“We should measure the prosperity of a nation not by the number of millionaires but by the absence of poverty, the prevalence of health, the efficiency of public schools, and the number of people who can and do read worthwhile books.” – W.E.B. Du Bois
When we think about household income, many people often think about those living in poverty, the middle class, and the top 1%. Yet, this conceals the 1,671,196 households who are ALICE (Asset Limited, Income Constrained, Employed) right here in Michigan. ALICE are our neighbors, relatives, friends, and coworkers. You may be ALICE. As cashiers, waiters, childcare providers, and other members of our essential workforce, ALICE earns just above the Federal Poverty Level but less than what it costs to make ends meet. These struggling households are forced to make impossible choices each day, asking the questions: How long until the lights go out? Which bill can I afford to put off just a little longer? While such hardship is pervasive, households of color are disproportionately ALICE.
According to 2022 ALICE Report data for the United Way of South Central Michigan region:
- Calhoun County: has 53,388 households and 44% of them are living below the ALICE threshold.
- Clinton County: has 31,010 households and 34% of them are living below the ALICE threshold.
- Eaton County: has 44,942 households and 36% of them are living below the ALICE threshold.
- Ingham County: has 118,485 households and 44% of them are living below the ALICE threshold.
- Jackson County: has 63,368 households and 45% of them are living below the ALICE threshold.
- Kalamazoo County: has 103,196 households and 38% of them are living below the ALICE threshold.
While ALICE households are part of every community in Michigan, Black, Indigenous, and Hispanic communities are disproportionately represented in ALICE and below-poverty households statewide when compared to their White neighbors.
Consider that the Federal Reserve Bank of St Louis reported that as of September 30, 2024:
- Black households had about $311,000 in average wealth, a 53% increase since the end of the Great Recession.
- Hispanic households had about $251,000 in average wealth, a 63% increase since the end of the Great Recession.
- White households had about $1.4 million in average wealth, a 69% increase since the end of the Great Recession.
- The wealth gap between Black and White households has not improved in over 50 years.
Where a person lives or where children are raised can have a strong influence on opportunities to succeed. When these factors are combined with race and discriminatory systems, BIPOC communities are disproportionately impacted. Over the next few days, we will explore how ALICE, race and other factors impact a person’s housing, health, education, financial stability, and more.
Today’s Challenge
Read
- Visit the United for ALICE Michigan Research Center to learn more about ALICE households living in our communities. https://www.unitedforalice.org/state-overview/michigan
- The article highlights how systemic racism and unequal policies have caused the racial wealth gap in the U.S. to persist and widen. The Racial Wealth Gap is Persistent – and Growing – Inequality.org (4 mins)
Watch
- This Netflix documentary examines how historical injustices such as slavery and housing discrimination have led to the significant disparity in wealth between Black and white Americans. Netflix – Racial Wealth Gap (17 mins)
Engage
- Dive into our local Michigan data with The Opportunity Insights Economic Tracker, a visionary tool to help you understand social capital and economic mobility. https://opportunityinsights.org/