Tag: Great Recession

Get Up and Go

As I’ve mentioned before, my mom emigrated from El Salvador. She’s been a US citizen for decades now and has never regretted her decision to leave Central America.

We all know, of course, that the United States is a nation of immigrants (ok, not all of us know that).

Still, the only reason that this nation exists as a major world power is because, over the centuries, millions of people, originating from just about every country on Earth, took huge gambles and endured hardships to come here for a shot at a better life.

It’s the American Dream, right?

Well, maybe that’s no longer true.

You see, a recent article in Bloomberg asked the completely logical question “Why do Americans stay when their town has no future?”

Yes, the article is a look at our favorite fellow citizens — the white working class — and an examination of why they refuse to leave their dying small towns in search of better opportunities. After all, they are the descendents of hearty immigrants who crossed oceans for a new life. So why do they insist on sticking around decrepit mill towns and desolate farm communities, when in many cases, all they have to do is drive to another part of their home state?

The article, which makes for extremely depressing reading, quotes one low-income blue-collar worker as saying, “The American Dream is kind of to stay close to your family, do well, and let your kids grow up around your parents.”

Personally, I found that statement jarring. The article’s writers apparently agreed, calling the quote “a striking comment” because of the fact that “not that long ago, the American Dream more often meant something quite different, about achieving mobility — about moving up, even if that meant moving out.”

Let me mention here again that my seven cousins and I grew up together and were tighter than many nuclear families. That’s common among Latino families. In adulthood, we’re still close, but many of us have moved to other states to pursue the best lives for ourselves. Right now, we’re scattered around the country. In spite of having stronger bonds than most families (not a boast, just the truth), we also knew that all of us living in the same city for our entire lives was unlikely. Our parents came from other countries, so the concept of moving just wasn’t scary to us.

Contrast that to the residents of rural Ohio profiled in the Bloomberg article. They seem petrified of ever leaving their bleak environs. And this reluctance to move is “all the more confounding given how wide the opportunity gap has grown between the country’s most dynamic urban areas and its struggling small cities and towns.”

Economists are perplexed at this phenomenon. But keep in mind that these are the same people who wondered why so many Americans threw logic out the window during the Great Recession and held onto their underwater houses. One would think that economists would now have plenty of proof that Americans don’t make purely objective financial decisions and that emotions play a huge part in their behavior.

So I guess I’m saying that maybe it’s the economists who are clueless here.

In any case, “Americans have grown less likely to migrate for opportunity.” The statistics back this up. We see that “fewer Americans moved in 2017 than in any year in at least a half-century. This change has caused consternation among economists and pundits, who wonder why Americans, especially those lower on the income scale, lack their ancestors’ get-up-and-go.”

We would be remiss if we didn’t acknowledge that the situation has “a stark political dimension, too, given how much Trump outperformed past Republican candidates in those left-behind places.”

What many experts don’t want to admit is that the fear of moving is related to the fear of change, which in turn is related to the fear of immigrants, and so on down the scale of anxiety. The basic factor here is the terror that the white working class feels about a changing world, and its members’ strong sense of entitlement that they never have to change a damn thing in their lives because everything must to be altered to maintain their status.

Many people in these depressed areas feel that America owes it to them to make their towns boom again, regardless of the cost to the rest of the country. However, “it’s hard to argue that, say, a town that sprang up for a decade around a silver mine in Nevada in the 1870s needed to be sustained forever once the silver was gone.” That would be ludicrous. But “if all of southern Ohio is lagging behind an ever-more-vibrant Columbus, should people there be encouraged to seek their fortunes in the capital?”

Um, yeah — they should.

In essence, “America was built on the idea of picking yourself up and striking out for more promising territory.”

What’s changed?

Only the specter of crippling fear.

 


It’s the Economy, Estúpido

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.

 


Help Is (Not) on the Way

I’ve never been in therapy. I don’t say this as a boast, just as a simple acknowledgement of luck.

You see, I’m fortunate in that I’ve haven’t been afflicted with depression or addiction or any of the myriad issues that arise when brain chemicals go all kabloowy. Nor have any of my personal traumas been so severe that I had to address the PTSD of it all.

But as we all know, many people aren’t so lucky. It’s estimated that around one in five Americans suffers from mental illness at some point in their lives.

And now comes news that for Latino youth, the numbers are on the rise. A recent study showed that “an alarming rise in the psychiatric hospitalizations of Latino children and young adults in California, even compared to the youth of other ethnicities.”

Between 2007 and 2014, the rate of mental health hospitalizations of young Latinos (age 21 and younger) jumped 86 percent.

upward-graph

Why is this?

Well, researchers believe that “a number of social issues play a part in the trend, including the recession, separation and disintegration of families, and the trauma of escaping the violence in their home countries.”

In addition, a “lack of culturally and linguistically appropriate psychiatric services available” means that young Hispanics often don’t get help addressing their festering problems, with the result that they eventually blossom into full-fledged crises that require hospitalization.

Also, one has to wonder if being constantly demonized gets under the skin of young Latinos. But this very fact — that so much of America despises Hispanics — provides another reason why this issue is unlikely to get better any time soon.

It’s a vicious, and rather sick, circle.


Not Exactly a Golden Age

So here’s a question: Are you among the half of Americans (49 percent, to be precise) who say racism is “a big problem” in society today?

I know I am.

And I also know that I would prefer to be among the 7 percent of Americans who say racism is “not a problem at all.” When referring to those people, I speak for the rest of us when I say, “I’ll have what they’re having,” because they clearly possess some serious alcohol.

Drunk-guy

The recent survey revealed that prejudice and bigotry remain societal ills, and “in every demographic group surveyed, there are increasing percentages of people who say racism is a big problem — and majorities say that racial tensions are on the rise.”

The percentage of Americans who feel this way is higher than it was 20 years ago, when 41 percent said racism was a big problem. As recently as 2011, that percentage was down to 28 percent, suggesting a rebound effect, or perhaps racial good feelings simply plateaued a few years back.

Of course, Americans may agree that racism is worse, but as the report states, they often “disagree profoundly on who the targets and victims are.”

Ethnic minorities have historically been the objects of racial prejudice. However, white Americans often feel that they are being discriminated against, a perplexing development that, according to the report, can be traced to “simmering rage fueled by the backlash of Obama’s election, the economic struggles of lower- and middle-income whites, and demographic shifts across the country.”

Because of this, the report says, “latent racism is becoming more open, because a lot of people are feeling threatened.”

Now to be clear, most white Americans do not feel that they are the targets of racial scorn. In fact, just 43 percent of white people say racism is a huge concern.

But 64 percent of my fellow Latinos say racism is a big problem, slightly less than the 66 percent of blacks who say the same thing.

Those numbers should tell you all you need to know about how race is perceived in America.

So is there hope for the future? Well, supposedly, the Millennials were going to eliminate racism once and for all because they’re all, you know, ethnically mixed and down with diversity and come from multiracial families, and are in general far hipper than Gen X or the Baby Boomers could ever dream of being.

Um…but another recent study showed that “despite the Millennial reputation for inclusiveness, young white Americans don’t have especially multicultural friend groups.” In fact, two-thirds (68 percent) of whites age 18-34 say, “they overwhelmingly associate with other whites.”

By the way, the same is true of just 37 percent of Millennial Hispanics and 36 percent of Millennial blacks.

So this might take a while.

 


A New Wave

A subtle shift is taking place. I’m referring, of course, to the news that Asians will eventually overtake Latinos as the largest source of immigration.

Yes, recent data shows that fifty years from now, “Hispanics are expected to make up 31% of immigrants. Asians, on the other hand, will outnumber Hispanics and make up 38% of immigrants.”

Wow, this is news. After all, the words “immigrant” and “Hispanic” have been interchangeable for decades now, at least in the minds of many Americans. And to be clear, Latinos are still the largest immigrant group, making up almost half (47 percent) of all immigrants in the United States.

But as we all know, immigration from Latin America has slowed in recent years. In fact, a steep decline began in 2007, mostly because the Great Recession had kicked in, and El Norte looked a lot less appealing that it had previously.

What this all means is that the percentage of new arrivals who are Hispanic is actually smaller than it was 50 years ago. Yes, despite all you’ve heard about the border being overrun, the fact is that immigration — both documented and undocumented — is down over the last decade. And in a shocker, “the percentage of the total U.S. population born outside this country was higher in 1890 than it is today.”

irishelliesisland
So what does this mean for Asians, who are the new face of immigration? Well, they appear to be in pretty good shape.

A recent poll found that “immigrants from Asia fare best when it comes to how Americans view them, with 47% seeing them in a positive light. Only 11% see Asians negatively.”

In stark contrast, “immigrants from Latin America are viewed positively by only 26% of those surveyed and are seen negatively by 37%.”
Yikes.

A natural question, of course, is why are Latino immigrants the object of so much loathing?

Well, there are the usual strands of xenophobia based on skin color, language, and cultural differences. But if I had to pick the biggest reason for the disgust many Americans feel for Hispanics, it is the perception, fueled by certain presidential candidates and professional buffoons, that Latinos are a pack of bloodthirsty, sociopathic criminals.

It’s what marketing pros call a branding issue.

And how bad, and ultimately misguided, is this perception?

Well, that’s a whole other post (yes, coming soon).


Put It on My Tab

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

creditcards

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.

 


Hard Times

The recession has been over for some time now, and the economy is booming… wait. You say, it’s not booming unless you’re rich?

Well, if you’re still feeling pinched, maybe it’s the fault of individuals heavy on the melanin. The odds are pretty good that you blame them anyway.

pointing

You see, a new study has shown that Americans “become subconsciously more prejudiced against dark-skinned people when times are tight.”

That’s right. On top of devastating the country, wiping out many people’s savings, and increasing the obscene gap between the wealthy and the rest of us, the Great Recession may have had the side effect of increasing racial tension.

To continue reading this post, please click here.

 


Faith or Delusion?

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

thumbsup

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.

 


Mind the Gap

Here’s a cheery statistic that you may have missed: The wealthiest 1 percent now control 39 percent of the world’s wealth, and their share is likely to grow in the coming years.

greed

What this means is that while you were digging out from the Great Recession — or are still digging out — multimillionaires coasted through just fine. And the gap between the uber-wealthy and the rest of us is the widest it has been in about a half century.

To continue reading this post, please click here.

 


Exploitation, Melodrama, and More

My cousin (Cousin #6)  is one of the more than 83,000 immigrants who have become citizens since the September 11 attacks by embracing “a wartime edict to entice immigrants to join the military in exchange for rapid naturalization.”

The program has its critics. Some claim allowing non-citizens to enlist in the military “injects the armed forces with an increased security risk” and is “just like the Roman Empire, not to get too melodramatic about it.”

melodrama_7456

Yes, the last thing we want in any discussion about immigration is melodrama. After all, the debate has been nothing but calm, logical, and respectful to this point.

To continue reading this post, please click here.

 


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