Hard looks at joblessness, retirement funding, and Generation Jones

Many members of “Generation Jones,” that span of late Boomers and early Gen Xers who are in their middle years, face tough times right now. This cohort has been hit especially hard by the ongoing economic crisis, with many losing jobs in mid-career and finding it difficult to obtain new employment and to save for retirement.

Decades ago, many Gen Jonesers confronted a rough economy while launching their work lives. During the late 70s and early 80s, the economy was in severe recession, inflation ran very high, and employers were cutting back or eliminating pension plans. Academic studies indicate that graduating into a recessionary economy can impair earning power for years. So this group has been unlucky in terms of both entry-level and mid-life labor markets.

I concede my bias on this topic. I’m a member of Generation Jones, and these realities are hitting many among my age group. As the following pieces indicate, we’ve got a lot of work to do in order to rebuild both opportunity and a safety net. Here goes:

Ann Brenoff, blogging for the Huffington Post, says that she’s bombarded by advertising appeals from retirement planners, but the real problem is that most people lack sufficient funds to invest for retirement, period:

My inbox is bombarded daily with pitches from retirement planners who claim to hold the secret to my “dream retirement.”

…Here’s the problem I have with them: They ignore the elephant in the room, which is, it’s too late for most boomers to join their party. Spending less and saving more — if even possible — won’t close the gap between what we have and what we will likely need.

…What I don’t understand is why everyone isn’t talking about the crazy awfulness that awaits us — and by us I mean the vast majority of people who are woefully unprepared for retirement.

How much money do we need to save for retirement? Paul B. Brown, writing for the New York Times, discusses a new book by finance professor and investment expert Richard C. Marston, Investing for a Lifetime:

Although Fidelity Investments garnered a lot of attention two years ago when it declared that you would need eight times your current salary to “meet basic income needs in retirement,” Mr. Marston disagrees. “Despite the fact that it is very difficult to save eight times income, the goal the company proposed seemed too low to me,” he says.

If you thought eight times current income was daunting, Mr. Marston’s default position will stun you. He says it can easily come to 15 times what you are earning now.

Okay, so Prof. Marston recommends saving fifteen times one’s current income?! Only the tiniest percentage of U.S. workers have retirement portfolios on track for that. The gap between the realities facing most Americans and the numbers being recommended by personal finance experts is bonkers, simply mind blowing.

Kevin Kusinitz is a 58-year-old writer who has been unemployed for nearly two years. In this piece for Next Avenue, he reflects upon being part of an age group being passed over for jobs but too young (and broke) to retire:

Like a lot of people around my age, I really didn’t pay close attention to the unemployment situation until I was in the thick of it myself. It was only then that I started reading the heartbreaking stories of perfectly good workers in their 50s who, like me, were shown the door by middle managers all apparently sharing the title: Executive Vice President of Keeping My Own Job by Any Means Necessary.

After decades as a right-of-center kind of guy, I was shocked to wake up one day thinking, “Oh my God, now I know what Michael Moore has been talking about all this time.”

…I’m no sociologist but I predict if this trend keeps up (and, frankly, why shouldn’t it?), the next decade is going to see a spike in older people moving in with their adult children, becoming homeless or even committing suicide because they will have no other options.

Jessica Bruder, writing for Harper‘s, explores the subculture of older American workers who have lost steadier jobs and who now roam the country in vans and camping vehicles in search of extended part-time work such as seasonal tourist sites and warehouse gigs. You’ll have to get a copy of the August issue or subscribe to access the online edition, but here’s the lede from her story:

On Thanksgiving Day of 2010, Linda May sat alone in a trailer in New River, Arizona. At sixty, the silver-haired grandmother lacked electricity and running water. She couldn’t find work. Her unemployment benefits had run out, and her daughter’s family, with whom she had lived for many years while holding a series of low-wage jobs, had recently downsized to a smaller apartment. There wasn’t enough room to move back in with them.

“I’m going to drink all the booze. I’m going to turn on the propane. I’m going to pass out and that’ll be it,” she told herself. “And if I wake up, I’m going to light a cigarette and blow us all to hell.”

Her two small dogs were staring at her. May hesitated — could she really envision blowing them up as well? That wasn’t an option. So instead she accepted an invitation to a friend’s house for Thanksgiving dinner.

Tom Raum, writing for the Associated Press, examines the flattened “workforce-participation rate”, i.e., the total number of employed + job seekers, and reports that many of the long-term unemployed are simply dropping out of the labor market after efforts to obtain jobs have been repeatedly unsuccessful:

But perhaps the most significant factor is unemployed workers “who just drop out of the job market after one, two or three years of looking for work and not being successful,” said Carl Van Horn, a professor of public policy at Rutgers University who studies workplace dynamics and employment trends.

Recent surveys suggest more and more long-time unemployed workers are abandoning the search for another job and leaving the nation’s workforce.

“And they are disproportionately older workers,” Van Horn said. “We have a large number of older (unemployed) workers who are not old enough to retire, yet they are facing discrimination in the workplace and have found it nearly impossible to get another job.”

Is the Social Security system about to go under? You might believe so if you listen to hard right pundits who demonize anything to do with a government safety net, but in reality Social Security is doing much better than many private and public pension and savings plans. This article in YES! magazine offers a more sensible look at the situation. In an excellent set of infographics, managing editor Doug Pibel explains that the Social Security Trust Fund has sufficient funds to pay out expected benefits for the next two decades and that relatively manageable tax fixes can ensure its longer term viability:

Social Security will never “go broke.” As long as people are working, Social Security will have money. . . . There is now $2.8 trillion in the Social Security Trust Fund, which will fully cover expenses for about the next two decades. To make it work after that is pretty painless — we just have to decide who pays.

So far, Congress has refused to extend unemployment benefits for the long-term jobless, a policy choice that disproportionately affects older individuals who have been experiencing severe difficulties re-entering the workforce. In a piece for FiveThirtyEight.com, Ben Casselman explains that arguments against such an extension aren’t panning out:

The case against extending unemployment benefits essentially boils down to two arguments. First, the economy has improved, so the unemployed should no longer need extra time to find a new job. Second, extended benefits could lead job seekers either to not search as hard or to become choosier about the kind of job they will accept, ultimately delaying their return to the workforce.

But the evidence doesn’t support either of those arguments. The economy has indeed improved, but not for the long-term unemployed, whose odds of finding a job are barely higher today than when the recession ended nearly five years ago. And the end of extended benefits hasn’t spurred the unemployed back to work; if anything, it has pushed them out of the labor force altogether.

The so-called economic recovery isn’t that for millions of Americans. Long-time populist political commentator Jim Hightower takes issue with, among other things, the positive spin being applied to new jobs created since the worst of the meltdown:

So, it’s interesting that the recent news of job market “improvement” doesn’t mention that of the 10 occupation categories projecting the greatest growth in the next eight years, only one pays a middle-class wage. Four pay barely above poverty level and five pay beneath it, including fast-food workers, retail sales staff, health aids and janitors. The job expected to have the highest number of openings is “personal care aide” — taking care of aging baby boomers in their houses or in nursing homes. The median salary of an aid is under $20,000. They enjoy no benefits, and about 40 percent of them must rely on food stamps and Medicaid to make ends meet, plus many are in the “shadow economy,” vulnerable to being cheated on the already miserly wages.

MIT’s Institute for Career Transitions conducted a pilot project to coach and advise the long-term unemployed, with hopeful results. In order to measure the potential benefits of providing this assistance, the three-month project included a group who received help and a control group who did not. WBUR’s Benjamin Swasey reports:

Long-term unemployment — which, according to [MIT professor and Institute director Ofer] Sharone, disproportionately affects older workers — is at 2.3 percent of the nation’s workforce, a historically high level. More than 38 percent of America’s unemployed job seekers have been out of work six months or more.

. . . “We have a ton of studies showing that once you hit the six-month [jobless] point, by so many indicators it becomes a real crisis,” he says. “It’s a financial crisis. It’s an emotional crisis. And then when you get to this scale of numbers, it’s a social crisis. We’re losing out on a whole cohort of workers.”

. . .Of the group that got support, 30 percent obtained a full-time job or contract work of at least four months. That compares to just 18 percent from the group that received no aid.

“It clearly shows that the job market is very, very tough, even for someone in an ideal situation,” as “most people did not get jobs,” Sharone says. “On the other hand, I think we can say that there’s a meaningful difference to getting support.”

How do the challenges specially facing this age group connect to other social and economic policy issues? Here’s one article that helps us to grasp the bigger picture: In an op-ed piece for the Boston Globe, writer Neal Gabler predicts how historians of the future will regard the current American era, and his assessment is not a positive one. Here are a few snippets:

Historians will wonder…how the gains of social and economic equality that were a century in the making were reversed, and, above all, how the country actually became less democratic, often with the acquiescence of many ordinary Americans.

The first thing historians are likely to fasten on is the historic economic inequality in America today.

…They will look at the nation’s…reluctance to embrace health reform that would provide insurance to those who cannot otherwise afford it, its willingness to cut benefits, like food stamps, that primarily help the young and the elderly, its grudging extension of unemployment benefits to people afflicted by the economic downturn.

…I suspect that historians will view this as a terribly bleak period — another Gilded Age but worse.

…And they will wonder: Why there was so little resistance?

What to do???

If any of these articles offered clear-cut, comprehensive solutions to the crisis, I would be highlighting them. Unfortunately it appears that we’re flying without radar here. Furthermore, as Neal Gabler’s Boston Globe piece suggests, I don’t think the American public is sufficiently aware of the systemic nature of this crisis to be able to connect the dots in ways that lead to political consensus. Right now, employment and retirement remain individual challenges rather than shared priorities, reflecting the social and political ethos in which Gen Joners have spent their adult lives.

I do think that reorienting our views on community and society is an important, necessary start toward addressing the situation. Last week I wrote about competing visions of the future, one being a “technological, top-down, service society,” the other being a world of “useful work, peace, self-fulfillment, and appropriate technology leading to harmony with the environment.” We need this latter view to take hold if we are to reverse the rampant individualism and selfishness that soon may resemble passengers on a sinking ship fighting over too few spaces on the lifeboats (with a small few already having reserved seats). Either our better natures will rise to the occasion, or history will judge us harshly, and deservedly so.

******

Related posts

I’ve been writing about the burgeoning retirement funding crisis since the first year of this blog. Go here to start scrolling through those articles. In addition, here are three pieces especially relevant to this post:

The three-pronged political attack on the very notion of retirement (except for a few) (2013) — “In America, the very notion of a relatively safe and secure retirement is under relentless attack…. This is not by accident. Only when you connect the dots do you see a unifying force, and it’s very, very political. We haven’t been comprehending how the pieces come together….”

My Labor Day 2013 wish: Good, stable, bully-free jobs for Generation Jones (2013) — An extended commentary, echoing many themes raised here, covering topics such as age discrimination, workplace bullying, and mental health impacts relevant to Gen Jonesers, as well as potential public policy responses.

Suicide and the Great Recession: Will we heed the tragic warnings? (2013) — “In this era of the Great Recession, suicide has become a leading cause of death in America, especially among the middle-aged, and it is to our shame as a society that this reality is not an ongoing, dominant focus of our attention.”

Blog subscriptions

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The prices we pay for stuff: A value system gone haywire?

Earlier this spring, the New York Times reported on an interesting and disturbing twist: Over the years, “wired” devices and electronics have plummeted in price, while the costs of education, health care, and child care have shot up. Here’s Annie Lowrey, reporting:

Since the 1980s, for instance, the real price of a midrange color television has plummeted about tenfold, and televisions today are crisper, bigger, lighter and often Internet-connected. Similarly, the effective price of clothing, bicycles, small appliances, processed foods — virtually anything produced in a factory — has followed a downward trajectory. The result is that Americans can buy much more stuff at bargain prices.

Many crucial services, though, remain out of reach for poor families. The costs of a college education and health care have soared.

…Child care also remains only a small sliver of the consumption of poor families because it is simply too expensive. In many cases, it depresses the earnings of women who have no choice but to give up hours working to stay at home.

Add to that the high costs of quality, unprocessed food and good, safe housing and you have a pretty fair idea of what’s more affordable in terms of everyday needs and wants. One could say this reflects a value system gone haywire, where basic health, education, nutrition, and housing needs are harder to pay for, while the latest digital gizmos are relatively affordable.

It’s something to think about the next time you see a person who appears to be homeless talking on a cellphone.

Exorbitant student loan debt: The biggest “duh” crisis ever?

Natalie Kitroeff reports for the New York Times on the impact of student loan debt on the ability of graduates to rent or buy real estate in New York City:

For young people, moving to New York City hasn’t made much mathematical sense for decades. The jobs don’t pay enough, the internships don’t pay at all, and the rents are prohibitive by any sane standard.

But now add a new economic fact of life to that list: soaring student loan debt. More students are taking out bigger loans than ever before, and in the last 10 years alone, education debt tripled, reaching over $1 trillion. A record number of college students are graduating knee deep in a financial hole before they begin their adult lives.

She adds that some big-name economists are weighing in on the broader implications for the economy:

Economists are worried. Last month, former Treasury Secretary Lawrence Summers said that student loan debt was taking the life out of the housing recovery, and the Nobel laureate Joseph Stiglitz called the rising debt “an educational crisis” that is “affecting our potential future growth.”

I’m not criticizing the article — a good piece that includes profiles of recent graduates struggling with NYC’s real estate market and their student loan payments — when I say this:

We are at least two decades late in labeling the student loan debt situation a “crisis.”

Today, you’ll find plenty of news and commentary covering the student loan debt crisis. Elected officials are considering policy options as well. But the problem was in the making years ago, and the implications were clear to anyone who was paying attention.

In the 1980s, tuition levels began to soar above the rate of inflation, while grants and scholarships gave way to student loans as the primary form of financial aid, often at high interest rates. These trends continued largely unabated through the current economic meltdown.

Yeah, I take this one a bit personally. Over the years I’ve experienced a lot of eye rolls and sighs in faculty meetings when I’ve warned about a looming crisis in student loan debt and the role of legal education in stoking it. I’ve also been vocal on the impact of heavy debt on graduates who want to enter public service.

As with most overlooked crises, so much of the damage already has been done, placed on the shoulders of heavily indebted graduates. We’d better act quickly and meaningfully if we want to stop this one from getting even worse.

The dignity of a living wage

Across America, labor activists and other progressives are calling for a higher federal minimum wage, often citing the personal financial challenges that confront low-paid retail and fast food workers. The current minimum wage is $7.25/hour, though some states have adopted a slightly higher one. Advocates are calling for a new minimum wage ranging from $10.00 to $15.00 an hour.

Whenever a minimum wage hike is proposed or debated, opponents claim that doing so will reduce jobs. At the far end of that spectrum, virulent opponents of any minimum wage law claim that such government mandates are “job killers.”

Yes, I suppose if you got rid of the princely $7.25/hour minimum wage, you could take the same hourly rate and pay three people $2.00/hour and still have a $1.25/hour as a bonus for the CEO. But that’s not “job creation,” it’s exploitation. Take away the minimum wage and you get a labor situation like that in Bangladesh, where wealthy corporations pay factory workers a pittance and subject them to dangerous working conditions. (After all, American factory jobs moved overseas to avoid paying workers good wages and benefits!)

Current minimum wage and low-wage earners often find themselves having to access public benefits such as food stamps to get by. The low minimum wage means, in effect, that American taxpayers are indirectly subsidizing corporations such as Walmart and McDonald’s and their shareholders by supporting living expenses for workers who can’t afford to live on their paltry paychecks alone.

Above all, we need to frame this debate in terms of human dignity. Okay, so maybe that high school senior from an upper middle class family who works part-time to earn spare cash can get by on $7.25/hour. But for those supporting themselves and others, a full-time job at least should pay for the basics. In fact, let’s remember that Congress’s intent behind enacting the federal minimum wage law during the heart of the Great Depression of the 1930s was to provide a living wage. It’s a shame that we have to invoke the hardship of our last systemic economic meltdown to remind ourselves of that.

Bookends of a coming mega-meltdown

Twenty or so years from now, Americans will look back and ask: Why didn’t we do more? Why didn’t we accept some modest sacrifice to avoid the extreme suffering of today? Why did we ignore what was so perfectly clear back then?

No, I’m not talking about climate change, though you can add that one too. Rather, I’m looking at the scary, jolting confluence of sky high student loan repayment burdens concentrated on one end of the adult age spectrum, and woeful shortfalls in retirement funding for a majority of Americans on the other. I’ve written on both of these topics before (especially America’s retirement readiness), but let me add one excellent investigative piece and one important study to the mix.

Student loan debt

If you’re in college or grad school, or you’re a parent of someone who is, you likely know the score. Gone are the days when a few thousand dollars saved from the family budget covered a big chunk of a child’s tuition and expenses. Income levels have stagnated for most in the U.S., but tuition costs have soared. And the lion’s share of people seeking post-secondary education must borrow money, often gobs of it, to pay those bills.

If you want more detail, the Rolling Stone‘s Matt Taibbi has written a superb investigative article — Ripping Off Young America: The College-Loan Scandal — that is must reading for anyone affected by the financing of higher education. Here’s a snippet:

How is this happening? It’s complicated. But throw off the mystery and what you’ll uncover is a shameful and oppressive outrage that for years now has been systematically perpetrated against a generation of young adults. For this story, I interviewed people who developed crippling mental and physical conditions, who considered suicide, who had to give up hope of having children, who were forced to leave the country, or who even entered a life of crime because of their student debts.

…[T]he underlying cause of all that later-life distress and heartache – the reason they carry such crushing, life-alteringly huge college debt – is that our university-tuition system really is exploitative and unfair, designed primarily to benefit two major actors.

First in line are the colleges and universities, and the contractors who build their extravagant athletic complexes, hotel-like dormitories and God knows what other campus embellishments….

…Next up is the government itself. While it’s not commonly discussed on the Hill, the government actually stands to make an enormous profit on the president’s new federal student-loan system….

The crisis is compounded by a horrible entry-level job market for recent graduates. It’s hard to pay off those loans and save a bit of money when you’re doing your 5th or 6th unpaid internship.

Retirement funding

In the meantime, at the older end of the population, the nation’s largest generation is hurtling towards the traditional retirement years. The only problem is that many Boomers will be in no position to retire, even if Social Security remains intact. Their numbers just don’t add up.

Recent confirmation of the dire situation comes from the National Institute on Retirement Security, a non-profit, non-partisan research and education center. Its 28-page study, The Retirement Savings Crisis: Is It Worse Than We Think?, by labor economist Nari Rhee, is clearly laid out and alarming to read. Here are the major findings:

New NIRS research finds retirement savings are dangerously low, and the U.S. retirement savings deficit is between $6.8 and $14.0 trillion.

…The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households.  

The findings confirm that the American Dream of retiring comfortably after a lifetime of work will be impossible for many. Based on 401(k)–type account and IRA balances alone, some 92 percent of working households do not meet conservative retirement savings targets for their age and income. Even when counting their entire net worth, 65 percent still fall short.

Where the twain meet

Let us fast forward 20 years and assume we’ve done nothing besides making some minor tweaks to Social Security and lowering the interest rate a tad on student loans.

It’s 2033, and millions of Boomers are working into their 70s and 80s, not by choice, but rather by necessity. The Social Security Trust Fund is running dry, and older Americans who didn’t have, or already burned through, retirement savings are faced with a 25 percent cut to Social Security benefits, funded now on a pay-as-we-go basis by payroll taxes on aging Gen Xers and Millennials.

These younger folks, by the way, are struggling to pay off student loans that are not dischargeable in a bankruptcy proceeding. For many, their finances have required them to make some hard decisions, such as having fewer or no kids.

Of course, this means they’re less likely to be in the market to buy the big suburban houses put on sale by older Boomers looking to downsize their living spaces and reduce living expenses. (It wouldn’t have mattered anyway, as their credit ratings are blown from their student loans and the credit card debt they’ve taken on to make ends meet.)

In the year 2033, many of the Gen Xers and Millennials are hoping to pay off their student loans and modest mortgages (that’s all the house they could afford) by their late 50s. Some of their retirement prospects, by the way, are even dimmer than that of the average Boomer.

In 2033, what we could’ve done now will seem so obvious…

Obvious, but not easy. It will require belt-tightening by institutions and individuals who can afford it, higher taxes on some (including raising the payroll tax cap to beef up Social Security), creative public policies to recreate the retirement system, an all-out war on the student loan racket, more emphasis on community needs, and less tolerance for extravagance, waste, and corruption. Some kindness will go a long way, too.

It may sound like I’m preaching the meme of austerity. No, to the contrary. I’m suggesting that we strive to live comfortable, healthy, safe, and enriching lives rather than be in a state of want. But we’ll need a values adjustment to get there.

(By the way, much of this will help to address global climate change. Less mad, privatized consumption will have a cooling effect on our planet, literally and figuratively.)

Call me Chicken Little, Cassandra, whatever

The sky is falling. But this begs the philosophical question: If the sky falls on Washington D.C. and Wall Street, but no one there heard or felt it, did it really fall?

Seriously, at a time when dramatic measures are needed to avoid terrible societal and individual pain later, our leaders in the private, public, and non-profit sectors aren’t exactly sounding the alarm bells. And much of America is oblivious to, or willfully ignoring, this coming mega-meltdown.

We do have choices, but time is running out.

Working Notes: Next Avenue on Boomer suicides, Gary Namie on workplace bullying targets, and USA Today on unpaid internships

With the weekend in sight, here are three pieces well worth a full read:

Next Avenue on Boomer Suicides

Suzanne Gerber, in a disturbing blog post for Next Avenue, examines the large spike in suicides rates among Baby Boomers during the economic meltdown era:

The Centers for Disease Control and Prevention released a report on suicide rates in this country last week, and the news was shocking. From 1999 to 2010, the age-adjusted suicide rate for 35- to 64-year-olds in the United States was up by 28.4 percent (to 13.7 per 100,000).

The dire economic situation and other pressures may well be the reasons:

Noting that suicide rates tend to rise during times of financial stress — and 2008 might go down in the history books as one of the worst years in modern American history — Dr. Ileana Arias, CDC deputy director, acknowledged, “The increase does coincide with a decrease in financial standing for a lot of families over the same time period.”

…Arias further observed that the spike in suicide rates could be a reflection of a combination of stressors specific to baby boomers. As the sandwich generation, many of us, while fighting our own financial battles, are also taking caring of aging parents, many with dementia, and providing economic and emotional support to our adult children, who are having difficulties launching their own independent lives.

Gary Namie on WBI’s “Target-centric” Perspective

In a lengthy and strongly worded blog post, Dr. Gary Namie of the Workplace Bullying Institute writes that in the mix between bullying target and aggressor, he’s taking the side of the target and won’t apologize for the aggressors. Here’s a snippet:

Are bullies demons? Bully apologists abhor “demonizing” abusers in the workplace. What’s the alternative? Revere them. Thank them for showing us how loathsome and dark can be the human condition? Ignore their cruelty foisted on the best and brightest workers whose principal goal of every day is to be “left alone” to do their jobs? Of course, that’s exactly what bully apologists do. We think they stand on the wrong side of the moral fence.

We at WBI are target-centric. We’ve chosen the other side. We didn’t start the U.S. Workplace Bullying movement to treat it as an academic exercise in neutrality. Targets deserve and need support. Institutions do a fine job of defending perpetrators.

USA Today on Unpaid Internships

Susannah Griffie reports for USA Today on a petition drive by a New York University sophomore to press the school’s career services office to stop listing unpaid internships:

Would you ever work up to 40 hours a week for free?

That’s what many college students do. It’s called the unpaid internship.

New York University sophomore Christina Isnardi is publicly pushing back against the trend of unpaid internships by petitioning the NYU Wasserman Career Center to remove illegal unpaid internship postings on its job search website, CareerNet.

Working Notes: Moyers on wealth inequality, EHS on workplace bullying, adjunct profs organize, and more

Several interesting items worthy of attention:

Moyers on American wealth inequality

Bill Moyers presents an excellent video essay on America’s out-of-control wealth inequality. Click above to watch, or go here for a preview:

The unprecedented level of economic inequality in America is undeniable. In an extended essay, Bill shares examples of the striking extremes of wealth and poverty across the country, including a video report on California’s Silicon Valley. There, Facebook, Google, and Apple are minting millionaires, while the area’s homeless — who’ve grown 20 percent in the last two years — are living in tent cities at their virtual doorsteps.

“A petty, narcissistic, pridefully ignorant politics has come to dominate and paralyze our government,” says Bill, “while millions of people keep falling through the gaping hole that has turned us into the United States of Inequality.”

EHS on Workplace Bullying

Laura Walter, in a lengthy, substantive piece for EHS Today (a periodical for environmental, health, and safety professionals), writes about the effects of workplace bullying. Here’s her lede:

A few years ago, Maria had never even heard the term “workplace bullying.” But by the time she shared with EHS Today the path her professional life has taken in recent years, she used words like “traumatized,” “powerless,”  “hostility,”  “retaliation,”  “mafia” and “war zone.” All this from a self-described happy, optimistic person who loved her job as a nurse and who never expected to become the target of bullying at work.

Dr. Gary Namie and the work of the Workplace Bullying Institute are featured prominently in this article.

Adjunct Professors Organizing

SEIU, America’s largest service workers union, is organizing part-time faculty in colleges and universities. Overall, adjunct professors comprise one of the most exploited groups in higher education, receiving paltry salaries and minimal, if any, benefits in return for heavy-duty teaching responsibilities. Peter Schmidt reports for the Chronicle of Higher Education:

A national labor union that has made strides in organizing adjunct instructors in Washington, D.C., and its Maryland suburbs is starting a similar regional campaign in Boston and is planning one in Los Angeles, too.

Service Employees International Union developed its “metropolitan” organizing strategy out of a belief that, by unionizing adjuncts at enough colleges in a large, urban labor market, it can put other colleges in that area under competitive pressure to improve their own adjunct instructors’ pay and working conditions.

As the article points out, Boston is among the cities selected for organizing efforts. On Saturday, Massachusetts Adjunct Action held a symposium at the Kennedy Library, drawing participants from some 20 area schools. Go here for social media commentary on the event.

Unpaid Internships Across the Pond

Peter Walker reports for The Guardian that the British government will investigate 100 firms for potential violations of wage laws stemming from their use of unpaid interns:

The government has referred 100 companies for investigation by HM Revenue and Customs after a campaign group told ministers they might be breaking the law through their use of unpaid interns.

The firms, which have not been identified publicly but are understood to include a number of household names, were referred by Jo Swinson, the junior employment minister, after a meeting she had with Intern Aware, which campaigns against the abuse of the internship process.

I hope this will inspire unpaid intern activists and the U.S. Department of Labor toward similar initiatives!

Hat tip to “Interns ≠ Free Labor” Facebook group

Fidelity exec on U.S. retirement savings

Fidelity’s head of asset management told the U.S. Chamber of Commerce that America faces a crisis in terms of retirement readiness. Beth Healy reports for the Boston Globe:

Fidelity Investments’ president of asset management, Ronald O’Hanley, issued a stern warning Wednesday before a gathering of the US Chamber of Commerce that Americans are not saving enough for retirement and are in danger of living their later years in poverty.

O’Hanley told attendees at the chamber’s capital markets summit that the country needs to “act now to avert the looming catastrophe America faces if we don’t get serious about addressing the inadequacy of our retirement savings system.”

Already, nearly four in 10 retiree households do not have enough income to cover their monthly expenses, according to the Boston mutual fund giant’s research. And well over half of Americans have less than $25,000 in total savings, not counting their homes or pension plans, O’Hanley said.

It’s a message we cannot repeat too often.

The Future of Social Security

Of course, if we’re talking about retirement readiness, then the health of the Social Security program must be considered as well. The topic is all over the news right now because the folks in Washington D.C. are taking hard looks at how to shore up the Social Security retirement and disability funds. On the always interesting Next Avenue site, Richard Eisenberg has a good overview piece that examines the possible policy options:

You’ve probably heard a lot lately about President Barack Obama’s Chained CPI (Consumer Price Index) budget proposal, which would cut future Social Security annual cost of living increases, as I’ll explain shortly. But I’d like to tell you about other ways Social Security may be changing to remain solvent — and the one strategy for claiming benefits you might want to take advantage of before it disappears.

America’s economic meltdown continues for millions: Articles worth reading

The human costs of our ongoing economic crisis continue to mount. If your primary impressions of the economy are shaped by the rise in the Dow Jones Average, you might be wondering what I’m talking about. But for countless millions of others who are more concerned with the challenges of paying their bills, feeding their kids, saving for the future, and finding work, crisis remains an apt way to describe this economy.

I’ve collected a number of articles and blog posts that help us to connect the disturbing dots:

Bob’s cousin

Bob Rosner, blogging for Workplace Fairness Weekly, writes about “Broken Hearts: Unemployment’s Devastating Impact“:

Last week my cousin died of a heart attack. After working continuously for the first two-thirds of his career, recently he’d bounced from short term jobs to stretches of unemployment. This cycle is tough enough on someone just starting out a career, but for someone in their early 60’s, it can literally be a heartbreaker.

Read what he has to say about maintaining hope through the 4 “Ps”: perspective, pride, pals, and possibilities.

Profits over people — by a longshot

But hold on, it’s not as if our economy remains in complete meltdown mode. Nope, that just applies to the vast millions who are struggling to make ends meet and to secure decent work. Derek Thompson, business writer for The Atlantic, sums up the situation in meaty blog post:

Here are two things that are true about the economy today.

(1) The Dow Jones industrial average is poised to set a new record as corporate profits stretch to all-time highs.

(2) There are still fewer working Americans today than there were before the start of the Great Recession.

He goes on to explain:

When the economy crashes, we all crash together: corporate profits, employment, and growth. But when the economy recovers, we don’t recover together. Corporations rack up historic profits thanks to strong global demand, cheap global labor, and low interest rates, while American workers muddle along, their significance to these companies greatly diminished by a worldwide market for goods and people.

The forgotten

Although the official unemployment rate continues to improve very slowly, overlooked in those figures are the millions who are no longer included in the counts. Annalyn Kurtz reports for CNN.com:

An often overlooked number calculated by the Labor Department shows millions of Americans want a job but haven’t searched for one in at least a year. They’ve simply given up hope.

. . . These hopelessly unemployed workers have just been jobless so long, they’ve fallen off the main government measures altogether.

. . . Five years ago, before the recession began, about 2.5 million people said they wanted a job but hadn’t searched for one in at least a year. Now, that number is around 3.25 million.

The future of retirement

As I’ve written frequently here, the demise of retirement as a normal lifespan experience may be one of the longer-term effects of our economic condition. Steven Greenhouse, labor reporter for the New York Times, offers a thorough look at the future of retirement in the U.S.:

While retirement has assumed myriad forms across the country, many economists and other experts on retirement see some common, increasingly worrisome trends. A growing number of workers are convinced they will not have a comfortable retirement. A Boston College study in October found that 53 percent of Americans were “at risk” of being unable to maintain their pre-retirement standard of living once they retire, up from 30 percent in 1989. A study last May by the Employee Benefit Research Institute found that 44 percent may not have enough money to meet their basic needs in retirement.

Burdening next generations

As the cost of a college education continues to climb, student loan debt rises with it. Martha C. White reports for Time on the economic repercussions of massive student loan debt:

The broader economic implications are troubling. Graduates struggling to dig out from a mountain of student debt also tend to put off getting married, buying homes, and having kids. And since a bigger chunk of their income will go towards servicing the mortgages or car loans they are able to obtain at higher rates, they’ll have less spending power when they do eventually buy big-ticket items like homes and cars.

And that’s not even addressing the psychological impact of mountainous debt and reduced hopes. Cryn Johannsen of the Economic Hardship Reporting Project writes about the spectre of suicide in connection with student debt:

Suicide is the dark side of the student lending crisis and, despite all the media attention to the issue of student loans, it’s been severely under-reported. I can’t ignore it though, because I’m an advocate for people who are struggling to pay their student loans, and I’ve been receiving suicidal comments for over two years and occasionally hearing reports of actual suicides.

Inequality = more stress and illness

America’s wealth gap is widening despite the supposed economic recovery, reports Rick Newman for U.S. News & World Report:

The problem, however, is that the recession raised the bar for success while leaving fewer haves and more have-nots. America as a whole may be just as wealthy as it used to be, but the wealth is being shared by a smaller slice of the population. And that rearrangement may end up being permanent.

In this piece for BillMoyers.com, Theresa Riley interviews epidemiologist Richard Wilkinson, an authority on the destructive public health consequences of societal inequality:

The pattern we’ve found in our research is quite extraordinarily clear. More unequal countries, the ones with the bigger income differences between rich and poor have much more violence, worse life expectancy, more mental illness, more obesity, more people in prison, and more teenage births. All these problems get worse with greater inequality, because it damages the social fabric of a society.

The end of the American dream?

Joseph Stiglitz, a Nobel laureate in economics, assessed our economy in the context of the November election:

In this election, each side debated issues that deeply worry me: the long malaise into which the economy seems to be settling, and the growing divide between the 1 percent and the rest — an inequality not only of outcomes but also of opportunity. To me, these problems are two sides of the same coin: with inequality at its highest level since before the Depression, a robust recovery will be difficult in the short term, and the American dream — a good life in exchange for hard work — is slowly dying.

Stiglitz’s public policy prescriptions “include, at least, significant investments in education, a more progressive tax system and a tax on financial speculation.”

Goodbye to trickle-down economics?

The policies that led us to this widening gap between the haves vs. the have-less and the have-nots have been at least 30 years in the making, with “trickle-down economics” being the policy mantra of the era. This concept held that if wealthy people could keep more of their money and businesses could be freed of regulatory safeguards, the benefits would trickle down to everyone else. The centerpiece of trickle-down theory was that tax cuts to the wealthy would give a jump start to America’s economic engine, an assumption rebutted in a non-partisan Congressional Research Service report discussed in this Huffington Post piece.

If you’re interested in learning more, read some of these articles and start connecting the dots for yourself. We’re at a critical economic juncture in America, and the well-being of all but the most fortunate is at stake.

Retirement party

Vinny during his last full week at Con Ed, Dec. 2012

Vin Poliseno in his Con Ed office, Manhattan, Dec. 2012 (David Yamada, photo)

Will the retirement party become a thing of the past?

I just finished a quick weekend trip to New York City to attend a retirement party for a long-time friend, Vincent Poliseno, who spent 44 years working for Consolidated Edison. Vinny and I met in 1989, when we started a master’s degree program in Labor and Policy Studies at Empire State College of the State University of New York. Both of us were great procrastinators, and it took us a loooong time to finish that degree program! But this allowed us to plant the seeds of an enduring friendship.

At Con Ed, Vinny began at the entry level, did two years of military service in the early 70s, and then returned and progressed steadily up the ladder. Most of his time was spent in Con Ed’s Manhattan engineering department, where he became a union shop steward and eventually served in a management role. His tenure at Con Ed covered many major crises facing the city, including 9/11 and Hurricane Sandy.

Celebrating in Brooklyn

At the scenic Giando On the Water restaurant near the Williamsburg Bridge in Brooklyn, Vinny’s family, friends, and co-workers gathered to pay tribute to him upon his retirement. In addition to a great meal (hey, this was an Italian retirement party, after all), we were treated to a hilarious speech by one of Vin’s colleagues and brief but warm remarks from the guest of honor himself.

Vin is the kind of person who makes the extra effort to help people in good times and bad. It showed that night: He spent the last hour of the dinner posing for pictures with people who stood in line as the cameras clicked away.

For 44 years, Vin helped to keep the lights on. (Williamsburg Bridge, Brooklyn side, photo by David Yamada)

Vin helped to keep the city’s lights on for 44 years. (Williamsburg Bridge from Brooklyn; David Yamada, photo)

Goodbye to retirement parties?

In many ways, Vin’s career represents a throwback: 44 years at one company, steadily moving up, and finishing with a retirement party and a decent pension.

Unfortunately, that relatively secure path — earning the benefits of hard work and long-term commitment to a single employer — is rapidly going by the wayside. Many people in the age group immediately following Vin’s have been caught in the web of nasty layoffs by employers who deem them too expensive or otherwise expendable. Others have scant retirement savings and will have to work much later into their lives than they anticipated.

Different stories

The website of “Set for Life,” an excellent documentary by Susan Sipprelle on the challenges facing middle age workers in America, has been collecting stories of people who have been beaten up by this economy and job market. Here are snippets from three of them:

It’s getting worse, I’m now 55 and have been out of work for a year, like others, living off of my retirement. When I was in my 30’s, I could find another sales position in a week! Now no one will give me the time of day. They say that employers cannot discriminate because of age, yet every application I fill out asks for either date of birth or year of high school graduation. . . .

***

I am a 58-year old female and I’ve been unemployed since Sept. 2011. I was released from my job as a website administrator with very little explanation. . . . Right now I’m living off unemployment that will end very soon, my savings, and my retirement fund that are quickly dwindling. . . .

***

55 and wondering who pulled the trap door. Worked Fortune 100 for 27 years and have been out of work since 2008 with no luck at finding anything remotely close to the salary I once made. There are no Companies willing to hire in our age group, and even entry level jobs dont exist.

I’m not claiming that life “owes us” a steady job capped off by a nice party and a pension at the end. But it appears that we are witnessing the rapid demise of the post-WWII American middle class dream. The idea of a life well lived and played by the rules, including a relatively secure retirement, has become an illusion for millions.

***

Related post

Not “Set for Life”: Boomers face layoffs, discrimination, and bullying at work (2012)

Working Notes: 401(k) blues, challenging unpaid internships, and Shape magazine on workplace bullying

I use this Working Notes feature to flag items worthy of attention. Here are pieces on 401(k) plans and the retirement funding crisis, unpaid internships, and workplace bullying (especially as relevant to younger women).

1. Steven Greenhouse on 401(k) plans — Here’s more evidence of the crisis in retirement funding, in the form of a thorough look at the inadequacy of 401(k) plans as retirement funding vehicles, courtesy of labor reporter Steven Greenhouse of the New York Times. It begins:

JOHN GREENE worked for 30 years at an Oscar Mayer plant in Madison, Wis., deboning hams and loading boxes of hot dogs. His 401(k) plan grew to $60,000, and soon after retiring he began withdrawing $3,600 a year from it, money that allowed him and his wife to take what he called a wondrous two-week trip to Scotland, his ancestral homeland.

But when the financial markets plunged four years ago, his 401(k) dropped to less than $18,000.

2. Plaintiff Eric Glatt on unpaid internships — Eric Glatt, lead plaintiff in a class-action lawsuit against Fox Searchlight Pictures for unpaid wages to interns working on the production of “Black Swan,” explains why he and others were not paid for their labor in this blog post for Other Words:

Because I, like scores of other workers on that film, was a relative newcomer to the industry. And being a newcomer to the film industry often means doing unpaid work, an illegal arrangement camouflaged behind the term “internship” — a term the movie industry embraces for its promise of alchemy, magically removing costs from budgets to the delight of producers and shareholders.

Eric is now pursuing his law degree at Georgetown University Law Center. I wrote up a blog post about an enjoyable brunch meeting we held in New York last December with writer Ross Perlin (author of Intern Nation) and journalist Tiffany Ap.

3. Jeannette Moninger for Shape magazine on workplace bullying — The September issue of Shape magazine includes a lengthy, informative feature on workplace bullying by Jeannette Moninger. Jeannette is a health writer who convinced the editors of Shape to devote quite a bit of space to this topic. Hat’s off to both for bringing this information to a demographic (younger women) often targeted by workplace bullying. (It’s also the first and likely only time that I’ll be quoted in Shape!). Here’s the lede:

When Stacie started as an account manager at an architectural firm two years ago, she couldn’t believe her luck. In a tough market, she’d landed her dream job at age 31, complete with a great salary, friendly coworkers, sleek high-tech offices, and a corporate gym membership. There was just one problem: Her boss was a nightmare.

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