Disparities in wage earnings for African-Americans and Latinos as juxtaposed to white Americans have always existed in the USA. Records show that in January 2012, black unemployment dropped to 13.6% in comparison with white unemployment at 7.4% and unemployment for Latinos at 10.5%.  What does this mean?  It means that many Americans are in dire straits and the racial economic discrepancies have not changed where employment and earning power is concerned. There is no level playing field where these ethnic groups matter.

Christian Weller, a co-author of “The State of Communities of Color in the U.S. Economy” outlines two outcomes of this disparity – “minorities continue to lag behind Whites in homeownership … while reporting higher rates of foreclosures”. Even as the “Great Recession” has affected more Americans than since the Great Depression, it [has] disproportionately ravished communities of colors, creating a chasm for an already weakening middle class that began in 2001 well before the 2008 “Great Recession” kicked into overdrive.  And although the African-American and Latino populations are suffering collectively, the youth in both ethnic groups are feeling the squeeze of the recession as well. What’s disheartening is that 40% of African-American youth and 30% of Hispanic youth are solidly unemployed with no rescue or recourse to improve their situation. Despite the struggle to manage the onslaught of uncertainty, there are individuals, although faced with pressing money woes, which are still managing to survive the pressures of the changing economy.

Mr. Thomas is 61, near retirement, has faced a series of financial setbacks since the start of 2009. The recession has taken its toll on him and his wife. His wife is a realtor and he is a schoolteacher at a private institution, with a middle class income. They have enjoyed a comfortable middle class lifestyle and ownership of a home until the housing market collapsed.  Due to a slow down in the selling and purchasing of homes, Mrs. Thomas commissions dried-up.  They no longer made enough to sustain a comfortable middle class life style. Suddenly, one half of the household income has halted. The Thomas’s found themselves in a financial crisis and behind in their mortgage; as a result, their home was foreclosed.  They are now scrambling to just make ends meet on Mr. Thomas’ teacher salary. The question is, how are they managing to survive in this economy on a single salary?

A Candid Conversation with Mr. Thomas

Q: How did you get to this stage in your life?

A:  Apparently, we did not prepare for this recession. And, frankly during the time my wife was selling homes, the market seemed o.k.

Q: Do you regret not being more aware of the possible consequences of your decision regarding the housing market?

A:  Yes. If I could do it over again, I would have made other choices, career and home wise. But, as it stands, nobody can predict the future. It could be worse, but we are still blessed to have one source of income at the moment.

Q:  Now that you are no longer comfortably middle class, what are you doing to change your situation?

A:  I am working various odd jobs to make ends meet. It is not an easy way to live, considering my age.  I am praying daily that my wife can get back on her feet, so I can stop working odd jobs to supplement our income.

Q: How do you see your future these days?

A:  It doesn’t look as promising as I would have predicted. I have faith that the economy will turn itself around. Things will eventually work out, I suspect.

Q: Since loosing your home, have you found a new place to live?

A: Yes. We have found a two-bed room and two-bathroom apartment.

Q: What can you do to improve your situation?

A: I must remain optimistic, work smarter to maintain a comfortable what we do have, and take it one day at time.

Q: Do you feel different about not being middle class anymore?

A:  It hurts. It hurts tremendously when I think about the uncertainty of it all. But more importantly, I become angry when I think about the changes and transitions I have endured.

Mr. Thomas seems to have made a positive transition, but the reality is, it is difficult living on a teacher’s income. We will continue with more interviews as we follow people who have been affected by the unpredictability of the “Great Recession”.  Remember, poor people are depressed and rich people are recessed.

By Crystal Zapata

Building and Maintaining Relationships

In a culture hard-headed on individuality, the importance of genuine relationships sometimes gets overlooked. Of course there is the popular saying, “It’s not what you know, but who you know.” And to a certain extent, that is true. Though I would argue it both matters what AND who you know.  As self-sustainable as we like to think we are, we need each other. On one level, we rely on products and services every day to help us function. On another level, we need each other to self-actualize, especially in a struggling and changing economy where competition is intensified. Don’t forget that large corporations, political parties, religious groups, etc. are nothing more than a group of individuals that have found each other in one way or another and are now engaged in a common effort.

Folks that are deemed “successful” are not only intelligent and driven, but also understand the value of professional relationships and strive to maintain those. For some of the lucky ones, these professional relationships are established by friends and family, and the only thing needed is maintenance. For the rest of us, we have to go looking for people who have similar drives, interests, and goals as we do. That said, I suggest you pack some binoculars in your upward mobility tool kit!

Courtesy of Flickr

“Binoculars”

In my previous blog, I described knowing your goal and getting there as a road trip. Well, I suggest that you also find people to join you on your journey because they can help you and you can help them.  If you don’t know anyone, find them.

The very reason I have the opportunity to write this blog is because I recognized the value in my relationship with my professor. With similar interests and goals, I figured that maybe one day we would have the opportunity to work together. And VOILA! You’re reading my blog! Furthermore, I was bar-tending my way through school and finally got determined to get out of it. I started networking with some of the regulars and the next thing I knew, I had a full-time job that provided a way out of bar-tending. Don’t take people for granted. Look around at those you come in contact with every day and value those relationships.

Of course there are online social networks – 74 in fact – that are always helpful. If you can find and meet people with similar interests, then go for it! Don’t limit your world. However, I would argue that real face-to-face relationships have unique and intrinsic value that often gets overlaid by these sites.

“Crazy Glue”

Stick to people! I don’t mean pester them, but keep in touch. Meet up every couple months, throw out an email, and offer some news of interest or a helping hand. Make yourself known and remembered.  My personal word of caution is not to look at these relationships as exploitative, as in “What can this person do for me!?” Rather, consider, “How can we possibly work together to make something happen?”  Hopefully you will eventually find yourself with a talented team of people who are each climbing the economic and social latter and improving their, and hopefully others’, quality of life. There is strength in numbers, so find some quality people you could see yourself working with, and stay in touch.

Historically, the two main American political parties have been very similar, but not anymore.  The Democratic Party that emerged from the Great Depression (1930-41) consisted of a coalition of divergent interests: labor unions; citizens who lost jobs, homes and businesses during the Depression; small farmers; and southern state rights advocates (Dixiecrats).  The Republican Party emerged from the Depression representing primarily small business interests, those with money and wealth and those who favored less intrusive government into the affairs of businesses and markets.  It was said that the main difference between parties is that Republicans believe that “wealth trickled down” the class hierarchy.  That is: business investments are the basis of job growth.  The Democrats believe that government investment in labor, jobs and enterprise is the basis of economic growth.  It seemed that either way, everyone benefited.  Democrats enjoyed majorities in both the House of Representatives and Senate until the past decade.

Despite their differences, both parties worked well with one another in Congress by passing compromise legislation.  But since 1970 interests have shifted parties.  Southern Whites shifted to the Republican Party due to The Democratic Party’s passage of 1960s civil rights legislation that eliminated racial segregation in the South.  Conservative Democrats also shifted to the Republican Party as liberal Republicans have virtually disappeared altogether from the party.  As a result of these shifts, four Republican presidents have been elected since 1970 and Republicans are close to becoming a majority in both houses of Congress.  The historic working agreement between the parties has unraveled and there is now an outright fight between the parties for government control.  Let me illustrate two important differences between parties:

Courtesy of DonkeyHotey (via Flickr)

Government Entitlements

Republicans: Social Security and Medicare are too expensive, can bankrupt the government and should be severely restricts if not eliminated.  If these programs are continued, they should be privatized.

Democrats: Social Security and Medicare are vital “safe-nets” to the well-being of the elderly.  Their costs can be controlled by adjusting income caps for eligibility and age of eligibility.  Privatization poses unnecessary risk of market loss and would allow large banks to profit from a basic government function.

Eliminate the Federal Reserve

Republicans: The economy will be strengthened and jobs created by eliminating monetary controls and regulations (The Federal Reserve Bank) as well as federal oversight over banks and by further reducing taxes on businesses, corporations and people with the highest incomes.

Democrats: The Federal Reserve is vital to controlling inflation (rising prices) and the boom and bust market cycles of the past.  Business, corporation and high income tax savings in the past have not necessarily produced more jobs or strengthened the economy.  Government spending and regulation of the economy have.

Both of these political expressions have found their way to the streets.  Tea Party advocates reject the Democratic Party and are angry with the Republican Party for its passed compromises and not governing by core conservative beliefs as outlined above.  The Occupy Movement rejects conservatism and is angry with the Democratic administration for its bailout of big banks, and inability or unwillingness to hold anyone accountable for the mortgage fraud that collapsed the housing market.  They are also upset with Congress’ unwillingness to assist unemployed and needy Americans.

Back to Little Dud

The current political climate and the coming election are hardly cases of two political parties that are just alike.  There are now real differences and choices. Our day-to-day lives will be affected by the choices made in D.C.  Unfortunately, neither Party is perfect. Our best choices are far from ideal, but the consequences for selecting one or the other party will have real effects on our lives.

Now, what do you think?

If you watch television for more than five minutes, you would probably see a commercial for a credit card where you will get 1%, 2% or 5% back on purchases. People that don’t understand credit would say “Great! I like cash back!” People that know the truth about credit also know that the interest rate on these credit cards can be up to 29%. Thus, saving 1% or 5% is very minimal in terms of the overall interest rate. You will still be paying on the card for many years especially if you only pay the minimum payment each month. The credit card company is still making a ridiculous profit off of you despite the amount of “cash back” they give back.

Kids need to know about how credit works so they won’t get roped into the “cash back” and similar offers touted by the credit card companies. According to the article Teach Your kids about Credit Cards, “when it comes to credit cards, you need to make sure that your children understand that the money isn’t ‘theirs’. It’s borrowed and it has to be paid back with interest if the balance is not paid off each month.”

Courtesy of _Dinkel_ (via Flickr)

The article further suggests that you play a credit card game with your kids wherein you allow them to borrow $20 on credit. You will explain to them that they will need to pay you a total of $22 at the end of the loan term. By playing this game, the kids will learn the concept of interest.

It’s even better to teach kids how to live virtually cash only and how to use credit sparingly. Equally important, kids need to understand the value of a dollar and why they should focus on saving instead of spending. It should be explained to them that having debt is like being a slave because you are constantly under the thumb of a watchful creditor.

According to the article How to Stay Out of Debt by Living Cash Only, “millions of dollars a year are spent on interest alone from credit debts. By living cash only, you keep that money in your own pocket and learn the value of a dollar – not to mention learning some great skills for saving money.”

The next time your kid asks for a new toy stress to them that they need to save their own cash in order to buy it. Let them know by doing so, they are making a wise decision and helping to put a credit card company out of business.

In 1931, James Truslow Adams coined the term “American Dream” in his book The Epic of America. Since its inception, this theoretical and intangible ideology has plagued the American psyche. Politicians invoke it and toss it around like a badge of honor, immigrants pursue it, and despite tiredlessly negative economic news, citizens embrace it like a mythical relic. This so-called “American Dream” purports “that [the] dream of a land in which life should be better and richer and fuller for everyone, with opportunity for each according to ability or achievement.” Unfortunately, the myth of the “American Dream” feels more like a candid reality check of “dreams deferred” which one can find in between the pages of the Swedish economist Gunnar Myrdal’s An American Dilemma.

Millions of Americans have endured financial catastrophes in the recession since December 2007 and are rapidly continuing on a downward spiral. Many in the middle class are economically brittle, barely able to preserve their lifestyle, and are disillusioned by the illusive “American Dream”. However, the situation seems to be unbearably dire within the African-American community, specifically. Due to a steady loss of jobs, homes in foreclosure, loss of 401Ks, loss of retirement plans, and a lack of resources, many African-Americans who once enjoyed the spoils of a quasi-Cosbyesque “standard of living” have been commandeered by a depressed economy, forcing them into poverty and into homelessness in some cases. Is the African-American middle class experiencing a “recession” or “depression” and if so, is it over?

According to Algernon Austin, the Director of the Economic Policy Institute’s Program on Race, Ethnicity and the Economy: “The recession is not over for black folks.” In fact, the layoffs for African-Americans are only the latest piece of unwarranted bad news for a struggling middle class. In 2007, the Brooking Institution found that fewer than one-third of blacks born to middle-class parents went on to earn incomes greater than their parents, compared with more than two-thirds of whites from the same income bracket. Regrettably, the foreclosure crisis secured, shattered and wiped out a large section of a generation of African-American homeowners.

In 2004, the median net worth of white households was $134,280, compared with $13,450 for African-American households, according to an analysis of Federal Reserve data by the Economic Policy Institute. Within a five-year period, there was a decline in incomes earned by both ethnic groups. By 2009, the median net worth for white households had fallen 24 percent to $97,860; and the median net worth for African-American households had fallen 83 percent to $2,170, according to the institute.

What will the history of America look like, as the reversal of fortune knocks at the door of African-Americans who have fought hard to win economic  success, which took decades to achieve, just to see their efforts for a better life dissipate in a shaky economic system. How will the decimation of the African-American middle class be justified, under the Obama Administration? What will be the long-term effects on consumerism, if a sector of the populace has no purchasing power?  Will African-Americans once again, ask the questions that Langston Hughes posed, “what happens to a dream deferred”?  Can African-Americans really buy into the narrative of the so-called “American Dream” or will the dream of a “quality of life” be found in the matrix of the American Dilemma?  Poor people do not have recessions, poor people have depressions.

When is the last time you hopped into your car and started driving without a destination in mind? Chances are, not too recently and not too often. Pursuing life’s dreams and goals require forethought and planning, like a long road trip. Knowing where you want to be in the future and figuring out how to get there are all key elements to improving your lot in life.

If upward mobility is your goal, whether that means economic and/or social improvement, developing clearly defined goals is crucial:

• Looking forward, a plan should be set out for what you want to develop in 5, 10, 15 years, etc. Write them down and give as much description to your goals as possible.
• Next, align your strengths and interests with your goal. There are different routes to becoming successful and some paths will be more natural for your personal make-up. How are you built? Are you a race car? An off-roading 4×4? A Smart Car?
• Take into account who you are at your core and make it work to your advantage. For example, a shy introvert might not do him/herself a favor by pursuing sales or politics. Equally, an exuberant extrovert may not thrive as a chemical engineer. Note your strengths and weaknesses and utilize that insight to your advantage in your plans.

Once you’ve determined your goals and understand how you are best built to get there, map it out. What is it going to take to get from A to Z? Education? Speaking another language? Healthier lifestyle? A broader social network? Improved writing skills? Do your research and map out what it is going to take to get there.

Get started. Simply maintaining social and economic standing can be difficult enough. Improving it takes focus, hard and smart work, perseverance, and time. So get started and get focused.

AOK is a social game for good. To play, all you have to do is post Acts and Observations of Kindness (AOKs) on their site, directly or using your phone. You share AOKs you did (“Acts”) or saw someone else doing (“Observations of Kindness”). And for every one you post, you earn points.

Points get converted into dollars for charities and relief efforts, making a real life impact as you play.

The *foodresolutions game is all about making healthier food and diet choices – eating in rather than going to a restaurant, upping your fruit and vegetable intake, or buying locally and sustainably at your local farmer’s market. All points go towards supporting Wholesome Wave,  a 501(c)3 organization “dedicated to supporting small and midsize farms, and making fresh, healthy, locally grown fruits and vegetables available to all people, regardless of income”. Post your healthy choices and action, or get some tips here!

Play along and do good!

I’m an “old-school” single mom who had my first and only child at 39 years old. I was brought up in the days when the words “please” and “thank you” were required phrases especially in the presence of adults. I have since taught my, now, 9 year old son these same rules of engagement.

Times have changed. Disrespect has run rampant. Children are calling teachers bitches and hoes. They raise their voices to their parents and call them out of their names. They act like they know everything. They act like humility is for suckers. This is not true for all kids, but has become more and more prevalent over the years.

Most of these youth will have a rude awakening in the future. Corporate America frowns upon job applicants who cannot exercise standard courtesies and those who cannot or will not submit to authority. In virtually every aspect of life, adults are confronted with situations requiring civility and manners. Without the proper home training, many of these kids, and later adults, will get passed over for those who do. It’s sad to note that the jails are full of these indignant youth and adults.

What are some possible solutions?

• Parents can insist on a “please” and “thank you” policy with their kids both inside and outside of the house.
• Parents need to discipline their kids and let them know who’s the boss.
• Suggest to your children’s after-school program that they add a component in their curriculum that provides training and exercises in manners and proper communication techniques for kids. Or start one yourself!

The old adage of “You can catch more flies with honey than with vinegar” is just as true today as it ever was.

Thank you for reading my article.

While I was watching one of the Republican debates, Little Dud (a fictional friend) stopped by and said: “Well, who really cares?  Obama turned out to be just another politician.  Once politicians get into office, they forget what they promised and cannot be trusted.  Since nothing I can do will make a difference, it is a waste of time to pay attention to anything political.  Better to focus on my personal life, weather or sports.  Who’s going to the play-offs?”

I must confess Little Dud has some points.  Many people would rather talk about intimate details of their personal life – sex, embarrassments and stupid stuff – than to talk about politics.  But I had to respond that the political is something none of us can really afford to ignore.  In the spirit of JustThink, I want to give Little Dud reason to “flip the script” – become knowledgeable about the political in a way that we are not supposed to and then to act in a way that is unexpected.

So, if this is how you feel, then the people who wanted this outcome have succeeded.  Why?  You will make no demands on them or political process to make changes to improve your life.  Your needs and interests can be completely ignored.  Their interests which may be counter to yours can be advanced and their votes will count more than yours and others like you.  In fact, they can claim that they represent the majority, reflect the democratic will of the people, and advance their own interests as what is best for you and Little Dud.  They can make money and be happy at his and your expense, in your name and without your even knowing.  This is their script.

To flip this script you have to actively and knowledgeably be engaged in what is going on politically.  If you rely completely on commercial television news like ABC, CNN or Fox, you are being set up to not count. You need at least two comprehensive sources of world and national news such as:

• BBC
• NPR
• Al Jazeera English, which is not allowed on U.S. networks.
• The New York Times, the only comprehensive newspaper left in the U.S.

Courtesy of NS Newsflash (via Flickr)

I am not talking about conspiracies.  Efforts to discourage your thinking are right out in plain sight.  There are good paying job for people to shape your views of the political.  When political parties and candidates hire public relation firms, advertising companies, media consultants and campaign staffs they do so to influence your thinking – if these efforts did not work they would not spend millions to do them.  Politicians like advertisers want you to believe their message, but if you cannot or will not, then they want to discourage your participation altogether.  If you are not going to be “had,” you got to be on your toes.

If you have been watching the Republican Party’s nomination process, what looks on the surface like a food fight is far from it.  Their beliefs, vision and assumptions about the world are getting almost a full year of media coverage without opposing views.  During this time, one would think there is only one political party; they get to define the issues, to demonize Democrats and President Obama and make it seem that their victory is inevitable.  This is all very strategic and well done because if the election was tomorrow, Obama and Democratic Party would lose.  They have lots of catching up to do.

For us all to flip the script, we have to ask the question of what does promoting the “common good” mean.  This is for you and your friends to answer; this is ultimately what the political is all about.  It is not for either party to give you the answer, manipulate you into believing their view or to turn you off from the process if they cannot get your support.  Once you have your grounding, then you will clearly see what the candidates really have to offer. No one will be perfect or ideal.  Until people and a party come forward that better represent you, you are going to have to select who comes closest to your ideal.

To be had and to stay on the side-lines will only contribute to making our day-to-day lives more difficult than they are now – a lot more difficult.  This is why we should care about politics, and surprise those who think you will not count because you are so alienated by it all – flip the script.  Even the Little Dud is convinced.  Our choices are far from ideal, but we do have a real obligation to ourselves and those coming behind us to be engaged and to show up and be counted.