At a time of affordability and urban poverty debates in USA, writings of Barbara Ehrenreich have a new relevance – Countercurrents

Analysis of “Nickel and Dimed” in the Context of Sustainable Development Goals

Challenges to SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth)

Barbara Ehrenreich’s investigative work, “Nickel and Dimed,” provides a critical analysis of economic hardships that directly conflict with the objectives of the Sustainable Development Goals, particularly SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth). The findings reveal a systemic failure to provide a living wage, which is fundamental to achieving these goals.

• The research highlights a significant disparity between the prevailing wages for the working class and the income required to meet basic needs without falling into poverty.
• This gap demonstrates a failure in promoting full and productive employment and decent work for all, as mandated by SDG 8.

The report quantifies this disparity with the following data points from the late 1990s:

1. Required Living Wage: The Economic Policy Institute determined that a wage of $14 per hour was necessary to support a family of one adult and two children.
2. Prevailing Low-Wage Rate: Ehrenreich’s undercover work consistently found that the most common available wages were only $7 to $8 per hour.
3. Widespread Impact: It was estimated that approximately 60% of American workers earned less than the $14 per hour living wage, indicating a widespread challenge to achieving SDG 1.

Violations of Decent Work Principles under SDG 8

The book details working conditions that undermine SDG Target 8.8, which aims to protect labor rights and promote safe and secure working environments. The author’s experiences suggest that low-wage workplaces often fail to uphold the dignity and rights of workers.

• Suppression of Rights: Ehrenreich asserts that upon entering the low-wage workplace, workers must “check your civil liberties at the door,” describing the environment as a “dictatorship” where freedom of expression is curtailed.
• Harm to Health and Dignity: The conditions were reported to be injurious to both physical health and personal dignity, creating what the author terms a “state of emergency” for millions of low-wage Americans.

Inadequate and Unaffordable Housing: A Failure of SDG 11

The research underscores a critical barrier to achieving SDG 11 (Sustainable Cities and Communities), specifically Target 11.1, which calls for access to adequate, safe, and affordable housing for all. For the urban working poor, housing affordability is a primary crisis.

• A substantial portion of earnings, often 50% or more, is allocated to rent for housing that is frequently of poor quality.
• This financial strain severely limits the ability of individuals and families to meet other essential needs, thereby perpetuating a cycle of poverty and preventing the establishment of sustainable and inclusive communities.

Systemic Disparities and Contradictions to SDG 10 (Reduced Inequalities)

“Nickel and Dimed” exposes how government policies can exacerbate economic disparities, running counter to the objectives of SDG 10 (Reduced Inequalities). The analysis points to a structural bias in fiscal policy that favors the wealthy.

• A primary example is the mortgage-interest deduction, a government subsidy that disproportionately benefits higher-income homeowners.
• Ehrenreich calculated her personal annual housing subsidy from this deduction to be over $20,000.
• This figure is contrasted with the lack of sufficient support for low-income families, illustrating how budgetary priorities can widen the inequality gap rather than close it, thereby hindering progress on SDG 10.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article directly addresses poverty by discussing the “increasing difficulties faced by the working class… to meet their essential needs.” It highlights the book ‘Nickel and Dimed’, which explores the theme of “(Not) Getting By in America” and describes the poverty of low-wage Americans as a “state of emergency.”

• SDG 8: Decent Work and Economic Growth

  This goal is central to the article. It details the experiences of a low-wage worker, focusing on insufficient wages (“difficult to earn enough to meet essential expenses”), the gap between common wages ($7-$8/hour) and a living wage ($14/hour), and poor working conditions that are “injurious to health as well as to dignity” and amount to a “dictatorship.”

• SDG 10: Reduced Inequalities

  The article highlights significant inequalities. It contrasts the financial struggles of the working poor with the benefits available to the rich, such as a mortgage-interest deduction described as an “annual housing subsidy… over $20,000 a year.” This illustrates how government budgets can be “biased in favor of the rich.” The fact that 60% of American workers earned less than a living wage also points to widespread income inequality.

• SDG 11: Sustainable Cities and Communities

  The issue of affordable housing in urban areas is explicitly mentioned. The article states that “Housing is a serious problem for the urban poor as half or more of the earnings go to paying the rent for whatever poor housing conditions they can manage,” directly connecting to the goal of making cities inclusive and sustainable.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. The article’s focus on the inability of the working class to meet “essential needs” and the description of their situation as a “state of emergency” directly relates to reducing poverty within a national context (the USA).

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The article’s core argument is the lack of “decent work.” It contrasts the prevailing low wages ($7-$8/hour) with a calculated “living wage” ($14/hour), showing a failure to provide wages sufficient for a decent standard of living.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers. The article describes low-wage workplaces where workers must “check your civil liberties at the door” and endure “oppressive conditions” that are “injurious to health as well as to dignity,” highlighting the need to protect labor rights and ensure safe environments.

3. SDG 10: Reduced Inequalities

   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article critiques fiscal policy by pointing out that government budgets are “biased in favor of the rich,” citing the large mortgage-interest deduction for the wealthy compared to the lack of support for the poor. This calls for policy adoption that promotes equality.

4. SDG 11: Sustainable Cities and Communities

   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services. The article explicitly identifies housing as a “serious problem for the urban poor” and notes that “half or more of the earnings go to paying the rent,” directly addressing the challenge of affordable housing in cities.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. For SDG 1 & SDG 8 (Targets 1.2 & 8.5)

   • Indicator: Gap between actual wage and living wage. The article provides specific figures: a required “living wage” of $14 an hour versus the common wage of “$7 or $8” an hour. This gap is a direct measure of wage inadequacy.
   • Indicator: Proportion of the working population earning below the living wage. The article states that “about 60% American workers earned less than $14 an hour,” which serves as a quantifiable indicator of the prevalence of low-wage work.

2. For SDG 10 (Target 10.4)

   • Indicator: Disparity in fiscal subsidies. The article implies an indicator by comparing the housing subsidy for the rich (“over $20,000 a year in the form of a mortgage-interest deduction”) with the lack of housing support for a “truly low income family.” This highlights inequality in fiscal policy.

3. For SDG 11 (Target 11.1)

   • Indicator: Proportion of income spent on housing. The article mentions that for the urban poor, “half or more of the earnings go to paying the rent.” This percentage is a key indicator used to measure housing affordability.

4. For SDG 8 (Target 8.8)

   • Indicator: Worker perception of rights and dignity. While not a quantitative metric in the article, the qualitative description of workplaces as “dictatorships” where workers “check your civil liberties at the door” and conditions are “injurious to health as well as to dignity” implies the need for indicators that measure the protection of labor rights and workplace safety from the worker’s perspective.

4. Table of SDGs, Targets, and Indicators

Source: countercurrents.org