02/10/2022
POVERTY IS A CRITICAL METRIC, BUT MUST BE EXPANDED!
In late January, Business Leaders for Michigan (BLM) released its updated benchmarking report comparing Michigan’s performance against the Top 10 states. The metrics include traditional output metrics such as GDP, median household income and business climate perception, and add growth and economic health indicators such as education, labor force participation, net migration, poverty, and business creation. These updated metrics provide a more holistic view of how well all Michiganders are succeeding rather than just a snapshot of the state’s economy.
Bankole Thompson, opinion writer for the Detroit News and longtime advocate of the importance of convening conversations around poverty, applauds its inclusion in his latest column titled, “Business leaders are putting poverty front and center.” He quotes the CEO of BLM, Jeff Donofrio, as saying “So not only is it a moral imperative to help those in poverty, businesses know we can’t afford to leave anyone behind if we want to maintain and grow our economy.”
Cindy Pasky, the president and CEO of Strategic Staffing Solutions, drives the issue home: “Poverty, like any other yardstick for the economy as a whole, should be included in metrics that the state monitors. Just as we measure employment, median household income or wealth, poverty is an indication of a region’s or state’s overall health.”
While I strongly support the inclusion of a Poverty Metric, I would like to see that metric expanded to account for Race and Ethnicity. The report shows that Michigan ranks 34th in the nation with a Poverty Rate of 13.0 percent. If we break that down into its racial/ethnic components, we see the following:
1. We tie for 35th for white, non-Hispanic poverty with a rate of 9.8 percent
2. We rank 31st for African American poverty with a rate of 25.9 percent (only 42 states have sufficient population)
3. We rank 43rd for Hispanic/Latino poverty with a rate of 22.2 percent (all but Vermont have sufficient population)
4. We tie for 22nd for Asian poverty with a rate of 10.6 percent (only 40 states have sufficient population)
5. We rank 19th for Native American poverty with a rate of 24.6 percent (only 30 states have sufficient population)
If we are truly committed to tracking “a region’s or state’s overall health,” we need to know how ALL segments of our population are doing. We cannot celebrate a reduction in overall poverty, if the GAPS that we see between the races show no change. (The AA poverty rate is 2.64 times that of whites)
While I applaud the expansion of the BLM metrics, I call for them to take those metrics that can be broken out by race and ethnicity and track them as well.
Michigan has progressed over the last decade, but needs strategic improvements to become competitive DETROIT— Business Leaders for Michigan today …