Originally posted at In These Times
If you feel like that recovery we keep hearing about hasn’t quite trickled down to your block, there’s a good reason. A huge swath of the country’s workers are out of sync with the economic cycle, continually falling further behind the rich. And, now Obama’s proposed budget may hinder them even more.
According to a new multi-year study by Pew’s Economic Mobility Project, many families are priced out of “recovery” for reasons that long predated the recession and will persist indefinitely even as the economy “bounces back.”
Though it’s unsurprising that economic insecurity becomes more ingrained over time, the Pew study reveals that struggling families have had to make trade-offs that further deplete their’ resiliency for coping with the next crisis. According to the analysis, “Those without personal savings and kinship networks to support them frequently used resources they had allocated for their children’s education or their own retirement to fund short-term needs.”
Experiencing unemployment is linked not only to temporary income loss, but to a long-term erosion of wealth over many years. With long-term joblessness still at epidemic levels, the trauma of the recession may bleed into a lifetime of hardship, freighted with crushing debts, or dependency on meager public benefits, or the foreclosure of their children’s college prospects. Read the rest of this entry →