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.
I just dont understand what Gary did for a living or who he worked for or why he retired early if there was no income.
The whole story is a big hand wringing NPR mess
“This is what NPR thinks recession “victims” look like? She’s been making $80-100K all these years and he’s a biochemist and they don’t have savings to live on? Huh? I’m sure Lord Obama will wave his magic wand and fix their problems. “
Time out here. I am in this category. Out of work 4 months now. That was my savings. Home owner and have two cars that are paid off, however I will need another car in 2009. Cannot find work and COBRA take 1,400 out of a 1,500 dollar unemplotment check.
There is nothing in my geographical area that even pays half of what I have earned so this whle concept of “take anything” doesn’t fly.
Right now I am retraining which costs bucks. I am hoping I will have enough experience and certifications to get back into the market sometime in March. If not, I willthen have to cash out my retirement which has taken a 40% loss on top of the 38% in taxes and penalties I will have to pay.
I don’t want Bambi’s help. I also don’t want to hear about how this is no big deal, like what Hannity says. “I painted walls.” Good for him. Do it with two kids who need 3-400 dollars in medicine every month.
If you wonder why people are considering Universal Health Care, despite what can and probably will happen, this is it.
My bet is this comes up early in the administration. Perfect timing.
Coincidence???
Oh, cry me a river!!! I struggle every month to pay rent etc. Tough? yeah so what life is tough. Get over people!!
I make about 25,000 a year. I don’t spend money on myself only buy what I need. Boy, these people need to grow a set.
He’s entitled to collect Social Security — at age 67, is it? — and to Medicare/Medicaid at 65, but he’s not entitled to unemployment benefits, which is what this article was bemoaning. The guy retired, which means he quit, at age 60. Employers pay into the state system for unemployment insurance for people who get laid off, not people who tire of working.
> The guy retired, which means he quit, at age 60
Ah, I missed that bit. Thanks for the clarification.
I am not sticking up for these people but lets look at the big picture, they probably pay over $25,000 per year in taxes. Yet, if they were crackheads, or illegals they’d get free health care, food stamps, housing. The system is ridiculous. I am not saying that anyone should expect the government to take care of them, but lets not forget all of the money the government took from them either. The worker bee’s get nothing.
Re: “Gary Ratner decided to retire late last year...
The couple is using their retirement savings,
and that worries them...”
Wonder if they actually read the article before it goes live?
Methinks not.
They will give medicare to everybody. That way the lawyers can still sue for malpractice. They will cut medicare benefits so the major insurance companies can still charge for insurance. Or simply nationalize the medical industry. And the oil companys. We are headed town the Caracas Highway full speed.
Your post is spot on.
Yep, too proud to do work that's "beneath" them or their education. WalMart, McDonalds, Target, and Khol's are all hiring in Atlanta. I have two bakeries close to me (also near the Emory area) that are hiring morning bakers for $15 per hour. Some paycheck is better than no paycheck.
Or there is something wrong with his side of the story, so NPR left it out because it wouldn't garner sympathy..
Point well taken.
I agree. I would get a job anywhere before I would raise a chicken.
****Gary Ratner is hoping to get a biochemistry fellowship, while his wife continues to look for work.****
Looks as if he is a career student! In his 60’s? They appear not to have children - so their life experiences can hardly be considered “average”. Raising children would have sucked up even more of their income........
They are still fortunate to have been living in the United States for the past 60 years...time to suck up a little adversity. He is probably not a Vietnam vet!!!
He retired and now is using retirement savings for retirement...oh the hugh manatee.
The Ratners have already pulled nearly $10,000 from their retirement account. ...But, he's retired so what's the issue? When one retires, one draws from retirement funds.
They are cutting back where they can — eliminating a phone line and canceling memberships to civic groups. Geez, if I was in "Dire Fiscal Straits", I'd hope that I could come up with better ideas to save money than dropping an extra phone line, and skipping my "Sierra Club" dues. Guess things can't be too bad. Call back when they need to choose between heating the house, and eating.
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. Just like every other retired couple. Now, if the husband had decided to keep working, suppose that they'd still have coverage? That'd be a question I would ask, but I'm not a dumbass reporter with an agenda.
Geez, Liberals make my head hurt.
Have you checked into your state's CHIP program?
59 1/2 is the age when you can receive your 401k or your IRA distribution without the 10% penalty. SS is not payable until at least 62, unless you are disabled and collect SSI
These folks have retirement, a “plush home” and other assets. Give me a ragtime story of the person living in a tent who lost everything and have fallen through the bureaucratic net eating jack rabbit and moldy spuds over tin can fire and I’ll sob. This story actually p*sses me off they’re complaining.
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