Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Monday, April 4, 2011

NCOA Launches One Away Campaign for Elder Economic Security; Releases National Poll on Struggles Facing Older Adults

Ken Schwartz, NCOA Director, Marketing & Communications, 202-600-3131, ken.schwartz@ncoa.org

Washington, D.C. (March 31, 2011) – More than 13 million older adults are considered economically insecure, living on just $21,780 a year or less. Every day, these seniors, and millions of Boomers, have to choose whether to pay for food, housing, utilities, or out-of-pocket for medication costs. They live one bad break, one accident, or one layoff away from economic disaster.

To spotlight their struggles—and call for change—the National Council on Aging (NCOA) is launching One Away, an innovative, national advocacy campaign that uses video to allow older adults to tell their own stories, in their own words. One Away videos and stories are available at OneAway.org.

“We are already receiving real stories of seniors who are struggling,” said Sandra Nathan, senior vice president for economic security at NCOA. “It’s clear that vulnerable older adults are in desperate need of help and want to be heard.”

National Poll Shows Depth of Problem

Almost two-thirds (63%) of adults aged 18+ said they or an older adult they know is struggling to make ends meet in today’s economy, according to the new One Away poll. A majority (62%) also knows that one out of three older adults relies on Social Security for over 90% of their income.

Commissioned by NCOA and conducted online in March 2011 by Harris Interactive, the One Away poll of 2,526 adults aged 18 and older also found that 80% of adults know that older workers who lose a job are more likely to face very long-term unemployment, up to 99 weeks or more.

In spite of this harsh reality, the House of Representatives recently passed legislation to cut funding by 64% for the Senior Community Service Employment Program (SCSEP), our nation’s only jobs program designed to help older Americans in need. The cut would result in the loss of over 83,000 jobs.

At the same time, some economic challenges facing older adults are less well known to the public:

Fewer than 1 out of 5 people (19%) are aware of the scale of senior credit card debt, which averages $10,000.


Only 34% are aware that people over age 65 make up the fastest-growing segment of the population seeking bankruptcy protection.


Almost three-quarters (72%) either underestimated or did not know that nearly 6 million seniors are at risk of going hungry every day.
“The struggles seniors are facing are all too often overlooked or dismissed,” said James Firman, president and CEO of NCOA. “This campaign is about elevating their voices, and we need Congress to catch up to the realities of their constituents and develop concrete solutions to make life better for our seniors.”

As part of the One Away campaign, NCOA has also published A Blueprint for Increasing the Economic Security of Older Adults: Reauthorizing the Older Americans Act. The report outlines specific recommendations to improve elders’ economic security through reauthorization of the Older Americans Act (OAA), which is scheduled to occur this year.

Funding for the One Away campaign was provided by The Atlantic Philanthropies.

Wednesday, March 16, 2011

Drug Cost Hikes Outpace Rise in Other Medical Costs

By Emily P. Walker, Washington Correspondent, MedPage Today

Prices for prescription drugs have risen faster than the cost of other medical goods and services since 2006, according to a new government report.

The prices for 100 commonly used drugs -- which included 55 brand-name drugs and 45 generics -- increased at an average annual rate of 6.6% from 2006 through early 2010, compared with a 3.8% average annual increase for other consumer medical goods and services.

Prices for brand-name drugs increased by an annual average rate of 8.3%, while prices for generics fell by 2.6% annually, according to the report prepared by the Government Accountability Office (GAO) and requested by five Democratic lawmakers.

Prescription drug spending totaled about $250 billion in 2009.

One of the biggest price increases in brand-name drugs was seen in tamsulosin (Flomax), a drug made by Boehringer Ingelheim to treat the symptoms of an enlarged prostate. From 2006-2007, the "usual and customary" price for Flomax increased by 9.8%, but from 2009-2010, it increased nearly 30%.
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Tuesday, March 15, 2011

What If We’re Not Broke? - The Washington Post

By E.J. Dionne Jr

We’re broke.”

You can practically break a search engine if you start looking around the Internet for those words. They’re used repeatedly with reference to our local, state and federal governments, almost always to make a case for slashing programs — and, lately, to go after public-employee unions. The phrase is designed to create a sense of crisis that justifies rapid and radical actions before citizens have a chance to debate the consequences.

Just one problem: We’re not broke. Yes, nearly all levels of government face fiscal problems because of the economic downturn. But there is no crisis. There are many different paths open to fixing public budgets. And we will come up with wiser and more sustainable solutions if we approach fiscal problems calmly, realizing that we’re still a very rich country and that the wealthiest among us are doing exceptionally well.

Consider two of the most prominent we’re-brokers, House Speaker John Boehner and Wisconsin Gov. Scott Walker.

“We’re broke, broke going on bankrupt,” Boehner said in a Feb. 28 Nashville speech. For Boehner, this “fact” justifies the $61 billion in domestic spending cuts House Republicans passed (cuts that would have a negligible impact on the long-term deficit). Boehner’s GOP colleagues want reductions in Head Start, student loans and scores of other programs voters like, and the only way to sell them is to cry catastrophe.

Walker, of course, used the “we’re broke” rationale to justify his attack on public-worker collective bargaining rights. Yet the state’s supposedly “broke” status did not stop him from approving tax cuts before he began his war on unions and proposed all manner of budget cuts, including deep reductions in aid to public schools.

In both cases, the fiscal issues are just an excuse for ideologically driven policies to lower taxes on well-off people and business while reducing government programs. Yet only occasionally do journalists step back to ask: Are these guys telling the truth?

The admirable Web site PolitiFact.com examined Walker’s claim in detail and concluded flatly it was “false.”
“Experts agree the state faces financial challenges in the form of deficits,” PolitiFact wrote. “But they also agree the state isn’t broke. Employees and bills are being paid. Services are continuing to be performed. Revenue continues to roll in. A variety of tools — taxes, layoffs, spending cuts, debt shifting — is available to make ends meet. Walker has promised not to increase taxes. That takes one tool off the table.”

And that’s the whole point.

Bloomberg News looked at Boehner’s statement and declared simply: “It’s wrong.” As Bloomberg’s David J. Lynch wrote: “The U.S. today is able to borrow at historically low interest rates, paying 0.68 percent on a two-year note that it had to offer at 5.1 percent before the financial crisis began in 2007. Financial products that pay off if Uncle Sam defaults aren’t attracting unusual investor demand. And tax revenue as a percentage of the economy is at a 60-year low, meaning if the government needs to raise cash and can summon the political will, it could do so.”

Precisely. A phony metaphor is being used to hijack the nation’s political conversation and skew public policies to benefit better-off Americans and hurt most others.
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Tuesday, February 1, 2011

Aging Germany Must Keep Older Workers Healthy and Happy | Deutsche Welle

Coat of arms of the Federal Republic of Germany.Image via Wikipedia
Germany needs older workers more than ever to keep its industry humming and pension system financed. But there's one problem: employees aged 55 and older often miss work for longer periods of time due to illness.

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Longer Lives “a Call to Action” for the 21st Century

Life expectancy is below 50 years in most Afri...Image via Wikipedia
By Mark Gorman

Is the world beginning to take notice of global ageing?

The message that extended life expectancy, falling fertility rates and accelerating ageing are now truly global phenomena seems to be getting a wider hearing, and in the past few months a number of different voices have been raised on the issue.

Global ageing vs. global economy


In an article in the December 2010 edition of "Foreign Affairs" for example, Nicholas Eberstadt writes: "It is apparent that the future global economy will not be able to rely on the kind of demographic inputs that helped fuel growth in the era before the current global recession".

Rapid population ageing, he argues, represents an almost entirely undiscounted long-term risk for the world's emerging countries.

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Friday, January 14, 2011

UM Panel: Rethink End-of-Life Priorities - Health - MiamiHerald.com

University of Miami School of Business Adminis...Image via Wikipedia
As people live longer with the help of technological advances, end-of-life care will take an increasingly large bite out of the nation's healthcare budget -- unless we change the way we treat dying patients and their families, according to a panel Thursday at the University of Miami's Global Business Forum. Three medical doctors, a CEO and a professor of religious studies debated the economics and ethics of end-of-life decisions, warning that the care model historically used by the medical establishment needs to be improved in a world where there are more elderly people with more chronic illnesses. The emphasis, they agreed, should be on a team-oriented holistic approach tailored to the patient and his or her last wishes.
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Thursday, January 6, 2011

Bankruptcies Up for Older Adults, People, Americans, Seniors - AARP Bulletin

MIAMI - MAY 20:  Alain Filiz shows off some of...Image by Getty Images via @daylife

Filers cite lost jobs, credit card debt and empty retirement accounts

by: Bob Calandra | from: AARP Bulletin


The 55-to-64 age group made up 17 percent of filers in 2009, up from 14 percent in 2006. The 65-and-up group, meanwhile, made up 8.3 percent of all filers in 2009, a rise from 7.8 percent in 2006.

Leslie Linfield, executive director of the IFL, is concerned by numbers like these.

"A young person has the ability to rebuild themselves financially," Linfield says. "Are seniors afforded that same opportunity by virtue of their age? Are we as a society taking care of our seniors when so many have to seek bankruptcy protection to begin with?"

'It's all hole-plugging'

Older adults who lived through the Great Depression and generally shunned credit card use have begun in recent years to embrace it, perhaps out of necessity. And some are drowning in debt as a result.

According to a University of Michigan study, 67 percent of people age 65 and older who filed for bankruptcy in 2007 cited credit card interest and fees as a culprit, compared with 53 percent of those under 65.

"There's been a cultural shift in the attitude of older borrowers," says University of Michigan Law School professor John Pottow, an author of the study. "But what's equally possible is that they're just squeezed more financially. People are living longer and paying more for health care and carrying mortgages into their senior years. They're refinancing to pay off debt. It's all hole-plugging.

"We have a structural problem for older people — it's an income and expense disparity, and it's just going to get worse as people continue to live longer. We are not addressing this" as a nation, he adds.

Living on credit cards

Older adults who live on fixed incomes may have turned to their credit cards to pay for increasingly expensive medical treatment, gas, food and other necessities.

But Neil Ellington, executive vice president of CESI Debt Solutions in Raleigh, N.C., says it's often a different story for filers who are boomers. He believes that many of their bankruptcies result in large part from using debt to live beyond their means.

-Full Article
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Wednesday, December 29, 2010

PhillyBurbs.com:  More grandparents raising grandchildren

Santa Claus with a little girlImage via WikipediaBy: GEMA MARIA DUARTE

More than 2.4 million people in the U.S. are raising their grandchildren, often with limited means.

The Christmas tree was bare. No gifts were under it. So she vowed she would never have another Christmas like that one in 1990.

Dolores Chapman was raising seven grandchildren and none of them had a gift to open. That Christmas the kids weren't allowed to go out and play with their Bristol Township neighbors.

"I felt bad," she said.

The next day, with $200, Chapman purchased gifts for her grandchildren on sale.

This Christmas, the 63-year-old grandmother is caring for three other grandchildren - a 5-year-old girl, an 8-year-old boy and an 11-year-old girl.

It's tough being a grandparent and raising grandchildren on a fixed income, she said. Of her 18 grandchildren, she's raised 10 of them.

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Wednesday, December 22, 2010

Employment and Aging: Using Large Scale Data To Ask, “Who Works?” | Aging In Action

by John Davy on December 21, 2010

The so-called Great Recession has changed how Americans view work, and not just due to our 10% unemployment rate. Attacks on social security and pensions, the disappearing social safety net, and the need for many older adults to support younger family members (at a life stage when both had perhaps once expected that support would flow in the opposite direction) has delayed or ended retirement for many Americans. At the same time, job prospects for the long-term unemployed are sufficiently poor—which, as we recently discussed, particularly afflicts older adults—that many are forced into undesired, unfunded retirement.

In our recent article on employment and aging, we discussed why older adults struggle to find work, compared to younger cohorts. This may lead one to ask: what are the factors that lead older adults to search for new work? Clearly, unemployment, the loss of pensions, and the need to support spouses, children and grandchildren all lead individuals to take on new employment. Beyond individual circumstances, however, are there structural factors that influence who works? What can we learn about differences between communities, classes, ethnic groups, and regions in terms of which older adults seek out and take on work?

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Tuesday, December 21, 2010

80% of Suspended 401(k) Matches to be Restored by Mid 2011 - Financial Planning

By Lee Barney, Money Management Executive

Employers are clearly more optimistic about the economy, for another 40% that had suspended 401(k) contributions will resume them by mid 2011, doubling the 40% that already have resumed suspended or reduced matches, the Profit Sharing/401(k) Council of America announced Friday.

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Thursday, October 28, 2010

Warning: Retirement Disaster Ahead - WSJ.com

Scanned image of author's US Social Security card.Image via Wikipediaby Brett Arends

Don't let the rally in the stock and bond markets fool you. Many Americans are still hurtling towards a retirement disaster. Few realize it. Even many of those running the big pension funds don't know.

That's the conclusion of John West and Rob Arnott at Research Affiliates, an investment management firm, in Newport Beach, Calif. In their latest report, "Hope Is Not A Strategy," they have some numbers to back it up.

"I worry a lot about people reaching their golden years and discovering, 'Oh, I should've saved more,' and 'Oh, I don't qualify for Social Security any more because it's means tested'," says Mr. Arnott, a widely respected market strategist. "We're headed for a retirement train wreck," he adds, "and it's going to get really ugly over the next 15 years."

Alarmist? Perhaps. But follow the math.
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Thursday, October 21, 2010

TIME GOES BY | No Social Security COLA for 2011

Modern Social Security card.Image via Wikipediaby Ronni Bennett

By now, you probably know that for the second year in a row, there will be no Social Security cost-of-living adjustment (COLA) for 2011. At first, I shrugged in resignation (“what else is new these days?”) because it doesn't affect me much.

I may nearly pass out at the price of blueberries at the grocery ($4.99 for six ounces last week) but it is well offset by the amazingly low price of red bell peppers (89 cents each) at one of the stores I frequent. I take only one prescription drug, a generic I get for $5 a month and I doubt heating during the upcoming season could possibly cost as much in my new home in Oregon as fuel oil did in Maine's longer, frigid winters. So no COLA doesn't affect me much, assuming I remain healthy.

Then I looked into it further.

Although it is true that inflation in the past year has been generally flat, that isn't so for elders who spend a larger portion of their income on health care than younger people. Health care costs, according to the Bureau of Labor Statistics (BLS), is up 3.4 percent from a year ago.

The premium for my supplemental coverage increased three percent for 2010, and I don't know yet how much it will go up for next year. There is also a question of prescription drug coverage premiums for 2011. Last year, mine doubled and added a deductible. Then there are, of course, co-pays.

I'm sure you have stories of your own to tell about your health care costs.

Some good news for people whose drug costs are high enough to fall into the doughnut hole, there are no changes scheduled for 2011 except that a 50 percent discount on brand name drugs is now in effect during the doughnut hole period.

According to the National Committee to Preserve Social Security and Medicare (NCPSSM), beneficiaries now spend an average of nearly 30 percent of their Social Security income on Medicare Part B, Part D and out-of-pocket costs. Consider that the average Social Security benefit is $1172 per month which would leave $703.20 for everything else.

In that case, a 3.4 percent increase in health care costs, which doesn't sound like much, is devastating.
In addition, a study [pdf] by the Center for Retirement Research at Boston College reports that for people 65 and older in the lower third of income distribution, Social Security benefits account for 84 percent of their income which has an “enormous impact on whether households fall above or below the poverty line.”

Don't ever forget that no one ever got rich on Social Security. It is intended to provide for basic needs and for 75 years it has helped keep millions of beneficiaries from poverty.

Last year, Social Security beneficiaries received a one-time $250 additional payment. Among all the controversy about the federal stimulus package, the Economic Policy Institute reported in September that although its share of the Recovery Act was very small,
"...this lump-sum payment was one of the quickest-acting components of the overall package - the majority of payments were received just months after the Act was passed (by the end of May 2009).
“This Social Security and SSI payment by itself likely boosted GDP by roughly 0.5% in the second quarter of 2009, which would roughly translate to about 125,000 jobs created or saved due to these payments."
So what is good for elders is also good for the economy.

There is legislation in Congress that would grant another one-time Social Security benefit of $250 in 2011. Both House Leader Nancy Pelosi and Senate Leader Harry Reid have pledged to bring this to a vote after the November election, and President Obama has said he will press Congress for this stimulus.

Noting that “seniors are paying more for utilities and food, experiencing longer periods of unemployment, and spending more on health care and prescription drugs,” AARP has posted a form on their website you can use to urge your congress members to provide elders with “immediate relief.” You can use the letter as is, edit it or delete it and write your own

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Monday, October 18, 2010

As Populations Age, a Chance for Younger Nations - NYTimes.com

My Grandfather (†); photo from January 17.JPGImage via WikipediaBy TED C. FISHMAN

YOU MAY KNOW that the world’s population is aging — that the number of older people is expanding faster than the number of young — but you probably don’t realize how fast this is happening. Right now, the world is evenly divided between those under 28 and those over 28. By midcentury, the median age will have risen to 40. Demographers also use another measure, in addition to median age, to determine whether populations are aging: “elder share.” If the share, or proportion, of people over 60 (or sometimes 65) is growing, the population is aging. By that yardstick too, the world is quickly becoming older. Pick any age cohort above the median age of 28 and you’ll find its share of the global population rising faster than that of any segment below the median. By 2018, 65-year-olds, for example, will outnumber those under 5 — a historic first. In 2050, developed countries are on track to have half as many people under 15 as they do over 60. In short, the age mix of the world is turning upside down and at unprecedented rates.

This means profound change in nearly every important relationship we have — as family members, neighbors, citizens of nations and the world. Aging populations also alter how business is done everywhere.
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Sunday, October 17, 2010

TIME GOES BY | The Future of Today's Elder Workers

by Ronni Bennett

Unoubtedly you saw the news last Monday that the National Bureau of Economic Research (NBER) – the group of economists who read the tea leaves to determine the state of our economy – announced that our great recession officially ended more than a year ago, in June 2009.

Snark Alert: that must have been a relief to 57-year-old Patricia Reid, a college-educated business analyst unemployed for the past four years.

On the same day as the NEBR announcement, she was profiled by The New York Times in a story about middle- and late-aged workers who fear they may never work again.

That's not hyperbole; I learned how real it is even before the economy imploded. Back in 2004-05, I spent a year fruitlessly banging my head against a wall of age discrimination. From my shortened resume and a telephone interviews, 20-something hiring managers thought I was hot stuff, but they quickly backtracked when they saw me in person.

There were still plenty of jobs back then – my young colleagues who were caught in the same layoff I was found jobs in six or eight or ten weeks but not me. I cannot imagine how awful it must be for 50- and 60-somethings looking for work now.

I had no idea then how lucky the timing was when what turned out to be my last job ended. When I gave up looking for work after a year, I was 64, only one year from being eligible for Medicare and two years from full Social Security.

Although I had spent three years with no income during two bouts of unemployment over the previous seven years, had cashed in most of my 401(k) and was tens of thousands of dollars in debt, what I did have was my home in Manhattan which by then was worth about six or seven times what I had paid for it 23 year earlier. And houses were still selling.

Today, most of the middle- and late-aged unemployed don't have the options I had. Many, like Patricia Reid, are years from Medicare and Social Security. They have lost their homes to foreclosure or the value has plummeted, often below what they owe. If they had any savings left after the 2008 crash, they have decimated it to pay living costs. As has been widely reported, those who can find a job are working at salaries far below what they were previously paid.

But those are just words you've read in the news a zillion times. Here is what it means for real life old age:
When they do reach full Social Security age, their benefits will be substantially lower than if they had been able to continue the usual trajectory of their careers.

Those with no choice but to take early Social Security at 62, will see even smaller monthly checks.
Having lost all or a great deal of their savings in the crash or to pay the bills during their unemployment, they will have little or no income in addition to Social Security.

If they lost their home to foreclosure, they will need to rent for the rest of their lives and that won't be easy. Due to so many forced from their homes, rents are returning to premium levels in many cities.

If their mortgage is under water, not only will they see no equity after years of payments, they will owe a substantial amount even if they can sell in today's marketplace.

So, many who did all the right things to prepare for their old age will be living hand to mouth, scrambling to pay for the basics of life every day for the rest of their lives, which can be 25 or 30 years. Is it any wonder across-the-political-spectrum rage at Wall Street salaries and bonuses does not subside?

News stories lament the predicament of recent graduates who cannot find a first job. I feel their pain, but they do have 40 or 50 years to build a nest egg that older workers do not. And aside from that New York Times piece last week, there is nary a word about the impoverished old age millions of older people are now stuck with, without recourse. Even if they found a reasonably well-paying job today, there are not the years left in their work lives to repay their debt and recoup their losses.

Nevertheless, most Republicans, tea partiers and some Democrats want to cut Social Security and Medicare.
What brought on my imagining the future of these soon-to-be elders was Saul Friedman's Gray Matters column on Saturday.

He wrote of Ohio Democratic Representative Marcy Kaptur's bill, HR 4318, which would authorize the president to re-establish the CCC, a program that put millions of young men to work during the Great Depression. Those young men were doing mostly physical labor. Kaptur's bill eliminates the age and gender limits, and keep in mind that for every project involving manual labor, there are related support jobs that older people can do.

To me, this a no brainer. We are in desperate times. Young kids just out school can delay their career dreams a few years (as they did in the Depression) to earn some money while helping rebuild the nation's infrastructure, and it would be a lifeline for older workers who otherwise have few options.

I can't think of a better way to spend the next “stimulus” now that the federal government has so munificently helped out Wall Street workers.

Maybe your congressperson doesn't know about Marcy Kaptur's bill. You might want to inform him or her which you can do here in the right column under the header, Get Involved.

TIME GOES BY | The Future of Today's Elder Workers

TIME GOES BY | REFLECTIONS: On Liberalism

by Saul Friedman (bio)

I think I’ve figured out what’s been bothering me about President Obama. He is intelligent, articulate, maddeningly cool, calm and pragmatic and his values seem humane and liberal. But in rejecting any semblance of an ideology, he seems to have no firm set of ideas that guide his policies and to which he is committed, which may explain why he moves so easily to the center.

In sum, I am bothered because I believe he is the personification of the decline of the liberalism I grew up with and generally supported most of my life.

Obama called himself a “progressive” when he was in the Senate. But I can’t imagine him saying, now, what John F. Kennedy said, when asked to define a liberal:
“...someone who looks ahead and not behind, someone who welcomes new ideas without rigid reactions, someone who cares about the welfare of the people...If that is what they mean by a ‘Liberal’, then I’m proud to say I’m a ‘Liberal.’”
If there is a difference between Obama and most of his Democratic predecessors, Roosevelt, Truman, Johnson or Kennedy, all of whom were unafraid to call themselves liberals, it’s that there is no real liberal movement behind him. Indeed, Obama seems to have rejected such a movement, although I’m not sure there is much of what could be called a liberal movement left.

The word “progressive” is empty of commitment or meaning. Liberalism, after all, has a long and honorable place in the history of political thought, and it has meaning, which we are losing.

I’m not talking about the left of center blogosphere which is ephemeral, self-absorbed, splintered and politically fickle. I do not see that it has an abiding set of beliefs or loyalties or interests, beyond the blog, which lasts only as long in the universe as a twitter of text. It goes without saying that the most liberal of blogs have little to do with trade unions, which have been at the heart of the liberal agenda.

But I’m getting ahead of myself, for the tweets of Twitter and Facebook and the blogs have zilch to do with the liberalism in my lifetime.

As I’ve recounted, I came of age in the Brighton Beach section of Brooklyn. A mostly Jewish enclave on the shores of the Atlantic. Our neighbors in nearby Coney Island were Italian. And virtually all of us came from immigrant families who knew enough about politics to have fled the old countries.

In America they joined unions or fellowships like the Workmen’s Circle and the Italian American Social Club. But the unions gave that generation and mine great political and, yes, class consciousness and strength.

The International Ladies Garment Workers’ Union, the rival Amalgamated Clothing Workers, the Furriers, the Cloakmakers and Hatmakers were among those, mostly Jewish-led, unions that became powerful and wealthy New York institutions that even built housing for workers.

Elsewhere in America, the Boston Irish organized the men and women who worked in the textile mills of New England; the United Mine Workers of the legendary John L. Lewis brought some semblance of sanity, dignity and safety to the mines of West Virginia and Pennsylvania.

The International Workers of the World (the Wobblies) organized with bloody struggles against company goons, the copper mines of Montana and the far west and gave us songs like Joe Hill.

In Michigan, the United Auto Workers with the Reuther brothers were born in radical sit-down strikes in which they and their families took over the factories to fight the violence from Ford’s strikebreaking thugs. Longshoremen, merchant seamen, retail store workers, waiters and newsmen were organized, despite the lack of laws, to protect their right to do so.

The politics of these workers – and most did not bother to vote – ranged across the ideological spectrum: anarchist, communist, syndicalist, socialist, incipient fascist and Democrat. But no Democrat had been elected since Woodrow Wilson; the progressive Republican era of Theodore Roosevelt had died and very few working Americans had anything in common with the then dominant Republicans of Herbert Hoover and his ultra-conservative Treasury Secretary, Andrew Mellon, who was a social Darwinist believing, after the 1929 market crash, in the economic survival of only the fittest.

The obvious political vacuum was explored first by the unsuccessful 1928 presidential candidacy of New York’s Irish Catholic governor, Al Smith. But it was left to Smith’s vice-presidential pick and his successor in Albany, New York Governor Franklin D. Roosevelt to put together a coalition of union workers, big city ethnic groups from immigrant backgrounds who had been left out of American politics and family farmers who had lost almost everything in what came to be known as the Great Depression.

Catholics, Jews, southerners (who boycotted the party of Lincoln) and midwestern Protestants choking on the barrage of dust that buried their farms – these were among the forces that came together for the Roosevelt landslide in 1932.

Some revisionist historians claim the New Deal was an afterthought, tailored by a pragmatic president to meet the crises of the Depression. But the fact is that the Roosevelts – Franklin and Eleanor – were keenly aware of the suffering among the people who voted for them. As Roosevelt said,
“I see one-third of the nation, ill-clothed, ill-housed and ill-fed.”
And unlike too many Democrats, before and after him, he moved not to the center but to the left. With the help of advisors, his “brain trust,” many of them from Yale and Jewish, he fashioned policies that kept faith with the people who voted for him. He was proud to fight those who didn’t.

The New Deal gave the people who voted for him jobs through the Works Progress Administration and the Civilian Conservation Corps. But more important and longer lasting was the National Labor Relations Act which protected the right to organize labor unions; the Wages and Hours Law, which institutionalized the 40-hour week; the Child Labor Laws; and, as part of the Social Security Act, unemployment insurance.

The New Deal took on the Andrew Mellons and the banks, curbing runaway speculation with Glass-Steagall and the National Banking Act; the Wall Street barons with the Securities and Exchange Commission; and the commercial pirates with the Federal Trade Commission.

No small part was played by Roosevelt's talented cabinet appointees including Interior Secretary Harold Ickes, Treasury Secretary Henry Morgenthau, Labor Secretary Frances Perkins and the Agriculture Secretary, Henry Wallace.

In short, the New Deal became the expression of modern American liberalism which saved capitalism from the demands of those more radical and angry socialist and communist elements of the American working classes, but moderated and transformed the excesses of the free and unfettered market.

Those, of course, are the hallmarks of social and political liberalism in an industrial society.

The Depression dragged on, with some improvement, until the great stimulus of the Second World War. But as Wikipedia notes,
“[T]he programs of the New Deal were extremely popular, as they improved the life of the common citizen by providing jobs for the unemployed, legal protection for labor unionists, modern utilities for rural America [through the great dams in the west, the Tennessee Valley Authority and the Rural Electrification Association], living wages for the working poor and price stability for the family farmer.”
Because Roosevelt remained faithful to those who brought him to the presidency, the voters stayed with him through his death in 1945, as he led the nation out of its traditional isolationism towards Europe to help his friend Winston Churchill and the Soviet Union’s Joseph Stalin confront the threat of fascism.

And even while fighting a two-front war against Hitler and the Japanese Empire, Roosevelt built on his New Deal with his call for Four Freedoms and the organization of the United Nations with Eleanor as it early ambassador.

Indeed, the Roosevelt-liberal coalition and the Democrats as the nation’s majority party, remained generally intact through 1968, the end of the presidency of Lyndon Johnson who had been a New Deal member of Congress. As President, Johnson renewed the liberal agenda with Medicare, Medicaid and landmark civil rights laws.

Alas, beginning with the Cold War and the rise of McCarthyist red-baiting, liberals in self-defense, joined in the anti-communism fervor, which led America into two winless wars.

But despite the elections of Republicans Dwight Eisenhower, Richard Nixon and Ronald Reagan, most of the great pillars of New Deal Liberalism – the labor laws, Social Security, the SEC, the FDIC and the FTC stood the test of turbulent times.

To the country’s great shame, one of the most important elements of New Deal liberalism, the Glass-Steagall Act, was killed under a Democrat, Bill Clinton, in 1999, and the nation has not yet paid the price of turning the banking industry and Wall Street loose on the American economy. (Clinton, caving in to the demands of Newt Gingrich, also permitted the beginning of the privatization of Medicare.)

The end of Glass-Steagall, which was murdered by Clinton’s banker, Treasury Secretary Robert Rubin and his sucessor, Lawrence Summers, was, in large part, what marked the decline of my brand of liberalism. Clinton, proud to be a centrist, had declared, “the era of big government is over.” And he hailed the end of Glass-Steagall giving a signing pen to Sanford Weill of Citigroup who gave the top job in the company to Rubin.

Thus, according to the acerbic journalist Chris Hedges, liberal government and governance of the robber barons had been replaced by the worship of Wall Street and corporatism. At the same time, as Robert Higgs wrote in a preface to Arthur Ekirch’s book, The Decline of American Liberalism,
“[L]iberalism once meant embrace of commerce and material progress, but this presumes an environment of peace and diplomacy as a means of resolving conflict...Liberals embraced militarism and dragged liberalism down with it. That dramatic shift led to the invention of this creature called conservatism.”
Hedges, a Pulitzer Prize winning former correspondent for The New York Times, goes further. He wrote for Truthdig on September 13,
“There are no longer any major institutions in American society, including the press, the educational system, the financial sector, labor unions, the arts, religious institutions and our dysfunctional political parties, which can be considered democratic.
“The intent, design and function of these institutions, controlled by corporate money, are to bolster the hierarchical and anti-democratic power of the corporate state. These institutions, often mouthing liberal values, abet and perpetuate mounting inequality....
(See the latest census figures documenting that inequality; the rich are getting very rich and the poor are mostly out of work).
“The menace we face does not come from the insane wing of the Republican Party...but the institutions tasked with protecting democratic participation....Do not fear the tea party movement, the birthers, the legions of conspiracy theorists...Fear the underlying corporate power structure, which no one, from Barack Obama to the right wing nut cases...can alter.”
He quotes my old friend, Ralph Nader:
“The corporate state is the ultimate maturation of American-style fascism. They leave wide areas of personal freedom so that people confuse personal freedom with civic freedom...But they do not have the freedom to participate in the decisions about war, foreign policy, domestic health and safety issues, taxes or transportation...
“[T]he price of the corporate state is a deteriorating political economy...the question is, at what point are enough people going to have a breaking point in terms of their own economic plight..to say, enough is enough.”
Hedges concluded:
“The failure of the Obama administration to use the bailout and stimulus money to build public works...has snuffed out any hope of serious economic, political reform coming from the corporate state...the rot and corruption at the top levels of our financial and political systems, coupled with the increasing deprivation felt by tens of millions of Americans are volatile tinder for a horrific right-wing backlash in the absence of a committed socialist alternative.”
Or the kind of committed, grass roots and trade union-based liberalism that has been part of the American tradition. Perhaps it lurks somewhere among the blogs. Perhaps.

TIME GOES BY | REFLECTIONS: On Liberalism
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Friday, September 24, 2010

Young or old: Who’s suffering more in this economy? | Analysis & Opinion |

An old Social Security card with the "NOT...Image via Wikipediaby Mark Miller

The numbers are dismal: the U.S. Census Bureau reports that the poverty rate rose sharply last year to 14.3 percent, the highest since 1994. Forty-four million Americans were below the official poverty line, and one out of every five children were considered poor.

If there’s a silver lining in the annual poverty report, it seems to be this: Seniors were relatively unscathed by the harsh recession that started in the fall of 2008. The poverty rate for Americans over 65 fell from 9.7 percent to 8.9 percent. And, while income was flat or down for every other age group, seniors’ income rose a whopping 5.8 percent.

At first glance, the numbers seem to point to a generational divide, with older Americans in an economic lifeboat at a time when the ship is going down.

Unfortunately, the lifeboat is leaky, too. Social Security has played a critical role lifting millions of seniors out of poverty, but the big gains last year are due to a series of one-time events that won’t be repeated. In fact, the long-term economic prospects for older Americans are no better than those facing younger age groups.
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Monday, September 20, 2010

The Bay Citizen - Officers See More Sick and Elderly Selling Prescription Drugs - NYTimes.com

Image representing New York Times as depicted ...Image via CrunchBaseby Shoshana Walter

In Gregory Watts’s 13 years as a San Francisco police officer, he has arrested countless drug dealers. But only recently did he begin to notice that many of them resembled his grandparents.

Easy access to prescription drugs, the authorities said, has created a growing population of the elderly, sick or disabled who sell their medications on the street, often to support themselves financially or to raise money to buy harder drugs.
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Tuesday, September 14, 2010

Jobless are straining Social Security's disability benefits program

Scanned image of author's US Social Security card.Image via WikipediaBy Michael A. Fletcher Washington Post Staff Writer

The number of former workers seeking Social Security disability benefits has spiked with the nation's economic problems, heightening concern that the jobless are expanding the program beyond its intended purpose of aiding the disabled.

Applications to the program soared by 21 percent, to 2.8 million, from 2008 to 2009, as the economy was seriously faltering.

The growth is the sharpest in the 54-year history of the program.
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Sunday, July 25, 2010

Recession deals a double blow to those both disabled and unemployed

new symbol wheelchair
Image by RodolfoManfredi via Flickr
By Donna St. George Washington Post Staff Writer

If he had his wish, Alex Maltby would be working with autistic children as a classroom aide, the best job he ever had. Instead, he is at his mother's kitchen table in Silver Spring pondering job possibilities -- 33 years old and visually impaired, looking for a way to make a living. The search has gone on and on.


It is a brutal job market for many workers, but even more so for those with disabilities, who can struggle in the best of times. For them, the unemployment rate is now 14.4 percent -- 50 percent higher than it is for other workers, and the jobs gap is larger still because so many are not counted as being in the workforce.

"The job situations for many people with disabilities are more precarious and less stable," says John Butterworth, a senior research fellow at the Institute for Community Inclusion at the University of Massachusetts in Boston.
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Friday, July 2, 2010

New Fiscal Year Brings More Grief for State Budgets, Putting Economic Recovery at Risk — Center on Budget and Policy Priorities

Missouri State CapitolImage by dj @ oxherder arts via Flickr
By Erica Williams, Phil Oliff, Ashali Singham and Nicholas Johnson

Dismal state revenue collections caused by the severe recession are setting the stage for a new round of state budget cuts as fiscal year 2011 begins in most states on July 1. The states’ cumulative budget shortfall will likely reach $140 billion in the coming year, the largest shortfall yet in a string of huge annual gaps that date back to the beginning of the recession. Closing it will have severe effects on services and jobs.

In many states, the new fiscal year will bring immediate cuts to programs and services that are facing unprecedented demand. As of July 1, 10,000 families in Arizona will lose eligibility for temporary cash assistance; Georgia will lay off as many as 284 workers who help low-income families enroll for food stamp, Medicaid and TANF benefits; and Kansas will cut off nearly 2,800 individuals with a disability from independent living services. Education, health care, and other priority areas will also face new cuts in the coming fiscal year — on top of extensive cuts that at least 45 states have enacted over the last two years.

States are raising taxes as well for 2011. Effective July 1, Kansas and New Mexico increase their sales taxes; Hawaii, New Mexico, New York, South Carolina, and Utah increase their tax on tobacco products; Washington begins taxing soda, and Oklahoma is temporarily suspending various business and energy tax credits. Other changes have already taken effect or will take effect later in fiscal year 2011. Since 2008, more than 30 states have raised taxes or tax-like fees.

Separate and apart from dismal revenue collections, the budget situation for states just got worse. Last week, the U.S. Senate failed to pass jobs legislation that would have extended an enhanced federal match for the Medicaid program that 30 states were counting on to balance their budgets. Without these funds, states will make even deeper spending cuts and more tax increases than previously planned.
These state actions, while necessary to meet state balanced-budget requirements, will nevertheless slow the economic recovery and raise the risk that the nation will fall back into recession as the loss of Americans’ spending power ripples through the economy. States’ actions to close their $140 billion gap without more federal aid could cost the economy up to 900,000 public- and private-sector jobs.

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