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Childcare cost: Day care expense rivals college cost, fuels social problems

Photo credit: Senator Kate Lundy

According to a new study from ChildCare Aware of America, a childcare research and advocacy group, center-based care for an infant costs more, on average, than in-state tuition at a four-year public college. The price tag ranged from about $4,600 in Mississippi to $15,000 in Massachusetts, and was more than annual median rent payments in 22 states. In some of the more expensive states the cost of day care for infants equals about half of the median income for single moms. And those numbers drop only slightly for children four and older.

“Parents are tapped out,” says Grace Reef, chief of policy and evaluation for ChildCare Aware of America. “They really can’t pay more. It’s not affordable.”

So what does this mean? Over the past week or so, Modern Parenthood has been talking with a number of family and children advocates about the cost of childcare, as well as with a handful of parents. The high price of care, it turns out, often blindsides new parents, and has ripple effects that impact everything from a family’s debt situation to glass ceiling wages to that whole Mommy Wars debate between working and stay at home moms. (Which really starts to look silly in the face of all of this, I might add.)

Ponder, for instance, this fact, shared by Kristin Rowe-Finkbeiner, co-founder and chief executive of MomsRising.org, a social media site and advocacy group that boasts over a million mom members: Having a new baby is one of the top reasons for a “poverty spill,” the term for what happens when your income dips below what’s needed for food and rent.

The key factor in that “spill” is infant care. Without a paid maternity leave policy the US (reminder – we’re the only developed country in the world that rolls this way), and with only a percentage of employees qualifying for unpaid leave, many moms need to either put baby into day care as soon as possible or quit their jobs. This means a huge drop in income. Add another child and the situation becomes even more dire.

Read more from this story HERE.

Obama’s Failures Mount: Ranks of US poor highest in 50 years

The ranks of America’s poor are on track to climb to levels unseen in nearly half a century, erasing gains from the war on poverty in the 1960s amid a weak economy and fraying government safety net.

Census figures for 2011 will be released this fall in the critical weeks ahead of the November elections.

The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest level since 1965.

Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth.

“I grew up going to Hawaii every summer. Now I’m here, applying for assistance because it’s hard to make ends meet. It’s very hard to adjust,” said Laura Fritz, 27, of Wheat Ridge, Colo., describing her slide from rich to poor as she filled out aid forms at a county center. Since 2000, large swaths of Jefferson County just outside Denver have seen poverty nearly double.

Read more from this story HERE.

Related to the increasing US poverty rate, Paul Wiseman of the Associated Press also reported today that the world is suffering the worst economic slowdown since “the dark days of 2009”:

Six of the 17 countries that use the euro currency are in recession. The U.S. economy is struggling again. And the economic superstars of the developing world – China, India and Brazil – are in no position to come to the rescue. They’re slowing, too.

The lengthening shadow over the world’s economy illustrates one of the consequences of globalization: There’s nowhere to hide.

Economies around the world have never been so tightly linked – which means that as one region weakens, others do, too. That’s why Europe’s slowdown is hurting factories in China. And why those Chinese factories are buying less iron ore from Brazil.

As a result of this global economic slowdown, the International Monetary Fund has reduced its forecast for world growth this year to 3.5 percent, the slowest since a 0.6 percent drop in 2009. Some economists predict the global economy will grow a full percentage point less.

For now, few foresee another global recession. Central banks in China, Britain, Brazil, South Korea and Europe have cut interest rates in the past month to try to jolt growth. European leaders have begun to focus more on promoting growth, not just shrinking debt and cutting budgets.

Read more from this story HERE.

UN calls for international tax on billionaires to transfer wealth to poor

The United Nations on Thursday called for a tax on billionaires to help raise more than $400 billion a year for poor countries.

An annual lump sum payment by the super-rich is one of a host of measures including a tax on carbon dioxide emissions, currency exchanges or financial transactions proposed in a UN report that accuses wealthy nations of breaking promises to step up aid for the less fortunate.

The annual World Economic and Social Survey says it is critical to find new ways to help the world’s poor as pledged cash fails to flow.

The report estimates that the number of people around the globe worth at least $1 billion rose to 1,226 in 2012.

There are an estimated 425 billionaires in the United States, 315 in the Asia-Pacific region, 310 in Europe, 90 in other North and South American countries and 86 in Africa and the Middle East.

Read more from this story HERE.

Photo credit: Jorbasa