Tag Archives: middle class

The working man and woman

Elaine’s Restaurant

Elaine’s Restaurant

Many working men and women are at risk.

We’ve seen it all before, uncertain jobs, reduced compensation, saving less, underwater real estate ownership, renting not owning, little or no medical care, pensions insufficient or non-existent, wanting for food, desperate short term loans, little insurance for the young, a government safety net torn to shreds, and what little we have to leave behind for our family when we die.

Our ship of state is taking us into the roiling waters of insecurity, financial and human, into a field of economic violence, and, ironically enough, it’s the hardworking man or woman who shows up every day, no matter what, to work a job, who will suffer.

In New York, there was a special place on the Upper East Side called Elaine’s – after Elaine Kaufman.  If Elaine liked you, you got a good table.  Writers, artists, film-makers and stars came there.  Not like Studio 54.  No.  They came to eat, to talk, to see and, yes, be seen.  No dancing.  No drugs either.  Woody Allen would always sit in the back, and sometimes he’d play a tune on the piano.

It was a cramped and cozy getaway that didn’t awake until most everyone else had gone to sleep.  Elaine would seat the “special” guests up toward the front opposite the bar on the other wall.  The glitterati would sit up against the wall, one removed from the passerbyes heading for a table in the rear.

One night I came in and Elaine talked a bit, spun me around and sat me at a table up front, facing toward the back.  When I adjusted my seat, and turned to my right, I said, “Hello,” before I could see who it was.  It was the Pulitzer prize-winning playwright, Arthur Miller.  There was a revival in “town” of his award-winning play, “Death of a Salesman.”

“Salesman” is a truly sad story about a working man turned 60.  No longer appreciated.  Men and women cried when they saw Miller’s play.  They couldn’t get up from their seats, the play had such an effect.  Continue reading

Saving For A “Rainy Day” – Not Really!

Saving for a “rainy day” (Photo by John P. Flannery)

Saving for a “rainy day” (Photo by John P. Flannery)

A recent poll said that 40% of our friends and neighbors have made their New Year’s resolution – to save more – in savings accounts, automatic transfers, savings bonds, and certificates of deposit.

We once did save at a decent rate.  Our national saving rate was 12.2% in November 1981.  But the rate fell like a stone starting in 1982 and went as low as less than 1% a number of times between 2000 and 2010.  Easy credit meant you didn’t have to save – so some wrongly thought.

The rate climbed back up when the 2008 recession hit, going from 1.3% in January 2008 to 4.2% in December of 2009.

The latest report from the U.S. Department of Commerce, from the Bureau of Economic Analysis, says our current rate of savings is an anemic 4.2%.

The dilemma for families that want to save is that they likely owe in debt at a higher interest rate than what they can get saving their money.  From 1990 to 2008, the nation’s citizens were convinced, Benjamin Franklin’s advice to the contrary notwithstanding, that being a borrower was not so bad.  Unfortunately, if a nation’s citizens don’t save, then the nation has to borrow from other nation-states who do save. Continue reading