There are a laundry list of reasons why Americans are angry, disillusioned or filled with anxiety these days. For some they feel the country is headed in the wrong direction or is directionless, for others they do not trust President Obama, others are concerned about the impact of diversity on the white population, and others just see Washington as broken and a partisan mess.
Let me add another reason to this laundry list of national depression. In a recent issue of The Atlantic, Neal Gabler, an award winning writer, talked about the travails of the middle class. In his piece he referenced a yearly survey conducted by the Federal Reserve Board that monitors American consumers. One of the questions asked was how the respondents would likely pay for a $ 400 emergency. The answer from 47% was that they would cover the $ 400 by borrowing the money, selling possessions or they would not be able to come up with the cash. Let me say that again, 47% of American consumers polled said that they could not come up with $ 400 for an emergency.
Now these Americans without the $ 400 are likely a cross section of our country – some may be receiving assistance, some are seniors on a fixed income, some are making minimum wage and some are folks from what used to be the solid middle class. ( I suspect a goodly number of the respondents were from what is generally described as the middle class since we are talking about a huge number- 47% of those who answered the questionnaire).
You want to know why people are angry and in a foul mood toward political and economic elites, the lack of $ 400 to cover an emergency is certainly at the top of the list. Income inequality is a fancy term used by economists to describe that in our economy there are winners and losers, but in the last twenty years, especially since the Great Recession, the number of losers has exploded and the middle class is in tatters.
Sadly, there is no short term solution to the $ 400 dilemma of the 47% – a comprehensive minimum wage increase is years away and is a band aid; significant pay jumps for workers are not in the cards, only incremental cost of living bonuses; corporations are either sitting on trillions in cash and doing little with it or are shipping it offshore to avoid government-sponsored distribution programs; and any talk of freebies, whether college tuition, universal health care, parental leave or day care, are dismissed as socialistic and contributing to a furthering of that gaping hole in the national debt.
So the short and long term condition of the middle class is an acceptance of economic and financial struggle as a fact of life and a continued erosion of the American dream.What’s astounding is that at first glance $ 400 is really not a lot of money, but tell that to the 47% of American consumers.