Santa Barbara’s Poverty Problem

A recent conference on poverty in Santa Barbara County sponsored by CommUnify revealed that we have the second highest poverty rate in California. The goal of the Upward Mobility Summit was to create work groups to come up with anti-poverty solutions using the Urban Institute’s Upward Mobility Framework.

The Public Policy Institute of California puts Santa Barbara County’s poverty rate at 16.9%, or about 69,300 (+/- 15,800) people. That puts us near the top of all counties. The poverty income threshold for a family of four here is $41,748. 

Some of the factors that contribute to poverty in our county according to CommUnify are things like low wages, lack of childcare, lack of skills, lack of education, unaffordable housing.

Hannah-Beth Jackson, our former state senator and well-known leader of Progressive Democratic causes, told me that the wealthy and powerful perpetuate poverty by failing to support Progressive policies.

I don’t believe this Progressive fantasy has anything to do with poverty.

In 1964, President Lyndon Johnson unveiled his War on Poverty. It’s hard to pin down an exact number but since then the federal government has spent an estimated $35 trillion on welfare programs. These programs have done little to alleviate poverty. According to U.S. Census data, the average percentage of Americans living in poverty from 1970 to 2023 has been about 13% (a range of about 11% to 14%). In other words, after 50 years these programs have yet to move the needle.

This begs the question: If the existing programs since 1964 haven’t done much to alleviate poverty shouldn’t we do something different? 

We can’t reduce poverty without examining the causes of poverty. We know what won’t work and it isn’t the lack of welfare assistance. When you examine these programs many are in effect handouts and disincentivize poor people to take control of their lives and change their situation. 

I am not insensitive to the needs of the poor in Santa Barbara and some people are incapable or stuck in bad situations and need help. 

But here is the reality: the drivers of poverty in Santa Barbara are undocumented immigrants, expensive housing, and single parenthood. 

Immigration: Of the almost 70,000 poor people here there are an estimated 44,000 undocumented workers in Santa Barbara County. This is not an article on immigration and mass deportations that would be cruel and would wreck our economy. But many do not speak English or have limited abilities to speak English. Many are uneducated and lack basic skills. Most are hardworking and have jobs, permanent or temporary. 

The vast majority are good people who want good lives here. But the labor market is flooded with unskilled workers who make $15 to $25 per hour. Not exactly a living wage. If they had more skills they would earn more money. If employers were forced to pay wages higher than the market-based productivity rate they would be unemployed. As many now legal immigrants have done, skills and hard work will eventually lead them out of poverty to successful citizenship.

Housing: Santa Barbara has one of the most expensive housing markets in the nation. There is no such thing called “affordable housing” here. The reason is increasing pro-tenant rent controls and high construction costs kill incentives for developers to build low-cost apartments. Other than massive tenant housing subsidies paid by taxpayers (good luck) this is not a solvable problem. Housing will continue to be expensive and it’s not because of greedy landlords.

Single Parents: These are mostly women. Census data say that here are 42,000 poor single female households with children under 18 in the county (28.4% of 149,000 households). Of those households, 47.5% are immigrants. 24,000 did not graduate from high school and they earn on average about $23,000 per year. The poverty rate for married mothers is only 5%.

The main driver of single motherhood are the choices women make. According to the Center for American Progress, a Progressive think tank, “Throughout the second half of the 20th century, women gained increased freedom and opportunity to shape their own lives … and cultural norms on premarital sex, cohabitation, out-of-wedlock births, and divorce evolved.”

What can we do to alleviate poverty in Santa Barbara County? Start with education. Make sure all children graduate from high school. The data show that education is a way out of poverty. Work with girls and young women to use birth control prior to marriage. Encourage marriage. Single motherhood is a road to poverty. 

Unaffordable housing can’t be fixed. The numbers of people demanding apartments overwhelm our supply and very few are being built. Rent controls will only further limit supply.

Welfare is available for those who cannot work or are not capable of caring for themselves or their children. These are people whose problems cannot be solved. Welfare should be limited to these people, not the able and competent.

I know I am simplifying a complex issue. But the main drivers of poverty here are undocumented immigrants, unaffordable housing, and single mothers. There isn’t an easy way to fix this. But we need to find a way to use welfare to incentivize people to better their lives. The 50-year experiment with government handouts hasn’t worked.