Indiana poverty rate soars as manufacturing jobs cut

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BY KEITH BENMAN
kbenman@nwitimes.com
219.933.3326 | Sunday, November 30, 2008 | (57 comment(s))

A new report from a housing and homeless advocacy group shows poverty increasing at an alarming rate in Indiana while earnings for middle-income families continue to slip.

Indiana's poverty rate soared to 11.8 percent in 2007 from just 6.7 percent eight years ago, the recently released 2008 Status of Working Families Report shows. Median household income in Indiana dropped $3,000 between 2000 and 2007.

"The year 2001 now can be seen as the beginning of a steady decline for Indiana's working families," said Rochelle Finzel, who authored the report for the Indiana Coalition on Housing and Homeless Issues.

Those who run food pantries, homeless shelters and other service agencies in Northwest Indiana said the last decade has been tough for many Hoosiers, and they now are seeing an unprecedented jump in those needing help.

The food pantry run by Greater Hammond Community Services has seen a 21 percent increase in families needing food boxes this year, Executive Director Tim Cottingham said. The number of people needing help with home heating bills also has jumped, and the group's homeless shelter is full.

"People get the wrong idea about who comes here," Cottingham said. "People that come here work. Often it's two people working. But they are working low-wage jobs. And gas goes up, food goes up, and they can't make ends meet."

It is the same 40 miles away in the rural community of DeMotte, where increasing numbers of seniors, single-parent families and working families are coming into the Good Neighbor Food Pantry, said Kathleen Van Der Molen, a longtime volunteer who coordinates work at the food pantry.

Those observations are in line with the Status of Working Families report's findings of broad declines in the economic health of poor and middle-class families.

The report pins much of the blame on a large decline in manufacturing jobs in Indiana between 2000 and 2008, when 142,000 jobs in the high-paying sector disappeared. During the same time, 120,000 jobs were created in the lower-paying service industry.

Despite a national economic expansion from 2002 to 2007, Indiana never fully recovered from the 2001 recession, the report concludes. The state has yet to match its peak employment of a little more than 3 million jobs, which was reached in May 2000.

"Where once Indiana's thriving manufacturing sector insulated us from the higher poverty rates and unemployment that plagued other states, now our poverty rate is equal to that of the national rate," Finzel wrote in the report.

The slack employment demand in turn has affected wages. The median hourly wage for Hoosier workers was $14.85 per hour in 2007, which is only a 45-cent increase from the median wage of $14.40 in 2000.

Those earning below median wage actually saw their wages decrease, which led to the surge in poverty rates for those at the low end of the wage scale, the report concludes.

Hoosier comparisons
Poverty rate
1999: 6.7 percent
2007: 11.8 percent
Children in poverty
2003: 13.5 percent
2007: 17.3 percent
Manufacturing jobs
2000: 666,200
2008: 524,100
Median hourly wages (not adjusted for inflation)
2000: $14.40
2007: $14.85

Source: The Status of Working Families in Indiana; U.S. Census Bureau; U.S. Bureau of Labor Statistics

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BUG wrote on Mar 30, 2009 11:23 PM:

" We all have to understand who got us in this mess and be very thankfull it's not worse, and it could be a LOT worse, the republicans could have won the election!! SCARY, huh? "

ocsdor wrote on Mar 5, 2009 4:21 PM:

" A lot of talk on here about the Unions doing this. I agree to some extent. However, it is all of our faults for buying junk made in China, Sri Lanka, and other places. And, not just cars. It's shoes, shirts, gadgets, toys, TVs, computers, DVDs, CDs, kitchen faucets, etc., etc., etc.

Secondly, if you have problems with corrupt politicians (are you listening Chicago?), then, instead of complaining on message boards, perhaps you should pay them visits, in mass, at their offices (and homes if needed)and express your disapproval toward them. "

Downhill wrote on Dec 7, 2008 8:50 PM:

" We have sent all of the jobs overseas ourselves.Why do you think that?The big thing is that hear they have to pay UNION WORKERS in the US $45 an hour but to pay somebody overseas for the same job the pay them $10 an hour.The unions screwed us all. "

to C. Howitfeels wrote on Dec 7, 2008 8:33 PM:

" Socialism? Why is it socialism if it helps the workers, but not when it helps the rich?

Labor in this country will get nowhere until it starts taking the means of production from the rich. It's going to take being shot at by the rich man's armies, sit-down strikes, and picketing. Only then will labor have a chance of getting ahead. "

C. Howitfeels wrote on Dec 7, 2008 9:42 AM:

" To "Greg Real American", that is Socialism. What we need to do is take care of ourselves and stop relying on a nanny-state to do it. "

C. Howitfeels wrote on Dec 7, 2008 9:38 AM:

" I blame the unions. "

village kid wrote on Dec 6, 2008 10:05 PM:

" To (WindyCityGigi) there is a difference between manufactured in America and assembled in America. Your Honda was assembled in America not manufactured here. Which in case I'm not clear means the parts for your Honda where shipped here from oversees and assembled here in America. "

ANDREW SEZ wrote on Dec 6, 2008 7:54 PM:

" we are reaping the whirlwind because his savior is mad. Is that why your savior is helping the rich so much?

If I had to choose between some god and a union to put bread on my table, I would choose the union.

Now "GOD'S OWN PARTY" is and has been doing anything it can to screw the worker, unionized or not.

From now on, I pray to unions, not to some god that only helps the rich. "

Reap This wrote on Dec 6, 2008 6:46 PM:

" You should have prayed a little harder, Andy. This is all your fault for not being pious enough. Now go and pray in silence. "

Andrew wrote on Dec 6, 2008 4:41 PM:

" Society gets what society deserves.We have corrupt government because we have abdicated our freedom and fallen away from our Christian heritage!The materialism of this country has replaced church,family,and patriotism in our souls and we shall reap the whirlwind! "

john boy wrote on Dec 6, 2008 3:45 PM:

" Indiana, the land of the homeless "

WindyCityGigi wrote on Dec 6, 2008 8:46 AM:

" When people ask me why I drive a Honda, I proudly proclaim that I buy American.

Check your VINs, people! If that Dodge, Chrysler or Chevy has a VIN that starts with anthing other than a 1, it wasn't made here.

My sister's Dodge Ram was made in Canada. My mom's Chrysler was made in Mexico. My Honda was made in Ohio. "

shutty wrote on Dec 5, 2008 5:13 PM:

" If they didnt outsource many of the good jobs and offer illegals work with low pay we would not be in this boat! "

To Scrooge etc wrote on Dec 5, 2008 3:36 PM:

" Proud Republican is really a Democrat and Proud Democrat is really a Republican. They are using sarcasm and humor. "

Scrooge wrote on Dec 5, 2008 2:02 PM:

" Have you read a christmas carol recently mr. proud repubilcan? "

Greg Real American Serbenta wrote on Dec 5, 2008 9:35 AM:

" We need to start taking care of each other. Bottom line. "

To What Happened wrote on Dec 5, 2008 9:08 AM:

" What planet do you live on? If you don't think that electronics are less expensive than they were 25 years ago, you're shopping at the wrong place. "

American Worker Too wrote on Dec 5, 2008 7:02 AM:

" Unions had their place during the first half of the last century. Union greed and corruption bloated wages, increased prices and led to inflation across the board. We need to export more. Sell American! "

What happened... wrote on Dec 5, 2008 12:04 AM:

" The problem is that the so called American businesses sold out the American workers and the government let them do it. They took their work overseas and are bringing those products back here. And the prices aren't any cheaper, either! So where does that profit go if the difference in wages is so great and the goods cost the same? Don't tell me shipping. The blame rests on the companies themselves. And this government is run by the businesses. "

American Worker wrote on Dec 4, 2008 8:39 PM:

" All those union contracts are negotiated. The company makes concessions as do the unions. The younger generation does not understand how things were before the unions. There are many factors at play in this situation. Corporate greed, lack of innovation, ignoring the "writing on the wall" regarding use of energy. We are a greedy society...over extended...over spending...irresponsible. Time to take charge of our own households. "

steel worker wrote on Dec 4, 2008 7:54 PM:

" If I wasnt a union worker id probably be making under $10 an hr... Why should a company that "makes" 100's of millions sometimes more, not pay the WOKERS well??
If unions were not around the bosses and paper pushers would all be driving Lambos and the workers might be able to get a crappy old kia "

Region Rat wrote on Dec 4, 2008 5:49 PM:

" Buy American. Bring jobs back to this country. It is time to stop supporting these other countries that don't give a crap about us. I will pay more for products if they are American Made. At least you know the quality will be good and the product will be safe. "

true patriot wrote on Dec 4, 2008 2:47 PM:

" THANKS NAFTA!! "

Brian wrote on Dec 4, 2008 11:53 AM:

" The unions have priced American labor out of the global economy. We can't compete with the cheap labor overseas. I agree that workers do need some protection but when a laborer is making a base wage of 34.75 and hour and another 15.44 in benny's for pushing a broom something is wrong. I'm sorry but 50.19/hour for an unskilled job is absoulutely insane. The bottom line, America has gotten fat and rich faster than the rest of the world, so now we have nothing to offer in a competetive market, we are WAY over priced. It's only going to get worse "

Buy American wrote on Dec 4, 2008 10:17 AM:

" If we only bought American products, we would have no shoes and no electronics. If these goods were only produced in the US, they would be too expensive for anyone to afford because of labor costs. We need to increase our exports, not become isolationists. Let other countries Buy American! "

Darien wrote on Dec 4, 2008 9:17 AM:

" You can blood our worthless leaders you have done absolutely nothing to stopp the tsunami of imports flooding the nation.
For many years now we have been exporting jobs while importing goods and people.
IT MAKES NO SENSE!
We must slam the door on imports before its too late to recover.
Just the other other I went to Walmart and saw Apple juice from China! I thought these people were starving!
Please people, BUY AMERICAN! "

To Unionist wrote on Dec 1, 2008 8:00 PM:

" No, I'm saying that the modern trade union movement was founded on Socialistic principles. If you don't know the history of unions in the US, I'm calling you uninformed. "

Unionist wrote on Nov 30, 2008 10:39 PM:

" So let me get this straight. You're saying that I'm a Socialist and a Communist because I belong to a union?! You need to go tell some union workers to their face that they're Communists and see what they think about that. Good luck... Pal! "

Need to upgrade wrote on Nov 30, 2008 9:31 PM:

" Wouldn't it great if our local governments could get some nice companies to open up here rather than those nasty casinos that just take money from people's pockets. Most of the northern lake area is so blighted from the loss of jobs and crumbling industry that it just looks gross "

Sick of it wrote on Nov 30, 2008 9:29 PM:

" All our jobs have been shipped overseas. I know we are supposed to buy American but it is next to impossible to find anything made in America at the stores. "

To Unionist wrote on Nov 30, 2008 9:19 PM:

" Nice try. The union that James Madison was talking about when he wrote the Constitution had nothing to do with labor unions. People organizing, acting as one and sharing wealth is kind of the foundation of communism. They don't have to organize labor unions in China, because the entire country is already one big labor union. Didn't Marx say, "Workers of the world unite!?" Sorry pal, you can keep your socialism, I'll stick to my American version of democracy. "

Unionist wrote on Nov 30, 2008 6:25 PM:

" In America, we have the legal right to negotiate contracts with the people for whom we work. Home buyers negotiate contracts with home builders; athletes negotiate contracts with team owners; executives negotiate contracts with corporate boards of directors. This is accepted practice and no one disputes their right to negotiate.

My fellow workers and I united to negotiate a contract with our employer. We felt we deserved better pay and benefits than the company was willing to provide, but the company had an unfair advantage (they could fire us at will), so we formed a union to leverage our bargaining power.

America itself is founded on the formation of unions. From the preamble to the US constitution: We the People of the United States, in order to form a more perfect UNION…

Yet my coworkers and I are demonized for acting in a very American manner. Well, if you don’t like our American ideals, perhaps you should move to China where the workers have no right to organize labor unions - or any other rights to speak of. "

Sorry j-la wrote on Nov 30, 2008 4:53 PM:

" I can remember massive layoffs at the mills and interest rates of 21 percent when Jimmy Carter was president. The deregulations at the base of the economic problems that we're having now -Fannie Mae and Freddy Mac- happened under Clinton. Union greed caused wages and the price of goods to rise to the point that the U.S. couldn't compete in the global economy. It's not GM's idiot CEO that has pushed it to the brink of bankruptcy, it's the unions. "

Made In America wrote on Nov 30, 2008 3:38 PM:

" Buy products only made in the USA. Can't find them then don't buy them. Save your money, tell your political representatives who constantly give the people who vote for them broken promises to start building our economy by bring jobs back to America and stop NAFTA and WTO. Quite blaming everyone else, its starts with you and nobody else. "

Hey Tom wrote on Nov 30, 2008 11:49 AM:

" Here's the problem with a lot of people from the Region, because everything around you is controlled by Chicago, you think that you live in Chicago. There are probably close to as many farms per square mile in Lake County as there are in Marion County - Indianapolis. By the way, Indianapolis is an urban area. Mitch Daniels won by 15 points because he's the best governor we've had in 20 years! If you had more exposure to information about the State of Indiana, you might understand. "

TO to proud rep wrote on Nov 30, 2008 10:58 AM:

" I have a different recollection. Worked at a savings and loan during the JIMMY CARTER era (late 70's) ... interest rates for home mortgages were 17%, and certificates of deposit were close to 14-15%; I also recall VERY HIGH UNEMPLOYMENT during this period; not sure, but didn't market CRASH TOO? Then came Rep Ronny. "

Proud Democrat wrote on Nov 30, 2008 10:54 AM:

" It's Bush's fault because he's a conservative. It's the Republican's fault because they only care about the rich. It's the business owners' fault because they didn't want to pay union members $40 per hour to sweep floors or stock shelves. It's the fault of educated, high wage earners because they aren't willing to give up more of their wages to redistribute wealth. It's the fault of laborers because they didn't want to give up their jobs to illegal aliens and give them citzenship. But it's not my fault! I pay my union dues and ride a bus to rallies and the polling place. I vote for the people that my union bosses tell me to vote for, even if I don't agree with them. I go to church on holidays. Before I'll throw a dime in the Salvation Army's bucket, that bell ringer better show me his union card. I voted for Obama, but I didn't really like him. I think John McCain would have made a much better president, but they told me not to vote for him. "

IndianaEscapee wrote on Nov 30, 2008 10:53 AM:

" REPLY to Intelligence(?):
The so called budget surplus was gone before Bush took office. (If there ever was one.) If Bush turned the economy off as soon as he took office, everything should be fine on January 20th. Free Bubble-Up and Rainbow Stew for everyone!!! "

Sticky Stats wrote on Nov 30, 2008 10:37 AM:

" What the quoted statistics do not show is how many families counted in the poverty increase are illegal. How many people that show up in the household income decrease are the legions of Boomers entering retirement. Of course household income goes down when you retire. Increase in single-parent 'families' in need is not a reflection of the economy, rather it is a behavioral problem. 16-year-old mothers are going to be poor. Don't blame Mitch for that. Further, many Medicade mothers-to-be are flocking to Indiana from near-banckrupt Illinois because they cannot get a free doctor. Don't blame Mitch for that either. "

to speeder wrote on Nov 30, 2008 10:25 AM:

" Just what do you think is made in this country?
Clothes? Electronics? Toys? Rven some US cars are made in Canada or Mexico.
We have lost our manufacturing base to child labor and under paid workers in countries that offer no benefits or pollution control. "

to proud rep wrote on Nov 30, 2008 10:21 AM:

" Boy are you misguided.
Bush and his war was the worse thing to happen to this country since the recession of 81 which came on Regan's watch.
Your asking about work houses proves what a Neanderthal you are. "

Tom wrote on Nov 30, 2008 10:16 AM:

" My mouth dropped when Danial won reelection,How blind can most be.Indianapolis is no Eden,All you farmers think that Mitch is so good for you you are blind or just stupid.I think it is time for me to change my house and car insurance because thay backed ol My Man Mitch the ditch Danial.So Sad "

Statistics wrote on Nov 30, 2008 10:07 AM:

" Median hourly wages (not adjusted for inflation)
2000: $14.40
2007: $14.85

These are the kind of statistics that put a smile on Republicans' faces.
Republicans have never been for the working person. "

j-la wrote on Nov 30, 2008 9:58 AM:

" Those of you with any sense of history should reflect on the fact that the decline of the middle class is nothing new. Our American decline began in the much-vaunted Reagan years. Those of you who voted for him and supported his policies of deregulation are now reaping the "rewards". Industry began its exodus overseas, the gap between management and workers salaries here broadened and no one cared as long as they got theirs. Those were the years
of greed and we are now seeing the effects. "Trickle down economics" never worked and never will work. A strong labor force equals people making things and getting a fair wage for that labor. That wage equals the ability to buy things. Can I make this any clearer?
Reaganomics, massive deregulation of corporations and the continuation of these flawed policies through the years caused our good paying jobs to sail away to China and India where workers get a dollar a day and Wal-Mart buys everything they produce. This war on the middle class been a long time in the works and will not be over soon. "

Check the other wrote on Nov 30, 2008 9:32 AM:

" Check the other states around us before you complain we are in an economic down turn everywhere Indiana is holding its own in this. "

sucking sound wrote on Nov 30, 2008 9:08 AM:

" anyone remember Ross Perot, Pat Choate, Pat Buchanan, Ralph Nader, or Chuck Harder?

they not only informed the public of the trend of manufacturing exiting the USA MORE THAN TWENTY (20) YEARS AGO, but also predicted how devastating the effects would be upon employment, and heaven forbid, an all out war situation wherein WE WOULD NEED MANUFACTURING - try to get a computer part for an air force plane from china (or other foreign entity) WHEN NEEDED IN WAR TIME.

everyone ignored Ross, et al., and deemed them protectionists, and are JUST NOW feeling the effects. the frog in the pot is being served. set up and sold out long ago. "

Speeder wrote on Nov 30, 2008 8:35 AM:

" The people in this country need to wake up and BUY AMERICAN!!! When we purchase American products we create American jobs. When people buy foreign cars made in America it helps a few American workers but does a lot of damage to our economy. These huge profits are going back to these foreign countries and destroying our way of life. "

I cant wait wrote on Nov 30, 2008 8:22 AM:

" I'm sooo excited for the union bashers to jump in this thread and express their excitement for poverty and homelessness! Don't let me down! "

timing wrote on Nov 30, 2008 8:16 AM:

" Where was this info before Nov. 4? "

Wet Hen wrote on Nov 30, 2008 8:09 AM:

" Not really news because we all know of families who are in dire financial straits.
Yet the same gang of clowns get reelected.
The gov crows about all the jobs that came in during his watch. You bet jabs that pay a third that have gotten away and offer minimal if any benefits. "

Bob wrote on Nov 30, 2008 7:48 AM:

" It's absolutly unbelievable that the Senator from Gary, Indiana, where many more may lose their jobs wants to choke the economy even further with a smoking ban. The Illinois ban is an economic boon to the residents of Indiana. "

Duh wrote on Nov 30, 2008 7:42 AM:

" Duh - Manufacturing jobs have been leaving NW Indiana since the 70's and this is just news now???

What have our wonderful political leaders that have been in control since the 70's done to attract new industry , new business, new technology to the region? Nothing! Nada! Ni!

Change - yeah, right! "

Tired of the lies wrote on Nov 30, 2008 7:03 AM:

" I was thouroughly disgusted a few months back watching Mitch's campaign ads on TV telling us about how great it is her in Indiana since he was elected governor. I knew the ads were a pack of lies, because I watched my income drop as I watched prices increase. No new taxes? What about the 1% sales tax increase? This is actually a 17% rise in the tax, which affects the poor and working class very much. This story is no surprise to me. Thank God my family hasn't had to resort to food pantries yet, but the way things are going, you just don't ever know. I pray daily that the state of the world will improve. "

Spiro wrote on Nov 30, 2008 6:05 AM:

" No doubt this will further encourage Lake County politicians to vow to bring more "good union manufacturing jobs" back to 'da Region. No doubt gullible Lake County voters will buy into it and return every incumbant official to office as long as possible. "

not surprised wrote on Nov 30, 2008 1:44 AM:

" maybe the governor should invest the major moves money from bridges into kentuckey to manufacturing in northwest indiana. providing jobs building roads with money you received from selling something does not last long. i cant wait to see what we get for the lottery "

Intellegence wrote on Nov 30, 2008 1:20 AM:

" Geeee. Could it be a coincedence that 2001 was the year bush took office "

Proud Republican wrote on Nov 30, 2008 1:02 AM:

" It's Obama's fault because he's a liberal. It's the Democrats' fault because they raised taxes on the wealthy. It's the unions' fault because they're greedy. It's the welfare people's fault because they're lazy. It's the immigrants' fault for taking our jobs. But it's not my fault - oh no! I'm a hard working, tax paying, God fearing American citizen. I support the troops. I support the wars. I give to charity. I voted for George Bush - four times. I voted for John McCain. I love Sarah Palin. I love my God and my guns. Are there no prisons? Are there no workhouses? "

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