Social justice groups in Michigan are celebrating a milestone this week: the 60th anniversary of the Economic Opportunity Act.

The law is a milestone in President Lyndon B. Johnson’s war on poverty. Enacted in 1964, it was an attempt to combat poverty in the United States through a series of programs designed to improve access to health care, food, and educational support.

Brian McGrain, executive director of Michigan Community Action, an organization created under the Economic Opportunity Act, shared what his members are doing to mark the 60th anniversary.

“All members raise awareness of their work in their own communities, and I think that’s the most important thing,” McGrain explained. “I think all of my members would say again, they are the local answer to poverty. They are controlled by the local elected officials, the local community members, the local partners.”

Community Action Agencies exist in 99% of American counties and comprise 1,000 local organizations, most of which are nonprofits and some of which are part of local government.

Community action programs like Head Start provide basic early education and nutrition to children from low-income families. Job Corps provides job training to young adults, while VISTA mobilizes volunteers for anti-poverty initiatives across the country.

Denise Harlow, CEO of the National Community Action Partnership, described the strategy as “people-centred”, putting individuals and families at the heart of its board.

“One-third of the board is made up of people democratically selected from low-income communities because all communities have a right to have a say in shaping their future,” Harlow emphasized.

Harlow added that the 60th year of the Economic Opportunity Act highlights the impact of what community action agencies and those involved with them have been able to accomplish.

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As Social Security celebrates its 89th anniversary, the future of the program remains an important topic of discussion.

Jennifer Carlson, AARP Ohio state director, led a public discussion to commemorate the event, focusing on the challenges facing Social Security and the importance of protecting it for millions of Americans. She said the program remains critical for older Americans.

“Ninety-four percent of Ohio voters age 50 or older would be more likely to vote for a candidate who supports protecting Social Security,” Carlson reported. “In our view, if you pay in and earn money through a lifetime of hard work, you should be able to count on it.”

During the event, Carlson highlighted the financial challenges facing Social Security, particularly the risk of a 20% benefit cut if Congress does not act. Panelists discussed potential solutions, such as eliminating the payroll tax cap and improving the cost-of-living adjustment formula, to ensure the program’s long-term solvency.

Carlson argued that it is important that the community remain engaged in securing the future of Social Security, and that AARP is committed to helping older Americans understand their options.

Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, attempted to dispel common myths surrounding Social Security. Richtman addressed one of the most common misconceptions, which is that Social Security is bankrupt.

“That’s not true, it’s completely false,” Richtman stressed. “When people hear that, they think, ‘Well, I might as well vote the program down because otherwise it’s going to go bankrupt.’ But that’s just not the case.”

Richtman explained that while the surplus in the Social Security trust fund is being reduced, it will never be completely depleted unless the country faces 100% unemployment. He also dismissed claims that undocumented workers are exploiting the system, pointing out that they also contribute to Social Security but will never receive benefits unless they have a valid Social Security number.

Romina Boccia, director of federal budget and benefit policy at the Cato Institute, discussed the economic impact of possible solutions, warning that raising payroll taxes to avoid benefit cuts could place a burden on younger workers.

“A U.S. worker earning about $60,000 a year would ultimately have to pay more than $10,000 in taxes to continue funding the program in its current form,” Boccia explained. “That would be a tax increase of more than $3,000 for someone with a fairly modest income.”

The event ended with a clear message: Social Security remains a cornerstone of financial security for millions, but its future depends on informed public debate and responsible political action. Another event is planned in Sioux Falls, South Dakota.

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August is National Black Business Month, and a new program in the Milwaukee area is leading the way in supporting minority-owned businesses just getting started. This year, several partners launched MKE BOSS—which stands for Build, Operate, Scale and Sustain. The digital platform connects entrepreneurs of color with a range of resources, including loans and technical assistance.

Pam Bell, city manager of Self-Help Federal Credit Union, said it can be difficult for many black and brown business owners to navigate the financial services sector.

“No matter what business it is, whether it’s restaurant business or you’re experienced in that industry, ‘But how do I scale this?’ – break down how much it costs to develop a product and ‘How much do I need to invest back into my business to make it profitable?’ and all that,” she explained.

The program’s partners, including Self-Help, aim to help these business owners realize their vision and create more intergenerational wealth in underserved areas. Although this initiative is focused on Milwaukee, organizers hope to create a standard that will serve as inspiration for other cities. Various rankings describe Wisconsin as one of the states with the worst racial disparities.

Wendy Baumann, president of the Wisconsin Women’s Business Initiative Corporation and another partner, said government agencies could increase their assistance beyond their own by turning to minority-owned businesses for service contracts.

“Counties, states, local governments and all the things they buy. Money makes the world go round (and these governments need to) make direct purchases from these companies,” she said.

According to the Small Business Administration, 99% of U.S. businesses are small businesses, meaning those with 500 or fewer employees. Baumann said that’s an important statistic to keep in mind when looking for ways to level the playing field in the country’s economy. The BOSS program is funded by a grant from JP Morgan Chase.

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STATEMENT: While worker cooperatives are seen as one of many solutions to the expected wave of small business owners retiring, organizers of the May Day Cafe initiative point out that aging ownership has nothing to do with their transition. (10:00 a.m. CST, August 14, 2024)

As small business owners decide to retire or move on, some of them are helping to drive the trend toward worker cooperatives in Minnesota and elsewhere.

These establishments are described as businesses that are equally owned and managed by the participating workers. A 2021 report found a 30% increase in worker cooperatives in the United States, including nearly a dozen in the Minneapolis/St. Paul area.

When staff at May Day Café in South Minneapolis learned of the sale, they were motivated to start a purchasing initiative of their own to keep this community gathering place open, according to barista Mira Klein.

“It was very important to me that the cafe remain in the hands of the community,” she said, “and continue to exist as a place where people can meet, eat together and get affordable food.”

Klein said she is interested in how this will impact workers by giving them more of a say in decision-making. With the help of a new crowdfunding campaign, workers hope to complete the sale later this year. The same report tracking this movement also touches on some of the challenges these co-ops face, and providing health insurance was high on the list.

According to the group Project Equity, 49% of Minnesota businesses are owned by people 55 or older. Klein, who stressed that aging ownership is not a factor in the planned sale of May Day Cafe, said that in light of the “silver tsunami,” they want to take the opportunity to show that this approach can be a viable response to broader changes in the small business landscape.

“Showing that a worker cooperative model can be successful in a place like May Day could potentially have quite a wide reach,” she said, “and that’s something we’re really excited about.”

According to Project Equity’s report, one in three business owners ages 50 and older nationwide have trouble finding a buyer. The authors say handing the keys to willing employees can lead to longer business life, better pay for workers and increased local spending in the community.

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