HomePostTopic: Community development

Community development

inflation

Key Points

  • September CPI numbers show inflation is still on the rise. 
  • Core inflation hit a 40 year high.
  • Local communities are the key to paving the way for economic success. 

In September, President Joe Biden prematurely declared victory over inflation as he held a celebration event over the party-line passage of the Inflation Reduction Act that required the Vice President of the United States to cast the deciding vote in the Senate.

Perhaps they were fooled by the Consumer Price Index (CPI) numbers for July and August. In July, the CPI dropped just a tiny bit to 295.271 from the seasonally-adjusted index of 295.328 for June, which rounds to an inflation rate of 0.0%. Although the unadjusted index slightly decreased again in August, the seasonal adjusted number rose by only 0.1% that calculates to 1.4% when annualized.

But, alas, inflation rates typically fluctuate from month to month, and what’s important is the longer-term trend.

When the U.S. Bureau of Labor Statistics released the CPI numbers for September, it became all too clear that we must continue to suffer through rising prices — because inflation has not yet been tamed. 

The overall monthly inflation rate rose 0.4% when seasonally adjusted, that is 4.7% when annualized. Yet again, the inflation reading came in hotter than expected, with consensus estimates being around 0.3% for the September reading. The year-over-year inflation rate stands at 8.3%. 

Worse, inflation has become ingrained in our economy with no indication that it’s going away anytime soon. Here are a few reasons why we still need to be worried. 

1.The core inflation rate hit a 40 year high

The reason economists look at the core inflation rate is to gauge how widely inflation has spread throughout the economy. They get the rate by subtracting the cost of energy and food from the index, but not because energy and food prices are unimportant. But because of their volatility. 

The core inflation rate was 6.7% in September over the previous year – the highest it’s been in forty years. It increased 0.6% in September, which calculates to an annual rate of 7.1%. This alarming trend demonstrates just how ingrained inflation has become in our economy. 

“But policy is only one piece of the puzzle. The other even more important piece is the community-level response.”

“But policy is only one piece of the puzzle. The other even more important piece is the community-level response.”

 

2. Energy prices are down — sort of — but food prices up

One piece of good news is that energy prices went down in September. However, this is of little consolation because the prices are still 19.9% higher than last year and 49.7% higher than two years ago.

There is no good news for food prices. You can’t go to the grocery store anymore without noticing the impact of inflation, and the CPI numbers bear this out. Food prices in general are up 11.2% over last year, or 16.3% higher than two years ago. As anyone can tell you, this is just the general price increase. Consumers can experience higher prices depending on what foods they buy. Cereals and bakery goods are up 16.2% from last year, and dairy products are up 15.9%

Although economists like focusing on core inflation, energy and food prices are necessities that impact most people, especially lower income families and seniors living on fixed incomes.  

3. Inflation isn’t going away anytime soon

When reading the tea leaves, there aren’t many indications to expect inflation will abate any time soon. The recent droughts and man-made obstacles to food production, such as Russia’s war on the Ukraine and the irresponsible farm policy changes in the Netherlands, will impact food supply, which, of course, will have a direct impact on food prices and its availability. 

As winter approaches the northern hemisphere, the demand for energy will increase. Here again, the war in Ukraine is culpable for disrupting energy supply to Europe. Moreover, not only did the Biden Administration fail to convince OPEC to increase production, but OPEC, which by the way includes Russia, is doing the exact opposite. They are cutting back on oil production. 

In the meantime, current U.S. energy policy is more concerned about climate change than energy independence — that we were just two short years ago. The Administration’s release of petroleum from the Strategic Petroleum Reserve did help ease prices, but now the reserve is at the lowest level since 1984. How much lower will the Administration allow it to go?

Because it impacts economic behavior, core inflation is even harder to solve. People – whether acting on behalf of their businesses or as an employee or as a consumer – incorporate their expectations of higher prices into their personal actions. This only fuels inflation more. Consider this fact: Although many businesses are experiencing higher revenue, their costs are also up. Importantly, and unfortunately, for many of them, their profits are down. All these factors exacerbate inflation while slowing economic growth, which harms everyone.  

The way forward is through local communities

Our nation’s inflationary environment is bad. Everyone knows that. The big question is what to do about it. On the policy front, we need a paradigm shift in Washington, D.C., to focus on enacting policies that encourage private investment, savings, and free trade while cutting back on deficit spending.

But policy is only one piece of the puzzle. The other even more important piece is the community-level response.

Here at the Georgia Center for Opportunity, our focus is primarily on these bottom-up solutions. Our neighbors — particularly those on the economic margins — are suffering from high inflation and need help. That’s where programs like BETTER WORK come in. They help the poor and impoverished get the skills and training needed to find a job and pursue a career, while ensuring they also find safe and affordable housing, reliable transportation, childcare services, and any other essential that’s needed.

We also know that economic prosperity is challenging when your home life is in shambles. That’s why GCO prioritizes healthy family relationships through our Elevate workshops throughout the community and our Strengthen Families Program in local schools. On that note, prosperity is impossible without a good education, so we prioritize policies that will bring the broadest range of educational options to the most people, regardless of their background, income level, or zip code.

The way back from our high inflationary environment is going to be a long trip. But with the right policies in place and with an attitude that prioritizes on-the-ground help for our neighbors, we can lighten the burden for our neighbors during the journey.



Jobs 4 Life Meeting in Columbus

A Partner For Life

Several of the Chattahoochee Valley Poverty Reduction Coalition (CVPRC) member organizations attended the May 26th Jobs for Life class to share information on resources and talk with students about overcoming the roadblocks they face. Some of the potential roadblocks discussed included mental and emotional health, childcare challenges, and needed education and training. This Community Resource panel was able to help students understand the steps they must take to overcome these challenges and others.

 

Responding to the needs in a community is paramount to our success.

Learn how our community partners stepped up to support the needs in Columbus through area-businesses.  

Our Partners Matter

We would like to thank Candace Muncy (United Way-211), Dr. Asante Hilts (Columbus Health Department), and Jessica Neal (Goodwill) for attending as well as Jamie Thomas (Enrichment Services) and April Hopson (Columbus Technical College) for sending representatives on their behalf.

Our entire Jobs for Life team and students appreciate you!

Job for Life classes are successful because of our community partners and volunteers. If you are interested in learning more about these classes and getting involved, visit our website at https://betteropportunity.org/jobs-for-life/

 

Building a stronger network of resources

On November 4th, BETTER WORK Columbus hosted a reception to announce a new partnership with Jobs for Life to bring its proven curriculum and a nationally recognized program to help struggling people find meaningful, self-supporting work. During the event, Ryan Ray, President and CEO of Jobs for Life, shared his heart as well as the passion behind the Jobs for Life training program and the power it has to impact lives in a transformative way.

Problem:

In Columbus, 11,406 people are unemployed, despite more than 6,500 job openings. The problem is not an issue of availability but an issue of access. There are personal, educational, and systemic barriers that prevent some of our neighbors from working or thriving at their jobs. Without work, many begin to identify themselves with their circumstances which creates a vicious cycle of poverty—economically, spiritually, and emotionally.

Solution:

Our BETTER WORK Columbus team has already built a strong network of partnerships and has been using the Jobs for Life framework to recruit and train mentors. Now, we want to take this a step further by extending the network of support to Jobs for Life training sites in our community.

Our BETTER WORK Network has allied with Jobs for Life to help break the cycle of poverty and build up our communities. JFL sites are uniquely positioned to address the root causes of un- and under-employment by uniting churches, businesses, and community organizations and facilitating positive transformation within lives and communities. This model reinforces work as more than just a paycheck but a source of pride and dignity. It is designed to address the loss of identity which often accompanies unemployment.

We will join hands and work together to bring the change our community needs.

How can we work together?

It starts here! We will join hands and work together to bring the change our community needs.

If you live in the Columbus area, we need your help! You can: 

  • Champion a student through mentoring, 
  • help us with recruitment, 
  • hire a graduate, 
  • or simply celebrate with us. 

 

You may also choose to donate by giving online. 

Then send an email to kristin.barker@georgiaopportunity.org to have your gift support local Jobs for Life classes. Include your name and the subject line – “I donated to the BETTER WORK Network and Jobs for Life”.

A Network of Partners is Growing in Columbus

Columbus, Georgia has over 11,000 citizens identifying as unemployed, but the number of available jobs is over 6,000.  What’s the problem? Why are so many people not working?

Kristin Barker serves as the program manager for BETTER WORK Columbus, and provides insight as to why there’s limited job access in the area.

Through growing partnerships in Columbus, the BETTER WORK Network will meet the needs of people where it will have the most impact – in their neighborhoods. One of our partners, Jobs for Life, will utilize their sites to help address the underlying issues creating unemployment.

We know that satisfying work has the ability to restore dignity, build communities, and reduce crime.

We are excited to see so many people working together for the good of helping people.

 

The BETTER WORK Network will meet the needs of people where it will have the most impact – in their neighborhoods.

How to Take Away Something Positive from the COVID Crisis

By Kristin Barker

The year 2020 has been difficult for everyone. It has caused organizations and businesses to pivot from their planned strategies and shift quickly to identify new ones. It has forced individuals to find new career paths and create new support structures. It’s kept us from our families and isolated us from the communities we are used to counting on. In short, it has been one tough year.

It has been the most difficult year I have seen over my lifetime. But I will say it has also been inspiring. I have been inspired by the ability of our community and its leaders to come together. Leadership in Columbus has been able to connect in new and sometimes surprising ways to support and meet continually changing needs. 

Betsy Covington at the Community Foundation and Ben Moser at United Way acted very early in the year to coordinate COVID Response calls to keep Columbus connected, positive, and focused throughout much of this crisis year. Their efforts and the efforts of others to join hands and find out-of-the-box solutions in the moment has been very encouraging.

While seeing these efforts gives hope to myself and (I’m sure) to others, our Hiring Well, Doing Good (HWDG) partners also know there will be many additional challenges to address and emerging issues to tackle in the future. We began to talk about the shifts that were happening with our own efforts in Columbus. We heard about the new practices that our business and nonprofit partners were having to adopt and the heightened needs that continue to arise among the populations we serve. 

Our subcommittees began to ask, “What can we learn from our ability to pivot in 2020 that will allow us to react more effectively and responsively in 2021?” This question led us to develop a series of events focused on The Changing COVID Workforce. 

Our first event in this series will be held on January 21, 2021. This event will address Economic Forces During a Pandemic: How COVID is Shaping the Labor Market. During this event we examine the labor-supply gaps that exist and look at business policies and practices that impact workforce participation. This discussion will set the stage for later events and will consider the need for possible shifts in training and hiring practices. 

Our second event in the series will be on March 24 and will examine how we leverage our community assets to mitigate the impact of COVID. Betsy Covington and Ben Moser are going to speak during this event and help us think through what our community did really well in 2020. We will discuss how we can leverage what we have learned to navigate 2021 and to improve our community in the future. The final event on May 19 will focus on maintaining the strength of our workforce.

All three of these discussions will help us prepare to successfully repair our local economy in light of the COVID-related adjustments we have been forced to make along the way. We need to be sure that businesses (large and small) can prosper while keeping all people in our community safe and avoiding as much collateral damage from this virus as possible. 

There are also some existing issues that COVID has shined a light on. In comparison to other areas of the country, Columbus has very low average wages. This has created a situation locally where national stimulus efforts may harm our local economy disproportionately. In some cases, businesses have shared that their challenges in hiring additional labor have hamstrung their efforts to produce at scale or accept additional contracts. In other cases, employers have had to scale down production due to workforce restrictions. These situations open up an essential conversation about both average and living wages in Columbus, because it’s important for everyone to earn enough to support their families.

Ultimately, I see a heart at work in our community that is something I don’t believe you can find everywhere. There is a genuine and pervasive desire to work together for the common good. This is something special about Columbus, and I believe the Changing COVID Workforce event series will allow us to take greater advantage of our outstanding community spirit.

 

covid series

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Election night is over and the results of the presidential race are still in question, with final calls in a number of key swing states hanging in the balance. Any other year, this would be an anomaly. But we’ve come to expect the unexpected in 2020, a year that has seen searing social strife, suffering, and pain through the COVID-19 pandemic.

Unfortunately, the most rancorous election of our lifetimes will continue as election officials continue to tally votes across the states. But in the midst of a chaotic political season, devastating pandemic, and heartbreaking racial strife, I’m reminded of this simple truth that we live our lives by each and every day here at the Georgia Center for Opportunity: The role of government is important, but the most impactful changes occur in our homes, neighborhoods, and communities. It is there that lives are formed and, when things go badly, where lives are transformed. And it’s there that neighbors, businesses, communities of faith, schools, and non-profits can come together in local unified action.

Politics and policy do matter, but ultimately they are not the main driving force that moves the needle when it comes to people’s lives. That must come from you and me—rolling up sleeves and working alongside others who may or may not have voted like we did, but who share a belief that everyone deserves the opportunity to achieve a better life, regardless of their race, the circumstances of birth, or past mistakes.

In the end, no one needs to wait for election results or the government in order to have an impact at the community level. And no one needs to let election results keep them from doing good on behalf of others.

So, our mission continues, both at a policy level and community level. We remain thankful to live in the United States of America and to call Georgia our home.

Not for self, but for others.

 

How Second Chances Impact Communities

 

By Kristin Barker

We must begin to see past our biases and speak life into those who have fallen.

I recently had a mini-awakening. We were interviewing a young man who was a convicted felon. He was given a second chance to move into a job about one year ago with a company full of champions who were able to recognize his immense on-the-job potential early on. They continue to outwardly encourage him, help him as he maps out his future path, and openly show him their appreciation. The support he receives from his managers and the Human Resources team is phenomenal. But I knew this going in.

This was not the awakening. The company is Columbus Water Works in Columbus, GA. As a core company value, they believe in providing great opportunities and giving second chances. This is not because the business itself is looking to gain, although it does gain a lot, but because their corporate culture encourages this as the right thing to do. This company is a Hiring Well, Doing Good partner in part because of this important core value that we share, so this was also no surprise to me. This was not the awakening.

Watch Kevin's Story

As Kevin spoke about responsibility, he also shared his desire to influence others so they would begin see that opportunity does exist. As he continued, I saw a spark ignite in his eyes.

When he shared how he will encounter someone at a gas station and encourage him or her not to give up, it was clear that his influence on the community that surrounds him is a direct extension of the individuals who have nurtured and encouraged him since his incarceration. The responsibility he feels to share what he knows from his own experience is more valuable than any economic equation can measure. What he now knows without a shadow of a doubt is that there is hope and that he has value!

Our communities need to understand and appreciate Kevin and others like him. We must begin to see past our biases and speak life into those who have fallen. The poverty of community is just as important (if not more important) than economic poverty, and the butterfly effect I am describing is always at play either in a positive or in a negative way.

Every one of us decides daily who we will lift up and who we will allow to continue to fall. We choose every day whether we will contribute to the strength of our community by respecting and showing that respect to the weakest of our neighbors. The alternative is to fail to speak hope and to perpetuate hopelessness. As a result, this weakens our communities. 

If we, collectively, determine to see the value that is inherent in others and begin to express this belief proactively and personally in an open and vulnerable way, the same spark that I saw in Kevin today will begin to catch fire in others who have no hope. Our communities will grow stronger and healing will follow. 

As for me, I am thankful. I am thankful for the opportunity to meet Kevin and to hear his story. I am thankful to learn from his experience. I am also thankful to know the great leaders at Columbus Water Works who live their corporate values on the job every day. Above all, I am thankful to live in a community where potential is abundant, people generally support one another, and opportunities abound for most. My greatest hope is that tomorrow, those opportunities will abound for all!

EMPLOYMENT RESOURCES

SYSTEMIC WELFARE IN GEORGIA: PART 1 THE CASE FOR REFORM

In the first paper of our three-part series presenting a vision for systemic welfare reform in Georgia, we explore the need for a welfare system that starts with the assumption that natural support systems, including individual work and a reliance on family and community assistance, should be the primary sources of help when individuals face financial need. This report demonstrates how the current system does not meet these assumptions and points to the need for reform.

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SYSTEMIC WELFARE IN GEORGIA: PART 2 PRINCIPLES AND FRAMEWORK FOR REFORM

In the second paper of our three-part series presenting a vision for systemic welfare reform in Georgia, we explore the new system as we imagine it could be, give guiding principles, provide a general framework for how the reformed system can function, and establish preliminary steps needed to implement the vision.

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SYSTEMIC WELFARE IN GEORGIA: PART 3 HOW THE NEW SYSTEM WILL WORK

In the third and final paper of our three-part series presenting a vision for systemic welfare reform in Georgia, we propose the creation of new, consolidated program modules (including their structure, design, and expected outcomes) to replace current, disjointed programs. We go on to present a structure Georgia’s governor and executive agencies could adopt to effectively and in relatively short order implement a reformed system.

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Medical assistance programs have long needed reforms to address high prices and lack of access. Despite the fact that federal policy tends to dominate medical assistance programs, states do have some flexibility to enact reforms. This study explores how states – and particularly Georgia – have flexibility and can experiment with Medicaid, the State Children’s Health Insurance Program (SCHIP), and the Affordable Care Act (ACA) to improve access, lower costs, and streamline the system to better serve those in need of assistance.

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Georgia has suffered from higher unemployment rates and lower high school graduation rates than the national average for many years. This report takes a look at the trends driving those problems and the potential solutions, including apprenticeships, that could lead to greater economic mobility for young adults.

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