Posted on 02/03/2004 12:28:18 PM PST by Walkin Man
I didn't "overlook" that fact. Of course a person in the position you describe wouldn't survive that, without (for example) giving up their mortgage and moving into a cheaper place, i.e. apartment.
What you're saying is that this is a less appealing option than simply collecting unemployment. That's true. And, it's great. Because it means that we have a system where even when people get laid off etc., they can typically afford not to look for jobs at Walmart fro yo etc. for a long time, and still stay in the same homes. Isn't that great?
I'm still trying to figure out how all this adds up to "we must blame Bush"
Yes....last point first. I said nothing about Bush.
As for unemployment...I got laid off, collected for a while, and then found work as an independent contractor. In Illinois, after paying into the unemployment program for almost two decades, the rate I got (family, kids)...didn't even cover my mortgage payment. Forget other expenses. Fortunately I was frugal for many years and had capital to live on. Many people do not.
The issue here is not "can people survive". It is deeper than that. Far deeper. For example:
1st, our military depends upon taxes. Like or not, so do those other government programs. Someone who used to make 75K paid taxes. If they work at McDonalds - they don't. (Other than social security). They fall into the bottom tax bracket - which, with dependents, means they actually pay no federal income tax. At all. If this happens to enough people -- we see spending not being supported by taxes. A ballooning deficit. Followed by the depreciation of the dollar. Etc. Of course...the solution is to cut expenditures, by Congress. Which will happen when pigs fly.
2nd, this will gradually lead to falling housing prices (as more people suffer downsizing to their incomes, they won't pay those large dollars for houses. Hasn't happened yet. But it is inevitable). Many of those same people, suffering a smaller income, will have to sell their houses. But since most of them have little equity, and many will have negative equity, personal bankruptcies will rise. That is already happening. Guess what the biggest class of people who go bankrupt are? Turns out...families with kids.
3rd, this situation will not improve quickly. Interesting interview recently with the CEO of Intel. He made two important points. He said (a) people in the US now need to compete with 3 Billion educated people who have high speed telecommunications access. This will continue to suppress salaries in the US. And (b), the level of R&D investment is insuffient. For example, total R&D by the government of the life sciences is about 5 billion -- but the agricultural subsidies by the government is 35 to 40 billion. A serious problem.
Who, exactly, do you think was saying otherwise?
I was mostly responding to the people who seem to blame the current situation on President Bush, or shall I say "the Economy/Job-Creation Czar". I am heartened to see that you are not one of them and apologize for my misunderstanding. Best,
Actually, I don't. If I did, my kids would starve.
I am a happy, successful woman who relies on NO ONE but myself. My posts are optimistic about this country and my place in it. Your view of this grand nation is one steeped in total negativity. I won't go there with you, I have no time for losers.
You are, clearly, not literate.
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