Posted on 01/12/2009 3:07:13 AM PST by 2ndDivisionVet
Almost two-thirds of those who are out of work do not qualify for unemployment benefits. The law that created unemployment insurance was passed in response to the Great Depression of the 1930s.
But since then, much has changed in the labor force, including the large numbers of self-employed who are left out of the system.
Most people believe if they're laid off — downsized or simply out of a job — they will get unemployment insurance benefits. While each state has different guidelines on the amount paid and the length of time people can receive benefits, the federal system, created in 1935, simply does not cover the majority of today's workers.
"The largest group of people that do not qualify for unemployment insurance are the non-traditional employees," says Howard Rosen, a labor market expert with the Peterson Institute for International Economics. He says millions who are not full-time, permanent employees are out of luck.
A growing number of people who are consultants, self-employed, temporary employees, part-time employees — a whole plethora of different kinds of arrangements — are not currently eligible for assistance.
Among this group are Barbara and Gary Ratner. Gary Ratner completed a doctorate in biochemistry from Emory University. Barbara Ratner has been a self-employed architectural illustrator since 1990 when she was laid off from a company in Atlanta.
"And I actually never had to worry about work," Barbara Ratner says. "The phone just kept ringing. It was — it was like magic."
She had so much work when she was laid off, she didn't apply for unemployment benefits. Now, because she's self- employed, she doesn't qualify for them.
She says business began slowing down last spring and by December, she finished her last job.
"I'm beginning to identify with the frog in the pan of water where someone turned the heat up and it took me awhile to realize that yes, this isn't like it has been before — and I don't know where it's going," she says.
Dipping Into Retirement, Cutting Costs
At the cozy dining table in the home where they have lived for more than 20 years, Barbara Ratner showed off her office and handmade drawings.
She has created architectural drawings for some big projects, including Atlanta's Olympics, a financial center in Taiwan, retail shops in China — even the Los Angeles and Portland zoos. And she usually makes between $80,000 and $100,000 a year. But now that new construction has slowed dramatically, there's no demand for her drawings.
The Ratners have already pulled nearly $10,000 from their retirement account. They are cutting back where they can — eliminating a phone line and canceling memberships to civic groups. Gary Ratner decided to retire late last year. And because they're in their 60s and do not have a group health plan, the couple pays $1,500 a month for health insurance.
"I've actually been considering getting rid of medical insurance," Barbara Ratner says. "It's huge. And so if we wanted to gamble, we could just drop the health insurance."
The couple is using their retirement savings, and that worries them. They're looking for creative ways to get by. Barbara Ratner says she's seriously considering raising chickens in her backyard, like her parents did way back when.
"They lived through the Depression and my father always felt like his family basically did better than other families because they had a chicken coop and they had a big garden," she says. "And they lasted it out."
Gary Ratner is hoping to get a biochemistry fellowship, while his wife continues to look for work. And both hope that President-elect Barack Obama's economic plan will create new jobs and ultimately turn the economy around.
From what I can tell he was a bio-chemist. He should have made oodles of money from that position. Unless he was a teacher.
Freaking eggheads...
Anyhow, If he was an academic wouldn’t he be in line for all the comfiest perks?
Call me uneducated but, this entire story is a head scratcher...
This is an interesting read, but some parts of this just don’t make sense to me. We’re missing part of the puzzle here.
He retired and they are using their retirement funds. Well, isn’t that what they are for?
Second, at age 59.5 wasn’t he eligible to collect some level of SS funds? Or are they part of the group that was too rich to collect at 59.5?
Third, I had a friend who used to complain about having to make payments into the Compensation fund. Now, that his small business went under at least he collects a bit of something until he can re-stratigize. He now isn’t complaining about those payments.
Fourth, medical insurance. I sympathise with them here. $18,000 a year for medical insurance. Although it sounds like Gary carried the insurance through his employer. IF every business dropped the medical benefit and individuals had to pay their own way... She is looking at possibly taking the big gamble like millions of other Americans. I am on my own too and at $12,000 a year or more...? I carry the barest of minimums it is all I can afford.
i have no money in bank and i make very little, these people are wusses
Funny thing.... I always entertained the idea of independent consulting AFTER retirement.
You know? a bit of piddling around?
Cars in the driveway not paid for?
Cry me a river!
My company dropped the medical coverage in our retirement plan.
After a lifetime of work this will be a huge problem to overcome.
They will give a 75K annuity to allow me to buy insurance.
That should last what? 4 years?
Hooboy
My wife's income sky rocketed soon after I retired. We didn't plan on it being that way, we had enough income anyway after my retirement without hers. Sometimes life is just sweet and puts a little extra frosting on the cake.
ping
I'm not sure that 59.5 is in play anymore. I know my father had planned to retire at that age, but had to stay on until 62. Dad retired two years ago so they are roughly the same age.
People retire for medical reasons all the time. The article could be just as telling in what it DOESN’T tell you.
From the web site: You can get Social Security retirement benefits as early as age 62, but if you retire before your full retirement age, your benefits will be permanently reduced, based on your age. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age.
Some people stop working before age 62. But if they do, the years with no earnings will probably mean a lower Social Security benefit when they retire.
It is unlikely he worked for a university or didn't work there long enough to get vested for health care...
Thanks. It was 59.5 when my mom retired years ago. I know that it keeps changing.
LOL! You're an awful quick wit for this early in the morning...
The sticky wicket is that medicare isn't available to the non-disabled until 65. My dad's former employer will maintain their medical coverage until my mom and dad each reach 65, but I think that has to be rather rare.
How many people can retire at 62, even with money? At that age and with the high likelihood of some sort of pre-existing condition, the cost of coverage has to be prohibitive to all but the most wealthy.
Near as I can tell, he didnt work at all.
Hmmm
I have a “part-time” job that I can do from home that, in good years, could probably be the only job since I could probably make up most of what I earn by working more hours at it.
Of course there are bad years (e.g. 2008) which is why I don’t quit my “real job.”
Still, I sympathize with them somewhat.
I hate the way the system works but I agree with you.
On the low end they were probably making$160,000+ per year combined and were at the minimum in a 28% tax bracket and another 6% for Georgia income tax. Plus, if she was self employed, she was paying a huge chunk to Social Security.
What I think the story glares is not so much that they are looking for a handout because they are using their savings. Instead it shows that the government had no problem taking from them for the common good and entitlements that they helped finance but they are qualified for nothing.
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