The story need not remain sad however. We are in fact in a new paradigm. We can shape this paradigm with our vote in two specific directions. We can continue to support those that worship an economy based on rewarding those that simply extract from our country under the false tenet that tax cuts and benefits to the wealthy and corporations will eventually translate into jobs, increasing wealth, and increasing income for the middle class. Alternatively we can support those who understand that America has erroneously experimented with the former for the last 30 years. The results are visible for all to see. The article below reflects said results.
So what then? We support policies that firstly invest in American infrastructure immediately to create jobs. We support those that concentrate on education to create an informed and educated populace capable of choosing to self-employ. We support those who support a healthcare system that enables us to make that choice. We support those who support middle class centric policies as opposed to corporate centric policies. This is not difficult. However, over the next few months to the election, you will be addressed as if you are imbeciles. It is up to you to really decide what is best for you, your family, and your country. Stay informed.
June 18, 2012
Lost in Recession, Toll on Underemployed and Underpaid
By MICHAEL COOPER
Throughout the Great Recession and the not-so-great recovery, the most commonly discussed measure of misery has been unemployment. But many middle-class and working-class people who are fortunate enough to have work are struggling as well, which is why Sherry Woods, a 59-year-old van driver from Atlanta, found herself standing in line at a jobs fair this month, with her résumé tucked inside a Bible.
She opened it occasionally to reread a favorite verse from Philippians: “And my God will meet all your needs according to the riches of his glory in Christ.”
Ms. Woods’s current job has not been meeting her needs. When she began driving a passenger van last year, she earned $9 an hour and worked 40 hours a week. Then her wage was cut to $8 an hour, and her hours were drastically scaled back. Last month she earned just $233. So Ms. Woods, who said that she had been threatened with eviction for missing rent payments and had been postponing an appointment with the eye doctor because she lacks insurance, has been looking for another, better job. It has not been easy.
“I’m looking for something else, anything else,” she said. “More hours. Better pay. Actual benefits.”
These are anxious days for American workers. Many, like Ms. Woods, are underemployed. Others find pay that is simply not keeping up with their expenses: adjusted for inflation, the median hourly wage was lower in 2011 than it was a decade earlier, according to data from a forthcoming book by the Economic Policy Institute, “The State of Working America, 12th Edition.” Good benefits are harder to come by, and people are staying longer in jobs that they want to leave, afraid that they will not be able to find something better. Only 2.1 million people quit their jobs in March, down from the 2.9 million people who quit in December 2007, the first month of the recession.
“Unfortunately, the wage problems brought on by the recession pile on top of a three-decade stagnation of wages for low- and middle-wage workers,” said Lawrence Mishel, the president of the Economic Policy Institute, a research group in Washington that studies the labor market. “In the aftermath of the financial crisis, there has been persistent high unemployment as households reduced debt and scaled back purchases. The consequence for wages has been substantially slower growth across the board, including white-collar and college-educated workers.”
Now, with the economy shaping up as the central issue of the presidential election, both President Obama and Mitt Romney have been relentlessly trying to make the case that their policies would bring prosperity back. The unease of voters is striking: in a New York Times/CBS News poll in April, half of the respondents said they thought the next generation of Americans would be worse off, while only about a quarter said it would have a better future.
And household wealth is dropping. The Federal Reserve reported last week that the economic crisis left the median American family in 2010 with no more wealth than in the early 1990s, wiping away two decades of gains. With stocks too risky for many small investors and savings accounts paying little interest, building up a nest egg is a challenge even for those who can afford to sock away some of their money.
Expenses like putting a child through college — where tuition has been rising faster than inflation or wages — can be a daunting task. When Morgan Woodward, 21, began her freshman year at the University of California, Berkeley, three years ago, her parents paid about $9,000 a year in tuition and fees. Now they pay closer to $13,000, and they are bracing for the possibility of another jump next year. With their incomes flat, though, they recently borrowed money to pay for her final year, and to begin paying the tuition of their son, who plans to start college this fall.
“You know there is going to be small incremental increases in tuition, but not the 8, 10, 12 percent increase every year we’ve seen,” said Ms. Woodward’s father, Cliff Woodward, 52, who lives in Pleasanton, Calif., and is an independent sales representative for an eyeglass company. So the Woodwards, who drive cars with 150,000 and 120,000 miles on them, have cut back.
“No vacations, no big screens,” Mr. Woodward said. “We’ve cut down on going out a little bit, but it’s worth it.”
People with college degrees still get jobs with better pay and benefits than those without, but many recent college graduates are finding it hard to land the kinds of jobs they had envisioned. David Thande, 27, who graduated from the University of California, Los Angeles, five years ago, works part time as a clerk in an Apple Store.
“I’m not even full time, so I spend about 45 minutes every day begging people for hours, checking if someone canceled, struggling to make it work,” Mr. Thande said, adding that he had fallen behind on paying back his student loans.
Garland Miller, 28, who has degrees in finance and accounting from the University of Georgia and Kennesaw State University, had hoped to land a job at a big accounting firm, and to have been able to buy a home by now. Instead he finds himself working as the lead server at a steakhouse. But he has not given up on trying to move into the field that he prepared himself for: This month, he attended a jobs fair in Duluth, a suburb of Atlanta, organized by the University of Georgia for its alumni. [MORE]
Many American Workers Are Underemployed and Underpaid – NYTimes.com
