We are still fighting in Afghanistan
We are still fighting in Iraq
Guantanamo is still open
Financial institutions are still raking in the dough
Special interests and Lobbyists have completely hijacked the government
The costs for entitlement programs (Social Security and Medicare) continue to rise
The Military Industrial Complex is completely indestructible and the costs continue to escalate
The middle class is still shrinking
The national debt has reached an amount formerly considered catastrophic
The government is morally bankrupt
American corporations have bought our leaders
Congress' approval rating is still dismal
And so on....
As we reach the end of the aughts, the problems are still the same except for the common person/taxpayer, their situation has cratered - staggering unemployment, staggering defaults on debt, be it mortgage, credit card, auto or small business loan, and a staggering weight upon their shoulders as America's future seems increasingly bleak.
So, all we have to look forward to is next year. I do really feel like skipping the holidays because I really don't want to shop or be put in the position of having to shop considering the economic uncertainty that continues to swirl around us. Some are calling the Recession over but many of us are still deep in a depression in many ways. Yes, I do know that holiday spirit can work wonders, especially in times like these, so I am going to put down my typing fingers and try to find some. And I won't be back until I do.
Showing posts with label 2009 America. Show all posts
Showing posts with label 2009 America. Show all posts
Monday, December 14, 2009
Wednesday, November 18, 2009
Bowing is Customary and Necessary
There has been much furor over President Obama's visit to Asia, in particular his deep bow before the Japanese emperor. Sometimes you have to bow when you travel to Asia to thank them for continuing to buy much of our debt. What else is this diplomatic mission for anyway? We are borrowing like fiends to save the country and China and Japan own close to 50% of that debt.
Throughout this economic crisis, economists have continually compared America to Japan. Japan's lost decade and prolonged recession are held up as an example for why we needed more government stimulus; the claim is that Japan's government did not invest enough internally to prop up the country and avert a deep recession. So the logic has been that we must do the opposite and so we are plowing in trillions to save ourselves. But, we should be frightfully aware of the difference, they own nearly a quarter of our debt so they are still solvent.
China is considered the successor to our throne and not only are they weathering this global recession well, they own nearly a quarter of our debt also. We must keep in mind that neither of these countries is spending a third of their budget on their military and another third on entitlements like Social Security and Medicare. Hello! Obama had better follow cultural custom and bow, in fact, he technically needs to get down on his knees.
Only in America do we think that we are all that and a bag of chips and rightly so for up until the last few years, we were the envy of the rest of the world. However, due t0 our most recent and disastrous foreign policy, we absolutely need to fix our mystique, something that Obama has nearly accomplished in less than a year. But, people over here have forgotten why that is important, they still think that America is the center of the Universe. I'm sure the people of Rome felt that way too before it fell.
I don't think the end of the world is around the corner, history unfolds much more slowly than it seems. All of the empires that previously fell like the Ottoman, Roman & British are still thriving. They are not number one but they are quite robust. America is not falling tomorrow, it may be in decline but it will still take a while. And while we may lose #1 status, we will remain close behind and may even reclaim it. America has iron balls and vast wealth and the combination thereof may, in fact, save it.
Throughout this economic crisis, economists have continually compared America to Japan. Japan's lost decade and prolonged recession are held up as an example for why we needed more government stimulus; the claim is that Japan's government did not invest enough internally to prop up the country and avert a deep recession. So the logic has been that we must do the opposite and so we are plowing in trillions to save ourselves. But, we should be frightfully aware of the difference, they own nearly a quarter of our debt so they are still solvent.
China is considered the successor to our throne and not only are they weathering this global recession well, they own nearly a quarter of our debt also. We must keep in mind that neither of these countries is spending a third of their budget on their military and another third on entitlements like Social Security and Medicare. Hello! Obama had better follow cultural custom and bow, in fact, he technically needs to get down on his knees.
Only in America do we think that we are all that and a bag of chips and rightly so for up until the last few years, we were the envy of the rest of the world. However, due t0 our most recent and disastrous foreign policy, we absolutely need to fix our mystique, something that Obama has nearly accomplished in less than a year. But, people over here have forgotten why that is important, they still think that America is the center of the Universe. I'm sure the people of Rome felt that way too before it fell.
I don't think the end of the world is around the corner, history unfolds much more slowly than it seems. All of the empires that previously fell like the Ottoman, Roman & British are still thriving. They are not number one but they are quite robust. America is not falling tomorrow, it may be in decline but it will still take a while. And while we may lose #1 status, we will remain close behind and may even reclaim it. America has iron balls and vast wealth and the combination thereof may, in fact, save it.
Tuesday, November 10, 2009
Washington to the Rescue
With the jobless rate at alarming levels, 10.2% officially but depending upon who you consult unofficially, it is upwards of 20% when the under-employed and discouraged workers are included, the Keynesian economists and others are advocating that Washington spend more to create jobs. Recently the Obama Administration claimed that the stimulus has saved or created 640,00 jobs but unfortunately this falls far short of the numbers required.
Now that the banks are saved and the economy is stabilizing, the private sector has failed to create any jobs as expected. In fact, there has been a net loss in private sector jobs this decade so I don't know what Washington was expecting when they set out to save them. Instead, companies are continually cutting payroll to balance out their bottom line. So, if Corporate America cannot or will not create jobs, the belief is that the government should step in to remedy the situation. Besides, the Democrats have a stake in getting people back to work else their dominance of Congress and the Presidency may likely evaporate as the populace becomes more disgusted.
Meanwhile the government, in the face of declining tax revenues, has ratcheted up its ever burgeoning debt in its efforts to save the economy, save the banks, save current homeowners and encourage future ones among other stimulus efforts. Yet, despite the backlash against continued government spending, given the massive $12,000,000,000,000 debt and the $1,400,000,000,000 annual deficit, the government is being urged to spend more on job creation a la FDR's work programs during the Great Depression. Theoretically, the government could have spent more money on job creation and less on cash for clunkers and homeowner tax credits. After all, if jobs are created people will naturally have money to spend instead of enticing them with perceived "savings."
But there is more to consider when it comes to job creation. I came across a statistic recently that 58% of Americans receive some form of income from the government - public sectors workers, social security & pensions recipients, members of the military and military contractors and so on. Corporations are telling us that cutting costs is the only way to balance the books when revenue falls. If so much of our tax dollars are going back into paying ourselves, how can the government ever balance its books?
Now that the banks are saved and the economy is stabilizing, the private sector has failed to create any jobs as expected. In fact, there has been a net loss in private sector jobs this decade so I don't know what Washington was expecting when they set out to save them. Instead, companies are continually cutting payroll to balance out their bottom line. So, if Corporate America cannot or will not create jobs, the belief is that the government should step in to remedy the situation. Besides, the Democrats have a stake in getting people back to work else their dominance of Congress and the Presidency may likely evaporate as the populace becomes more disgusted.
Meanwhile the government, in the face of declining tax revenues, has ratcheted up its ever burgeoning debt in its efforts to save the economy, save the banks, save current homeowners and encourage future ones among other stimulus efforts. Yet, despite the backlash against continued government spending, given the massive $12,000,000,000,000 debt and the $1,400,000,000,000 annual deficit, the government is being urged to spend more on job creation a la FDR's work programs during the Great Depression. Theoretically, the government could have spent more money on job creation and less on cash for clunkers and homeowner tax credits. After all, if jobs are created people will naturally have money to spend instead of enticing them with perceived "savings."
But there is more to consider when it comes to job creation. I came across a statistic recently that 58% of Americans receive some form of income from the government - public sectors workers, social security & pensions recipients, members of the military and military contractors and so on. Corporations are telling us that cutting costs is the only way to balance the books when revenue falls. If so much of our tax dollars are going back into paying ourselves, how can the government ever balance its books?
Wednesday, October 28, 2009
Afghanistan: Graveyard of Foreign Armies
I don't like to weigh in about war because I do not like war and the rationale for war. I thought the entry into Iraq was a bad idea and the obvious contrivances foisted upon us in the run up to the war had me shouting at the television. Then George Bush threw down the gauntlet, we were either with him or against him and Rummy (Donald Rumsfeld) enthralled us with his surefire shock and awe strategy and the next minute we were watching the biggest fireworks show ever, the bombing of Baghdad.
The whole thing was supposed to be easy, the mighty pyrotechnical weaponry of the greatest and most expensive army in the world would take out Saddam Hussein and his weapons of mass destruction and deliver unto the Iraqis a freely democratic state that would also serve as an American foothold in the region. Six and half years later, we are still there. Are we?
There has not been much press on the Iraq War lately because the Iraq War, all that it is, ended up being a very expensive trillion dollar distraction, siphoning off troops and resources from the war in Afghanistan, where we were fighting the good fight against Al Qaeda and Osama Bin Laden, the architect of the September 11, 2001 terror attacks, and their state sanctioned sponsor the Taliban. Now, Afghanistan is front and center again, for eight years later, we are still there as well.
Both the Iraq and Afghan wars are of the same ilk. We invaded sovereign nations, destabilized their dictatorial regimes, tried to impose a system of democracy that resulted in weak, ineffectual and corrupt governments and where we have whipped up brutal insurgencies. Now, if we pull out, both of these fledgling states, Iraq and Afghanistan, can easily be overrun by power-hungry anti-American factions that will reverse all of our efforts, undermine our foothold in the region and imperil the lives of the inhabitants, not to mention becoming full out breeding grounds for terrorist cells.
The only existing military logic is to hold the line against insurgency by sending in more troops and training the national armies to manage the fight themselves allowing us to withdraw. We have been training the Afghans and the Iraqis for eight years and six years respectively and their armies are still not ready to take the reins. We send our soldiers into battle after six weeks of basic training but it seems virtually impossible to bring those national armies up to speed.
We are supposed to draw down troops in Iraq next year and right now, I don't know if that is still the plan. Whatever the case General McChrystal has now asked his Commander-in-Chief for 44,000 more troops in Afghanistan. Sending more troops will be a tacit acceptance of prolonged war. We must note here that Afghanistan has been known as the "graveyard of foreign armies" for several hundred years. Historically, foreign armies, including the British and the Russians, have jeopardized their empires trying to defeat the Afghans in lengthy contests, without success.
We cannot continue to fund both of these wars as we have already gone into considerable debt funding them and if we continue, in light of the current deficits and amid our current economic collapse, we run the risk of utter financial ruin. The President has a hard choice but in the end, I think, he should not send more troops. He should let the military manage with what they have while finding a solution for America to withdraw as expeditiously as possible before we all go down in flames.
The whole thing was supposed to be easy, the mighty pyrotechnical weaponry of the greatest and most expensive army in the world would take out Saddam Hussein and his weapons of mass destruction and deliver unto the Iraqis a freely democratic state that would also serve as an American foothold in the region. Six and half years later, we are still there. Are we?
There has not been much press on the Iraq War lately because the Iraq War, all that it is, ended up being a very expensive trillion dollar distraction, siphoning off troops and resources from the war in Afghanistan, where we were fighting the good fight against Al Qaeda and Osama Bin Laden, the architect of the September 11, 2001 terror attacks, and their state sanctioned sponsor the Taliban. Now, Afghanistan is front and center again, for eight years later, we are still there as well.
Both the Iraq and Afghan wars are of the same ilk. We invaded sovereign nations, destabilized their dictatorial regimes, tried to impose a system of democracy that resulted in weak, ineffectual and corrupt governments and where we have whipped up brutal insurgencies. Now, if we pull out, both of these fledgling states, Iraq and Afghanistan, can easily be overrun by power-hungry anti-American factions that will reverse all of our efforts, undermine our foothold in the region and imperil the lives of the inhabitants, not to mention becoming full out breeding grounds for terrorist cells.
The only existing military logic is to hold the line against insurgency by sending in more troops and training the national armies to manage the fight themselves allowing us to withdraw. We have been training the Afghans and the Iraqis for eight years and six years respectively and their armies are still not ready to take the reins. We send our soldiers into battle after six weeks of basic training but it seems virtually impossible to bring those national armies up to speed.
We are supposed to draw down troops in Iraq next year and right now, I don't know if that is still the plan. Whatever the case General McChrystal has now asked his Commander-in-Chief for 44,000 more troops in Afghanistan. Sending more troops will be a tacit acceptance of prolonged war. We must note here that Afghanistan has been known as the "graveyard of foreign armies" for several hundred years. Historically, foreign armies, including the British and the Russians, have jeopardized their empires trying to defeat the Afghans in lengthy contests, without success.
We cannot continue to fund both of these wars as we have already gone into considerable debt funding them and if we continue, in light of the current deficits and amid our current economic collapse, we run the risk of utter financial ruin. The President has a hard choice but in the end, I think, he should not send more troops. He should let the military manage with what they have while finding a solution for America to withdraw as expeditiously as possible before we all go down in flames.
Thursday, October 22, 2009
Clipping Wall Street Compensation Doesn't Help Us Much
With public sentiment rising against the egregiousness of Wall Street bonuses, the Treasury and the Federal Reserve have separately proffered plans seeking to curb executive pay in the financial sector. Both plans seek to reduce current compensation incentives that richly reward short-term profits and the selling of high risk financial instruments, the type of incentives that fueled the behavior that led to the crash in the first place. The Treasury plan is specific to the top seven recipients of taxpayer bailouts which includes Citigroup, AIG and Bank of America. They seek to reduce the pay of the top 25 executives by 50% over last year while the Federal Reserve seeks sweeping overhauls in compensation across the entire financial sector.
While this is all nice and good, these people are already rich and they will find work-arounds to keep themselves that way. Meanwhile the Dow continues to flip-flop across the 10,000 point threshold rising 132 points today after losing just as much in the previous two. This was too much of an increase for flimsy profit data especially when initial job claims rose "unexpectedly" to 531,000. It is clear that profits continue to be engineered through cost cutting and not earnings. While layoff news is no longer grabbing headlines, a quick visit to the Bureau of Labor Statistics shows mass layoffs are still high. In September 248,000 persons were laid off. That is one quarter of a million people laid off last month. And still the prospects are grim, a visit to the aptly named www.dailyjobcuts.com will have you crying.
While attempts to clip compensation on Wall Street may soothe us in the short term, it doesn't do much to help us really. What companies are doing to the rest of us in order to gain those earnings that makes Wall Street happy is far worse.
While this is all nice and good, these people are already rich and they will find work-arounds to keep themselves that way. Meanwhile the Dow continues to flip-flop across the 10,000 point threshold rising 132 points today after losing just as much in the previous two. This was too much of an increase for flimsy profit data especially when initial job claims rose "unexpectedly" to 531,000. It is clear that profits continue to be engineered through cost cutting and not earnings. While layoff news is no longer grabbing headlines, a quick visit to the Bureau of Labor Statistics shows mass layoffs are still high. In September 248,000 persons were laid off. That is one quarter of a million people laid off last month. And still the prospects are grim, a visit to the aptly named www.dailyjobcuts.com will have you crying.
While attempts to clip compensation on Wall Street may soothe us in the short term, it doesn't do much to help us really. What companies are doing to the rest of us in order to gain those earnings that makes Wall Street happy is far worse.
Wednesday, October 21, 2009
Overqualified
The New York Times online just ran a story about how a company in Indiana, having garnered 500 applicants for a $13 per hour job posting, instituted a thoughtful recruiting process to weed through the applicants. (Amid Tough Climate, a Thoughtful Recruitment Process, NY Times, 10/21/09). In what appears to be a timeline of two weeks, they were able to whittle down the list, conduct interviews and hire the person they believe was best suited for the position. This was accomplished by first eliminating the "significantly overqualified candidates right away, reasoning that they would leave when the economy improved. Among them was a former I.B.M. business analyst with 18 years experience; a former director of human resources; and someone with a master’s degree and 12 years at Deloitte & Touche, the accounting firm."
For me, the pedigree of some of these applicants hits home. This time around in this Recession, in this job market, in the face of escalating economic peril, there are simply too many well-qualified professionals out there all competing for jobs for which they are immediately overlooked precisely because they are overqualified. The fact that they have to resort to applying to jobs at a lower wage and professional level speaks to the tightness of the job market. Yet, the old thinking still prevails that those who are overqualified will leave immediately when a better paying position presents itself. I don't believe this will be the case this time around.
Eight million individuals have lost their jobs in just under two years at a pace unseen since the Great Depression. And, leading economic forecasters predict that the ranks of the unemployed will continue to rise through 2010 and hiring will not rebound til at least 2012, not to mention that we are still losing about 250,000 jobs a month. The fact is we need to swing to a positive of creating 400,000 jobs per month simply to begin to re-absorb the currently unemployed and to have jobs available for the 150,000 matriculating into the workforce every month.
Job creation statistics show growth in primarily the healthcare, government and education sectors, sectors that are primarily funded by taxpayer dollars. I am not seeing where these sectors can possibly create jobs of the magnitude required especially in the face of insufficient and now declining tax revenues and federal, state and local governments' spiraling debt burdens. In addition, new job procurers are most likely earning less than they did previously for the same or similar job.
So, I believe companies do not have to worry about job jumpers at this juncture because there are no jobs to jump to. Besides, if you have a job, your head is down working your bejesus off because you do not want to lose it. You are not thinking of jumping to another company, believe me. So for these overqualified professionals, what now? Where will they find work if they are automatically turned down for opportunities for which they are deemed overqualified yet there are no jobs being created at their level?
For me, the pedigree of some of these applicants hits home. This time around in this Recession, in this job market, in the face of escalating economic peril, there are simply too many well-qualified professionals out there all competing for jobs for which they are immediately overlooked precisely because they are overqualified. The fact that they have to resort to applying to jobs at a lower wage and professional level speaks to the tightness of the job market. Yet, the old thinking still prevails that those who are overqualified will leave immediately when a better paying position presents itself. I don't believe this will be the case this time around.
Eight million individuals have lost their jobs in just under two years at a pace unseen since the Great Depression. And, leading economic forecasters predict that the ranks of the unemployed will continue to rise through 2010 and hiring will not rebound til at least 2012, not to mention that we are still losing about 250,000 jobs a month. The fact is we need to swing to a positive of creating 400,000 jobs per month simply to begin to re-absorb the currently unemployed and to have jobs available for the 150,000 matriculating into the workforce every month.
Job creation statistics show growth in primarily the healthcare, government and education sectors, sectors that are primarily funded by taxpayer dollars. I am not seeing where these sectors can possibly create jobs of the magnitude required especially in the face of insufficient and now declining tax revenues and federal, state and local governments' spiraling debt burdens. In addition, new job procurers are most likely earning less than they did previously for the same or similar job.
So, I believe companies do not have to worry about job jumpers at this juncture because there are no jobs to jump to. Besides, if you have a job, your head is down working your bejesus off because you do not want to lose it. You are not thinking of jumping to another company, believe me. So for these overqualified professionals, what now? Where will they find work if they are automatically turned down for opportunities for which they are deemed overqualified yet there are no jobs being created at their level?
Thursday, October 15, 2009
Cheering Up
I just don't seem to be having any fun lately and I'm entering winter which is my least favorite time of year. What can I do to get some pep back in my step? As this blog as devolved into a diary of sorts, it captures more of my mood which isn't too good lately. It seems I am spending more time in a negative spin zone and that can't be good for me. I do, at least, try to stop myself from time to time because I know that I should be of a greater mind and that my outlook should have some shimmer. I really need to cheer up.
Perhaps, I am just reflecting the general mood of the country which is moving beyond cynical, in my opinion. Unfortunately, there is very little to trust these days. Capitalism is front and center and it is showing its ugly side, it seems like greed, corruption and immorality are leading the charge and the acceptance of this as "business as usual" has set us on an even more destructive course of every person for him or herself. It seems that the common good has been left out of the equation lately. Hopefully, it will turn up soon.
Perhaps, I am just reflecting the general mood of the country which is moving beyond cynical, in my opinion. Unfortunately, there is very little to trust these days. Capitalism is front and center and it is showing its ugly side, it seems like greed, corruption and immorality are leading the charge and the acceptance of this as "business as usual" has set us on an even more destructive course of every person for him or herself. It seems that the common good has been left out of the equation lately. Hopefully, it will turn up soon.
Tuesday, October 13, 2009
The Beatings Will Continue
I am here trying to get the vision of a stance out of my head, the one where your arms are up and crossed as you try to protect your head from a beating. That is how I feel right now as I struggle under the weight of all that is around me. Much as I have tried to hold my head up and stay positive, I am amazed that I can still feel so beaten down. Aren't positive thoughts and positive behavior supposed to make us feel better? I am busy every day, taking care of my house and my children and diligently working on my job search. I am determined to find work and I will not stray from my task. I continue to eat right and exercise because I worked so hard to lose weight and I intend to keep it off naturally. Most importantly, I endeavor to keep my wits about me and I still believe that karma will work toward my greater good even though it does not seem that way:
As I struggle to pay down my debt, all of it from an unfortunate business venture, I am riddled with notices of increased interest rates and increased payments even though I have faithfully made ample payments on time for years. Meanwhile, these financial institutions who were given billions of dollars in bailouts when their businesses failed continue to stomp on the very taxpayer who came to their rescue.
I struggle to come to terms with my new "consumer-driven" health insurance plan, a plan that does not pay for any visits beyond the sanctioned annual check ups but was chosen by my husband's company because they claim that they can no longer afford a traditional plan. Meanwhile, I watch the Congress lose sight of any legitimate reform that could actually cut costs or provide meaningful affordable coverage to those of us who truly need it.
As I struggle to find a decent job, I reflect on my ivy league education and ponder what it is worth. I try to prevent myself from staring at that huge gap in my resume where I stayed home after I had my second child. The childcare math does not add up when you hit number two because the childcare costs for two children, at least in New York, eats up a significant chunk of your paycheck. So many of us women choose not to sacrifice the welfare of our children for a few extra bucks but a difficult job market effectively discriminates against anyone who has been out for too long. Though I was fortunate to find a job last year, the economic crisis crashed my tenure so I do not appear as viable on paper when compared to those other consummate professionals out there.
The reality that we are earning less today than we did near the beginning of this decade strikes a chord right here in my household. I don't need statistics to drive this point home as I wrestle daily with the spreadsheet I use to manage my cash flow. I wish I wasn't so black and blue but my hands are not up there protecting my head for nothing. I am hoping that the black and white of these words will be cathartic and so I leave them.
As I struggle to pay down my debt, all of it from an unfortunate business venture, I am riddled with notices of increased interest rates and increased payments even though I have faithfully made ample payments on time for years. Meanwhile, these financial institutions who were given billions of dollars in bailouts when their businesses failed continue to stomp on the very taxpayer who came to their rescue.
I struggle to come to terms with my new "consumer-driven" health insurance plan, a plan that does not pay for any visits beyond the sanctioned annual check ups but was chosen by my husband's company because they claim that they can no longer afford a traditional plan. Meanwhile, I watch the Congress lose sight of any legitimate reform that could actually cut costs or provide meaningful affordable coverage to those of us who truly need it.
As I struggle to find a decent job, I reflect on my ivy league education and ponder what it is worth. I try to prevent myself from staring at that huge gap in my resume where I stayed home after I had my second child. The childcare math does not add up when you hit number two because the childcare costs for two children, at least in New York, eats up a significant chunk of your paycheck. So many of us women choose not to sacrifice the welfare of our children for a few extra bucks but a difficult job market effectively discriminates against anyone who has been out for too long. Though I was fortunate to find a job last year, the economic crisis crashed my tenure so I do not appear as viable on paper when compared to those other consummate professionals out there.
The reality that we are earning less today than we did near the beginning of this decade strikes a chord right here in my household. I don't need statistics to drive this point home as I wrestle daily with the spreadsheet I use to manage my cash flow. I wish I wasn't so black and blue but my hands are not up there protecting my head for nothing. I am hoping that the black and white of these words will be cathartic and so I leave them.
Monday, October 12, 2009
What Price, Peace Prize?
On this Columbus Day, a celebration of the explorer who "discovered," America, President Obama continues to be bashed for what many view as his un-deserving of the Nobel Peace Prize. What has he really done for peace, they ask? He really has accomplished nothing they conclude. While the rest of the world views his strong overtures toward diplomacy as a positive sign of great alliances to come, to his American critics, he appears to have changed nothing. In fact, these critics took it a step further by pointing out that he failed to secure the Nobel prize for economics. Huh? There are many who are rooting for this President to fail and they will find fault with his success and rejoice when he misses. They simply do not see that if any President fails, America fails.
While many loudly cheered when his attendance at the Olympic Committee in Copenhagen failed to help Chicago win its bid for the 2016 games, they missed the point that America lost. It is easy to blame the President when things are not going well - housing and health care costs, declining employment and rising taxes along with high debt - I am staring all of these issues in the face. Unfortunately, the seeds were sown long before he was sworn in and while I know it is customary to blame whoever is in power for the ills of the day, it is easy to see how negativity can suck in even the die-hard. It does seem though that we could use a little bit more peace and acceptance right here at home. Something about that great continent that Columbus found.
While many loudly cheered when his attendance at the Olympic Committee in Copenhagen failed to help Chicago win its bid for the 2016 games, they missed the point that America lost. It is easy to blame the President when things are not going well - housing and health care costs, declining employment and rising taxes along with high debt - I am staring all of these issues in the face. Unfortunately, the seeds were sown long before he was sworn in and while I know it is customary to blame whoever is in power for the ills of the day, it is easy to see how negativity can suck in even the die-hard. It does seem though that we could use a little bit more peace and acceptance right here at home. Something about that great continent that Columbus found.
Monday, October 5, 2009
The Results of My Labor
Yesterday, we had a surprisingly warm day, I was beside myself. Beginning with our morning soccer games, I spent the entire day outside enjoying every minute of it. I worked hard though. We got most of our two cords of wood stacked. I cleaned up the gardens, pruning, cutting and shutting down for the winter. And, we cleaned out the garage. It was a busy day, just the way I like it. It felt good to be productive and see the results of my labor.
I spend so much of my time these days searching for work, which is, unfortunately, a thankless job. Since the only measurable result of this effort is landing a job, there is little opportunity in the process to reward oneself. I could pat myself on the back for the number of resumes I've sent out or for the number of contacts I've made, but the reality is, until I land that job, my efforts are simply not enough.
While all of the employment statistics remain off the charts, no unemployed person can ever truly relax for every aspect of your being is under siege especially when your finances are strained. So, as you take each day one at a time, it is nice to accomplish the little things that can make you feel worthwhile.
I spend so much of my time these days searching for work, which is, unfortunately, a thankless job. Since the only measurable result of this effort is landing a job, there is little opportunity in the process to reward oneself. I could pat myself on the back for the number of resumes I've sent out or for the number of contacts I've made, but the reality is, until I land that job, my efforts are simply not enough.
While all of the employment statistics remain off the charts, no unemployed person can ever truly relax for every aspect of your being is under siege especially when your finances are strained. So, as you take each day one at a time, it is nice to accomplish the little things that can make you feel worthwhile.
Thursday, October 1, 2009
Dirty Politics
Sometimes, you come across an article that sums up very well the seriousness of the current political discourse. Though many of us have been concerned about the escalating diatribes against the President, we believe that it is only a fringe group (read the Fox Crowd) that can and should be ultimately dismissed. However, there is much to consider when dirty politics begins to cross the line from ranting and raving into downright hatred. The following excerpt from Thomas Friedman's Op Ed column,"Where Did 'We Go? in the New York Times, September 29, 2009 certainly gives us all food for thought.
"I hate to write about this, but I have actually been to this play before and it is really disturbing.
I was in Israel interviewing Prime Minister Yitzhak Rabin just before he was assassinated in 1995. We had a beer in his office. He needed one. I remember the ugly mood in Israel then — a mood in which extreme right-wing settlers and politicians were doing all they could to delegitimize Rabin, who was committed to trading land for peace as part of the Oslo accords. They questioned his authority. They accused him of treason. They created pictures depicting him as a Nazi SS officer, and they shouted death threats at rallies. His political opponents winked at it all.
And in so doing they created a poisonous political environment that was interpreted by one right-wing Jewish nationalist as a license to kill Rabin — he must have heard, “God will be on your side” — and so he did.
Others have already remarked on this analogy, but I want to add my voice because the parallels to Israel then and America today turn my stomach: I have no problem with any of the substantive criticism of President Obama from the right or left. But something very dangerous is happening. Criticism from the far right has begun tipping over into delegitimation and creating the same kind of climate here that existed in Israel on the eve of the Rabin assassination.What kind of madness is it that someone would create a poll on Facebook asking respondents, “Should Obama be killed?” The choices were: “No, Maybe, Yes, and Yes if he cuts my health care...
Even if you are not worried that someone might draw from these vitriolic attacks a license to try to hurt the president, you have to be worried about what is happening to American politics more broadly."
Maybe the rest of us have to stage an intervention.
Wednesday, September 30, 2009
And Less Jobs for All
The job news continues to be distressing:
- Another 250,000 jobs lost in September
- A labor department report that there is a 6 to 1 ratio of job seekers to available jobs, 2,400,000 permanent full-time job openings for the 14,500,000 officially unemployed
- A new report by two Rutgers professors predicting that the job market will not truly recover for 7 years or until 2017
I have been pretty diligent with my job search and I am surrounded by many who are even more so. Unfortunately, the job listings are stagnant. Either employers are looking for a candidate so unique that he or she may simply not exist or the job boards are holding onto listings long past their expiration date. Certainly, many of the job postings that I saw at the beginning of the year when I started my search appear to re-cycle. It is virtually impossible to determine which listings are actually still 'live'. In any case, do I really have what it takes to be the lucky one of six that will score that job?
I have just graduated from a professional program that has matriculated nearly 300 well-heeled professionals thus far. My resume looks slim next to theirs since I just got back into the game. I have to overcome looking slim on paper and so far I have not been successful. Then again, only one person in my class of 13 has been hired since we started last June and that job offer did not come easy. Nevertheless, according to the statistics, there should be another hire. Right now it does not look like it will be me unless all of the miracles that have eluded me over the years suddenly decide to coalesce.
- Another 250,000 jobs lost in September
- A labor department report that there is a 6 to 1 ratio of job seekers to available jobs, 2,400,000 permanent full-time job openings for the 14,500,000 officially unemployed
- A new report by two Rutgers professors predicting that the job market will not truly recover for 7 years or until 2017
I have been pretty diligent with my job search and I am surrounded by many who are even more so. Unfortunately, the job listings are stagnant. Either employers are looking for a candidate so unique that he or she may simply not exist or the job boards are holding onto listings long past their expiration date. Certainly, many of the job postings that I saw at the beginning of the year when I started my search appear to re-cycle. It is virtually impossible to determine which listings are actually still 'live'. In any case, do I really have what it takes to be the lucky one of six that will score that job?
I have just graduated from a professional program that has matriculated nearly 300 well-heeled professionals thus far. My resume looks slim next to theirs since I just got back into the game. I have to overcome looking slim on paper and so far I have not been successful. Then again, only one person in my class of 13 has been hired since we started last June and that job offer did not come easy. Nevertheless, according to the statistics, there should be another hire. Right now it does not look like it will be me unless all of the miracles that have eluded me over the years suddenly decide to coalesce.
Tuesday, September 22, 2009
The Plight of the Middle Class Continues
The plight of the middle class continues:
"For average Americans, the last 10 years were a lost decade. At the end of President George W. Bush’s eight years in office, American households had less money and less economic security, and fewer of them were covered by health care than 10 years earlier, the Census Bureau reported in its annual survey. The poverty rate in 2008 rose to 13.2 percent, the highest in 11 years, while median household income fell to $50,303. Ten years earlier, adjusted for inflation, it was $51,295." (from Timothy Egan article, New York Times, 9/16/09)
The middle class has much to ponder. Statistics show that many are falling from the ranks. The lifestyle to which they have been accustomed is in jeopardy. These are the people who pay a greater percentage of their income in taxes but are generally forced to foot the bill for themselves. Unfortunately, as our fortunes wane through job losses, home equity depreciation, and purchasing erosion through loss of credit, the increased budget deficits created by current government spending and stimulus initiatives, bank bailouts and now the soon to be unleashed healthcare reform seem like dangerous ground. At the end of the day, the increased tax burden usually falls on the middle class; the rich will find loopholes and the poor just won't pay anyway.
The middle class is struggling to hold onto its ideals; the quintessential American dream. Homes, jobs and lifestyles need saving so they don't have time to band together and fight. They don't even know what would be their common ground. Middle class means different financial classifications and values depending on what region of the country you reside in. Yet, the middle class needs to start fighting back somehow, for the current economic ills of America are disproportionally affecting them. I know it, I am staring the reality in the face, daily.
"For average Americans, the last 10 years were a lost decade. At the end of President George W. Bush’s eight years in office, American households had less money and less economic security, and fewer of them were covered by health care than 10 years earlier, the Census Bureau reported in its annual survey. The poverty rate in 2008 rose to 13.2 percent, the highest in 11 years, while median household income fell to $50,303. Ten years earlier, adjusted for inflation, it was $51,295." (from Timothy Egan article, New York Times, 9/16/09)
The middle class has much to ponder. Statistics show that many are falling from the ranks. The lifestyle to which they have been accustomed is in jeopardy. These are the people who pay a greater percentage of their income in taxes but are generally forced to foot the bill for themselves. Unfortunately, as our fortunes wane through job losses, home equity depreciation, and purchasing erosion through loss of credit, the increased budget deficits created by current government spending and stimulus initiatives, bank bailouts and now the soon to be unleashed healthcare reform seem like dangerous ground. At the end of the day, the increased tax burden usually falls on the middle class; the rich will find loopholes and the poor just won't pay anyway.
The middle class is struggling to hold onto its ideals; the quintessential American dream. Homes, jobs and lifestyles need saving so they don't have time to band together and fight. They don't even know what would be their common ground. Middle class means different financial classifications and values depending on what region of the country you reside in. Yet, the middle class needs to start fighting back somehow, for the current economic ills of America are disproportionally affecting them. I know it, I am staring the reality in the face, daily.
Thursday, September 17, 2009
Happy Days Are Here Again?
Happy days are here again. This is the famous refrain from the Great Depression when economic indicators pointed to a turnaround in the economy. Of course it took nearly twenty years after this declaration for the stock market to actually recoup the depression-era losses. But, since we have no patience this time around, we have seemingly fixed everything in a matter of 18 months.
I read a couple of days ago in the Times that average wages for 80% of the workforce had risen from $612 a week to $618 a week in the last few months. Let's not all jump for joy at once. Credibility for this factoid was attributed to the number-crunching of two (unnamed) government agencies. Is this a case of government spin at work? Perhaps not. A majority of the economists, optimists, people that matter and people wanting to matter have declared that this recession is over.
Though they all cite facts that the rebound will most definitely be tepid at best, the general consensus is that the economic crashing has leveled off; we are no longer falling of a cliff, we are just falling. And now that the lesser of bad news is treated as good news, as it has been since this spring, we should all be happy. Must we remind them that we, the millions of unemployed or underemployed, can't seem to overcome our cognitive dissonance?
I read a couple of days ago in the Times that average wages for 80% of the workforce had risen from $612 a week to $618 a week in the last few months. Let's not all jump for joy at once. Credibility for this factoid was attributed to the number-crunching of two (unnamed) government agencies. Is this a case of government spin at work? Perhaps not. A majority of the economists, optimists, people that matter and people wanting to matter have declared that this recession is over.
Though they all cite facts that the rebound will most definitely be tepid at best, the general consensus is that the economic crashing has leveled off; we are no longer falling of a cliff, we are just falling. And now that the lesser of bad news is treated as good news, as it has been since this spring, we should all be happy. Must we remind them that we, the millions of unemployed or underemployed, can't seem to overcome our cognitive dissonance?
How much more cynical are we going to get of the economic good news? I should not be so ungrateful for the $6 extra dollars a week that I would be earning if I were employed. I must always remain positive, I must always make lemonade, I must always believe that things can/will be better. Only a positive attitude can boost my spirits and keep me above the negative fray. Only I can be responsible for making the choices that ultimately led me to be unemployed in the first place.
All things being unequal, if the shoe was on the other foot, I would want to be holding on to that shoe and therefore I shouldn't begrudge an economy that appears to be moving on without me. If I get my foot back in the door, that would shift my compass, wouldn't it?
Wednesday, September 16, 2009
The Facts Are These
"As is now painfully evident, the economic growth of the Bush era was largely an illusion. Poverty worsened during most of the boom years and middle-class pay stagnated, as most gains flowed to the top. In a recent update of their groundbreaking series on income trends, the economists Thomas Piketty and Emmanuel Saez found that from 2002 to 2007, the top 1 percent of households — those making more than $400,000 a year — received two-thirds of the nation’s total income gains, their largest share of the spoils since the 1920s." (from The New York Times editorial, 9/15/09)
The data is finally in; definitive proof of what we have long surmised through our own anecdotal evidence. We the middle class gained nothing over the last ten years. Instead, we were living large on cheap credit and/or home equity gold and as the editorial goes on further to say, "Because many if not most Americans gained little to nothing from the Bush “growth” years, they have found themselves especially vulnerable to the recession." Yes many of us have colossal debt and many of us have lost our jobs. Double Whammy.
Too bad it takes so long to compile the data required to validate our observations. We are the people on the ground, we know what is going on. Now, the economy is supposedly turning around and whether we believe it or not, it appears to be leaving many of us behind. Not good, I say. Not good, at all.
The data is finally in; definitive proof of what we have long surmised through our own anecdotal evidence. We the middle class gained nothing over the last ten years. Instead, we were living large on cheap credit and/or home equity gold and as the editorial goes on further to say, "Because many if not most Americans gained little to nothing from the Bush “growth” years, they have found themselves especially vulnerable to the recession." Yes many of us have colossal debt and many of us have lost our jobs. Double Whammy.
Too bad it takes so long to compile the data required to validate our observations. We are the people on the ground, we know what is going on. Now, the economy is supposedly turning around and whether we believe it or not, it appears to be leaving many of us behind. Not good, I say. Not good, at all.
Monday, August 24, 2009
Mad Dash
Next week I return to school and I think back about the last two glorious weeks of true summer weather. You would think that after a wet and cold June and July and the fact that our first 90 degree day occurred just two weeks ago, people would be thrilled that they had some summer to enjoy. Instead, all I've heard are complaints about it being too hot. I don't know where people spend the other 9 months of the year but it seems that they clearly did not get enough sunshine to activate the positive effects of its mood-altering qualities.
Anyhow, in between my mad dash to soak up some summer fun and getting the kids ready for back to school, I have also been madly dashing to the Doctor. Why? Next month we will lose our platinum and very, very expensive PPO healthcare plan, that we continued via COBRA, due to employment. Next month we will be on a catastrophic health plan, our only choice of healthcare with my husband's new company. Unfortunately, COBRA terminates the moment you are eligible for care under another plan otherwise we were willing to keep it and continue to pay the $500 a month for coverage until we exhausted our 9 months of 65% premium abatement courtesy of Federal stimulus funds. Alas.
The new plan will cost us just under $200 per month for which we will receive just the basic preventive care, strictly defined for man, woman and child. Any other healthcare requirements which, for me, are my allergies and my back will have to be paid for out-of-pocket until we reach $10,000 in out-of-pocket expenses. Then, we'll be covered for any health troubles after that. I suppose if you are healthy then it will be cheaper if you never need to see anyone outside of the basics. However, if you have nagging troubles like I do, then it will be a whole other ball game.
Tragically, I can see that my nagging troubles will continue to nag because I won't be paying several hundred dollars just to go to the Doctor, that I am sure about. It is different to have healthcare premiums deducted pre-tax out of your paycheck but it is another to have to pay the Doctor's fee straight up out one's dwindling post tax dollars. Yes, we can contribute to a health savings plan so that we can use pre-tax dollars to pay for some of that out-of-pocket care but it is a crapshoot as to how much you will need for you have to be clairvoyant to avoid leaving unused dollars on the table at the end of the year as they are forfeited.
The yeehas who are blocking the healthcare debate don't know what is coming down the pike. More companies will be turning to catastrophic health plans as health costs increase for all of those traditional plans and people, depending on their age, are not going to like it, believe me. If catastrophic care was desirable even in the slightest, I wouldn't be running around like a banshee trying to get everything done now, would I?
(FYI: I failed to purchase those lottery tickets that I mentioned last Thursday because I was too busy on Friday to remember. Also, I realize I do not frequent lottery selling establishments so I would have to go out of my way to do so. Yup, I failed lottery ticket buying 101.)
Anyhow, in between my mad dash to soak up some summer fun and getting the kids ready for back to school, I have also been madly dashing to the Doctor. Why? Next month we will lose our platinum and very, very expensive PPO healthcare plan, that we continued via COBRA, due to employment. Next month we will be on a catastrophic health plan, our only choice of healthcare with my husband's new company. Unfortunately, COBRA terminates the moment you are eligible for care under another plan otherwise we were willing to keep it and continue to pay the $500 a month for coverage until we exhausted our 9 months of 65% premium abatement courtesy of Federal stimulus funds. Alas.
The new plan will cost us just under $200 per month for which we will receive just the basic preventive care, strictly defined for man, woman and child. Any other healthcare requirements which, for me, are my allergies and my back will have to be paid for out-of-pocket until we reach $10,000 in out-of-pocket expenses. Then, we'll be covered for any health troubles after that. I suppose if you are healthy then it will be cheaper if you never need to see anyone outside of the basics. However, if you have nagging troubles like I do, then it will be a whole other ball game.
Tragically, I can see that my nagging troubles will continue to nag because I won't be paying several hundred dollars just to go to the Doctor, that I am sure about. It is different to have healthcare premiums deducted pre-tax out of your paycheck but it is another to have to pay the Doctor's fee straight up out one's dwindling post tax dollars. Yes, we can contribute to a health savings plan so that we can use pre-tax dollars to pay for some of that out-of-pocket care but it is a crapshoot as to how much you will need for you have to be clairvoyant to avoid leaving unused dollars on the table at the end of the year as they are forfeited.
The yeehas who are blocking the healthcare debate don't know what is coming down the pike. More companies will be turning to catastrophic health plans as health costs increase for all of those traditional plans and people, depending on their age, are not going to like it, believe me. If catastrophic care was desirable even in the slightest, I wouldn't be running around like a banshee trying to get everything done now, would I?
(FYI: I failed to purchase those lottery tickets that I mentioned last Thursday because I was too busy on Friday to remember. Also, I realize I do not frequent lottery selling establishments so I would have to go out of my way to do so. Yup, I failed lottery ticket buying 101.)
Thursday, July 30, 2009
We Cannot Afford to Derail Healthcare Reform
Unfortunately for America, it is starting to look like there is no cure for what ails our healthcare system for misinformation about healthcare reform is, of late, being shouted too loudly and too often. Those who shout the loudest are scaring the 'bleet' out of a lot of people and from this base of misinformation these poor sod are filtering the remaining information that they receive through that prism, resulting in a conclusion that is so far from the truth their opinion has to be dismissed as buffoonery. Oh wait, this is what passes for news lately, no matter the issue.
I think there ought to be a law against news channels proselytizing or at least against failing to properly characterize much of their content as opinion and not news. It is simply unconscionable that 24 hour news is essentially 24 hour opinion and blatantly inaccurate information is never challenged but repeated and commented upon ad nauseum. I just can't stand it anymore. Oh lordy, I sound like Sarah Palin blaming the media. Maybe she does have a point, well if you can find it.
Anyhow, in my little suburban world, I am surrounded by a multitude of confused humans who do not have the objectivity or fortitude to dismiss most of what they've heard as over-hyped bunk; they are starting to believe that the healthcare plan is a monster not to be reckoned with. Many are losing sight of the basic facts, healthcare costs have increased 120% since 2000 and during that time millions of people have lost their insurance. Also, in this new world of transient and vanishing employment, employer-based healthcare can no longer be the standard by which the majority of Americans have access to coverage. It was good while it lasted and while it is still good for those employed by or elected to the public sector, it is no longer good and in many cases no longer available for many of us who dwell in the private sector.
There are two undeniable aspects of healthcare coverage that need to be addressed: we have to control costs and we have to increase access for the nearly 50,000,000 Americans who are currently uninsured. Period. We all must fundamentally agree on these aspects to quell the head-in-the-sand dwellers and their incendiary anti-reform rhetoric. We definitely have to quell the irrational fear of socialized medicine as if medicaid and medicare do not exist. How about some news organization actually telling us about the proposals that are on the table?
What about the following potential solutions? Perhaps we can just expand medicaid and/or medicare to cover those who have no other coverage. Perhaps we can negotiate drug costs with the pharmaceutical companies. Perhaps we can regulate employer-based premiums and healthcare deductibles so as not exceed a certain percentage of income. Perhaps we can focus on a wellness approach to care rather than being sent to a disjointed group of specialists who do not communicate and end up repeating or ordering unnecessary tests.
There are a myriad of ways to solve our healthcare debacle and unfortunately we have to trust Congress, surrounded by lobbyists, to fix it. However, let us hope Democracy works and they find a good solution. Whatever the case, we cannot afford to defeat any attempt to reform the system because of ignorance and/or fear.
I think there ought to be a law against news channels proselytizing or at least against failing to properly characterize much of their content as opinion and not news. It is simply unconscionable that 24 hour news is essentially 24 hour opinion and blatantly inaccurate information is never challenged but repeated and commented upon ad nauseum. I just can't stand it anymore. Oh lordy, I sound like Sarah Palin blaming the media. Maybe she does have a point, well if you can find it.
Anyhow, in my little suburban world, I am surrounded by a multitude of confused humans who do not have the objectivity or fortitude to dismiss most of what they've heard as over-hyped bunk; they are starting to believe that the healthcare plan is a monster not to be reckoned with. Many are losing sight of the basic facts, healthcare costs have increased 120% since 2000 and during that time millions of people have lost their insurance. Also, in this new world of transient and vanishing employment, employer-based healthcare can no longer be the standard by which the majority of Americans have access to coverage. It was good while it lasted and while it is still good for those employed by or elected to the public sector, it is no longer good and in many cases no longer available for many of us who dwell in the private sector.
There are two undeniable aspects of healthcare coverage that need to be addressed: we have to control costs and we have to increase access for the nearly 50,000,000 Americans who are currently uninsured. Period. We all must fundamentally agree on these aspects to quell the head-in-the-sand dwellers and their incendiary anti-reform rhetoric. We definitely have to quell the irrational fear of socialized medicine as if medicaid and medicare do not exist. How about some news organization actually telling us about the proposals that are on the table?
What about the following potential solutions? Perhaps we can just expand medicaid and/or medicare to cover those who have no other coverage. Perhaps we can negotiate drug costs with the pharmaceutical companies. Perhaps we can regulate employer-based premiums and healthcare deductibles so as not exceed a certain percentage of income. Perhaps we can focus on a wellness approach to care rather than being sent to a disjointed group of specialists who do not communicate and end up repeating or ordering unnecessary tests.
There are a myriad of ways to solve our healthcare debacle and unfortunately we have to trust Congress, surrounded by lobbyists, to fix it. However, let us hope Democracy works and they find a good solution. Whatever the case, we cannot afford to defeat any attempt to reform the system because of ignorance and/or fear.
Monday, June 15, 2009
Health Care Crunch
Health Care, Health-care, Healthcare. It seems that any one of these iterations is acceptable so spell it any way that you want but no matter how you spell it, healthcare does not come cheap. This weekend we received our COBRA bill. COBRA (Consolidated Omnibus Budget Reconciliation Act - huh?) is the program that allows a displaced employee to remain in an employer's health plan for up to 18 months should they leave or lose their job, under certain conditions. It is a nice idea. After all, in our employer-based healthcare system, losing your job should not compromise your access to care.
However, I don't think healthcare costs were as astronomical when COBRA was conceived. Our COBRA bill is nearly $1600 a month. It is a little higher than the average family plan because we also participated in an FSA (Flexible Spending Account) healthcare auxillary plan, where we contributed $200 in pretax dollars each month to pay for out of pocket healthcare costs such as copays, over the counter and other costs that are not covered by your healthcare plan. This is another great program that can save you up to 30% on associated healthcare costs, depending on your tax bracket. But, it is calculated on a yearly basis and you can use all of these expected funds long before your total annual contribution is deducted. What if you lose your job before your year is up? Yes, it does get confusing, believe me.
Considering that unemployment in New York pays $405 per week plus an additional $25 that the Federal Government stimulus plan kicks in, adding up to a whopping $1720 a month (acknowledged that there are 2 months a year where there is a 5 week payout) that does not leave much. However, another part of President Obama's stimulus package allows for a 65% subsidy for COBRA costs for the first 9 months. Thank God! While we do not get a break on the FSA part, that cannot be reduced, we now have to pay a little less than $700 dollars a month. I jump for joy but theoretically that is still a lot of dough to "pony up" in these economic times which, of course, makes the President's campaign promise of healthcare overhaul even more prescient.
Last week, President Obama rolled out his healthcare overhaul platform in earnest. Already the waters have been muddied when it comes to the best way to reel in the costs and still provide quality service. Those of us who remember Secretary of State Hilary Clinton's attempts to reform healthcare back in the 90s when she was First Lady know the ugly fight that lays ahead. It goes without saying that Hilary was ahead of her time. Unfortunately, powerful lobbies, like the pharmaceuticals and healthcare insurance companies, will do as powerful lobbies do with laser certainty - mount an unyielding campaign to thwart and undermine any chances of real reform. Anyone remember Medicare Part D written by and for the pharmaceutical companies?
Pharmaceutical companies are killing us people, killing us. They have ads on TV telling us that they can fix x, y, and z unless the side effects kill you first. You are supposed to ask your Doctor, the one who has no clue who you are because modern healthcare, as dictated by the health insurance companies, requires him/her to see a gazillion patients an hour, whether some drug you have no clue about is right for you. Trust me, you don't need to ask, they will write you a prescription for all those drugs you see on TV in a heartbeat. Unfortunately, your healthcare company does not pay for name brand drugs, does it? I have come home in a groggy state from some procedure or another, after stopping at the pharmacy to pick up some drug that turns out will cost me $400, to get on the phone with the health insurer about what generic drug is covered or is the best substitute.
Lately, I have been to more Doctors than I ever have. Somehow, despite my healthy efforts - I quit smoking years ago, I exercise regularly, I do not eat any meat or fatty foods and I mostly drink wine when I do drink - my over-40-year-old-body has begun to show too much wear and plenty of tear. What's up with that? Every time I go for a test, I get referred to even more specialists. Part of me knows it is a racket because I get sent to specialists before the results of other tests even come in. I certainly do not want to do contribute to increasing the healthcare costs of all and I try to pay attention to what I believe are unnecessary tests and procedures; understanding that the premiums of any employer or associated group health plan are subject to the expenses of all the members.
Insurance is a funny thing, you pay it to protect yourself in the case of calamity but if you actually use that insurance, you will pay more for it after your insurer has paid out for a "qualifying event." If a member or their family requires specialized care that carries a hefty price tag, next year's premiums for the entire group will be higher. Make no mistake, every time someone, whether individually or part of a group, actually utilizes the benefits of insurance, be it car, homeowners, or fire, you name it, your premium will increase. The increases are even more deadly when it comes to health insurance. I won't proclaim how to fix it, in fact, I'm wondering if it is too late. Good Luck President Obama. Godspeed.
However, I don't think healthcare costs were as astronomical when COBRA was conceived. Our COBRA bill is nearly $1600 a month. It is a little higher than the average family plan because we also participated in an FSA (Flexible Spending Account) healthcare auxillary plan, where we contributed $200 in pretax dollars each month to pay for out of pocket healthcare costs such as copays, over the counter and other costs that are not covered by your healthcare plan. This is another great program that can save you up to 30% on associated healthcare costs, depending on your tax bracket. But, it is calculated on a yearly basis and you can use all of these expected funds long before your total annual contribution is deducted. What if you lose your job before your year is up? Yes, it does get confusing, believe me.
Considering that unemployment in New York pays $405 per week plus an additional $25 that the Federal Government stimulus plan kicks in, adding up to a whopping $1720 a month (acknowledged that there are 2 months a year where there is a 5 week payout) that does not leave much. However, another part of President Obama's stimulus package allows for a 65% subsidy for COBRA costs for the first 9 months. Thank God! While we do not get a break on the FSA part, that cannot be reduced, we now have to pay a little less than $700 dollars a month. I jump for joy but theoretically that is still a lot of dough to "pony up" in these economic times which, of course, makes the President's campaign promise of healthcare overhaul even more prescient.
Last week, President Obama rolled out his healthcare overhaul platform in earnest. Already the waters have been muddied when it comes to the best way to reel in the costs and still provide quality service. Those of us who remember Secretary of State Hilary Clinton's attempts to reform healthcare back in the 90s when she was First Lady know the ugly fight that lays ahead. It goes without saying that Hilary was ahead of her time. Unfortunately, powerful lobbies, like the pharmaceuticals and healthcare insurance companies, will do as powerful lobbies do with laser certainty - mount an unyielding campaign to thwart and undermine any chances of real reform. Anyone remember Medicare Part D written by and for the pharmaceutical companies?
Pharmaceutical companies are killing us people, killing us. They have ads on TV telling us that they can fix x, y, and z unless the side effects kill you first. You are supposed to ask your Doctor, the one who has no clue who you are because modern healthcare, as dictated by the health insurance companies, requires him/her to see a gazillion patients an hour, whether some drug you have no clue about is right for you. Trust me, you don't need to ask, they will write you a prescription for all those drugs you see on TV in a heartbeat. Unfortunately, your healthcare company does not pay for name brand drugs, does it? I have come home in a groggy state from some procedure or another, after stopping at the pharmacy to pick up some drug that turns out will cost me $400, to get on the phone with the health insurer about what generic drug is covered or is the best substitute.
Lately, I have been to more Doctors than I ever have. Somehow, despite my healthy efforts - I quit smoking years ago, I exercise regularly, I do not eat any meat or fatty foods and I mostly drink wine when I do drink - my over-40-year-old-body has begun to show too much wear and plenty of tear. What's up with that? Every time I go for a test, I get referred to even more specialists. Part of me knows it is a racket because I get sent to specialists before the results of other tests even come in. I certainly do not want to do contribute to increasing the healthcare costs of all and I try to pay attention to what I believe are unnecessary tests and procedures; understanding that the premiums of any employer or associated group health plan are subject to the expenses of all the members.
Insurance is a funny thing, you pay it to protect yourself in the case of calamity but if you actually use that insurance, you will pay more for it after your insurer has paid out for a "qualifying event." If a member or their family requires specialized care that carries a hefty price tag, next year's premiums for the entire group will be higher. Make no mistake, every time someone, whether individually or part of a group, actually utilizes the benefits of insurance, be it car, homeowners, or fire, you name it, your premium will increase. The increases are even more deadly when it comes to health insurance. I won't proclaim how to fix it, in fact, I'm wondering if it is too late. Good Luck President Obama. Godspeed.
Wednesday, June 3, 2009
Unemployment Takes Toll on American Dream
Mortgage delinquency rates and foreclosure rates are rising as the unemployment rolls swell. Another 500,000+ people lost their jobs in May. I can see how one's financial world can unravel so quickly especially here on Long Island. Housing is super expensive and the majority of it is classified single family - good old suburban glory at its finest. Unfortunately, if you are a homeowner, it will be downright difficult to survive a protracted unemployment if you are without adequate savings or adequate credit; though tapping credit during unemployment only compounds one's financial predicament. Unemployment benefits in NY are a maximum of $405 a week plus federal stimulus of additional $25 a week.
It is fairly obvious that the best and most effective way to cut expenses is to reduce one's housing expenses. Unfortunately, as of April 2009, the median home price is $350,000 for houses in contract and the median income is around $65,000 in Suffolk County and $85,000 in Nassau County. Property taxes are among the highest in the nation and average more than $7,000 per year. In addition, if one has to COBRA health insurance costs, even with the 65% subsidy, the average family plan will cost over $500 a month.
Those in rentals have more flexibility to downsize but homeowners, on the other hand are stuck with few alternatives. Many have put their homes up for sale but home sales are weak due to the economy and stricter lending standards. New buyers need at least 20% or $70,000 for a downpayment to purchase a home on Long Island at today's rates and it takes about 3 months just to close on a house in NY. Also, if you bought in the last five years, selling for even close to what is owed in mortgage is difficult; only those fortunate to have lived in their home long enough can "afford" to accept a cheap price to facilitate a fast sale.
Sadly, many homeowners are left with no alternative but to fall behind on their mortgage and as we can see this is happening in droves nationwide. Not everyone is a deadbeat, many are middle class Americans whose livelihood crashed along with the economy.
In the scheme of things, I certainly wouldn't mind moving to where the jobs are but what would I do with my house? In many cases, the American dream of home ownership becomes a nightmare the moment you lose your job. People are doing what they have to do to survive but for many, with ruined credit, depleted retirement savings and little left in available funds, it will be a long road back to personal financial recovery even if they do find a job.
It is fairly obvious that the best and most effective way to cut expenses is to reduce one's housing expenses. Unfortunately, as of April 2009, the median home price is $350,000 for houses in contract and the median income is around $65,000 in Suffolk County and $85,000 in Nassau County. Property taxes are among the highest in the nation and average more than $7,000 per year. In addition, if one has to COBRA health insurance costs, even with the 65% subsidy, the average family plan will cost over $500 a month.
Those in rentals have more flexibility to downsize but homeowners, on the other hand are stuck with few alternatives. Many have put their homes up for sale but home sales are weak due to the economy and stricter lending standards. New buyers need at least 20% or $70,000 for a downpayment to purchase a home on Long Island at today's rates and it takes about 3 months just to close on a house in NY. Also, if you bought in the last five years, selling for even close to what is owed in mortgage is difficult; only those fortunate to have lived in their home long enough can "afford" to accept a cheap price to facilitate a fast sale.
Sadly, many homeowners are left with no alternative but to fall behind on their mortgage and as we can see this is happening in droves nationwide. Not everyone is a deadbeat, many are middle class Americans whose livelihood crashed along with the economy.
In the scheme of things, I certainly wouldn't mind moving to where the jobs are but what would I do with my house? In many cases, the American dream of home ownership becomes a nightmare the moment you lose your job. People are doing what they have to do to survive but for many, with ruined credit, depleted retirement savings and little left in available funds, it will be a long road back to personal financial recovery even if they do find a job.
Monday, June 1, 2009
GM Bankruptcy: Par for the Course
So GM is dead-ish and the market did not raise an eyebrow. One of the largest manufacturing companies in the United States is being shepherded through a structured bankruptcy on the taxpayer's dime to the tune of $50,000,000,000, not including the $19,000,000,000 it has already received, and the market rallied several hundred points apparently overjoyed over other unrelated positive, though flimsy, economic data. Apparently investors felt that the GM thing was expected and already priced in so no big deal. Par for the course.
In the course of less than a year, another industry giant has been transferred to the taxpayer dole, let us not forget AIG, Fannie Mae, Freddie Mac and the dizzying array of financial firms that are now majority owned or significantly owned by the American Government. Smacks of that "S" word, doesn't it. Yech! Actually, I don't see any problem with socialism, we are trying to save America in this global economy, aren't we? Though it does look bad that the government of the country that is/was the economic powerhouse of the world is bailing out the firms that underwrote its superiority. Furthermore, this government is as bankrupt as they come. If the American government was a company, it would have sought chapter 11 a long time a go.
Why is the financial sanctity of this country so reputable when it has not been able to balance its books in nearly a decade? Now this government sits on the brink of skyrocketing legacy costs and it cannot negotiate any settlement. Sounds a lot like GM. The perceived strength of the US government lays upon its solid revenue source - the American taxpayer - but it cannot sell the prospect of higher taxes or reduction in services to the representative body of this bunch; it is considered political suicide. It has the largest military in the world and so cocoons its weakening financial condition with weapons. We are democratic, we are free, we are safe, we are broke.
But, we are saving GM and the rest of the funky bunch but the amount given to GM and Chrysler, which I still cannot understand why Chrysler is being sold to a foreign automaker but whatever, is still a drop in the bucket compared to what has been given to AIG and the financials. Now Wall Street is happy and the market is rallying while they criticize the President for spending too much money. How can anyone even mention free market in the same breath?
The government can save GM but at some point we will need to save the government. We will all have to pay a lot more taxes. Is there any other way?
In the course of less than a year, another industry giant has been transferred to the taxpayer dole, let us not forget AIG, Fannie Mae, Freddie Mac and the dizzying array of financial firms that are now majority owned or significantly owned by the American Government. Smacks of that "S" word, doesn't it. Yech! Actually, I don't see any problem with socialism, we are trying to save America in this global economy, aren't we? Though it does look bad that the government of the country that is/was the economic powerhouse of the world is bailing out the firms that underwrote its superiority. Furthermore, this government is as bankrupt as they come. If the American government was a company, it would have sought chapter 11 a long time a go.
Why is the financial sanctity of this country so reputable when it has not been able to balance its books in nearly a decade? Now this government sits on the brink of skyrocketing legacy costs and it cannot negotiate any settlement. Sounds a lot like GM. The perceived strength of the US government lays upon its solid revenue source - the American taxpayer - but it cannot sell the prospect of higher taxes or reduction in services to the representative body of this bunch; it is considered political suicide. It has the largest military in the world and so cocoons its weakening financial condition with weapons. We are democratic, we are free, we are safe, we are broke.
But, we are saving GM and the rest of the funky bunch but the amount given to GM and Chrysler, which I still cannot understand why Chrysler is being sold to a foreign automaker but whatever, is still a drop in the bucket compared to what has been given to AIG and the financials. Now Wall Street is happy and the market is rallying while they criticize the President for spending too much money. How can anyone even mention free market in the same breath?
The government can save GM but at some point we will need to save the government. We will all have to pay a lot more taxes. Is there any other way?
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