Hispanic Fanatic

In defiance of all odds, the U.S. economy continues to perform well, even if a lunatic who knows nothing about basic economic laws is at the nation’s helm.

Latinos have noticed the prosperity, relatively mild as it is. In fact, consumer confidence among Hispanics has improved “as optimism has grown about their financial situation as well as the U.S. economy as a whole,” according to a new study.

The Hispanic Consumer Sentiment Index — which I for one, never knew existed — is rising, although it continues to trail the overall U.S. population. About 62 percent of Hispanics say they are “financially better off today than a year ago,” and 72 percent of Latinos say, “they will be better off over the next year.” The report adds that 58 percent of Hispanics expect “good times for the country as a whole over the next five years.”

Well, that all sounds pretty rosy. However, one group does not share Latinos’ optimism for America’s continued economic health. That would be our old friends, the super wealthy. A different report finds that “75 percent of ultra-high net worth investors predict America will hit a recession by 2020.”

Wow, that’s quite a different take on things.

In fact, 21 percent of rich people believe that a recession “will begin in 2019, and 50 percent expect the next recession to start in 2020.” And remember, these are individuals who obsess over the economy and financial markets, and there are very few Latinos among them.

So is Hispanic faith in the economy misplaced?

Well, I’ve written before about the Latino tendency to be optimistic. While this is definitely a positive trait, it can on occasion lead to irrational conclusions.

For example, if the above statistics are true, then over half of Latinos think the economy will be solid for the next half decade, at least.

But how does that align with the results of a different study that found“Latino families are struggling with paying down debt and are the least prepared for financial emergencies”?

That study found that over one-third (38 percent) of Latinos “believe the American Dream is disappearing,” and about a quarter (24 percent) worry about being able to care for their families.

The study reiterated that “Latinos have relatively lower accumulated wealth,” and that many Hispanics are looking at a wicked trifecta of debt. That would be the following grim stats:

• 64% of Latinos have credit card debt. The average credit card debt is $9,652.
• 63% of Latinos have a mortgage. The average mortgage debt is $181,292.
• 27% of Latinos have student loan debt. The average student loan debt is $32,650.

In addition, the study found that Latinos are “less prepared than other consumer populations surveyed for a financial emergency, with 19 percent having less than a month of monthly expenses saved.”

What about these numbers leads Hispanics to think that the good times will just keep coming?

Well, the study states the obvious when it points out that “Latino households are more likely to have a broader definition of family that includes extended family” and that Hispanics have “strong family and cultural values.”

The fact that your family has your back may cause many Latinos to worry less about the future. But even that positive value has a dark side, because according to the report, “Latino families are juggling multiple financial priorities, such as a future caregiver role for elderly parents.”

Again, the economy is definitely doing well. But it can’t last much longer, even if we didn’t have an impulsive, ignorant racist calling the shots. Sooner or later — and most likely, sooner — a crash is coming.

Maybe we should brace ourselves for that inevitability, rather than just hoping and feeling good about our bright, shiny futures.

You may have noticed recently when a member of most incompetent, corrupt administration in history started talking trash about who does or doesn’t have skills.

Yes, our old friend, White House chief of staff John Kelly, said he believes that “the vast majority of undocumented immigrants crossing the southern border into the US do not assimilate well because they are poorly educated.” Kelly — whose boss is a sociopathic ignoramus who is historically unqualified for the job of president — went on to say that undocumented immigrants “don’t have skills.”

And he did this without any sense of irony, grasp of hypocrisy, or inkling of shame.

But it wasn’t just Kelly who says undocumented immigrants are too dumb to fit into America and refuse to learn English, damn it.

Noted right-wing babe Tomi Lahren said, “people who don’t speak English or who come from poverty shouldn’t be allowed to immigrate to the United States.” She insisted that “you don’t just come into this country with low skills, low education, not understanding the language and come into our country.”

Of course, it took a journalist about nine seconds to do a little research and find out that Lahren’s ancestors did exactly that, proving that “people like Lahren continue to push a specious agenda that suggests today’s immigrants are somehow wholly different from previous ones.”

Indeed, it can be pointed out that “nativists can’t keep trying to back up their argument by saying ‘the country doesn’t work this way’ when clearly it does, and has, for their families. So why do they *really* not want these people here?”

To answer that question, let’s look again at the fabled white working class (i.e., the salt of the Earth) that forms the base of Trump’s support and the emotional underpinning for conservative thought in this country.

These non-immigrants are struggling to keep up because (in theory) Latinos have stolen their jobs, the coalmines have shut down, and the assembly line has moved to China.

And it’s supposedly going to get even worse soon, as self-driving cars will eliminate millions of jobs from truck drivers who are overwhelmingly white and uneducated.

So what has been the response to these issues?

Well, most Republicans and many Democrats have sought to assuage the fears of white working class people by telling them that their low-skill jobs are coming back (any day now!), and that they don’t have to change a thing. Nope, they don’t have to take a computer class, learn a trade that’s actually in demand, or (heaven forbid) learn Spanish.

The implication, sometimes stated outright, is that too much change is happening, too fast, and we as a nation will make sure that these big mean machines don’t take anybody’s job.

So if you’re keeping track, this nation cannot accommodate immigrants who risk their lives to come here, work like demons, and often perform essential tasks that Americans don’t want to do.

However, we can slow down our economy and move our entire society backward to make things a little easier for people who refuse to even acknowledge that it’s the twenty-first century.

Interesting.

But I have a question.

Has a society — any society anywhere at any time — willfully stopped progress because the elites were afraid of how it would affect the least-skilled members of that society? I’m not being snarky. I honestly doubt this has ever happened in human history.

Remember that the Luddites failed to stop the machines from taking their jobs. In fact, their doomed insurgency is only remembered today for giving us the adjective for a backward, fearful person who is terrified of technology.

Modern blue-collar workers will not fare any better. Republicans are stoking discontent among the white working class, but at best the GOP is being disingenuous about its ability to stop the acceleration of automation. At worst, Republicans are telling overt lies while laughing their asses off about the gullibility of small-town types.

Because Republicans cannot and will not stop the self-driving cars from coming. By the way, those self-driving cars will most likely “see farther and react faster, so it makes sense to bake computer control into big-rigs, to make them safer and more efficient,” thereby reducing the grim statistic that “crashes involving trucks kill about 4,000 people on US roads every year.”

Or we could just sabotage the computer programs and make sure big-rig drivers can continue to be less efficient while killing more people on the road. Because otherwise they might have to, you know, learn a new skill.

Sounds like a fair trade to me.

Oh, and one more thing: all those kiosks that fast-food outlets have created to take the place of burger flippers? Well, conservatives love to imply that it’s because some cities have raised the minimum wage. But isn’t this just capitalism in action? After all, no company exec would say, “Yes, a machine can do this task more efficiently and for less money, but I really want a bored teenager to do the job.”

Where does all this GOP concern for workers come from, all of a sudden? I would think that conservatives — with their supposed love of the free market — would be thrilled with the idea of creating more efficient systems rather than subsidizing a low-skilled worker to do a worse job.

So again, what’s behind this sudden love for halting immigration and, while we’re at it, stopping economic and technological progress?

Well, I’ll talk more about that in my next post.

Of course, it’s still too early to know if Trump will destroy the American economy the way that he has destroyed the lives of thousands of immigrants, portions of the environment, and America’s image and reputation.

But certainly it is a bit disquieting that for the first time in seven years, the United States is losing jobs. To be fair, much of that has to do with the devastation that a cataclysmic (yet somewhat predictable) series of hurricanes has inflicted on the country.

In any case, if one is striving to boost economic growth, it is not a good idea to piss off Latinos. After all, the “U.S. Latino GDP is growing 70 percent faster that the country’s non-Latino GDP.” Furthermore, Hispanics have higher rates of entrepreneurship than other groups, and remain one of the fastest growing demographics in America.

So a sane leader would look at those facts and say, “Damn, these guys are the future, and our nation’s economic growth is intrinsically tied to their financial well-being.”

But come on, we’re talking about a small-fingered, narrow-minded, black-hearted demagogue who doesn’t even understand basic economics. Therefore, it’s little surprise that he has continued to focus his ire on Latinos, with devastating consequences.

For example, “retail sales to Hispanics are tumbling, as immigrants fearful after the election of President Donald Trump stay home and hoard their cash.”

In addition, many labor market measures show that Latinos “have not totally recovered from the Great Recession.”

And when it comes to confidence (consumer or otherwise), keep in mind that “67 percent of Latinos disapprove of the job Trump is doing. By comparison… 54 percent of all adults in the country disapprove of Trump’s job in office.”

Taken together, we see a president who is determined to alienate Latinos, who are of course, crucial to the economic functioning of this country. And we see Hispanics unable to fulfill their true potential because they are too busy fending off the political and cultural assaults of a man so unstable that even his fellow Republicans believe that he is “unraveling.”

All of this could help to sink the economy. And we’re not even talking about the price tag for his idiotic wall that will never happen.

But don’t get me started on that.

I’ve written before about the intense, powerful, even bizarre sense of optimism prevalent among Hispanics.

Yes, even when fleeing for our lives from oppressive third-world governments and/or bloodthirsty drug gangs, we think, “Better days are ahead.”

And even when acres of statistics show how Latinos are struggling, compared to the general population, we say, “Keep the faith.”

And even when we become scapegoats for the nation’s ills, open targets for right-wing nutjobs, and the object of scorn in the eyes of millions of Americans, we smile and say, “Happiness is right around the corner.”

Well, if you thought that this pugnacious positivism had faded recently, a new survey shows that it has only gotten stronger, especially regarding financial matters.

For example, a solid majority of Hispanics “feel there is equal opportunity for everyone to achieve their dream of financial success.” But less than half of the general population feels the same way.

And 60 percent of Latinos believe “that those who work hard will be the most financially successful, a significantly higher percentage than the general population.”

Finally, there is the statistic that Latinos are more likely to believe that they are on their way “in their race to financial success” than the general population.

But is all this faith in the future based in reality?

Well, consider that the same survey found that “by their own admission, Hispanics struggle with managing their money and lack self-confidence when doing so.”money

OK, that seems a little contradictory — as does the fact that “a majority of Hispanics give themselves a grade of C or lower when evaluating how well they manage their money.”

And let’s consider that a full 70 percent of Hispanics “have not created a long-term financial plan.”

So once again, we are forced to ask, is all this optimism priming the pump for a self-fulfilling prophecy where Latinos are financially successful?

Or have we Hispanics turned into collective Navin Johnsons, insisting that “Things are going to start happening to me now”?

Well, maybe the most telling — and most hopeful — data point in the survey is this: Millennial Hispanics (age 18-39) are more likely “to see an undergraduate degree as one of the top influences for financial success.”

Now that makes sense. Getting a degree is a solid, realistic option for achieving financial success. Young people know this.

And what do older Latinos think is key to financial independence? It is, of course, “the advice of elders.”

Yes, better stay in school, kids.

I recently waxed ecstatic about California, the state I live in. I do indeed love living here, but I never claimed that it was perfect.

For example, a recent report shows that when it comes to Latinos, my state has some issues. And those issues are reciprocal, in that as Latinos go, so goes California.

You see, the study has found that among all racial and ethnic groups in California, Hispanics have the lowest well-being score. What, exactly, does that mean?

Well, rather than just look at a group’s median income or rate of cancer or percentage of sunny dispositions or collective weight or any of the other statistics that offer us interesting but isolated insights into a demographic’s existence, these researchers created an overall well-being score.

The number is based on a group’s overall health, educational level, earnings, and other factors, all put together. Think of it as a GPA rather than an individual grade.

Well, measured on a 10-point scale, Latinos had a well-being score of 4.09. That’s bad.

I mean, would you want to date someone who was barely a 4 out of 10? Now imagine an entire group struggling under that number.

For the sake of comparison, Asian Americans had the highest score at 7.39. Whites and blacks were in between but noticeably better than Hispanics.

Digging a little deeper, the researchers found that native-born Latinos fared better than immigrants did. But by any measure, California’s Hispanics are far from thriving.

That’s terrible news, of course. But it goes beyond dark days just for la raza.

Hispanics are poised to become the state’s largest ethnic group, and more than half of California’s children are Latino. It doesn’t take much of an imagination to see that the study’s results could be ominous for the state’s future. With such a large percentage of the population struggling, the whole state will be dragged down.

The study’s authors conclude that California needs to improve the well-being of Latinos if the state hopes to thrive.

Well… yeah.

But there is some good news. While Latinos have the lowest well-being score, they’ve made great strides since 2000, and they’re moving up more quickly than any other group.

So at least we have forward momentum on our side. With hope, that will be enough to keep Cali golden.

A friend of mine once cut up her credit cards and closed her accounts because, she said, “those pieces of plastic are evil.”

I thought this was a bit overly dramatic (she was that type of person). I also thought it was convenient to blame her chronic debt on inanimate objects rather than, say, her nonexistent self-control and materialistic tendencies.

In any case, we all know people who live beyond their means, and it’s true that many individuals teeter on the edge of bankruptcy because of their shopping addictions or love of new shoes or willingness to fly first-class to Italy for the hell of it.

But a recent study has found that when it comes to Hispanics, living large is often not the reason for going into the red. The study found that almost half (43%) of Latinos who have credit card debt depend on the plastic to pay for basic living expenses. And a significant chunk of the rest are using credit cards for tiny splurges at best.

So if Latinos are not slapping down credit cards on impulse buys and charging luxury items, why are they in so much debt?

Well, Hispanics report that the main reason for their debt is the loss of a job, and they’re more likely than other groups to say that medical costs also contributed to their financial issues.

The researchers theorize that because Latinos lost so much of their wealth in the Great Recession, they’re having trouble restocking checking or savings accounts. So putting basic items or medical expenses on credit cards often seems to be the only option.

This, of course, sucks. But as is often the case, the survey also found that Latinos are more optimistic than the overall population. So they’re more confident about paying down their credit card debt quickly.

This optimism, which borders on delusion, leads to some interesting contradictions.

For example, another poll found that almost half of Latinos (49%) said they were worried that someone in their household might become unemployed soon. Yet the same survey found that almost three-quarters of Latinos (73%) are optimistic about their finances and future opportunities.

Frankly, that’s a bizarre balancing act of fear and hope.

But maybe these results just show that Latinos are still jumpy about their financial status, years after the economic meltdown. The Great Recession so ravaged Hispanic households that many Latinos are leery about declaring that the worst is over.

At the same time, Latinos tend to be more optimistic than other groups about their future. The main reason for this positivism seems to be the immigrant mindset. Many Hispanics remember struggling in their home countries, or they hear the harrowing tales of their parents. As such, these Latinos usually have more faith in the American system and a stronger belief that their financial situation will improve.

We should all really, really hope they’re right.

Sometimes you take good news where you can.

So here’s your positive tidbit for the day: The nation’s poverty rate dropped significantly last year for the first time since 2006.

Yes, well, hip-hip hooray and all that.

The overall rate dipped from 15% to 14.5% (still pretty damn high).

That rate was pushed down primarily thanks to the efforts of Hispanics, who showed the most improvement. The rate for Latinos fell from 25.6% to 23.5%.

So instead of “over one-quarter of Hispanics live in poverty,” we can now say, “just under one-quarter of Hispanics live in poverty.”

Hey, I warned you that the good news was limited.

Among the reasons for the decline in Latinos’ poverty rate are the improved job market and the fact that more U.S.-born Latinos are entering the workforce. And remember that U.S.-born Latinos “tend to have more education [and] tend to be English-speaking,” which often leads to higher earnings.

Latinos were the only ethnic group to see a noticeable change in their poverty rate last year, but even with that, the percentage of destitute Hispanics is still substantially higher than it is for whites or Asians.

And while Latinos make up 17% of the American population, they constitute 28.1% of poor people.

Do you still feel like celebrating?

I’ve written before that Latinos tend to be more optimistic about life and have more confidence in their economic futures.

Well, a new survey confirms that Hispanics’ “faith in the American Dream exceeds that of whites and African Americans,” adding that this optimism “contrasts sharply with the current economic status of Hispanics.”

Basically, even though the Great Recession hit Latinos harder than most groups, it is those same Hispanics who have the strongest belief that everything will work out fine. According to the survey’s authors, “the upbeat attitude … is due in part to the fact that Hispanic immigrants often start with little and expect to sacrifice much to move up, while native-born adults may have already seen their expectations lose ground in an ailing economy.”

So whites and blacks, whose roots in America are more likely to go back generations, tend to say, “This sucks worse than ever.” But Latinos often shrug off the same bad news with “I’ve seen worse.”

Still, as great as it is that Latinos are remaining optimistic and staying strong, “the reality for most Hispanics is less rosy” than their faith implies.

So the question becomes, is this determined mindset a self-fulfilling prophecy, where hard work and a never-say-die spirit is rewarded? Or are Latinos just saps for still believing “they are more likely to move up than down in social class over the next few years”?

In any case, the survey points out that “the hopes and struggles of Hispanics are of particular interest now as they are exercising unprecedented political clout.”

Yes, it’s good to have faith. But it’s better to have power.

As I’ve written before, we Hispanics are known for our fierce work ethic.

Think of immigrants slaving away at grueling tasks that native-born Americans refuse to do. Or consider that last year, “the number of Latino entrepreneurs grew more than white, black, and Asian entrepreneurs.”

Yes, we sure like to work. It’s unfortunate, then, that so many Hispanics who reach old age have nothing to show for it. This is because “fewer than half of … Latino workers have retirement plans on the job, leaving the vast majority of them with no savings designated for their golden years.”

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As I’ve mentioned before, I live in an LA neighborhood that features both apartment buildings with working-class residents and million-dollar mansions. Again, I am much closer to one end of that scale than the other (I will let you guess which).

In any case, the mixed character of my neighborhood may be doomed. According to one study, “the percentage of American families living in middle-income neighborhoods dropped to 42 percent in 2009 from 65 percent in 1970.” Basically, more people are packing up and moving to one end of the spectrum (i.e., very wealthy or very poor), and “the growing physical separation of the rich and poor is hastening the decline of middle-class neighborhoods and could make income inequality even worse.”

In essence, this is the new segregation, but along class lines rather than strict ethnic boundaries. Of course, those two concepts are strongly linked, so it’s really just racial segregation again, but not as overt and with a twenty-first-century twist.

But keep in mind that “the growing divide has been especially striking in the country’s black and Hispanic communities, where the rich and poor of each racial group are dividing from one another at a pace far quicker than in the white community.”

I suppose this means that I have to start packing.