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The Poverty Industry: The Exploitation of America's Most Vulnerable Citizens (Families, Law, and Society)
Free PDF The Poverty Industry: The Exploitation of America's Most Vulnerable Citizens (Families, Law, and Society)
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Review
"The Poverty Industry exposes the venality of a startling number of public servants and private contractors who misdirect and misuse public funds intended to benefit those most in need."-Jewish Currents"Poverty is here painted as an industry that, like the defense industry, has an iron triangle. As explored by Hatcher, it depicts revenue maximization services and contingency fees that decrease the funds from the federal government that go to helping children and the poor."-Library Journal"Hatcher throws light on what can be hidden processes in human services budgeting, contracting, and implementation. The Poverty Industry walks through the evolution of legal doctrine regarding rights of vulnerable persons...The narrative provides compelling evidence that scholars, policymakers, and advocates should take a closer look at the political and business relationships shaping contracting decisions involving for-profit firms." -Political Science Quarterly“Hatcher provides beautiful examples of unintended consequences of government policies: states rip off the federal government because the federal government has unwittingly incentivized the states to do exactly that.”-Choice"Hatcher exposes an urgent paradox at the heart of American governance: why, and how, are states and localities teaming up with corporations to squeeze profits from society’s poorest? The Poverty Industry breaks fresh ground. Every American who cares about the intersection of private profits and public justice should read this book, and wrestle with its arguments. Hatcher marshals years of legal experience and research towards fulfilling the muckraker’s calling: 'to comfort the afflicted, and afflict the comfortable.' But he also goes a step further. In The Poverty Industry, he combines a practitioner’s depth with a journalist’s flair for storytelling, to generate the first complete account of a little-known phenomenon that should be of interest to every reader with a conscience."-Sarah Stillman,staff writer for the New Yorker“Everyone today is skeptical of charitable organizations that spend too little of their money on charity. After reading this book, Americans are sure to become just as skeptical when state and local governments spend federal tax dollars. Hatcher’s tour-de-force spells out how federal government spending on services for the poor are being wasted. . . . No one who reads this book will ever feel the same about fiscal federalism. . . . Hatcher shows that a shocking amount of money is going to profit private businesses. Even worse, these businesses are teaching state and local governments how to scam the feds by taking money for one purpose and misusing it to help fill a hole in the state budget outside of the purposes for which the money is being given. An extremely important book.”-Martin Guggenheim,Fiorello LaGuardia Professor of Clinical Law, New York University"Daniel Hatcher meticulously explains the impact of deregulated privatisation on America's already residual care services."-Times Higher Education“In the tradition of great muckraking, Hatcher has exposed how states and localities have misdirected and misused public funds envisioned to benefit the most vulnerable among us. . . . Should be required reading for lawmakers and public officials, to remind them of their legal and moral responsibilities and to inspire them to stop these disturbing practices and direct these crucial resources to their rightful recipients.”-Jane M. Spinak,Edward Ross Aranow Clinical Professor of Law, Columbia University"In this meticulously researched book Hatcher, who has represented vulnerable people in court for years, including children in foster care, lifts the lid on a system that rather than helping the needy, systematically turns them into 'a source of revenue'."-The Guardian,Mary O'Hara"A law professor at the University of Baltimore who has represented Maryland victims of such schemes, Hatcher presents a distressing picture of how states routinely defraud taxpayers of millions of federal dollars."-Boston Review
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About the Author
Daniel L. Hatcher is Professor of Law at the University of Baltimore.
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Product details
Series: Families, Law, and Society
Hardcover: 288 pages
Publisher: NYU Press (June 21, 2016)
Language: English
ISBN-10: 9781479874729
ISBN-13: 978-1479874729
ASIN: 1479874728
Product Dimensions:
6.3 x 1 x 9 inches
Shipping Weight: 1.6 pounds (View shipping rates and policies)
Average Customer Review:
4.5 out of 5 stars
18 customer reviews
Amazon Best Sellers Rank:
#766,996 in Books (See Top 100 in Books)
This book has become my go to resource for understanding how the most vulnerable citizens under state protection are exploited for revenue streams to fill state coffers and pay those who provide services. A foster child's rightful inheritance and social security is confiscated to pay for care (the state has already received funds to do that), and the end result is that foster children exit the system penniless. i hope that Daniel Hatcher, who has an all-encompassing view of how exploitation works, starts examining the Guardianship system. in the case of guardianship for elders, those folks have often accumulated substantial assets that, under the guise of "best interest" are confiscated for use, as a whole host of people climb on the cash wagon. The estates of these folks can be drained in a few years as the person under guardianship is thrown into a lock-down facility and isolated from friends and family to help the elder 'adjust.' my best guess is that families have no idea that guardianship removes the rights of not just the ward, but the entire family who is now powerless to do anything. If they sue, the guardian can exploit the elder's funds by hiring an attorney to defend his or her posession over that person and their assets. . sell the elder's home and exploit every possible dime that person has earned.
Pretty interesting read. The average American is in the dark about these issues, and trusts our government to a certain extent. The corruption and abuse highlighted in this book is really appalling, and proves that the government agencies, and the privatized companies they hire, revolve around greed and $$$, rather than truly caring for those in need. They are corrupt, industrial complexes. Instead of doing their duties to the American taxpaying people, and fulfilling their oaths of office, they abuse their power and exploit our most vulnerable citizens. I think it's time for a restructuring of these systems, weeding out the corruption, and making those responsible pay for their actions, while putting in new systems and employees who are held accountable to rules and regulations that are strictly overseen and enforced by a disinterested third party. No more privatized, government contracted agencies who only feed the industrial complex machine. No more financial incentives for states that perpetuate these disgusting practices! As it is said... The love of money is the root of all evil.
This is devastating revelation of the mismanagement of funds for children in state care. Let us hope that more people will be energized to act to correct such wrongs in light of this exposure.Professor Eileen Gambrill
This is a must read for every American citizen! Required reading!
Foster children aren’t people. To state governments they are a “revenue generating mechanismâ€. States actively seek out disabled, removed and orphaned children to apply for and seize their federal benefits without their knowledge, and without giving them any of the money. Daniel Hatcher has discovered a whole industry sector, combining private companies and government that do nothing but generate profits out of the misery of unfortunate children, nursing home patients, and the poor caught in minor crimes. This nightmare of a book is staggeringly well documented with the states’ and the firms’ own proud documents. Everyone in power knows it goes on. And it gets worse by the day with their enthusiastic encouragement.States are arrogant about keeping their poverty activities private. They claim once a child is in custody, the sovereign right of the state supersedes any court proceedings seeking accountability. That includes due process, denied to victims. They claim seizing a child’s assets helps support children. It is both illegal and unconstitutional, but whatever.The company MAXIMUS seems to be the biggest private player, with 13,000 employees dedicated to maximizing revenues for Human Services agencies in the US, Canada, Australia, …. And they commit fraud. Soon after admitting to fraudulently filing Medicaid claims, they won a contract to help prevent Medicaid fraud. (This is also typical in Washington, which charges military vendors with billions in fraud, then awards them additional billions in new contracts. And some of those military contractors are now players in the poverty industry.) Private companies have penetrated essentially every corner of the poverty industry. Former governors and congressmen sit on company boards, and these private companies even review the bids to run various facets of government agencies.-State agencies do not permit foster children to have any assets. Anything of value is seized by the State. This drops them into instant poverty, maximizing the state’s claim on federal funds.-Federal law says the states have the clear obligation to pay for foster care. Children do not. Yet, after taking children’s assets, Iowa charges children $250 a month for its services.-State agencies are the “least preferred†payees of Social Security, but the states just apply as the sole possible payee, taking the money without the knowledge of the victim.-States use money laundering techniques much like check-kiting to steal Medicaid billions every year. So there is no money to treat the poor, while the states reap fortunes.-The governor of New Hampshire scammed Medicaid payments to be 40% of the state budget, and put the money in the general fund, taking it away from patients, robbing them twice.-Indiana built a 37 acre, $200 million hospital by actively collecting nursing home patients and keeping federal money meant to care for them.-Total takings by state agencies from foster children alone is a quarter of a billion dollars a year, with a large cut going to private firms maximizing the take for their client states.-Private firms batch process social security applications directly to Washington without vetting by their state “overseersâ€. An expected percentage will always be accepted.-Putting children on psychotropic drugs without prescriptions allows more children per foster home, reduces costs, and gets the state higher rates for (now) higher needs victims. The same goes for nursing home patients.-Auditing the private sector auditors, the federal government found that that they cost five times as much as the fraud they uncover.After the billions in foster care and Medicaid scams, section three of The Poverty Industry details how private companies tear apart families and keep children in poverty by pursuing fathers for repayment of welfare. They lose their jobs, their reputations and their children. Looking at the vendor contracts, courts have to agree the primary focus of the State was revenue, not child wellbeing or family unity, so the contractors win. Having read the horrors of state racketeering and fraud in previous sections, this was practically comic relief.The book ends with the resurgence of debtor prisons for the poor, fueled by the astonishing list of fees private contractors can legally add to fines. Once in the vortex, the poor are never able to recover. They lose jobs, income, drivers’ licenses, homes, even the right to vote. They are even fined for being fined. Interest is added like on credit cards. The collection agency tacks on its own fee of 25-40% to each new penalty it piles on. A hundred dollar fine that can’t be paid instantly can grow to thousands almost overnight, even with the victim in jail.You cannot read The Poverty Industry without disgust. It is revolting, abhorrent and criminally insane. Page after page of untrammeled relentless evil greed becomes hard to stomach. That this is allowed to go on is itself a scandal. As you read, you think: this can’t continue for 220 pages. It starts out terrible; how much more can there be? But it does go on and it does get more sickening with every page. The Poverty Industry should be the foundation of congressional hearings, documentary films and investigative reports. It is a damning, overdue condemnation of the states and their private sector contractors. It is cruel and unusual punishment for the most needy, least equipped and least knowledgeable. And the poverty industry just laughs all the way to the bank.David Wineberg
interesting take on the system
awakening.
An eye-opening look at waste in our lasagna of governmental bureaucracy. Layer after layer.
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