Current Affairs12 Jul 2024

How Corporations Suck the Welfare State Dry (w/ Anne Kim)

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Anne Kim's book Poverty For Profit: How Corporations Get Rich Off America's Poor gives a partial answer to an enduring question: how come we spend so much trying to solve poverty but poverty persists? One major reason, Kim argues, is that parasitic for-profit industries suck a lot of the money out of antipoverty programs. The privatization of government functions has meant that plenty of money that should be going to the least well-off ends up padding the pockets of the already wealthy. Kim's book helps us understand why, for example, cities can spend so much trying to combat homelessness and not seem to actually do much to alleviate it. Kim shows us how our tax dollars get siphoned away, and lays out a blueprint for how we might use government far more effectively, if we abandon the mindset that privatization means "efficiency."

"The infrastructure of poverty is big business. And as such, it is a major component of the systemic barriers low-income Americans face. No systemic understanding of poverty can be complete without a hard look at the businesses that profit from—and perpetuate—the structural disadvantages that hold back so many Americans... Self-serving private interests have hijacked the war on poverty. Failures in governance and public policy have enabled predatory industries to thrive at the expense of low-income Americans and of taxpayer dollars." -Anne Kim, Poverty For Profit

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