its shortcomings is that it excludes several sources of income, including tax credits and the Supplemental Nutrition Assistance Program, which are intended to reduce poverty.

In 2011, the government began to calculate an alternative metric: the supplemental poverty measure. It includes SNAP and tax credits. It also uses thresholds based on the cost of living in different areas of the country. For a family of four, this threshold currently ranges from $24,000 to $35,000, depending on where a family lives and whether they own or rent housing. According to this alternative measure, 10% of children were living in poverty in 2020, the lowest rate ever recorded.

Depending on which measure you use, either 7 million or 11.7 million U.S. children lived in poverty in 2020.

Poverty is higher for children of color. The official poverty rate for Black children stood at 26%, and 23% for Hispanic children, while for white, non-Hispanic children it was 10%.

The Persistence of Childhood Poverty in the US – CounterPunch.org



Bosses Pay Bonanza

 The gap between the pay of company executives and other workers is set to widen this year after falling during the height of the Covid pandemic, the High Pay Centre said.

Cuts to executive pay led to a fall in the median pay gap between bosses in FTSE 350 firms and employees last year. But it said early data indicated that the gap will widen again in 2022.



69 companies that disclosed pay ratios in the first months of 2022 to the High Pay Centre, the average chief executive to average employee pay ratio was 63:1 – almost double the ratio for the same group of companies in 2021, at 34:1.



Mubin Haq, chief executive of the abrdn Financial Fairness Trust said wage growth for those on lower incomes would be “critical” to ensure “millions can weather the cost-of-living crisis we are now facing”.



The High Pay Centre’s most recent chief executive pay analysis said the average FTSE 100 boss was paid £2.69m in 2020. The figure was 86 times the average full-time UK worker.



TUC general secretary Frances O’Grady said: “Pay inequality has gone much too far. Even for the best-performing executives, pay can be out of all proportion compared to hard-working staff on the frontline.”



Pay gap from bosses to staff to widen – think tank – BBC News

Dark Horizons Ahead Say the IMF

 The head of the International Monetary Fund (IMF),  Kristalina Georgieva, has said the war in Ukraine could result in a recession for more vulnerable countries.

“Since then the horizon has darkened,” she said, pointing out that the impact of the war in Ukraine was being amplified by a tightening of financial conditions, a rising US dollar and a slowdown in China. “2022 is going to be a tough year.”

Asked whether the IMF was forecasting a global recession, Georgieva replied: “Not at this point. It doesn’t mean one is out of the question…What we may see is recession in some countries that are weak to begin with. They haven’t recovered from the Covid crisis. They’re highly dependent on imports from Russia, of energy or food, and they have a somewhat weaker environment already.”

The IMF  had recently downgraded the growth prospects for 143 of its member states, which represent 80% of global output.

Georgieva said there had been a sense over the past week that the global economy was getting into rougher waters. The oil price had come down but “food prices continue to go up, up, up, up”. She said: “We can shrink the use of petrol when growth slows down but we have to eat every day. The anxiety about access to food at a reasonable price, globally, is hitting the roof.”

Jane Fraser, the chief executive of the US investment bank Citigroup, explained, “Europe is right in the middle of the storms from supply chains, from the energy crisis, and obviously just the proximity to some of the atrocities that are occurring in Ukraine,” she said.

War in Ukraine could cause recession in weaker economies, IMF boss warns | Davos | The Guardian

Mental-health and the well being of the young

 420,314  children and young people in February   were being treated for mental health problems – the highest number on record – prompting warnings of an unprecedented crisis in the well-being of under-18s.

Experts say Covid-19 has seriously exacerbated problems such as anxiety, depression and self-harm among school-age children and that the “relentless and unsustainable” ongoing rise in their need for help could overwhelm already stretched NHS services.

The total has risen by 147,853 since February 2020, a 54% increase, and by 80,096 over the last year alone, a jump of 24%. January’s tally of 411,132 cases was the first time the figure had topped 400,000.

Mental health charities fear the figures are the tip of the iceberg of the true number of people who need care, and that many more under-18s in distress are being denied help by arbitrary eligibility criteria.

“Open referrals” are under-18s who are being cared for by child and adolescent mental health services (CAMHS) or are waiting to see a specialist, having been assessed as needing help against treatment thresholds. GPs, teachers and mental health charities believe the criteria are too strict, exclude many who are deemed not ill enough, and amount to rationing of care. survey of GPs published last month by the youth mental health charity stem4 found that half said CAMHS were rejecting half of referrals they made of under-18s suffering from anxiety, depression, conduct disorder and self-harm because their symptoms were not seen as severe enough. 

“There is an unprecedented crisis in young people’s mental health, further evidenced by these record numbers of young people needing help from the NHS,” said Olly Parker, the head of external affairs at Young Minds. “The record high number of children and young people receiving care from the NHS tells us that the crisis in young people’s mental health is a wave that’s breaking now.” He said many young people were reaching crisis point before could get the treatment they need.

Nihara Krause, a consultant clinical psychologist and the founder of stem4, said that while more under-18s were getting help, it was unclear from the figures how many received effective treatment. “Teachers and GPs say that children and mental health in mental health distress are either being rejected in record numbers because their difficulties do not meet the high threshold for treatment, or they are stuck on long waiting lists. These latest figures also lack any real detail to warrant claiming there has been a marked improvement in accessing effective treatment. They just show greater need.” She said not just the prevalence but also the severity and complexity of youth mental health problems had increased in recent years. In addition, Covid-induced loneliness, increased time spent online, disrupted routines and exposure to family stress have increased levels of distress.

Record 420,000 children a month in England treated for mental health problems | Mental health | The Guardian

Palm Oil Robbery

 Buy something in a supermarket and there’s a good chance it will contain palm oil, an industry worth more than $50bn each year globallyThe companies behind the country’s palm oil boom have seen their profits soar this year as global prices reached record highs. Indonesia’s super-rich list is already stacked with palm oil billionaires. The Widjaja family, who control Golden Agri-Resources, stand second place in Forbes’ rich list for Indonesia; Anthoni Salim, who is the CEO of the Salim Group, sits one below in third place. But the companies that sell it to major firms like Johnson & Johnson, Kellogg’s and Mondelēz are depriving indigenous communities of potentially millions of dollars of income. 

Vast tracts of the world’s most biodiverse forests have been cleared for palm oil plantations. On the once jungle-covered Indonesian islands of Borneo and Sumatra, plantations now stretch for miles on end. The trade-off was the promise of economic development. In order to gain local support and access to government financing, companies often promised to share their plantation with villagers, in plots known as “plasma”. In 2007, it became a legal requirement for companies to give a fifth of any new plantation to communities. But there were steady claims that companies had reneged on promises – and those legal obligations – to provide plasma.



 An investigation found companies have failed to provide more than 100,000 hectares – around the size of Los Angeles – of legally-required plasma in Borneo’s Central Kalimantan province alone. Using conservative figures for the profits available from palm oil, we estimated this has deprived communities of an estimated $90m each year. The province accounts for just a fifth of Indonesia’s corporate-run oil palm plantations.



Analysis of Ministry of Agriculture data suggests the picture is similar across other major palm oil-producing provinces, and the losses suffered across Indonesia by communities owed plasma could stretch into the hundreds of millions of dollars each year. 



When communities complain of a failure to meet promises, the government relies largely on mediation, but an academic study found that just 14% of mediation negotiations lead to an agreement that is implemented. The investigation identified 13 major firms including Colgate-Palmolive that have sourced palm oil from producers alleged to have withheld plasma, or profits from plasma, from communities over the past six years.



Palm oil firms depriving tribes of millions of dollars – BBC News



Sri Lanka – the health crisis

 Hospitals in Sri Lanka are forced to postpone life-saving procedures for their patients because they do not have the necessary drugs.

Sri Lanka imports more than 80 percent of its medical supplies but with foreign currency reserves running out because of the crisis, essential medications are disappearing from shelves and the healthcare system is close to collapse.

“It is very bad for cancer patients,” said Dr Roshan Amaratunga. “Sometimes, in the morning we plan for some surgeries but we may not be able to do on that particular day as supplies are not there.” If the situation does not improve quickly, several patients will be facing a virtual death sentence, he said.

Doctors say they are more worried than the patients or their relatives, as they are aware of the potential size of the problem and its impact on the wider population.

A government official working on procuring medical supplies said about 180 items were running out, including injections for dialysis patients, medicine for patients who have undergone transplants and certain cancer drugs.

Referring to the ubiquitous queues for petrol and cooking gas, Dr Vasan Ratnasingam, a spokesman for the Government Medical Officers’ Association, said the consequences for people awaiting treatment were so much more dire.

“If patients are in a queue for drugs, they will lose their lives,” said Ratnasingam.

‘Death sentence’: Doctors in Sri Lanka decry medicine shortage | Health News | Al Jazeera

The World is at Risk

 The Stockholm International Peace Research Institute has released a worrying report, entitled “Environment of Peace: Security in a New Era of Risk.” 

Environment of Risk: Security in a New Era of Risk (sipri.org)

“A compound environmental crisis and a darkening security horizon are feeding each other in dangerous ways,” SIPRI’s researchers write. Felled forestsmelting glaciers and polluted oceans are occurring simultaneously with an rise in the number of conflict-related deaths, arms expenditures and increasing numbers of people at risk of starvation. Pandemics pose further dangers.

Lacking a global plan, the world is “stumbling” into these intertwined dangers, according to SIPRI.

“Nature and peace are so closely linked that damaging one damages the other. By the same reasoning, enhancing one enhances the other,” SIPRI’s director, Dan Smith, explained.

SIPRI: From climate to war, world entering a critical era | Europe | News and current affairs from around the continent | DW | 22.05.2022

“The world is falling apart”

“The number of people forced to flee conflict, violence, human rights violations and persecution has now crossed the staggering milestone of 100 million for the first time on record, propelled by the war in Ukraine and other deadly conflicts,” said UNHCR, the UN Refugee Agency.

The figures combine refugees, asylum-seekers, as well as more than 50 million people displaced inside their own countries.

The 100 million figure amounts to more than one percent of the global population, while only 13 countries have a bigger population than the number of forcibly displaced people in the world.

UNHCR said the number of forcibly displaced people rose toward 90 million by the end of 2021, spurred by violence in Ethiopia, Burkina Faso, Myanmar, Nigeria, Afghanistan and the Democratic Republic of the Congo. Russia invaded Ukraine on February 24 and since then, more than eight million people have been displaced within the country, while more than six million refugees have fled across the borders.

UNHCR chief Filippo Grandi, said, “This must serve as a wake-up call to resolve and prevent destructive conflicts, end persecution, and address the underlying causes that force innocent people to flee their homes.”

He continued, “Compassion is alive and we need a similar mobilisation for all crises around the world. But ultimately, humanitarian aid is a palliative, not a cure. To reverse this trend, the only answer is peace and stability so that innocent people are not forced to gamble between acute danger at home or precarious flight and exile.”

Grandi called for those countries to lift any remaining pandemic-related asylum restrictions, saying they contravene a fundamental human right.

“I am worried that measures enacted on the pretext of responding to Covid-19 are being used as cover to exclude and deny asylum to people fleeing violence and persecution.” 

Norwegian Refugee Council (NRC) chief Jan Egeland told reporters, “It has never been as bad as this. The world is falling apart.”

Number of displaced people passes 100 million for first time, says UN (france24.com)

To care or to profit?

 The largest private suppliers of children’s homes and foster care places in England, Wales and Scotland make excessive profits says a Competition and Markets Authority (CMA) report. Data on 15 large providers from 2016 to 2020 showed steady operating profit margins averaging 22.6%. The CMA says a well-functioning market should generate returns to investors of up to 6%, but the largest children’s home providers make about double that.

The UK has “sleepwalked” into a system where some vulnerable children do not get good care. The CMA study into children’s social care was launched a year ago. It found large private sector providers of fostering services and children’s homes appeared to be making higher profits in England and Wales than would be expected in a well-functioning market. This suggests councils are paying more than they should, particularly for fostering.  Hampshire County Council’s assistant director of children’s services Suzanne Smith, runs the team which finds foster care or children’s home places for young people who can no longer remain with their families. The team struggles to find suitable placements, the costs keep growing and they feel there is more picking and choosing by independent providers about which child they will take. Hampshire County Council has eight of its own children’s homes, which cost more than £3,000 a week per child.

But the council says independent providers can charge anywhere between £3,500 a week to more than £10,000 for each child, depending on the complexity of their needs. Unlike in council homes, children can sometimes be asked to leave private homes with only a few hours’ notice.

“Unfortunately, it drives towards profit generation as opposed to the outcomes for the child,” says Ms Smith. “What we’d really like to see is a diverse market where you’ve got providers who can make profit, but those profits are reasonable, and then shared accountability around the outcomes for the children.”

Overall there is a shortage of appropriate places for looked-after children, leading to some not getting the care they need, being placed far from schools and friends or being separated from their siblings, says the CMA.

Forensic accountant Vivek Kotecha, of the Balanced Economy Project, has done similar research and says such excess profits would be better spent by councils on more services for children.

“It could have paid for better staff wages, or it could have just funded more children who need care, or at the borderline of potentially needing care or extra help. So I think it affects children, the ones in care, but it also affects the ones who could be in care or need to be in care, but aren’t receiving it.”



Kim Emenike, 24, who went into foster care at seven when her mum died of cancer, says she too often felt like a pay cheque rather than a human being.

“I’m just someone who needed someone to care, someone to love me and someone to just be my cheerleader. You’ve got to do it because you have the heart for it – not because you get paid for it.”


It notes that Scotland and Wales are already moving away from the model of for-profit provision in children’s social care.



Children’s social care generates excessive profits – report – BBC News