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Lessons we can all learn from the "Forgotten Women"

<p>“The greatest underutilised resource in our economy is mothers in their childbearing years,” lawyer <a href="https://womensagenda.com.au/latest/soapbox/time-forgotten-women-australia-rise/">Kate Asher wrote in this publication</a> in 2017.</p> <p>“We have told them since they were little girls that they can achieve anything in life. But after they become mothers, they discover the cruel truth: the system is rigged against them. We all know these women. Many of us are these women – the Forgotten Women.”</p> <p>Sadly, things haven’t changed much in the years since. </p> <p>The Forgotten Women sacrifice so much financially to raise their children – often while also caring for elderly parents or in-laws. The full cost of these sacrifices don’t become apparent until years later. </p> <p><strong>Compounding effects </strong></p> <p>Time away from work means no contributions going into superannuation and inappropriate investments eat away at what they did have. Coming on top of the gender pay gap, it leaves a massive retirement shortfall. </p> <p>Many women returning to paid employment struggle to resume their previous career or full-time work, instead forced into less secure, lower paid part-time and casual jobs. </p> <p>If student loans weren’t repaid before leaving work, those debts have ballooned under years of indexation. </p> <p>We know women bear the brunt of domestic violence. Many marriages end in divorce once grown children leave home. Meanwhile, <a href="https://www.abs.gov.au/statistics/people/population/deaths-australia/latest-release#:~:text=There%2520were%2520183%252C131%2520registered%2520deaths,by%252047%2520deaths%2520to%2520911.">far more men die in their 50s and 60s</a> – their pre-retirement years – than women, leaving many young widows. All these factors see women unexpectedly find their partner is no longer the source of income they had counted on. No wonder women over 55 are <a href="https://womensagenda.com.au/politics/local/advocates-call-on-support-for-older-women-and-dv-survivors-this-world-homelessness-day/">the fastest-growing demographic for homelessness</a> in Australia.</p> <p><strong>What can we learn from this?</strong></p> <p>There are many things we can take away from the traumatic experiences of these much-maligned women. Chief among them: don’t be complacent.  Maintain visibility of finances, and take action.</p> <p>As a financial adviser, I have met lots of women; many who only sought advice after finding themselves in a financial black hole. I’m also passionately involved with various causes that support disadvantaged women and those fleeing violence. What strikes me about these women is that they almost unanimously say “I never thought this could happen to me”.  And for many it can be preventable.</p> <p>We must be proactive in looking after ourselves – our current AND future selves – which means developing our own financial independence. Simply leaving money matters up to our husband or partner is not an option.</p> <p>We also need to get the message to friends, sisters, colleagues….</p> <p><strong>Breaking the cycle</strong></p> <p>Too many women have sadly come unstuck because they relied on weak financial foundations. Just like the foundations of a house, you need strong foundations on which to build financial independence:</p> <ul> <li>Emergency fund: a ‘get out’ fund should you ever need to flee danger (violence, natural disaster) or your household finances take an unexpected hit (redundancy, illness, another pandemic…). Not having readily available cash in an emergency can leave you stuck or forced to dip into investments or home equity, costing you dearly longer term.</li> <li>Spending and investment plan: more comprehensive than a budget, this plan offers visibility over your incomings, outgoings and assets. Visibility is key to cutting wasteful spending, staying on top of bills, and keeping you aligned on your money goals.  Avoid sexually transmitted debt.</li> <li>Insurances: a valuable back-up plan to offset losses and help you recover financially from a disaster – personal and home. For women who are stay-home mums or carers, of particular importance is that your partner has life and income protection insurance, ensuring you can keep a roof over your head should they die or become unable to work, and possibly trauma insurance for yourself.</li> <li>Superannuation: Knowing up-front that you will have nothing going into super while you are not working means you can minimise the shortfall. For instance, consider ‘pre-paying’ extra contributions while you are still earning and/or have your partner make spousal contributions during your time out of work (and have them claim the associated tax benefit), and consider spouse splitting.  But know what is happening in his super too, and if in your own business ensure contributions are made for both of you. </li> <li>Estate planning: Ensure your wishes are documented and your children are protected, both after you are gone and in the event you are ever incapacitated. Consider wills, guardianship, power of attorney, superannuation beneficiaries, and tax planning.</li> </ul> <p>With good foundations in place, you can then look to other ways to build your independence.</p> <p>Invest early. Savings and investments you make in your early working years can offset your lack of income once you leave the workforce and continue growing in value for your retirement.</p> <p>Consider upskilling. Distance education allows stay-home parents to obtain new skills and qualifications, enhancing their future employability and earning potential.</p> <p>Stay level-headed in a separation. I’ve seen many women forgo money and investments in favour of keeping the family home, only to realise down the track they can’t afford its upkeep on their own. Or they sign on the dotted line without advice.  Remember too that super is part of the joint assets – you could claim part of your ex’s super in the settlement, offsetting your time away from paid work.</p> <p>Finally, consider your approach to parenting. This is 2024: women don’t need to be the sole caregivers. Some couples now both go part-time, allowing them both to maintain a foot in the workforce (and continue earning income and super) while also enjoying time with their youngsters!</p> <p><em><strong>Helen Baker is a licensed Australian financial adviser and author of On Your Own Two Feet: The Essential Guide to Financial Independence for all Women. Helen is among the 1% of financial planners who hold a master’s degree in the field. Proceeds from book sales are donated to charities supporting disadvantaged women and children. Find out more at <a href="http://www.onyourowntwofeet.com.au/">www.onyourowntwofeet.com.au</a></strong></em></p> <p><em><strong>Disclaimer: The information in this article is of a general nature only and does not constitute personal financial or product advice. Any opinions or views expressed are those of the authors and do not represent those of people, institutions or organisations the owner may be associated with in a professional or personal capacity unless explicitly stated. Helen Baker is an authorised representative of BPW Partners Pty Ltd AFSL 548754.</strong></em></p> <p><em><strong>Image credits: Shutterstock </strong></em></p>

Money & Banking

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“I’m excited to be back”: Fergie joins list of luminaries Down Under

<p>Sarah Ferguson has returned to Australia for the first time in years to help battle a major problem facing our nation, while sharing her love for the country.</p> <p>The Duchess of York is visiting Melbourne to take part in the <a title="www.globalcitizen.org" href="https://www.globalcitizen.org/en/now/melbourne/" target="_blank" rel="noopener">Global Citizen NOW</a> summit from March 4th, which is seeking to drive urgent action to end extreme poverty and address the climate crisis in the Asia-Pacific region.</p> <p>In an exclusive interview with <a href="https://www.news.com.au/lifestyle/real-life/news-life/why-sarah-fergie-ferguson-duchess-of-york-is-back-in-australia/news-story/0a99dbcd4c518d12dcd56b11e89186ba" target="_blank" rel="noopener"><em>news.com.au</em></a>, Fergie shared her love of Australia, describing the country as a "haven" and sharing her excitement to be back Down Under. </p> <p>“Australia feels like a home away from home to me,” the 64-year-old royal said.</p> <p>“My sister Jane has lived here for decades, so I have visited many times over the years. I have so many memories of wonderful moments."</p> <p>“I remember the excitement of going to the Melbourne Cup with my mother, for example. I’m excited to be back again to make new memories." </p> <p>“I love the Aussie outlook on life and of course I adore your incredible landscapes and wildlife, which are like nothing you see in Europe." </p> <p>“Australia has often been a haven for me. One thing I particularly like is that there is no culture of building people up in order to knock them down again later, which you see elsewhere.”</p> <p>Fergie will be joined at the summit by hundreds of other leading voices, famous personalities and political figures, including actor Hugh Jackman, musicians Crowded House and former Australian Prime Minister Julia Gillard. </p> <p>The Duchess said that she has taken a special interest in the issue of preserving the planet for future generations, worrying about what the state of the world looks like in the years to come for her grandchildren. </p> <p>“Becoming a grandmother has really changed my outlook on life,” she revealed.</p> <p>“I have always loved nature and the great outdoors, but now I find myself reflecting on what sort of world we are going to leave to our grandchildren’s generation."</p> <p>“Let’s be honest, it doesn’t look great, does it? So far, my generation has failed to take the big decisions necessary to safeguard the future of the planet, to the point that scientists are telling us the changes we are seeing to our climate and biodiversity are becoming irreversible."</p> <p>“I really hope we can take global, concerted action to change things. We have a responsibility to do so."</p> <p><em>Image credits: Getty Images </em></p>

Caring

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Forcing people to repay welfare ‘loans’ traps them in a poverty cycle – where is the policy debate about that?

<p><em><a href="https://theconversation.com/profiles/hanna-wilberg-1466649">Hanna Wilberg</a>, <a href="https://theconversation.com/institutions/university-of-auckland-1305">University of Auckland</a></em></p> <p>The National Party’s <a href="https://www.1news.co.nz/2023/09/26/more-sanctions-for-unemployed-beneficiaries-under-national/">pledge to apply sanctions</a> to unemployed people receiving a welfare payment, if they are “persistently” failing to meet the criteria for receiving the benefit, has attracted plenty of comment and <a href="https://www.1news.co.nz/2023/09/26/nationals-benefit-sanctions-plan-cruel-dehumanising-greens/">criticism</a>.</p> <p>Less talked about has been the party’s promise to index benefits to inflation to keep pace with the cost of living. This might at least provide some relief to those struggling to make ends meet on welfare, though is not clear how much difference it would make to the current system of indexing benefits to wages.</p> <p>In any case, this alone it is unlikely to break the cycle of poverty many find themselves in.</p> <p>One of the major drivers of this is the way the welfare system pushes some of the most vulnerable people into debt with loans for things such as school uniforms, power bills and car repairs.</p> <p>The government provides one-off grants to cover benefit shortfalls. But most of these grants are essentially loans.</p> <p>People receiving benefits are required to repay the government through weekly deductions from their normal benefits – which leaves them with even less money to survive on each week.</p> <p>With <a href="https://www.stuff.co.nz/pou-tiaki/132980318/auckland-mother-serves-up-cereal-for-dinner-due-to-rising-food-costs">rising costs</a>, the situation is only getting worse for many of the 351,756 New Zealanders <a href="https://figure.nz/chart/TtiUrpceJruy058e-ITw010dHsM6bvA2a">accessing one of the main benefits</a>.</p> <h2>Our whittled down welfare state</h2> <p>Broadly, there are three levels of government benefits in our current system.</p> <p>The main benefits (such as jobseeker, sole parent and supported living payment) <a href="https://www.workandincome.govt.nz/products/benefit-rates/benefit-rates-april-2023.html">pay a fixed weekly amount</a>. The jobseeker benefit rate is set at NZ$337.74 and sole parents receive $472.79 a week.</p> <p>Those on benefits have access to a second level of benefits – weekly supplementary benefits such as an <a href="https://www.workandincome.govt.nz/products/a-z-benefits/accommodation-supplement.html">accommodation supplement</a> and other allowances or tax credits.</p> <p>The third level of support is one-off discretionary payments for specific essential needs.</p> <p>Those on benefits cannot realistically make ends meet without repeated use of these one-off payments, unless they use assistance from elsewhere – such as family, charity or borrowing from loan sharks.</p> <p>This problem has been building for decades.</p> <h2>Benefits have been too low for too long</h2> <p>In the 1970s, the <a href="https://mro.massey.ac.nz/handle/10179/12967">Royal Commission on Social Security</a> declared the system should provide “a standard of living consistent with human dignity and approaching that enjoyed by the majority”.</p> <p>But Ruth Richardson’s “<a href="https://www.stuff.co.nz/the-press/christchurch-life/124978983/1991-the-mother-of-all-budgets">mother of all budgets</a>” in 1991 slashed benefits. Rates never recovered and today’s <a href="https://www.1news.co.nz/2022/03/29/benefit-increases-will-still-leave-families-locked-in-poverty/">benefits are not enough to live on</a>.</p> <p>In 2018, the <a href="https://www.weag.govt.nz/">Welfare Expert Advisory Group</a> looked at how much money households need in two lifestyle scenarios: bare essentials and a minimum level of participation in the community, such as playing a sport and taking public transport.</p> <p>The main benefits plus supplementary allowances did not meet the cost of the bare essentials, let alone minimal participation.</p> <p>The Labour government has since <a href="https://www.beehive.govt.nz/release/government-delivers-income-increases-over-14-million-new-zealanders">increased benefit rates</a>, meaning they are now slightly above those recommended by the advisory group. But those recommendations were made in 2019 and don’t take into account the <a href="https://www.stats.govt.nz/news/annual-inflation-at-6-0-percent">sharp rise in inflation</a> since then.</p> <p>Advocacy group <a href="https://fairerfuture.org.nz/">Fairer Future</a> published an updated assessment in 2022 – nine out of 13 types of households still can’t meet their core costs with the current benefit rates.</p> <h2>How ‘advances’ create debt traps</h2> <p>When they don’t have money for an essential need, people on benefits can receive a “special needs grant”, which doesn’t have to be repaid. But in practice, Work and Income virtually never makes this type of grant for anything except food and some other specific items, such as some health travel costs or emergency dental treatment.</p> <p>For <a href="https://www.1news.co.nz/2023/02/27/very-stressful-beneficiary-says-he-cant-afford-msd-debt/">all other essential needs</a> – such as school uniforms, car repairs, replacing essential appliances, overdue rent, power bills and tenancy bonds – a one-off payment called an “advance” is used. Advances are loans and have to be paid back.</p> <p>There are several issues with these types of loans.</p> <p>First, people on benefits are racking up thousands of dollars worth of debts to cover their essential needs. It serves to trap them in financial difficulties for the foreseeable future.</p> <p>As long as they remain on benefits or low incomes, it’s difficult to repay these debts. And the <a href="https://www.legislation.govt.nz/act/public/2018/0032/latest/whole.html">Social Security Act 2018</a> doesn’t allow the Ministry of Social Development (MSD) to waive debts.</p> <h2>Contradictory policies</h2> <p>Another problem is that people on benefits have to start repaying their debt straight away, with weekly deductions coming out of their already limited benefit.</p> <p>Each new advance results in a further weekly deduction. Often these add up to $50 a week or more. MSD policy says repayments should not add up to more than $40 a week, but that is often ignored.</p> <p>This happens because the law stipulates that each individual debt should be repaid in no more than two years, unless there are exceptional circumstances. Paying this debt off in two years often requires total deductions to be much higher than $40.</p> <p>The third issue is that one-off payments can be refused regardless of the need. That is because there are two provisions pulling in opposite directions.</p> <p>On the one hand the law says a payment should be made if not making it would cause serious hardship. But on the other hand, the law also says payments should not be made if the person already has too much debt.</p> <p>People receiving benefits and their case managers face the choice between more debt and higher repayments, or failing to meet an essential need.</p> <h2>Ways to start easing the burden</h2> <p>So what is the fix? A great deal could be achieved by just changing the policies and practices followed by Work and Income.</p> <p>Case managers have the discretion to make non-recoverable grants for non-food essential needs. These could and should be used when someone has an essential need, particularly when they already have significant debt.</p> <p>Weekly deductions for debts could also be automatically made very low.</p> <p>When it comes to changing the law, the best solution would be to make weekly benefit rates adequate to live on.</p> <p>The government could also make these benefit debts similar to student loans, with no repayments required until the person is off the benefit and their income is above a certain threshold.</p> <p>However we do it, surely it must be time to do something to fix this poverty trap.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/212528/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/hanna-wilberg-1466649"><em>Hanna Wilberg</em></a><em>, Associate professor - Law, <a href="https://theconversation.com/institutions/university-of-auckland-1305">University of Auckland</a></em></p> <p><em>Image credits: Getty Images </em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/forcing-people-to-repay-welfare-loans-traps-them-in-a-poverty-cycle-where-is-the-policy-debate-about-that-212528">original article</a>.</em></p>

Money & Banking

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1 in 4 households struggle to pay power bills. Here are 5 ways to tackle hidden energy poverty

<p><a href="https://energyconsumersaustralia.com.au/news/how-increases-in-energy-prices-are-impacting-consumers#:%7E:text=Energy%2520affordability%2520is%2520not%2520just,in%2520the%2520past%252012%2520months.">One in four Australian households</a> are finding it hard to pay their gas and electricity bills. As winter looms, <a href="https://www.aer.gov.au/news-release/default-market-offer-2023%25E2%2580%259324-draft-determination">energy price rises</a> will make it even harder. Cold homes and disconnections resulting from energy poverty threaten people’s health and wellbeing.</p> <p><a href="https://www.acoss.org.au/wp-content/uploads/2023/03/ACOSS-cost-of-living-report2-March-2023_web_FINAL.pdf">Income support for welfare recipients</a> and retrofitting homes to make them more thermally efficient – by adding insulation, for example – can ease the burden. And when homes are not too cold or hot, <a href="https://theconversation.com/fuel-poverty-makes-you-sick-so-why-has-nothing-changed-since-i-was-a-child-living-in-a-cold-home-201787">people’s health benefits</a>. This in turn <a href="https://apo.org.au/node/319556">eases pressure on the public health system</a>.</p> <p>However, many people are missing out on assistance as programs often do not recognise their difficulties. Their energy vulnerability is hidden.</p> <h2>What forms does hidden energy poverty take?</h2> <p><a href="https://www.sciencedirect.com/science/article/pii/S2214629623000737">Our newly published study</a> has revealed six aspects of hidden energy vulnerability. These are:</p> <ol> <li> <p>underconsumption – households limit or turn off cooling, heating and/or lights to avoid disconnections</p> </li> <li> <p>incidental masking – other welfare support, such as rent relief, masks difficulties in paying energy bills</p> </li> <li> <p>some households disguise energy poverty by using public facilities such as showers or pooling money for bills between families</p> </li> <li> <p>some people conceal their hardship due to pride or fear of legal consequences, such as losing custody of children if food cannot be refrigerated because the power has been cut off</p> </li> <li> <p>poor understanding of energy efficiency and the health risks of cold or hot homes adds to the problem</p> </li> <li> <p>eligibility criteria for energy assistance programs may exclude some vulnerable households. For example, people with income just above the welfare threshold are missing out on energy concessions. Energy retailer hardship programs also ignore people who have voluntarily disconnected due to financial hardship.</p> </li> </ol> <h2>5 ways to help these households</h2> <p>Our studies suggest trusted intermediaries such as people working in health, energy and social services can play a vital role in identifying and supporting such households.</p> <p>First, energy efficiency and hardship initiatives may be <a href="https://www.rmit.edu.au/about/schools-colleges/property-construction-and-project-management/research/research-centres-and-groups/sustainable-building-innovation-laboratory/projects/care-at-home-system-improvements">integrated into the My Aged Care in-home care system</a>. Energy poverty risk identification, response and referral could be built into the national service’s assessment form. This could leverage existing client screening processes.</p> <p>The system’s front-line staff could connect at-risk householders with energy counsellors. These counsellors could help people access better energy contracts, concessions, home retrofits and appliance upgrade programs.</p> <p>A new Commonwealth “energy supplement” could help pay for essential energy-related home modifications. This would help avoid My Aged Care funds being diverted from immediate healthcare needs.</p> <p>Second, general practitioners and other health professionals could help identify energy vulnerability among patients with medical conditions of concern. They could also provide letters of support emphasising renters’ health-based need for air conditioners or heaters.</p> <p>Third, energy providers could use household energy data to identify those that seem to be under-consuming or are often disconnected. They could also identify those that are not on “best offer” deals. They could be proactive in checking struggling householders’ eligibility for ongoing energy concessions and one-off debt relief grants offered by states and territories.</p> <p>Energy providers could also make it easier for social housing providers to ensure concessions for tenants renew automatically.</p> <p>Fourth, local councils could use their data to identify at-risk householders. They might include those with a disability parking permit, discounted council rates or in arrears, on the social housing waiting list, Meals on Wheels clients and social housing tenants. Maternal and child health nurses and home and community care workers making home visits could call attention to cold or hot homes.</p> <p>Councils could employ in-house energy counsellors to provide assistance and energy literacy training. Council home maintenance teams could develop bulk-buying, insulation and neighbourhood retrofit programs.</p> <p>Strategies to reduce vulnerability to energy poverty should be part of municipal public health and wellbeing plans. Under these strategies, net-zero-carbon funds set up by states and local councils to reduce emissions could finance targeted housing retrofits.</p> <p>We also suggest setting up a central helpline to improve access to energy assistance via local referrals.</p> <p>Fifth, residential energy-efficiency programs could become more person-centric. For example, we already have <a href="https://www.homescorecard.gov.au/">Residential Efficiency Scorecard</a> audits to assess the thermal quality of a home. These audits could also explore whether concessions and better energy deals are available to the household.</p> <h2>Building capacity at all levels</h2> <p><a href="https://cur.org.au/cms/wp-content/uploads/2021/08/tackling-hidden-energy-final.pdf">Capacity-building strategies</a> are needed at all levels – individual, community and government – to overcome the <a href="https://www.sciencedirect.com/science/article/pii/S2214629623000737">challenges</a> of reducing energy poverty. Current obstacles include the competing priorities of service providers, lack of time and resources, and <a href="https://www.sciencedirect.com/science/article/abs/pii/S2214629622003553">poor co-ordination between siloed</a> programs and services.</p> <p>Access to essential energy services should be part of state and local governments’ strategic health plans. Housing, energy and health departments could work together to include housing retrofits in preventive health programs.</p> <p>A comprehensive approach is needed to overcome hidden energy poverty. It must include public education, integrated services and well-funded energy-efficiency programs. Regulatory reforms and ongoing funding are both needed to improve the availability of energy-efficient, affordable homes for tenants.</p> <p>Our suggested strategies start with improving the skills and knowledge of trusted intermediaries. Doctors, social workers, housing officers, community nurses and volunteers can play a central role. Using these front-line professionals to help identify and act on energy poverty offers a novel, cost-effective and targeted solution.</p> <p><em>This article originally appeared on <a href="https://theconversation.com/1-in-4-households-struggle-to-pay-power-bills-here-are-5-ways-to-tackle-hidden-energy-poverty-204672" target="_blank" rel="noopener">The Conversation</a>.</em></p> <p><em>Images: Getty</em></p>

Home Hints & Tips

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Why are the poor shunned? The reasons are complicated

<p>In a <a href="https://www.cambridge.org/core/journals/central-european-history/article/what-it-means-to-have-nothing-poverty-and-the-idea-of-human-dignity-in-nineteenthcentury-germany/8C8F12F666689B75396E67A212E69EBD">study</a> of 19th century ideas of poverty, the German historian Beate Althammer observes a strange dichotomy. On the one hand, “there existed a deep-rooted tradition of ascribing to the poor a special proximity to God”.</p> <p>As a Hamburg teacher wrote in 1834, "Who obliges us more to sympathy and reverence than he who faces the inescapable blows of an erratic fate with manly steadiness, pious resignation and wise abstinence? What a dignified appearance is the neediness simultaneously ennobled and keenly veiled by an indestructible love of honor, which will bear suffering rather than pity!"</p> <p>Yet the same teacher sounds a dissonant note when writing about the “depraved, ignominious poverty” of the beggar, “who has rid himself of all shame and discipline on the way to impoverishment”. </p> <p>“Where idleness has become a trade and begging a fraudulent art,” he continues, “all human feeling has died.”</p> <p>The idea that the poor are impoverished morally as well as materially, that they lack humanity as well as means, has a long history. It is expressed most mordantly in Jonathan Swift’s <a href="https://www.gutenberg.org/files/1080/1080-h/1080-h.htm">A Modest Proposal</a>, a 1729 satire on British attitudes to Irish poverty.</p> <p>Starvation among large families could be averted with a simple solution, "A young healthy child well nursed, is, at a year old, a most delicious nourishing and wholesome food, whether stewed, roasted, baked, or boiled; and I make no doubt that it will equally serve in a fricassee, or a ragout."</p> <p>Swift’s suggestion that poor children could become a commercial food source is mocking heartless responses to poverty. His “proposal” rests on a dehumanising equation of people with animals or consumer goods. A new book argues that this animus is an enduring feature of contemporary society.</p> <h2>Aporophobia</h2> <p><a href="https://en.wikipedia.org/wiki/Adela_Cortina">Adela Cortina</a> is a distinguished Spanish political philosopher who has written extensively on ethics, justice, civil society and democracy. Around the new millennium, she began to write on the rejection of the poor as an overlooked form of prejudice.</p> <p>Cortina coined the term “aporophobia” – from the Ancient Greek aporos, meaning poor or without means – and published an influential 2017 book on the subject in Spanish. That book has now been published in English as <a href="https://press.princeton.edu/books/hardcover/9780691205526/aporophobia">Aporophobia: Why We Reject the Poor Instead of Helping Them</a>.</p> <p>Cortina does not present aporophobia as a clinical condition or narrowly as a species of fear. Much like other faux-phobias, such as homophobia and xenophobia, she takes it to be a widespread aversion, based on contempt as much as dread, which justifies the ongoing deprecation of the poor.</p> <p>Her primary case for the reality and significance of aporophobia rests on the harsh treatment of immigrants and displaced people. What might first appear to be a xenophobic response, Cortina argues, may not be motivated by their foreignness or race, but by the perception that their poverty leaves them unable to reciprocate the host nation’s beneficence, "Do we reject immigrants because they are foreign or because they are poor and seem to bring problems while offering nothing of value in return?"</p> <p>Cortina observes that some groups of foreigners are welcomed. Tourists, investors and international students, all of whom bring resources, encounter widespread xenophilia. The roots of prejudice towards immigrants, refugees and asylum seekers, Cortina suggests, are therefore to be found in the perception of their indigence rather than their alienness.</p> <p>Having defined and made a theoretical case for aporophobia, Cortina moves on to the problem of hatred, understood as group-based animosity based on the assumed superiority of its perpetrators. </p> <p>Hate crimes against the poor and homeless motivated by aporophobia, which she estimates as constituting around 1% of Spain’s total, must be acknowledged and taken seriously. Even so, she maintains that aporophobic hatred is distinct from other kinds because “involuntary poverty […] is neither a personal identity nor a choice”.</p> <p>Cortina’s prescription for combating hate speech is the cultivation of “active respect” and “mutual recognition of dignity” in civil society. Juridical solutions are insufficient, she maintains. The grounds for objecting to hate speech is a proposed “right to self-esteem”, a right that some might seem to have in excess. </p> <p>Although many examples of hate speech appear to be based on race, religion or ideology, Cortina proposes that poverty is their essential common ingredient. Aporophobia, she argues, “is inevitably at the root of speech acts that target those in subordinate positions”. On this expansive view, any form of subordination or “position of weakness” is interpreted as a form of poverty. </p> <p>Overcoming hatred may be challenging because “our brains are aporophobic”. Cortina explores the neuroscience of social conflict, finding evidence of a “contractualist brain” that is primed to expect reciprocity and respond with moralistic aggression to violations of that principle. To override this brain-based rejection of free riders, she argues, we need a program of “moral bioenhancement”. </p> <p>The ultimate way forward does not involve tinkering with our brains, however. “Economic institutions that eliminate poverty and inequality are the best ways to eradicate aporophobia.” In addition, universal values and “cosmopolitan hospitality” must be taught and practised. Cortina closes her book with suggestions for how a more compassionate citizenry and a more economically fair international order can be created.</p> <h2>Impoverished emotions</h2> <p>Cortina’s work is a philosophically rich and sometimes rousing call to end poverty and secure human dignity. Whether the concept of aporophobia can bear the interpretive load she places on it is another matter. The concept is both too narrow and too ambitious to serve its intended explanatory function. Its diagnosis of the source of antipathy to the poor is questionable in three respects.</p> <p>First, the concept of aporophobia asserts that the ingredients of antipathy to the poor are fear and contempt. The poor are dreaded from a position of threat and scorned from a position of imagined superiority. These emotional elements may be present in responses to the poor, but indifference and neglect are at least equally powerful. The poor suffer as much from a cold lack of concern, reinforced by spatial separation, as they do from heated aversion. Residential segregation and national borders help to keep poverty out of sight and out of mind, but this motivated ignorance is invisible in Cortina’s account.</p> <p>Second, the concept of aporophobia overlooks a key aspects of the rejection of the poor. By centring fear and contempt, Cortina omits the moral dimension of that aversion. The poor are not merely dreaded and scorned, but are also believed to have transgressed rules of fairness. This dynamic is evident in the dichotomous reactions to the virtuous and vicious poor characters mentioned at the beginning of this review. Polarised responses to people viewed as deserving and undeserving of their impoverished state are common. Those seen as not responsible for their condition are judged worthy, whereas those who are thought to have brought it on themselves are reviled. Attitudes to the poor hinge on moral evaluations of deservingness, which ideas of amoral aversion fail to capture.</p> <p>Third, if our views of the poor are indeed polarised by judgements of deservingness, is there a powerful aversion to the poor as a class, as Cortina suggests, or only to its undeserving variety? The poor are sometimes stereotyped as lacking in warmth and capability – though <a href="https://spssi.onlinelibrary.wiley.com/doi/10.1111/josi.12208">not invariably</a>. But it is unclear whether that perception reveals attitudes to poverty per se or only to that demonised form. </p> <p><a href="https://spssi.onlinelibrary.wiley.com/doi/pdf/10.1111/asap.12313">Recent Australian research</a> suggests that evaluations of poverty may be quite benevolent. The study examined how public attitudes are influenced by poverty, unemployment and receipt of income support. It found that poverty itself carries little stigma. Members of the working poor were judged no less sympathetically than other workers. </p> <p>Being unemployed, however, carried a negative charge, and receiving unemployment benefits an additional one. Benefit recipients were perceived as less disciplined, emotionally stable and warm than other unemployed people. </p> <p>These findings are consistent with the well established phenomenon of <a href="https://www.cambridge.org/core/journals/journal-of-social-policy/article/abs/stigma-of-claiming-benefits-a-quantitative-study/AF30092AE7D5B7C659798228B219F02C">benefit stigma</a>, related to a stereotype of recipients as lazy, parasitic, and undeserving. They are not consistent with an aversion to poor people that is directly attributable to their poverty. Any account that invokes an amoral generalised aversion to the poor rather than a moralised aversion to the supposedly undeserving poor is incomplete.</p> <h2>Is aporophobia primary?</h2> <p>In addition to querying Cortina’s characterisation of the emotions underlying our views of the poor, we can also quibble with her argument for the primacy of aporophobia over xenophobia in the rejection of immigrants and displaced people. </p> <p>It is unquestionably true that attitudes to outsiders are rarely monolithically negative, and that wealthy foreigners are welcomed in ways that refugees are not. But the argument that xenophobia can be reduced to aporophobia – not to mention the more general claim that aporophobia is at the root of all forms of subordination – is entirely far-fetched. </p> <p>Our tendency to show an ethnocentric preference for our own kind – to value and favour in-group over out-group – is very <a href="https://spssi.onlinelibrary.wiley.com/doi/abs/10.1111/0022-4537.00126">well established</a> and even wealthy outsiders are not immune to it. We routinely denigrate and distrust foreign nationals, even – and sometimes especially – when they are rich and powerful. </p> <p>The fact that poverty is one reason for our rejection of immigrants or displaced persons does not make it the only one. Any rejection based on lack of means or reciprocity is compounded by rejection based on foreignness (xenophobia), on race, and potentially on other factors, such as religion or gender. </p> <p>To reduce the hostility of rich European nations to immigrants from North Africa and beyond to aporophobia, as Cortina does, or to racism, as others prefer to do, is to oversimplify. Single-barrelled explanations overlook the fact that prejudice is layered.</p> <p>Consider Australia’s historically unwelcoming attitude to many immigrants and displaced persons. It has been popular to view this rejection through a racism or xenophobia monocle. If that were the whole story, public attitudes would be equally antagonistic to immigrants, refugees admitted through the humanitarian program, and undocumented asylum seekers. But those attitudes are decidedly unequal.</p> <p>Attitudes towards immigrants are typically warmer and more compassionate than those towards refugees, with special scorn reserved for undocumented boat arrivals. Aporophobia may help to account for some of these differences: immigrants are assumed to be skilled and economically self-sufficient, whereas refugees and asylum seekers are assumed to require substantial welfare supports. </p> <p>However, much of the animus towards asylum seekers focuses not on their race, foreignness, or lack of resources, but on moralistic reactions to their mode of entry, as the shrill language of “illegals” and “queue-jumpers” attests. To reduce popular attitudes towards displaced people to racism, xenophobia or aporophobia is to bulldoze several tiers of aversion into one flattened explanation.</p> <h2>A confluence of factors</h2> <p>Social rejection can take many forms and have many determinants. The idea of “<a href="https://en.wikipedia.org/wiki/Intersectionality">intersectionality</a>” offers one perspective. How we evaluate and respond to a person may reflect the unique intersection of their identities. The stereotype of “Asian woman” is not a simple sum of the stereotypes of “Asian” and “woman” but may call up a distinct configuration of perceptions. </p> <p>Sometimes, though, it helps to remember that some attitudes are not so much intersectional as additive, at least in their virulence. How negatively we perceive groups such as asylum seekers may reflect a confluence of factors: their outsider status, their race, their poverty, their officially sanctioned versus unsanctioned means of entering the country, and so on. </p> <p>“Additivity” doesn’t have the same ring as “intersectionality”, but it might help to warn us off simplifying accounts of social exclusion.</p> <p>Aporophobia is nevertheless a valuable addition to the social scientist’s conceptual arsenal. Cortina’s work draws welcome attention to a form of prejudice that is too often shunted aside by our identitarian focus on race, gender and sexuality. </p> <p>We might quibble with some inflated claims for the primacy of aporophobia, with the imperfect analysis of its emotional signature, and with the omission of social class from Cortina’s discussion of economic inequality. Her emphasis on the rejection of displaced people within European nations – understandable given the book’s original publication in 2017 when a refugee crisis was convulsing the continent – can also be faulted. Examining public responses to the domestic poor might afford a clearer view of aporophobia than one complicated by displacement and ethnic differences.</p> <p>Despite these reservations, Cortina has written a significant work of social philosophy that deserves close attention in the Anglophone world. Aporophobia is a provocative book that will stimulate discussion, argument and investigation.</p> <p><em>Image credits: Getty Images</em></p> <p><em>This article originally appeared on <a href="https://theconversation.com/why-are-the-poor-shunned-the-reasons-are-complicated-194808" target="_blank" rel="noopener">The Conversation</a>. </em></p>

Caring

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How financial hardship is bad for our health

<p>Australia is <a href="https://www.theguardian.com/news/datablog/ng-interactive/2022/jul/27/cost-of-living-australia-price-changes-inflation-2022-sydney-melbourne-brisbane-interactive-data-explorer-june-quarter" target="_blank" rel="noopener">facing a cost-of-living crisis</a>. Rising costs of rent, fuel, food and power have increased financial stress for many households.</p> <p>While financial pressures are now being felt by a broader section of society, for many Australians, such pressures are constant.</p> <p>The health costs of such socioeconomic disadvantage are startling. A <a href="https://www.aihw.gov.au/reports/burden-of-disease/abds-impact-and-causes-of-illness-and-death-in-aus/summary" target="_blank" rel="noopener">2021 report</a> found the most disadvantaged 20% of Australians die four to six years earlier than the least disadvantaged.</p> <p>One-fifth of the country’s ill-health would be avoided if everyone enjoyed the same socioeconomic circumstances as the top 20%. Internationally, more equal societies enjoy <a href="https://equalitytrust.org.uk/resources/the-spirit-level" target="_blank" rel="noopener">better overall health</a>.</p> <p>So how does financial hardship damage health? And what can we do about it?</p> <p><strong>Shorter lives with more disease</strong></p> <p><a href="https://www.who.int/publications/i/item/WHO-IER-CSDH-08.1" target="_blank" rel="noopener">People</a> in poorer socioeconomic circumstances <a href="https://www.aihw.gov.au/reports/australias-health/health-across-socioeconomic-groups" target="_blank" rel="noopener">do worse</a> across almost all health measures. This includes life expectancy, non-communicable diseases (such as heart disease, diabetes), injuries, and as we’ve seen in the COVID pandemic, infectious diseases.</p> <p>Compared to wealthier Australians, those who are <a href="https://www.aihw.gov.au/reports/burden-of-disease/abds-impact-and-causes-of-illness-and-death-in-aus/summary" target="_blank" rel="noopener">worst-off</a> carry a health burden 40% higher for anxiety, twice as high for heart disease and more than twice as high for diabetes.</p> <p>Poor outcomes in disadvantaged groups are due to a mix of higher exposure to negative risk factors for health (environmental and occupational hazards, tobacco) and poorer access to positive factors (healthy food, preventative care, autonomy to make decisions for yourself and your family) than the broader population.</p> <p>These disparities come about through disempowerment, social discrimination and disadvantage.</p> <p>Poor health can also perpetuate financial hardship through reduced access to education, employment, and other key social resources, leading to a vicious cycle.</p> <p><strong>Financial hardship is bad for families, especially children</strong></p> <p>Households under financial stress have difficulty paying for essentials such as rent, food, clothing and heating. While they spend less in dollar terms on these items, expenditure on essentials accounts for a <a href="https://www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-australia-summary-results/latest-release#financial-stress-and-spending" target="_blank" rel="noopener">greater proportion</a> of their total household income. This leaves people with less control over their wellbeing and quality of life.</p> <p>Households experiencing socioeconomic disadvantage are also at increased risk of family disruption, stigma and domestic violence. The <a href="https://www.aihw.gov.au/reports/burden-of-disease/abds-impact-and-causes-of-illness-and-death-in-aus/summary" target="_blank" rel="noopener">health burden</a> of intimate partner violence is two-and-a-half times higher in the poorest 20% compared with the most advantaged 20% of households.</p> <figure class="align-center "><img src="https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=425&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=425&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=425&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=534&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=534&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/491558/original/file-20221025-15-7q31vn.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=534&amp;fit=crop&amp;dpr=3 2262w" alt="Child draws with crayons" /><figcaption><span class="caption">Poorer families experience more disruption than wealthier families.</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/1zR3WNSTnvY">Aaron Burden</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure> <p>Financial hardship is particularly bad for children. Despite former Prime Minister Bob Hawke’s <a href="https://theconversation.com/we-asked-children-how-they-experienced-poverty-here-are-6-changes-needed-now-180567" target="_blank" rel="noopener">declaration</a> that “by 1990, no Australian child will be living in poverty”, around <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwjG_fCh5N76AhUs2HMBHZQ3ABkQFnoECAsQAQ&amp;url=https%3A%2F%2Fpovertyandinequality.acoss.org.au%2Fwp-content%2Fuploads%2F2020%2F02%2FPoverty-in-Australia-2020_Part-1_Overview.pdf&amp;usg=AOvVaw0_EUG07PIsyiun4LTEWvj2" target="_blank" rel="noopener">one in six</a> still do. This impacts their access to food, security and social participation.</p> <p>It also has <a href="https://aifs.gov.au/research/family-matters/no-93/early-childhood-poverty-and-adult-achievement-employment-and-health" target="_blank" rel="noopener">lifelong effects</a> on their health and wellbeing, making it more likely they will experience financial hardship as adults, thus perpetuating the cycle of poverty.</p> <p><strong>Poor communities lack access to resources to improve their health</strong></p> <p>Socioeconomic disadvantage is often concentrated in particular communities, where social and environmental factors can <a href="https://aifs.gov.au/resources/policy-and-practice-papers/what-community-disadvantage-understanding-issues-overcoming" target="_blank" rel="noopener">further compromise health</a>.</p> <p>Loss of employment opportunities, limited public services and infrastructure such as transport are often exacerbated by political neglect and geographic disparities in local government resources. This is partly captured in Australia’s stark regional health inequalities: people in regional and remote areas are more likely to have <a href="https://www.aihw.gov.au/reports/burden-of-disease/abds-impact-and-causes-of-illness-and-death-in-aus/summary" target="_blank" rel="noopener">heart disease, kidney disease and injuries</a>.</p> <p>While many communities respond to these challenges, long-term community health requires support from the wider society. This includes a commitment to listen and respond to local needs and priorities, address historical injustices (particularly for Indigenous communities), and invest in sustainable <a href="https://aifs.gov.au/resources/practice-guides/what-community-development" target="_blank" rel="noopener">community development</a>.</p> <p><strong>So what can we do about it?</strong></p> <p>Financial hardship is a structural problem, so tackling it is a daunting challenge, particularly in the current economic climate. But <a href="https://journals.sagepub.com/doi/full/10.1177/14034948211022428" target="_blank" rel="noopener">international evidence shows</a> it is possible to reduce socioeconomic inequalities and improve health through collective action.</p> <p>Such efforts require a commitment to “levelling up” society <a href="https://journals.sagepub.com/doi/full/10.1177/14034948211022428" target="_blank" rel="noopener">by</a> expanding welfare, improving public services, and ensuring the political participation of disadvantaged groups.</p> <p>As the link between poverty and health is related to disempowerment, to counter the effect, we need to empower people. This means listening to those experiencing poverty and disadvantage to understand their needs and including them in decision-making.</p> <figure class="align-center "><img src="https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/491560/original/file-20221025-18-g16smr.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="Road with lots of cars" /><figcaption><span class="caption">Reducing inequality – including providing better public transport options – can improve health outcomes in lower socioeconomic groups.</span> <span class="attribution"><a class="source" href="https://unsplash.com/photos/coFDSpl9DA8">Sandy Ravaloniaina/Unsplash</a></span></figcaption></figure> <p>Australia’s response to the COVID pandemic shows it is possible to mobilise resources and political will in the face of a public health crisis. In 2020, the Australian government <a href="https://www.theguardian.com/australia-news/2020/jul/21/jobseeker-payment-economists-on-why-its-dangerous-to-cut-covid-19-welfare-subsidy" target="_blank" rel="noopener">temporarily increased</a> the unemployment benefit from its base rate (<a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0008/4288661/Poverty-Lines-Australia-June-2022.pdf" target="_blank" rel="noopener">46% below the poverty line</a>) – an implicit admission these payments were inadequate.</p> <p>While poverty in Australia fell during the first two years of the pandemic, it has <a href="https://povertyandinequality.acoss.org.au/covid-inequality-and-poverty-in-2020-and-2021/" target="_blank" rel="noopener">increased again</a> as income supports have been phased out. Australia <a href="https://www.google.com/url?sa=t&amp;rct=j&amp;q=&amp;esrc=s&amp;source=web&amp;cd=&amp;cad=rja&amp;uact=8&amp;ved=2ahUKEwizj5Hi0d76AhXOJrcAHU5XCnAQFnoECCoQAQ&amp;url=https%3A%2F%2Ftaxpolicy.crawford.anu.edu.au%2Fsites%2Fdefault%2Ffiles%2Fuploads%2Ftaxstudies_crawford_anu_edu_au%2F2018-12%2Fcombined_pdf_whiteford_trends_in_soc_sec_spending_2017.pdf&amp;usg=AOvVaw3rLfo9h0WW7D7vTf1aIfD4" target="_blank" rel="noopener">spends less</a> on welfare than most high-income OECD countries and our <a href="https://www.emerald.com/insight/content/doi/10.1108/S1049-258520200000028002/full/html">taxes</a> are spread less equitably. There is plenty of scope to improve this inequality by <a href="https://povertyandinequality.acoss.org.au/poverty/" target="_blank" rel="noopener">lifting benefit levels permanently</a> to keep Australians out of poverty.</p> <p>The health costs of financial hardship and inequality constitute a public health crisis, one that requires a collective commitment to “levelling up” society: the quintessentially Australian value of giving everyone a “fair go”.</p> <p>The good news is, we have the tools to do this and the evidence to show it works – even in times of economic difficulty. Let’s make this a priority, for the sake of everyone’s health.</p> <p><em>Writen by Edward Jegasothy. Republished with permission from <a href="https://theconversation.com/disempowered-shut-off-and-less-able-to-afford-healthy-choices-how-financial-hardship-is-bad-for-our-health-192241" target="_blank" rel="noopener">The Conversation</a>.</em></p> <p><em><!-- Below is The Conversation's page counter tag. 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Money & Banking

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Poverty isn’t a temporary experience in Australia. We need urgent policy tackling persistent disadvantage

<p>We often hear a job is the best way to get someone out of poverty. In many cases this is true, and anti-poverty strategies should prioritise improving people’s access to jobs.</p> <p>But this isn’t the complete solution. For many – particularly those with disability or substantial caring responsibilities that limit their scope to work – the income support system remains crucial to avoiding persistent poverty.</p> <p>It may not feel like it at a time of rising living costs, but the incomes of Australians have on average risen substantially over the last three decades and continue to trend upwards – we have never been richer.</p> <p>However – <a href="https://www.pc.gov.au/research/supporting/deep-persistent-disadvantage" target="_blank" rel="noopener">as highlighted by the Productivity Commission</a> – some in the community continue to be left behind.</p> <p>Our new <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0011/4107629/Breaking-Down-Barriers-Report-4-May-2022.pdf" target="_blank" rel="noopener">study of income poverty</a> shows persistent poverty remains a significant problem in Australian society.</p> <p>Looking back over the first two decades of this century, we found around 13% of the population are persistently poor.</p> <p>We defined these as people who persistently have to live on incomes that are <a href="https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:At-risk-of-poverty_rate" target="_blank" rel="noopener">less than 60% of</a> the median income in Australia (a definition employed by Eurostat for European Union member countries).</p> <p>Poverty then isn’t simply a temporary experience in Australia, and tackling persistent disadvantage needs to be a policy imperative.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/461194/original/file-20220504-21-epehk7.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><em><span class="caption">Poverty isn’t simply a temporary experience in Australia.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></figcaption></figure> <p><strong>Why do people descend in poverty – and often stay there?</strong></p> <p>Understanding what drives poverty and its persistence is an essential first step to alleviating it.</p> <p>Using data from the longitudinal Household, Income and Labour Dynamics in Australia (<a href="https://melbourneinstitute.unimelb.edu.au/hilda" target="_blank" rel="noopener">HILDA</a>) Survey, we examined the extent and nature of persistent poverty among the same sample of Australians tracked over time.</p> <p>Specifically, we looked at</p> <ul> <li>why do people descend into poverty?</li> <li>why do some people remain in poverty, while others escape it?</li> <li>why some of those who escape poverty remain out of poverty while others fall back into it.</li> </ul> <p>We also examined the degree to which the depth of poverty (how far someone’s income is below the poverty line) impacts on the likelihood of staying in poverty.</p> <p>We found persistent poverty is more prevalent among:</p> <ul> <li>women</li> <li>single-parent families</li> <li>older people</li> <li>Indigenous Australians</li> <li>people with a disability</li> <li>less-educated people, and</li> <li>people living in more disadvantaged regions.</li> </ul> <p>This is consistent with <a href="https://povertyandinequality.acoss.org.au/poverty-in-australia-2020-overview-html-version/" target="_blank" rel="noopener">previous studies of poverty</a> made at a single point in time.</p> <p>Perhaps unsurprisingly, those in deep poverty – the poorest of the poor – are the most likely to be persistently poor (up to five times more likely than the average person in the community).</p> <p>The very poor are therefore a policy priority – not only because they are very poor now, but because they are more likely to remain poor.</p> <p><strong>‘Falling’ into poverty</strong></p> <p>Similarly, among those initially not in poverty, those with incomes closest to the poverty line – the poorest of the non-poor – are at greater risk of falling into persistent poverty.</p> <p>Another policy priority therefore needs to be preventing those close to the poverty line falling into actual poverty.</p> <p>When we examined the “trigger events” for people falling into poverty or rising out of it, we found the household’s success in the labour market is critical. In other words, people need to be able to get a job.</p> <p>An increase in the number of employed people in the household is strongly associated with lifting people out of poverty.</p> <p>There is also a strong association between a lack of work and the risk of persistent poverty.</p> <p>Clearly, then, policy measures geared towards increasing employment, and retaining employment for those already employed, are key to reducing persistent poverty.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=400&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/461457/original/file-20220505-24-cgvjbn.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=503&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><em><span class="caption">Another policy priority needs to be preventing those close to the poverty line falling into actual poverty.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></figcaption></figure> <p><strong>It’s not just about jobs, though</strong></p> <p>But employment isn’t the only factor of importance. Any change in family type, but particularly becoming a single-parent family, increases the risk of poverty.</p> <p>More broadly, the household context plays a crucial role in determining individuals’ poverty experiences.</p> <p>Who you live with, what they do, and what happens to them are important. The household perspective then is critical to understanding poverty and designing appropriate policy responses.</p> <p>The onset of disability or substantial caring responsibilities is also much more likely to tip you into poverty and keep you there.</p> <p>Put simply, those who are more likely to experience persistent poverty tend to be constrained in their ability to participate in the labour market. Having a job may not be an option at all.</p> <p>Focusing only on labour market-related anti-poverty policy measures therefore isn’t enough to fully address persistent poverty in the Australian community.</p> <p>Many of those highly exposed to persistent poverty have very constrained access to paid work, because of factors such as:</p> <ul> <li>long-term health conditions</li> <li>high caring responsibilities for young children or</li> <li>significant disabilities.</li> </ul> <p>Even among couple-parent households, we found the more dependent children in the household, the lower the probability of exiting poverty.</p> <p>This highlights the importance of child care assistance to facilitate employment participation and sustained income adequacy for families with young children.</p> <figure class="align-center zoomable"><a href="https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=600&amp;h=338&amp;fit=crop&amp;dpr=1 600w, https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=600&amp;h=338&amp;fit=crop&amp;dpr=2 1200w, https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=600&amp;h=338&amp;fit=crop&amp;dpr=3 1800w, https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;h=425&amp;fit=crop&amp;dpr=1 754w, https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=30&amp;auto=format&amp;w=754&amp;h=425&amp;fit=crop&amp;dpr=2 1508w, https://images.theconversation.com/files/461458/original/file-20220505-26-km89qo.jpg?ixlib=rb-1.1.0&amp;q=15&amp;auto=format&amp;w=754&amp;h=425&amp;fit=crop&amp;dpr=3 2262w" alt="" /></a><figcaption><em><span class="caption">Many of those highly exposed to persistent poverty have very constrained access to paid work, because of factors such as long-term health conditions.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></figcaption></figure> <p><strong>An unavoidable conclusion</strong></p> <p>But even improvements in child care assistance aren’t enough. The simple fact is that, for a significant number of people, income support will continue to determine their living standards.</p> <p>The unavoidable conclusion is that boosting income support payments beyond their current austere levels remains a crucial pillar of policy for governments genuinely committed to reducing persistent disadvantage.</p> <p>Unfortunately, this does not appear to be on the agenda of either of the major parties.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/181343/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a href="https://theconversation.com/profiles/esperanza-vera-toscano-788145" target="_blank" rel="noopener">Esperanza Vera-Toscano</a>, Senior research fellow, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722" target="_blank" rel="noopener">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/roger-wilkins-95906" target="_blank" rel="noopener">Roger Wilkins</a>, Professorial Fellow and Deputy Director (Research), HILDA Survey, Melbourne Institute of Applied Economic and Social Research, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722" target="_blank" rel="noopener">The University of Melbourne</a></em></p> <p><em>This article is republished from <a href="https://theconversation.com" target="_blank" rel="noopener">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/poverty-isnt-a-temporary-experience-in-australia-we-need-urgent-policy-tackling-persistent-disadvantage-181343" target="_blank" rel="noopener">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

Legal

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Viral Christmas photo prompts flood of donations and gifts

<p><span style="font-weight: 400;">A 12-year-old boy and his family have received a flood of donations, after a photo of him pulling a Christmas tree out of a pile of rubbish went viral.</span></p> <p><span style="font-weight: 400;">Gabriel Silva lives with his mother and two older brothers in a mud hut in Pinheiro, a town in northeastern Brazil, and spends most days after school digging through mountains of rubbish at the nearby dump.</span></p> <p><span style="font-weight: 400;">On November 8, he uncovered a discarded plastic bag containing a small artificial Christmas tree.</span></p> <p><span style="font-weight: 400;">“I had never had a Christmas tree before,” he </span><a rel="noopener" href="https://www.nzherald.co.nz/world/christmas-tree-turns-symbol-of-hope-at-brazil-dump/JMPG6HOAF5XRBIDDEB2PWMXGPI/" target="_blank"><span style="font-weight: 400;">said</span></a><span style="font-weight: 400;">.</span></p> <blockquote class="twitter-tweet" data-lang="en"> <p dir="ltr">|| <a href="https://twitter.com/hashtag/fotojornalismo?src=hash&amp;ref_src=twsrc%5Etfw">#fotojornalismo</a> 📷<br /><br />O poder da fotografia. Um registro feito pelo fotógrafo João Paulo Guimarães no município de Pinheiro, a 333 km de São Luís, tem chamado atenção nos últimos dias. Uma foto tirada em um lixão da cidade mostra Gabriel, de 12 anos, que acompanhava a mãe <a href="https://t.co/eHt2BL1j2T">pic.twitter.com/eHt2BL1j2T</a></p> — Biólogo Henrique, o Biólogo das Cobras (@BiologoHenrique) <a href="https://twitter.com/BiologoHenrique/status/1468026523785613316?ref_src=twsrc%5Etfw">December 7, 2021</a></blockquote> <p><span style="font-weight: 400;">The image of Silva with his find, taken by photographer Joao Paulo Guimaraes, quickly went viral.</span></p> <p><span style="font-weight: 400;">Instead of the small tree, Silva’s home now has a giant Christmas tree inside, gifted by a benefactor who was moved by the photograph, as well as a flood of other donations.</span></p> <p><span style="font-weight: 400;">“We’ve gotten clothes, mattresses, baskets of food. Thank God, we’ll be able to get by fine for Christmas this year,” Silva’s mother, Maria Francisca Silva, said.</span></p> <p><span style="font-weight: 400;">The family has also received money through online collections - coming as a significant jump from the approximately 600 reais ($AUD 149) Maria Francisca makes selling recyclable materials from the dump each month.</span></p> <p><span style="font-weight: 400;">After an initial donation of 500 reais, the family has fulfilled a longtime wish and installed a hydraulic pump, replacing the rope and bucket they use to retrieve water from their well.</span></p> <p><span style="font-weight: 400;">They also hope to fulfill another wish of building an actual house.</span></p> <p><span style="font-weight: 400;">But Silva’s favourite gift was a bicycle he received from a teacher at school.</span></p> <p><span style="font-weight: 400;">He spends most of his free time at the dump with his mother, who says he always helps her.</span></p> <p><span style="font-weight: 400;">“I prefer to bring him with me. If I let him run around in the street, he could get into drugs, do things he’s not supposed to do,” Maria Francisca said.</span></p> <p><span style="font-weight: 400;">“He’s a good boy. He always helps me.”</span></p> <p><span style="font-weight: 400;">Along with a flood of gifts, the viral photo has turned Silva into a local celebrity.</span></p> <p><span style="font-weight: 400;">“Every day, people want to take my picture, ask me things,” he said.</span></p> <p><span style="font-weight: 400;">Guimaraes, who lives in the neighbouring state of Para, said he got the idea to shoot photos at the dump after seeing a video captured by Pinheiro’s public defender Eurico Arruda. In the clip, residents are chasing a garbage truck carrying rubbish from a supermarket.</span></p> <p><span style="font-weight: 400;">“It was just crazy. There were probably 50 people chasing it,” Arruda said.</span></p> <p><span style="font-weight: 400;">“That dump is like something out of the apocalypse. There are fires and smoke everywhere, vultures, dogs. It’s the bottom rung of destitute poverty.”</span></p> <p><span style="font-weight: 400;">Arruda hopes Silva’s photo will raise awareness of people like him and his family, and has set up a cooperative to help trash-pickers defend their rights.</span></p> <p><span style="font-weight: 400;">The local government has also promised that trash-pickers would receive monthly welfare payments of 100 reais ($24), and has vowed to build a legal dump that complies with sanitation regulations next year.</span></p> <p><em><span style="font-weight: 400;">Images: Joao Paulo Guimaraes / Getty Images</span></em></p>

Caring

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Impoverished Indian couple try to sell their two-month-old amid lockdown

<p>With no work of money amid India’s lockdown, a migrant worker couple in Hyderabad tried to sell their two-month-old baby boy for Rs 22,000 (AUD$443).</p> <p>People took to Twitter to share the “horrific” news, discussing how the lockdown is pushing people to take drastic steps.</p> <p>It is reported that authorities arrested the couple Madan Kumar Singh, 32 and Saritha, 30, who migrated from Uttar Pradesh to Hyderabad, for work.</p> <p>The construction labourers who lost their jobs during the lockdown asked a woman named Seshu to help broker the deal. She was also taken into custody.</p> <p>The couple have two children and tried to sell the younger one.</p> <p>The first child is seven years old.</p> <p>Sharing the news report, tweep @Agrawal_Raj: “Now this. A new low being reached every day. While this too shall pass, scars and sorrow will remain forever. #migrants”</p> <p>According to PV Padmaja Reddy, Deputy Commissioner of Police of Balanagar, the child was “rescued and shifted to Sishu Vihar being run by the Women and Child Welfare Department,” reported<span> </span><em>hindustantimes.com.</em></p> <p>The report also stated that as per enquiries, the couple was “facing acute poverty conditions”.</p> <p>According to police the couple had thought they won’t be able to raise the second child due to their financial condition.</p> <p>However, the child’s mother told the police that her husband was an alcoholic, and was demanding money from her to buy liquor.</p> <p>The broker Seshu, allegedly helped them find a childless couple, who agreed to buy the child for Rs22,000 (AUD$443). The police said they received a tipoff, and managed to arrest Seshu as she was taking the child for a medical examination.</p> <p>Highlighting the miserable conditions faced by India’s migrant workers and other poor people in the country, @TheAmitLakhani tweeted: “Misery and sufferings all around. Just imagine, parents, selling off their child because of poverty.”</p> <p>However, @KhalidHMukadam said the reason could be, to ensure their baby didn’t starve: “[maybe] they were ensuring their child gets proper food and care…”</p> <p>Tweep @All4Dhananjay pointed out that the politicians, and lawmakers, were continuing to ignore the sufferings of the poor citizens. “Where has humanity died? Why don't local administration… ministers come out from there air-conditioned rooms, and assist the needy?”, he asked.</p>

Travel Trouble

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How whale shark tourism helps lift Filipino families out of poverty

<p>A group of the world’s poorest fishermen are protecting <a href="https://www.iucnredlist.org/">endangered</a> whale sharks from being <a href="https://www.jstor.org/stable/42633292?seq=1#page_scan_tab_contents">finned alive</a> at Oslob in the Philippines.</p> <p>The fishermen have stopped fishing and turned to tourism, feeding whale sharks tiny amounts of krill to draw them closer to shore so tourists can snorkel or dive with them.</p> <p>Oslob is the most reliable place in the world to swim with the massive fish. In calm waters, they come within 200m of the shore, and hundreds of thousands of tourists flock to see them. Former fishermen have gone from earning just a US$1.40 a day on average, to US$62 a day.<a href="http://theconversation.com/whale-sharks-gather-at-a-few-specific-locations-around-the-world-now-we-know-why-98502"></a></p> <p>Our <a href="https://www.sciencedirect.com/science/article/pii/S0964569118303909">research</a> involved investigating what effect the whale shark tourism has had on livelihoods and destructive fishing in the area. We found that Oslob is one of the world’s most surprising and successful alternative livelihood and conservation projects.</p> <h2>Destructive fishing</h2> <p>Illegal and destructive fishing, involving dynamite, cyanide, fish traps and drift gill nets, threatens endangered species and coral reefs throughout the Philippines.</p> <p>Much of the rapidly growing population depend on fish as a key source of protein, and selling fish is an important part of many people’s income. As well as boats fishing illegally close to shore at night, fishermen use compressors and spears to dive for stingray, parrotfish and octopus. Even the smallest fish and crabs are taken. Catch is sold to tourist restaurants.</p> <p>Despite legislation to protect whale sharks, they are still poached and finned alive, and caught as bycatch in trawl fisheries. “We have laws to protect whale sharks but they are still killed and slaughtered,” said the mayor of Oslob.</p> <p>“Finning” is a particularly cruel practice: sharks’ fins are cut off and the shark is thrown back into the ocean, often alive, to die of suffocation. Fins are sold illegally to Taiwan for distribution in Southeast Asia. Big fins are highly prized for display outside shops and restaurants that sell shark fin products.</p> <p>To protect the whale sharks on which people’s new tourism-based livelihoods depend, Oslob pays for sea patrols by volunteer sea wardens <a href="http://philippinenavy.tripod.com/bantay.html">Bantay Dagat</a>. Funding is also provided to manage five marine reserves and enforce fishery laws to stop destructive fishing along the 42km coastline. Villagers patrol the shore. “The enforcement of laws is very strict now,” said fisherman Bobong Lagaiho.</p> <p>Destructive fishing has declined. Fish stocks and catch have increased and species such as mackerel are being caught for the first time in Tan-awan, the marine reserve where the whale sharks congregate.</p> <p>The decline in destructive fishing, which in the Philippines can involve dynamite and cyanide, has also meant there are more non-endangered fish species for other fishers to catch.</p> <h2>Strong profits means strong conservation</h2> <p>The project in Oslob was designed by fishermen to provide an alternative to fishing at a time when they couldn’t catch enough to feed their families three meals a day, educate their children, or build houses strong enough to withstand typhoons.</p> <p>“Now, our daughters go to school and we have concrete houses, so if there’s a typhoon we are no longer afraid. We are happy. We can treat our children to good food, unlike before,” said Carissa Jumaud, a fisherman’s wife.</p> <p>Creating new forms of income is an essential part of reducing destructive fishing and overfishing in less developed countries. Conservation donors have invested hundreds of millions of dollars in various projects, however research has found they <a href="https://environmentalevidencejournal.biomedcentral.com/articles/10.1186/s13750-015-0048-1">rarely work once funding and technical expertise are withdrawn</a> and can even have negative effects. In one example, <a href="https://dukespace.lib.duke.edu/dspace/bitstream/handle/10161/6822/Brock_MastersProject.pdf?sequence=1">micro-loans</a> to fishermen in Indonesia, designed to finance new businesses, were used instead to buy more fishing equipment.</p> <p>In contrast, Oslob earned US$18.4 million from ticket sales between 2012 and 2016, with 751,046 visitors. Fishermen went from earning around US$512 a year to, on average, US$22,699 each.</p> <p>Now, they only fish in their spare time. These incredible results are the driving force behind protecting whale sharks and coral reefs. “Once you protect our whale sharks, it follows that we an have obligation to protect our coral reefs because whale sharks are dependant on them,” said the mayor.</p> <p>Feeding whale sharks is controversial, and some western environmentalists have lobbied to shut Oslob down. However, a <a href="https://www.sciencedirect.com/science/article/pii/S026151771930032">recent review of various studies on Oslob</a> found there is little robust evidence that feeding small amount of krill harms the whale sharks or significantly changes their behaviour.</p> <p>Oslob is that rare thing that conservation donors strive to achieve – a sustainable livelihoods project that actually <a href="https://www.sciencedirect.com/science/article/pii/S0964569118303909">changes the behaviour</a> of fishermen. Their work now protects whale sharks, reduces reliance on fishing for income, reduces destructive fishing, and increases fish stocks – all while lifting fishermen and their families out of poverty. Oslob is a win-win for fishermen, whale sharks and coral reefs.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/122451/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: http://theconversation.com/republishing-guidelines --></p> <p><em>Written by <span>Judi Lowe, PhD Candidate, Southern Cross University</span>. Republished with permission of </em><a rel="noopener" href="https://theconversation.com/poor-filipino-fishermen-are-making-millions-protecting-whale-sharks-122451" target="_blank"><em>The Conversation</em></a><em>. </em></p>

International Travel

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Fish and chip shop owner's heartwarming gesture to man in need

<p>Some moments perfectly exemplify humanity, and one of the latest examples to hit the headlines is this heart warmer. When a fish and chip shop owner was looking through CCTV footage, he noticed a man going through his bins looking for food one night.</p> <p>In an incredibly kind gesture, Shad Saleem, of Gino’s Fish Inn in Blyth, near Newcastle, UK, stuck a note on his shop door:</p> <p><img style="width: 500px; height: 281.25px; display: block; margin-left: auto; margin-right: auto;" src="https://oversixtydev.blob.core.windows.net/media/7821326/ginos-fish-inn.jpg" alt="" data-udi="umb://media/09365fed5e834eea899a2b1d71ba33c7" /></p> <p>“Dear human being, if you are the person going through our bins for your next meal then how about you pop in and I’ll give you a bottle of water and a little snack for free, you are worth more than a meal from a bin.</p> <p>“We may also be able to direct you to facilities in the town that may help you.</p> <p>“Shad and the team.”</p> <p>Saleem’s friend Dang Vuong spotted the note and posted it on Facebook, writing: “I saw this today at my friends place ! Makes you realise reality…… Shad Saleem you have a good heart x.”</p> <p><iframe src="https://www.facebook.com/plugins/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fdang.vuong.73%2Fposts%2F10160828305460545&amp;width=500" width="500" height="612" style="border: none; overflow: hidden;" scrolling="no" frameborder="0" allowtransparency="true" allow="encrypted-media"></iframe></p> <p>Facebook users responded by praising Saleem for his kind gesture.</p> <p>“What a gentleman! The world needs more people like him,” wrote one.</p> <p>Another said: “The world would be a much better place if everyone had this sort of attitude... Well done Shad.... Respect where it's due.”</p> <p>The fish and chip shop owner hoped that the man would take him up on his offer of assistance.</p> <p>“Shad said he’d seen someone on the security camera, and he thought if the person walks past again hopefully he can help him,” he told <a rel="noopener" href="https://www.chroniclelive.co.uk/news/blyth-fish-shop-gesture-homeless-15258790" target="_blank">The Chronicle Live</a>. </p> <p>“Seeing something like that proves how much poverty is still happening, it’s quite shocking.</p> <p>“I think people forget how much poverty there is, now more so than ever.”</p> <p>"Shad's always been like that, so it doesn't surprise me that he'd want to help. There are a lot of people in Blyth who do that sort of thing, it's a real community of people who are really trying to stick by each other."</p>

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Seniors now less likely to fall into poverty

<p><em><strong>Guyonne Kalb is a Professorial Research Fellow and Director of the Labour Economics and Social Policy Program at the University of Melbourne.</strong></em></p> <p>The risk of people past retirement age falling into poverty is now decreasing. There has been a substantial improvement compared to 15 years ago, when the incidence of poverty among the elderly was 32.4 per cent.</p> <p>People past retirement age are much more at risk of poverty compared to people of other ages. In 2014, 23 per cent of people over 65 were identified as experiencing poverty, while among the general population this was 10.1 per cent.</p> <p>If we look at poverty in older age using three alternative, well-established, definitions: the Henderson Poverty Line, the OECD 50 per cent poverty line and the OECD 60% poverty line, they all lead to very similar conclusions.</p> <p>The OECD 50 per cent poverty line is defined as 50 per cent of median household equivalent disposable income. Equivalised household income allows for differences in household composition, like the number of adults and children who live in the household. It therefore makes income comparable between households of different sizes. Someone is counted as poor if their equivalised disposable household income falls below this poverty line.</p> <p>Applying this to data from the Household, Income and Labour Dynamics Australia (HILDA) survey shows clear differences between ages. There’s a much larger incidence of poverty among people over 65, as well as a larger decrease in the poverty rate among those over 65.</p> <p>Between 2000 and 2014, the prevalence of income poverty among older people declined by more than 9 percentage points, well above the decline of other age groups.</p> <p>There are a number of reasons for this decrease in the poverty rate. One is the increase in labour force participation from 6.9 per cent to 12.5 per cent for this older group, whereas for other age groups labour force participation has remained quite stable.</p> <p>Another reason is the larger increase in pension rates (which is the typical social security payment for people over 65) compared to allowance rates (which is the typical social security payment for working-age people). From an already high base, the payment rates for the oldest age group clearly increased by the most.</p> <p>These two reasons combined account for over 75 per cent of the decrease in poverty incidence. Increased private pensions account for a further large part of the decrease (nearly 41%), while changes in investment income would have increased the poverty rate.</p> <p><strong>Why pensions are so important</strong></p> <p>This shows just how important public and private pensions are for the standard of living of older people. Given that more and more people will be covered by superannuation, we expect that poverty rates will further decline in the future. However, maintaining the value of public pensions is equally important as a substantial proportion of people over 65 will remain dependent on these payments.</p> <p>Those dependent on the age pension include people with a disability during their working life, and many women, as they remain the ones who are more frequently out of the labour force and working part time to raise children. As a result, these groups have less opportunity to build up sufficient superannuation. However, the age pension may perhaps be better targeted.</p> <p>Although the largest increases in income support are for those classified as poor (with the largest average increase observed for those over 65), the non-poor population over 65 also receives a substantial increase in income support.</p> <p>The increase in payments for people who aren’t poor and over 65 is nearly as large as the increase for those classified as poor who are aged 15 to 64. Payments for working-age people have only been increased with inflation, while pensions increased at the same rate as average earnings which has generally been higher than inflation.</p> <p>To better alleviate poverty for our whole population, government payments for working-age people need to keep up with average earnings like the pensions do. If the government is not prepared to direct more resources to income support payments, they need to treat different age groups more equally. This means better targeting payments among our older population and using any savings to increase payments for the working-age population at a similar rate as pensions.</p> <p><em>Written by Guyonne Kalb. First appeared on <a href="https://theconversation.com/older-people-now-less-likely-to-fall-into-poverty-88634" target="_blank"><strong><span style="text-decoration: underline;">The Conversation</span></strong></a>.</em><img width="1" height="1" src="https://counter.theconversation.com/content/88634/count.gif?distributor=republish-lightbox-advanced" alt="The Conversation"/></p>

Retirement Income

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New report reveals one power bill could push people into poverty

<p>A disturbing new report has found that people are being pushed into poverty by surging power bills.</p> <p>The joint RMIT University and the Victorian Council of Social Services (VCOSS) study interviewed Victorian who have been impacted by the rising power costs.</p> <p>The found some people were too worried to turn on their heating, scrimped on food and took showers at local charities to save money on energy.</p> <p>VCOSS chief executive officer Emma King told the <span style="text-decoration: underline;"><a href="http://www.abc.net.au/news/2017-08-09/high-energy-bills-heat-or-eat-depression-living-standards/8789574">ABC</a></span> the report showed that some Australians were living in "depression-era" standards.</p> <p>"When we've got a 114 per cent increase in the cost of energy over the last decade, that's a really serious scenario that households are finding themselves in," Ms King said.</p> <p>"Our study has found that people are living in abject poverty so they can pay for essential services … and making heartbreaking decisions to go without.</p> <p>"They've got to make a choice between, do they put the heating on or do they eat for the day? Do they buy books for their children or do they have their gas on?"</p> <p>The report included many heartbreaking personal stories of the affect high energy prices on their lives, including people who are freezing in their homes because they cannot afford to turn on the heating.</p> <p>The study made 13 recommendations, including the creation of an independent energy broker to help consumers find the best deal on energy prices.</p>

Retirement Income

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One in three pensioners living below poverty line

<p>A report from the Benevolent Society has found current age pension rates wholly inadequate, leaving 500,000 older Australians well below the poverty line.</p> <p>The <a href="http://www.benevolent.org.au/~/media/Pension%20Adequacy_Final%20pdf.ashx" target="_blank"><span style="text-decoration: underline;"><strong>Adequacy of the Age Pension in Australia: An Assessment of Pensioner Living Standards</strong></span></a> report, also found many pensioners are resorting to extreme measure to save money, including skipping meals, avoiding medical care and turning off hot water.</p> <p>The report comes with a raft of recommendations to change the pension system, including introducing an independent tribunal which would assess pension adequacy twice a year, as well as developing programs that would give pensioners better access to health and communication services that have becoming prohibitively expensive.</p> <p>Benevolent Society CEO Jo Toohey told <a href="http://www.abc.net.au/" target="_blank"><span style="text-decoration: underline;"><strong>ABC</strong></span></a>, “The base rate of the age pension is currently around $794 per fortnight … and the rate for the poverty line, for example is around $851. When you look at the reason Fair Work sets the minimum wage … they also take into consideration things like housing costs and increases in general living expenses</p> <p>"If I'm an age pensioner those increases in housing costs – particularly if I'm single, if I'm female, and I don't own my own home – my rent over the past 10 years for example has increased considerably more than what the age pension actually has."</p> <p>Everald Compton, the chairman of the Longevity Innovation Hub and report co-author of the report backed this up, telling <a href="https://www.theguardian.com" target="_blank"><span style="text-decoration: underline;"><strong>The Guardian</strong></span></a>, “The age pension in Australia is clearly inadequate – that is an indisputable fact and the government has to face up to that fact.”</p> <p>How do these findings make you feel? Should the government be doing more to support pensioners, and do you agree with the recommendations? Share your thoughts in the comments section below.</p> <p><em>Video credit: YouTube / The Benevolent Society </em></p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><a href="/finance/retirement-income/2016/08/age-pension-asset-test-changes-2017/"><strong>Major changes for age pension in 2017</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/finance/retirement-income/2016/09/age-pension-has-not-kept-up-with-inflation/"><strong>Age pension has not kept up with inflation</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/news/news/2016/09/the-superannuation-issue-we-should-be-talking-about/"><strong>The superannuation issue we should be talking about</strong></a></em></span></p>

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Report finds many Aussies seniors live in relative income poverty

<p>A new report had found many older Australians are living their lives in a state of relative income poverty due to policies that discourage them from accessing equity stored in their family home.</p> <p>The report, <strong><a href="http://actuaries.asn.au/Library/Miscellaneous/2016/AIHOUSINGGPwebLres.pdf" target="_blank"><span style="text-decoration: underline;">Unlocking Housing Wealth</span></a></strong>, released on Monday by the Institute of Actuaries of Australia, suggests that changes to the age pension test and a relief from stamp duty could potentially encourage seniors to unlock the $1 trillion of housing wealth owned by over 65s.</p> <p>Relative income poverty is defined as having an income less than half the national median household income, with Australians over 65 suffering the second highest relative income poverty rate of the wealthy countries in the Organisation for Economic Co-Operation and Development. Only Korean retirees are worse off.</p> <p>"In short, our retirees are asset rich but income poor," the Actuaries' report says. "Accessing part or all of their housing wealth will assist many individuals to meet their retirement needs."</p> <p>Report author and partner at PWC, Catherine Nance, suggested to <em>The Sydney Morning Herald</em> that many seniors could boost their living standards if penalties applying to selling the family home were removed, "Tax policies for years have encouraged people to save via their home. That's great, but it's a highly illiquid form of savings and there are impediments to people using that asset better."</p> <p>"We don't want to force people to move out of their homes or borrow against them. We're not trying to cure the budget deficit here. But we do want to help people to make better decisions that would improve their lives."</p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><strong><a href="/news/news/2016/03/last-official-interview-with-jon-english/">Watch the last interview Jon English gave</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="/news/news/2016/03/penguin-5000-miles-reunite-71-year-old-man/">Penguin swims 5,000 miles every year to reunite with 71-year-old man</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/news/news/2016/03/85-year-old-man-finds-lost-wallet-71-years-later/"><strong>85-year-old man finds lost wallet, 71 years later</strong></a></em></span></p> <p> </p>

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A third of Aussie women are retiring in poverty

<p>Industry Super Australia (ISA) has told a Senate Inquiry that urgent changes must be made to tax concessions in order to close the gender cap, which shows that across the board women are retiring with 44 per cent less super than men, which is a startling finding to say the least!</p> <p>The deputy director of the ISA Robbie Campo, said that a big reason for this is current superannuation settings are currently weighted against women, “These settings magnify rather than moderate gender differences in lifetimes earnings. For example, the persistent gender pay gap, currently at 18 per cent, blows out to a far worse gap in super savings of 44 per cent. We can’t afford a system that fails half of the population so badly.”</p> <p>The submission from ISA recommended a raft of reforms which would extend as far as paying the super guarantee on parental leave and moderating current changes to the pension on a current means test. Mr Campo said current tax concessions disproportionately benefitted top income earners, stating, “For instance, single men in the top 1 per cent of income earner gain the most from the system, benefitting from an estimated $2.8 million in tax concessions over their working lifetime. This supercharges their retirement income, even though they don’t need financial help to reach a comfortable standard. It makes no sense.”</p> <p>There’s a huge need for reform and Australian women will continue to experience deep economic insecurity in retirement unless the government makes drastic changes to superannuation. The fact that women retirement with $142,000 less super than men and that 70 per cent of single, retired women rely on the full age pension is startling, but the most startling statistic is that 39 per cent of single, retiring women are living in poverty. And if ISA projections are anything to go by, the expected declining rates of home ownership will only make this worse.</p> <p>And it can’t just be a matter on women relying on a partner in retirement. A third of women in retirement age actually aren’t in a relationship, while 40 per cent of people who are actually in a relationship have insufficient savings to retire.</p> <p>The moral of the story is that there are some big problems with the superannuation, and something urgently has to be done to protect the people in the system that the current iteration of the superannuation system is letting down most.</p> <p><strong>Related links:</strong></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/volunteering-abroad-in-retirement/">5 reasons to consider volunteering abroad</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/10-quotes-that-sum-up-retirement/">10 quotes that perfectly sum up retirement</a></strong></span></em></p> <p><em><span style="text-decoration: underline;"><strong><a href="/finance/retirement-income/2015/12/8-tips-to-help-downsize-in-retirement/">8 tips that will help you downsize in retirement</a></strong></span></em></p>

Retirement Income

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