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We could have told them.

Although the experts have finally declared the Recession “official”, we‘ve all watched the financial melt-down across the country. And we know first-hand of neighbors and friends who have lost their jobs and don’t know where they’ll go from here.

Right now, the present national administration is trying to hold back the avalanche by throwing unheard-of amounts of cash at the problems, while the incoming crew (who promised us “change”) already signal that they will continue throwing even more of the borrowed money. Maybe all this “stimulation” will work in the long run, but any realist has to admit that the coming year will be a tough one and all sorts of organizations and people will be running on the rims trying to stay alive.

Most of this federal bailout money (for which we will ultimately be responsible) is aimed at covering bad loans and opening up credit lines — so we can go out and buy more on over-extended credit? Isn’t that how we got in the mess in the first place? Perhaps The Indianapolis Star (among others) summed up things about as well as any in their editorial Saturday: “All of these numbers (excessive debt, low savings) point to one conclusion: If spending habits on the federal and the personal level don’t change, a hard day of reckoning awaits.”

What Can We Do About It?

Enough of the gloom. This country is resilient enough eventually to climb out of the hole we’ve dug for ourselves. But what about the near future? What can we all do now? Nobody will like this answer: We’ve all got to expect less for awhile. We’re all going to take a hit, one way or another. A few will find a way up, most won’t, many can’t. To make the adjustments that are needed, we have to break the habit of always expecting more-more-more, at least during this period. And we’ll have to give extra help to those who need help most.

We can find examples in our own back yard (which nobody likes to do – we’re better at blaming General Motors and Citibank). Even our police and firemen can’t have all they need or want, because the current budget won’t allow it. The local school board and the teachers union are at an impasse over a pay increase, with the union asking for a 4% raise that would approach a total extra cost of one million dollars, which the board says is not there. Everybody wants a raise, but is this the time for one?

We have many fine teachers and some definitely deserve a raise. But let’s be realistic (if possible). Jobs as policemen, firemen and teachers are pretty solid jobs right now, compared with those in the private sector where hundreds of good people are being turned out into the streets. Beginning teachers are hired locally at $33,896 a year. The average pay for the local district is $48,900, and one with 20 years of service is $60,575. Most of us on the “outside” might think that’s pretty good for 185 work days a year, plus tenure that assures job protection, comprehensive medical insurance, and a pretty good pension plan. Is it enough? I don’t know. Teaching is a demanding job (so are many others), and some of our best teachers deserve much more. But the downward spiral right now argues that this is not the time for “more.” Hopefully later, when things improve.

Hold On To Your Job

What we are seeing is a time when nobody, generally speaking, can be raising their “price.” This is taken care of more or less automatically by private business, if it is competitive. Even prices at the mall are going down this season. Other businesses are having to cut their expenses and lower their prices to attract customers. It’s hard to develop much sympathy for anyone earning $40,000-$50,000 in secure jobs. On the other hand, we can sympathize with widows living on Social Security and single parents lucky to bring in $20,000 from a full-year job.

All this highlights the difference between private business and government operations. Business either adapts to these pressures with lower prices and reduced employment or they are gone. On the other hand, not much government is reduced and fewer jobs are eliminated. Nobody involved is going to like this said, but if you have a government job right now, consider yourself lucky; it will probably still be there. But remember, all government is paid for by taxes, which are sure to decline if business and individuals have less income. Non-profit organizations, such as social service agencies and higher education, live on voluntary contributions that will take a hit if their supporters are struggling.

In a sense, we are all in this together. Although we can’t blame anyone for wanting “more”, in the next few months and year, we have to back off on demands for personal gain if we are going to have enough left to help those in need and finance causes such as non-profits and education we all support. This is especially true of education. Holding the line there could even free-up funds to provide extra help our children need. It might even be the most selfless contribution our teachers can make in assuring that our children have the best education possible.

–Vic Jose

Vic Jose :: Dec.03.2008 :: Uncategorized ::

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