Sunday, August 6, 2017

Hanging on financially

   



I was interested to read  The Secret Shame of Middle Class Americans in The Atlantic about the prevalence of people who would have great difficulty in finding $400 for an emergency.  Who could live like that?    Emergencies come around regularly, if by that is meant a car repair, painful dental problems or your hot water tank expiring.     Forty-seven percent of Americans surveyed by the Federal Reserve would have to borrow or sell something to find the money.  

The subject. Mr. Neal Gabler,  chose his profession, writing, for love not money.   He's published five books, hundreds of articles and television scripts.   He's won awards and describes a respectable reputation.   Unfortunately, writing has never been a well paying career except for an exalted few.   In addition, as a self-employed person he must engage in the annoying and time-consuming task of chasing payments.   Anyone who works for themselves will know what this is like.   The work has been delivered but a finely tuned dance must be commenced to pry payment loose without offending the payor and cutting off a future supply of work.   

There was good money at times.  Neal Gabler describes years of a solid middle class and even upper middle class income.   I suspect the more prosperous years were in the past, or at least before the internet was well established, with sites like Fiverr providing writers for amounts that would just about buy latte at Starbucks.   When you have to borrow money from your adult children to pay for heat in the winter, there's a particular kind of shame attached.

It may be that Mr. Gabler did not manage his money as well as he might have.   Saving in the years of plenty for the years of want.   Creative types of people don't seem to manage their finances well as a multitude of rock stars who end up destitute have described.  You can meet Mr. Gabler on Youtube here.

Some Americans end up in financial straits because of medical bills.   The Canadian health care system is far from perfect and a middle class person will have to cope with  many expenses considered non-emergency, like glasses or root canals.   But hospital and doctor visits are covered, albeit with payment of a monthly premium of $75 for the middle class individual.

In the past, families managed on one income.   What's changed?   Wages have remained stagnant, good union type jobs with benefits and pensions are a dying breed.   There's so much more to need or at least want.   It's hard to imagine living without a computer and internet connection and many people are attached to their cell phones.  

Gabler is relieved to come out of the shadows and admit his problems.   Sharing doesn't solve his problems but finding out that half the people around him are in the same position offers some solace.

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