Watch out Virginia’s
- Posted by e2 on 02.25.09
- Tags Family Changes, Modern Family
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There is a report prepared by The Commonweath Institute regarding the effect of recession to Virginia’s people:
One year into the recession, there are signs of mounting harm to Virginia families and children. Although unemployment and poverty in Virginia should remain somewhat lower than nationally, this will be of little comfort to the thousands of Virginians likely to be pushed into poverty by this recession. Offcial poverty fgures will not be available until later in the year, yet two leading indicators of poverty – unemployment and food stamp caseloads –already increased rapidly in the past year, pointing to a rising rate of poverty.
As unemployment worsens, we predict a signifcant increase in the number of Virginians living in poverty. Since the child poverty rate is higher than the overall rate, the impact of this increase will fall disproportionately on Virginia’s children. Rising unemployment could push an additional 122,000 to 218,000 Virginians into poverty this year, with children accounting for between 44,000 and 73,000 of this increase.
The effects of the downturn and rising poverty will be felt statewide, but more deeply in regions already troubled by chronically high unemployment and poverty. The additional families pushed into poverty will further strain those local economies, stalling prospects for economic development and likely consigning even more children to a signifcant stay in poverty. Evidence indicates that children pushed into poverty by a recession are likely to remain poor for at least several years after the recovery starts.
Prolonged poverty can signifcantly compromise a child’s development. It is the most potent risk factor for a multitude of untoward outcomes, including poor health, learning problems, school failure, delinquency and violence. In addition to the human toll exacted by childhood poverty, the economic toll is substantial: diminished human capital and higher rates of costly social problems limit economic growth and future prosperity.
The safety net for needy Virginians is experiencing a rapid increase in demand, an increase that brings long-range consequences for children – and the Commonwealth. Furthermore, the safety net could be over-burdened as rising poverty causes even greater demands. The current work-focused welfare system (TANF) may not be effective when jobs are disappearing. One key fnancial support that could stave off poverty, unemployment insurance, reaches only a minority of Virginians who lose a job. Finally, state and local budget cuts could further weaken the already fragile safety net, at the very time that more and more families will need to rely on it.
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