Experts: Economic Well-Being of Children Likely to be Wiped Out

The recession is taking its toll on everyone – people are losing their jobs and homes and 401Ks have taken massive hits. And while it is expected the economy will eventually turn around, there is one group that no one is talking about – until now. This recession is going to have a very lasting effect on children, especially low-income children of color.

Two national experts – Michael Linden, the senior director of tax and budget policy at First Focus, a bipartisan, Washington D.C.- based advocacy organization and Kenneth Land, a professor of demographic studies and sociology at Duke University, came to Connecticut June 16 to discuss the impact recessions have on children. They gave one very startling expectation – virtually all of the progress made in children's economic well-being since 1975 – more than three decades ago – is likely to be wiped out by the downturn.

In Connecticut, 35,000 children will fall into poverty and 3 million children in the nation face the same fate.

“Child poverty rises sharply during recessions,” said Linden, studying recessions from 1970 to 2007. “In some cases, child poverty actually rose the year prior to the actual recession.”

The economic impact is devastating if states do nothing – recession-induced child poverty costs in Connecticut accounts for $40 billion over these children's lifetimes. Nationally, it accounts for $1.7 trillion. Long-term effects of recession-induced child poverty includes less monetary earnings as an adult, more likely to end up in the prison system, receive less of an education and maintain a poorer quality of health.

“A child who falls into poverty in a recession is half as likely to graduate from college,” said Linden. They can also expect to earn up to 30% less than the median household income, he added. A child who falls into poverty during a recession is also twice as likely to live below 200% of the federal poverty level as an adult. Those who fell into poverty or were always considered in poverty were likely to report lower levels of “good to excellent” health, spending more time in the emergency room and less time at work. That could add up to $140 million in additional heathcare cost losses and foregone economic activity for the 35,000 at-risk of poverty children in Connecticut.

Linden noted that child poverty and unemployment rates move somewhat in-sync and noted that Connecticut's monthly caseload for SNAP (Supplemental Nutrition Assistance Program, formerly the Food Stamps program) has increased 20% since 2007.

Combating child poverty is not an impossible task, Linden said. He suggested, after being questioned by Rep. Toni Walker (D-New Haven) to put more money directly in the hands of those who need it most, through earned income tax credit and child tax credits.

“And investments in early childhood [education],” Linden added. “Lasting implications that pay for themselves.”

The Child Well-Being Index Report

The 2009 Child Well-Being Index report, release earlier this month in Washington, D.C., warns that progress make in family economic well-being since 1975 risks being wiped out. The report, according to project coordinator Kenneth Land, consists of 28 social indicators (such as family economic well-being, health, safety/behavioral concerns, educational attainment, community connectedness, social relationships and emotional/spiritual well-being) in seven quality-of-life domains. According to the report, the percentage of children in poverty is expected to peak at 21% by 2010 and more than eight million children will have one parent not working full-time, year-round, in 2010 and median family incomes will decrease in 2010.

In past recessions, the following secondary indications have been found:

• The rate of overweight children and adolescence has increased (quick, inexpensive meals vs. nutritious meals)

• The mortality rate has increase

• The rate of violent crimes for ages 12-17 has increased

• The rate of youths between the ages of 16-19 who are not employed or in school has increased

• The rate of pre-kindergarten enrollment has decreased

• The rate of young adults who have received a Bachelor's Degree has actually increased, mostly due to the fact that there is nothing to keep them from obtaining that degree.

“Bottom line, we're likely to see a reversal of gains made decades ago,” said Land. He said it is very important for citizens, parents and community and political leaders to be aware of the potential deteriorations so that action can be taken.

CT in Action

Connecticut has already begun to take action. Speaker of the House Christopher Donovan announced the creation of the Task Force on Children and the Recession, the first of its kind in the nation, to be co-chaired by Reps. Karen Jarmoc and Diana Urban.

“We're certainly very focused as to what we can do in this recession,” said Speaker Donovan. “We need to focus on its [the recession's] effects on children. We're all in this together – it's all about pitching in.”

“If we can't keep our eyes on the longer term, we really will sink,” said House Majority Leader Denise Merrill.

“If we don't intervene, there really could be a drastic result,” said Rep. Karen Jarmoc. “We're trying to stop that trend.”

Rep. Urban worries about toxic stress levels that children exposed to poverty have and cited studies that have shown toxic stress can literally change a child's DNA.

“There's a window of opportunity to help that not happen,” said Urban.

The task force is expected to begin its work in July.