Genevieve Schaefer

ESSAY: GENEVIEVE SCHAEFER

NATIVE AMERICAN POVERTY

Native Americans have faced hardship in many forms since they first came into contact with Europeans in the 15th century. Despite treaties signed between the US and Native leaders in the 19th century, Natives were forcefully relocated from their homeland to western land. This land was of poor quality, and the government rationed out resources to Natives, which thrust them into a deep poverty that lasts to this day. In 1831, Chief Justice John Marshall established the federal trust doctrine, which proclaimed that the federal government would become the trustee of Indian affairs while owning and managing their lands. Essentially, as Marshall put it, the relationship between Native Americans and the U.S. government would be that of a “ward to his guardian” (Regan). This doctrine still holds true; today, the government still manages Indian land for “the benefit of all Indians.” By owning the land in trust, the federal government controls all economic development on reservations. Although tribes have had their own personal governments and legal systems, they are often inefficient and don’t have much real power. Natives cannot sell their shares of land or mortgage their assets for loans, and all development projects must be approved through a long and complex process. Because of this, starting businesses or developing is nearly impossible, leading to a disproportionately high poverty rate among Natives; 26.2%, and their low median annual income of $23,000 (Redbird). Many reservations are “comparable to the Third World.” There is mass unemployment, a low education rate, under housing and overcrowding, high disease rates and poor utilities, services, and poor infrastructure. All of these problems stem from their lack of personal rights and the federal government’s involvement in tribal affairs.

There are 5.2 million Native Americans living in the United States, 22% of which live on a reservation. These reservations have some of the most valuable land and resources in the country; their value is estimated around $1.5 trillion, with 15 million acres of untapped energy reserves and mineral resources. Only 2.1 million acres of land are currently being developed, but 30% of the western US’s coal reserves, 50% of its uranium deposits, and 20% of its oil and gas reserves lie on a reservation (Yeagley). The government has imposed a long and complicated permitting process to be able to develop land. To approve an energy development permit on Indian land, private companies, whether Native-owned or not, must go through at least 4 different agencies and 49 steps. This authorization can take years, and the government agency can require more information or halt the project at any time they choose. In contrast, off-reservation it only takes 4 steps and a few months to get an energy permit (Regan). A title search on a reservation can take years, whereas off-reservation it takes a few days. Because of the burdens on companies attempting to develop, most investors completely avoid Indian land. The government agencies collect royalties throughout the development process, which are supposed to be distributed back out to Natives, but oftentimes they mismanage or lose the money. In fact, the government

is notorious for undervaluing Native resources. The leases negotiated in 1977 with Natives were considered to be “among the poorest agreements ever made” in US history according to a federal commission. In a recent class action suit, Cobell v Salazar, they discovered that the government has mismanaged billions of dollars in Indian assets. The Department of Interior had not been properly negotiating for the tribes, and they had not been enforcing their own contracts. $3.4 billion was awarded to Natives in this 13 year lawsuit, but that money is tiny compared to the potential money that could have been made from reservation resources. It’s estimated that even just a 5% return on the available energy could make $75 billion per year for the tribes (Yeagley). Natural resources have great potential, but regulations are suffocating any development.

Another issue concerning Indian land is land fractionation and the lack of property rights. The Dawes Act of 1887 originally allowed land to be given out to individual Natives. But in 1934, Congress decided too much land was being privatized, so they switched back to the system of communal tribal land managed by the Bureau of Indian Affairs. After 1934, reservations were considered communal land held in trust by the US government, and every individual Native was given a piece of land that they could not sell and which they were required to pass on to their heirs equally divided (Koppisch). After several generations, the land was so divided that there could be hundreds of people who have a claim to one piece of land. In 1992, 704,562 Natives had interest in a single tract of land, and 18 years later, that number had shot up to 1,312,391 people. Currently, only 5% of the total 50 million acres of Native land is owned privately. 20% of it is held in trust by the tribes, and 75% is held in trust by the Bureau of Indian Affairs (Yeagley). Natives struggle to develop the trust land compared to off-reservation, because not only are they restricted from buying or selling it, but they must get permission from every single owner on the land before they can develop. Getting this approval takes a long time and can be very expensive, so to many Natives it isn’t worth the trouble. Natives also cannot mortgage their assets for loans, and it’s nearly impossible to get clear titles to land or establish credit or borrow money. Reservation land and resources are useless “dead capital”, and essentially, there is a “tragedy of the commons,” where everyone owns the land, so therefore no one does (“Poverty on Native American Reservations). Because of these burdens on development, there are very few Native entrepreneurs, in fact, those who try to create business or use their assets to make money are seen as sell-outs. Natives are usually not as in favor of capitalism and free markets as other demographics because it goes against their traditions and ideas of community government. The overbearing federal control stems from the outdated idea that Natives cannot manage themselves and that their culture is incompatible with markets. The government’s complex and troublesome bureaucratic processes are not only barriers to growth, but they also undermine tribal autonomy. According to many experts, the only way to create opportunity and development for Natives is to cut the red tape and release lands from federal trusts. Natives must be able to use their assets as collateral to make money and start business. Manny Jules, a former tribal chief in Canada, described the situation best, “Markets haven’t been allowed to

operate in reserve lands. We’ve been legislated out of the economy. When you don’t have individual property rights, you can’t build, you can’t be bonded, you can’t pass on wealth… businesses never get started because people can’t leverage property… We have to become part of the national and global economies.” (Yeagley) Tribal sovereignty is the concept of tribes being able to self-govern, however, tribal authority is not always efficient or fair, and the federal government often overshadows the indigenous government system. Federally recognized governments were created in 1934, and since then, tribal councils have had their own jurisdiction and made their own laws. Many have reworked their constitutions to align more with indigenous, community governance (Struggle and Survival: Native Ways of Life Today). Because reservations are technically separate nations, every issue on tribal land is considered an international affair. This means that Natives cannot go to an American court to get a judgment. Investors are discouraged from coming in to start businesses on Native land because commercial codes on tribal lands are usually not explicit, and there is not a good precedent already set. Contracts are often not enforced on reservations because of obscure rules and the difficulty of holding people accountable on the vast expanse of territory. Additionally, Indians have a huge advantage in court, and the tribe will almost always side with a Native over an outside company. This appears to be a positive; however, the end result is that it heavily deters any wealthy outside investors coming in to try and develop for fear of losing in court and losing their money. (Koppisch).

The sketchiness of the legal system, in addition to lacking property rights, is another reason why reservations’ rich natural resources aren’t being utilized. Any investment or project involved with natural resources can be manipulated or completely changed by the tribe, who has complete control. Many Natives or investors are so confused and unsure about the development and licensing process and its restraints that they do not even bother to attempt. There is minimal transparency when making business agreements, so there is no reliability in the negotiations, and entrepreneurs cannot be sure about their costs and rewards(Yeagley). Another issue is the common checkerboard pattern of private and trust land on reservations. It is difficult for tribes to know who is under jurisdiction of tribal authority, so the tribes rarely initiate development on their lands. A possible solution is for tribal governments to adapt their commercial codes to make the laws uniform. A study done over 30 years showed that reservations which adopted the judicial system of the states that they were located in had a 30% faster per capita growth than other reservations. Natives are also 50% more likely to get a loan application approved when lenders are allowed to use state courts (Koppisch). These facts may point towards going under state legal jurisdiction as a good solution for tribes. Tribes will also have to break the habit of dependency on the federal and tribal governments. Canada has already passed an act which states tribes can decline government ownership of their land and put it under tribal control. This a huge first step towards reservations being able to gain the power of municipalities or provinces so they can build services and create zoning laws (Koppisch). The movement towards self-sufficiency and away from malaise will be beneficial to Natives and the development of their lands.

The lack of property rights, the obscure legal system, and the harsh regulations from the federal government which prevent economic growth all lead to devastating poverty for Native Americans. This poverty creates unemployment, lack of education, poor housing, and poor health conditions, which in turn cause more poverty: an insidious, never-ending cycle. There is a shortage of jobs across reservations, with 40-80% of adults unemployed on all reservations. Oftentimes houses are overcrowded and earn income from only social security, disability, or veteran checks (“Native American Living Conditions”). A research project which predicted the results of Natives having the same employment rate, types of jobs, education levels, geographic location, and housing level as white people found that employment is the largest cause of poverty. Tribes often only have 2 common jobs provided- gaming and energy; however, these areas bring in few jobs annually. Large projects usually only cause debt for reservations; the key seems to be gradually bringing in diverse, varied jobs that pay decently well (Redbird). Sadly, the education rate is also disproportionately low in Native communities. The high school dropout rate is 11% overall, and only 17% of Natives have a bachelor’s degree or higher (Pew Research). Because of the limited economic and job opportunities, many kids and families don’t feel like school is worthwhile (Borgen). Native areas are also experiencing a housing crisis. The US Commission on Civil Rights found that 40% of Native housing is inadequate, and Native communities are lacking in services and utilities such as plumbing, natural gas, AC, and heat. A staggering 543,000 Native houses have “severe housing needs’ ‘ and “living conditions that are overcrowded, substandard, or cost-burdensome” according to the US Department of Housing and Urban Development (Yeagley). It’s estimated that 85,000 or more new houses are needed immediately, but only 2200 are being built a year (Koppisch). The Indian Housing Authority is in charge of financing home development, but they are inefficient; there is a waiting list to get their approval that can be over 3 years. To make matters worse, private companies are worried about building houses on reservations because they usually do not make much profit and banks are hesitant to give loans (Yeagley). Sadly, the housing issue in Native society also causes a variety of health issues. Native Americans’ life expectancy is 5 years below that of other Americans. The life expectancy at Pine Ridge Reservation is only 48 for men and 52 for women. This is due to the high levels of alcohol and drug abuse, violent crimes, and suicide (Borgen). 55% of Indians use the Indian Health Service for their healthcare, but IHS only meets 60% of their healthcare needs because of how underfunded it is (Indian Health Facts). Many reservations don’t have a pharmacy or doctors office; only a hospital. And shifting from traditional ways to a more modern Western lifestyle over the past decades has had negative effects on Indian health. Heart disease is the #1 cause of death amongst indigenous people, and 38% of those with heart disease will die before age 65, compared with only 15% of white people (Native American Living Conditions).

Poverty, unemployment, poor housing, infrastructure, services, education, and healthcare are all issues in the Native communities, but they are all a result of or closely related to the limits on property rights and economic development on

reservations. Because the federal government holds Indian land in trust and keeps it tightly regulated under a complex set of laws, Indian land is often fractionated; investors avoid Indian land; Natives themselves cannot invest or break through the obscure legal system, and the rich natural resources cannot be utilized.US policies throughout history have tried to subdue, convert, or destroy Indians. But even today, Native cultures and traditions are still maintained and thrive in communities across the country. This resilient group of people has the potential to do even greater things, but they must first continue to fight to regain ownership of their land, rights, and lives.

WORKS CITED Koppisch, John. “Why Are Indians Reservations so Poor? A Look at the Bottom 1%.” Forbes, 13

Dec. 2011, www.forbes.com/sites/johnkoppisch/2011/12/13/why-are-indian-reservationsso-poor-a-look-at-the-bottom-1/?sh=3039600a3c07. Krogstad, Jens Manuel. “One-in-Four Native Americans and Alaska Natives Are

Living in Poverty.” Pew Research Center, 14 June 2013, www.pewresearch.org/facttank/2014/06/13/1-in-4-native-americans-and-alaska-natives-are-living-in-poverty/. “Living Conditions.” Native American Aid, www.nativepartnership.org/site/

PageServer?pagename=naa_livingconditions. McGonigle, Curtis. “Poverty on Native American Reservations.” Borgen Magazine, 15 Nov. 2021, www.borgenmagazine.com/native-american-reservations/. Redbird, Beth. “What Drives Native American Poverty?” Northwestern Institute for Policy

Research, 24 Feb. 2020, www.ipr.northwestern.edu/news/2020/redbird-what-drivesnative-american-poverty.html. Regan, Shawn. “5 Ways the Government Keeps Native Americans in Poverty.” Indigenous

Peoples Major Group for Sustainable Development, www.indigenouspeoples-sdg.org/index. php/english/ttt/536-5-ways-the-government-keeps-native-americans-in-poverty. “Struggle and Survival: Native Ways of Life Today.” The Pluralism Project at Harvard University, pluralism.org/struggle-and-survival-native-ways-of-life-today. Yeagley, Rebekah May. “Why Native American Reservations Are the Most Poverty-Stricken

Lands in America.” Fee Stories, 9 Nov. 2020, fee.org/articles/why-native-americanreservations-are-the-most-poverty-stricken-lands-in-america/.

REFLECTION: GENEVIEVE SCHAEFER

SERVICE SCHOLAR REFLECTION

After learning about Native Americans and the issues they struggle with in reservations across the country, I knew I wanted to help, and the best way to do that was to visit a reservation, spend time with Natives, and see first-hand how they live. I discovered Global Volunteers, a nonprofit organization which, among other service trips, mobilizes people to Native American reservations. In early August of 2021, 10 others and I spent one week on the Blackfeet Reservation in northwestern Montana, a 1.5 million acre reservation home to over 17,000 Blackfeet Natives.

During the week, we did various service activities including working at a local ranch, the food bank, and a children’s camp. Most of my time was spent with the kids, who ranged in age from 5 up to 16. What struck me first was how adventurous and appreciative of nature the kids were. They never hesitated to explore and play, and they were easy to

befriend. I learned that many of them were born and raised on the reservation and had no intentions of leaving in the future. Many had no idea what life was like outside of the reservation; being able to travel around and get out of town is a privilege that we often overlook. I realized how lucky I am to be able to go off to college in a different part of the country and have hopes of traveling around and seeing new places. I also was surprised by how little of a role education played in some kids’ lives. From speaking with them, many were disinterested in school, and some had already dropped out to pursue other activities, simply because it was not worth the time. I realized that for many of them, they had to help provide for their families, and school was somewhat of an afterthought.

I heard stories from a few of them about the troubles they were facing at home, including neglect and alcohol and drug abuse. Some of their parents were not in their lives, and they lived with other family members. Despite their hardship though, the kids were kind, playful, and fun to be around. They found happiness in the little things, which was inspiring to see. In our daily lives, we often complain rather than finding something to be thankful for. These kids showed me that there can always be joy even in the darkest places. They motivated me to be grateful for what I have, and also to help those who don’t have much.

Finally, what has stuck with me is the beauty of Native culture and their pride in their traditions. They were kind enough to share their culture with us and teach us; we observed a traditional Sundance festival, sat in a sweat lodge, helped build a teepee, and witnessed a willow ceremony. We learned Blackfeet language and built traditional arts and crafts projects like the hoop-and-stick game and painted leather medicine bags. The adults and kids alike were generous and invested in their culture, and I was astounded at how strong their traditions still are and will continue to be generation after generation.

I encourage everyone to research Native history, culture and struggles in order to gain a better understanding of how the current situation came to be. Donating to Native causes and supporting Native businesses are great ways to help as well. I am so thankful to have been able to interact with Native kids and learn more about their culture and ways of life on the reservation. It has given me a clear understanding of the multitude of struggles Natives face as well as a sense of the pride and beauty of their culture and their resilience.