Commoning

This term denotes the practice of cooperative ownership of goods that are shared by a community or group. In the case of real estate, commoning refers to the collective ownership of housing by the people who live in a building rather than by an outside landlord. Apartment buildings held in common by their residents are often known as “co-ops.” 

Marginal Tax Rate

The marginal tax rate is the rate of tax paid per dollar of income expressed as a percentage. In the United States, the marginal tax rate varies by income, with higher incomes taxed at a higher rate than lower incomes. There are currently seven different income tax rates in the U.S., commonly known as “tax brackets.” While people with higher incomes pay a higher percentage of their income in income tax than those with lower incomes, the rate on the highest earners is currently much lower than it was in the mid-20th century.

Minimum Wage

Minimum wage is the lowest legal hourly wage for most workers. The federal minimum wage in the United States has been $7.25 per hour since 2009, although many states have higher state minimum wage levels. The federal minimum wage increases only when Congress votes to increase it, not on an automatic schedule or when prices increase. Some workers, including disabled people, students, and those who receive tips are not guaranteed the full minimum wage. 

Official Poverty Measure or Poverty Line

The Official Poverty Measure or poverty line is an income level determined by the U.S. federal government as the lowest amount necessary to support a given family size. Individuals and families whose income falls below the poverty line are considered “poor” and unable to afford basic necessities. The poverty line is calculated based on the price of food to support a basic diet. 

Pandemic Relief Programs

Pandemic relief programs were federal programs intended to help mitigate the effects of the economic crash brought on by the COVID-19 pandemic, largely by increasing unemployment benefits and providing emergency rental assistance. These programs were very successful in that they radically lowered eviction rates and helped people quickly regain their pre-pandemic income levels. 

Payday Loan

A payday loan is a short-term, very-high-interest loan that relies on the borrower’s next paycheck in place of collateral. Payday loans are considered a form of predatory lending, since their terms often trap borrowers with ballooning debt. They are illegal in many states. In states where these loans are legal, payday lenders proliferate in low-income neighborhoods.

Poverty Abolitionist

A poverty abolitionist is person devoted to taking action to end poverty. Desmond calls on affluent people to take personal responsibility for ending poverty in the U.S. by supporting changes to government funding and taxation structures and by choosing to buy only from companies that pay their workers well.

Private Opulence and Public Squalor

Private opulence and public squalor describes the outcome of a split system in which poor people use public services while affluent people use private versions. As affluent people leave public systems, such as public schools and parks, in favor of independently funded versions, such as private schools and country clubs, they are less likely to support policies that fund public services. Decreasing funding causes public services to decline in quality, driving more people to seek private versions. This split divides communities that could be united to support high-quality public services.

Social Welfare

Social welfare describes government programs intended to help impoverished people secure basic necessities. The term welfare is sometimes used to refer more specifically to Aid to Families with Dependent Children (AFDC), which gave money directly to beneficiaries, or its successor, Temporary Aid for Needy Families (TANF), which instead allows states to funnel the funds into programs as well as direct aid. However, social welfare can also refer more broadly to a range of programs that help poor people with basic needs, including Medicare, Supplemental Security Income, and food benefits. It can also include programs that affluent people also use, such as Social Security and Medicare. 

Targeted Relief versus Universal Relief

These terms describe the two ways of organizing social welfare spending. Targeted relief programs give aid specifically to people that qualify, usually those with income below a given level. Food stamps are an example of targeted relief. Universal relief programs give benefits to everyone, regardless of income. Social security is an example of universal relief. Targeted programs are more cost-efficient than universal ones, but targeted relief can cause resentment in those who earn slightly too much money to receive aid.

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