The Washington Post writes "For Many Americans, Nowhere to Go but Down" - a typical media story about an unemployed family and their travails. Of course, there isn't a single place in this story that might be described as self-reflective, by the family - or by the reporter:
"What if we don't have cash to buy milk, eggs, bread or diapers? What if our unemployment benefits run out? What if we never find jobs?....Scott got a job on a paint crew at an RV plant, and by the end of 2007 his income had climbed to $53,000, more than he had ever earned. After work he was the man at the bar with the thick roll of bills, the man he had always wanted to be, buying round after round for himself and his friends. The man with "the full pocket," as he liked to say. He took his son on a fishing trip. He took his family out to eat and told them to order whatever they wanted."
To add insult to stupidity...
His wife turns down an $8 hour job because she makes more on unemployment benefits. Which are going to expire very soon, of course. The story just breezes on by that.
I have nothing but sympathy for people who have worked hard, made efforts to save, and are struggling. The includes many (but not all) people who may have made poor mortgage choices, for reasons that would require another post.
A completely self-inflicted train wreck like this one is different. I'm sure this family is made up of perfectly nice people. And I'm sure these parents love their kids. Doesn't change the fact that they've failed their kids and each other in some pretty important ways, and don't seem to grasp that fact. Which is why I have very little sympathy.
Vincent Fernando of "Research Reloaded" was absolutely correct to describe this story as "A Microcosm of What Has Been Wrong With the US Consumer." You could write a pretty similar story about quite a few people whose earnings were well north of $100,000. It's not a class story, as the reporter thought, and part of returning to prosperity in America will be about widespread recognition of what's really wrong here.
The Post has done good reporting on this story. It's just not the story they thought they were running.
It's an interesting piece; it "breezes on by" a number of other points where someone might have followed up with an insightful question or two. My favorite was
"He withdraws $700, which he tucks into a front pocket of his jeans. He buys a Pepsi, four packs of Marlboro Lights and $20 in gas. He pays the electric bill, buys brake pads, a $66 money order for the kids' health insurance, and hoses down the Cougar at a car wash.
....
He has $100 more coming, his reward for winning the NASCAR betting pool at his bar, a dark, smoky joint called the Winners Circle. He walks in just before noon, hoping to find someone, anyone, who might know something about a job. The place is almost empty. The bartender, gray-haired, gravelly voiced Valerie, delivers his winnings and a $2 draft. He rarely drinks at home or in front of his kids. He never drank at work. But sometimes he drinks here, beer after beer after beer.
. . . .
At 1:10 p.m. he orders his fourth Bud. At 1:44 he orders a fifth, then a sixth."
but, frankly, mostly it would have seemed like simply beating up on these folks, who are, as you observe, Joe, kinda clueless. Coming from a WaPo reporter, I could see such questions characterized as being elitist...
Stephen J. Dubner at "Freakonomics" semmingly even wonders why WaPo bothered to spend time trouble and money on the piece, rather than simply handing the dollars to the poor schmos "in a paper bag".
R Gould-Saltman
I went through a phase of hanging out in bars, it lasted about a year. And I spent a ton a money in the process. Bars and saving don't go together.
I've largely given up bars. Just spent a bunch of money on a long anticipated european vacation, but even there we mostly bought wine or beer from the grocery store. Stayed in hostels, lived primarily on bread & cheese. (luckily, europeans have a higher quality of both).
Still, I think this particular 'bar' example is a perfect illustration of flight/fight stress reactions. Some people fight, others flee. This is often seen in alcohol sales which peak in depressions even though they can't afford food.
However, the not saving in good times is a problem with the entire society as a whole. We've been told to spend over savings. But a house that will only increase in value. Put your money into 'safe' stocks and bonds. After all, you're just getting taxed on savings anyway... This has led to a chronic savings problem. The average american (with a credit card) holds $8,940 dollars of debt.
We need to dramatically reemphasize savings in this country. But I think things are going to have to be more dire before the shopping patterns of the glut 90's are forgotten...
Let me revamp that a little, the median credit card debt is only 1,800 dollars. However, the more money americans make, the more debt they are likely to have.