California-based Twitter’s Shares Surge as California’s Alternative Poverty Rate Is Highest in U.S.

Peter Mathews on KTLK AM 1150, the David Cruz Show: (Nov. 7, 2013) Day After IPO, Twitter shares jump 73%, while California is first in poverty with 23.8%.

Prof. Mathews says that while we can celebrate Twitter’s successful initial public offering shares’ surge by 73% in one day as a symbol of entrepreneurial success, the high poverty rate in California and the U.S. must give us pause for concern. When the U.S. Census Bureau’s alternative poverty measures were used, including the costs of housing, medical care, clothing, and utilities, as well as the value of non-cash government benefits such as nutrition assistance, housing assistance, and energy assistance, the U.S. poverty rate climbed from 15% to 16%, and the California poverty rate jumped from 16% to 23.8%, the highest of the 50 states. Mathews pointed out that according to these rates, 50 million Americans and 9 million Californians are living in poverty! The situation has gotten worse because of recent cuts in unemployment aid, housing assistance, Head Start, nutrition programs, and food stamps (SNAP program). Mathews insisted that “trickle down economics” (economic growth from the top down) does not work. He stated his conviction, based on historical and cross-national evidence, that the type of economic growth that is vigorous and sustainable must be growth from the ground up. For full economic growth and recovery to take place in California and the U.S., we must provide capital and lower taxes for small business while increasing the minimum wage, make education high quality and affordable, invest in green and new technology high paying jobs, rebuild our state and national infrastructure, and restore state and federal funding for important and valuable safety-net and social programs. Until federal and state governments close unproductive corporate tax loopholes and invests these billions of dollars in the U.S., our economy will stagnate and the American Middle Class will continue to shrink. Mathews has said that this is a danger to American democracy, prosperity, and the American Dream.

The latest statistics about both -Educational Scores in California were 47th in 4th and 8th grade testing of English and Math. –Poverty: We’ve got 4 million people more than we were officially told. What does this say about the Road Back, and What can Policy Makers Do to help us get back on our footing sooner. Poverty is connected to low scores.     [Listen]

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