Chapter 3 - 3.3



Chapter 3: Social problems in reservations

3.3. Poverty
Poverty among Reservations in The United States is also defined as “state or federally recognized, geographically defined areas of varying size over which Native Americans have the primary governing authority” ( Indian Reservation U.S.).

It is commonly known that economical situation of Indians is much worse than white Americans” The poverty rate among Native Americans is 25.9% compared to the national rate of 11.3%”. (Poverty among Native Americans, 2000). According to the one of the Articles in The Washington Post, lack of jobs create a cycle of welfare dependency. Native Americans do not want to be dependent but due to the starvation they are forced to go on the welfare(Carlson In the year of 'Dances with Wolves,' everybody wanted to be on the Senate Indian Affairs Committee. Nearly a decade later, it can hardly get a quorum ).

In accordance with the notions of Terry Anderson and Dominic Parker “[…]American Indian reservations, which are islands of poverty in a sea of prosperity” As the U.S. Census Bureau informs average annual income of Native Americans amount to 33.627$ . In the consequence, almost 25,3 percent, one in every four person lives in poverty (Rodgers Native American Poverty). Although having casinos which are prosperous and generate a lot of money for the certain Reservations, financial situation of Indians is bad.

Despite billions of dollars generated by casinos on some reservations, per-capita income for American Indians living on reservations remains low. According to the 1999 census, reservation Indians earned $7,846 per capita compared to $14,267 for Indians living off reservations and to $21,587 for all U.S. citizens. The Crow Creek Reservation in South Dakota had the lowest per capita income at $4,043 and the Isabella Reservation in Michigan had the highest at $17,436 (Un-American Reservations, Terry Anderson and Dominic Parker).

As we can easily perceive, the economic status of Indians who live outside the Reservations is better at around $ 6,421 than of those who live in the Reservation. The difference between the highest income at the Isabella Reservation in Michigan and the lowest income at the Crow Creek Reservation in South Dakota make up $13,393. These differences according to Terry Anderson and Dominic Parker are caused by lack of “property rights and the rule of law. By comparing reservation economies with and without these institutions, we can get a sense of their importance”.

“With this poverty comes poor health conditions, lack of decent housing, substandard education, a lack of jobs, and a host of other barriers, such as suicide, drug abuse, alcohol abuse and gang activity. These negative circumstances keep most Native American communities isolated and economically distressed.” (Poverty among Native Americans 2000).