Sunday, June 18, 2017

Unstable president and people needing stability

Unstable president? Well yes! Trump does have a few glitches. 
But you also need to think he is in charge, he can hit the nuke button. 
Trump is already taking action in a small town type of view. 
It's like catering to small town people that never been out of town in 10 years
they don't have a clue what is really going on. America can't be run like a 
small town, it would have nothing like they have nothing!

Or to note as in like how you always see Republican bumper stickers on the most
impoverished cars and trucks and never on a BMW,  Mercedes.
It makes you want to shake those people "Why won't you vote Democrat for people 
that want to pay you better?" It's a tossup if it's that they are sadomasochist voters, 
or stupid! Like how many don't want growth, so the town has been the same 
for 50 years with minimum wage retirees everywhere. Low pay, low growth.
Make nothing, have nothing, so they want nothing because they vote for nothing!
They like it that way! Bad for everyone else!

But really people do seek stable jobs over the higher pay.
And that results as declining for towns. Noted in something like the 
chamber of commerce pushing for higher sales in town, working in bringing in 
stores that do not fit the wages of the town. When most people go backward, 
or just float up or down because of their wages. The wages don't grow so if there is 
a food stamp cut or any cuts the Republicans want to do, the struggling people 
will cut back to compensate. A cigarette tax Oklahoma = taking money away from 
other sales in town as they spend most of their money on the cigarettes.

There is that line of working two jobs that don't help anyway as it's like working
for $8 after taxes for 16 hours. Being it is daunting like waking up for the start
of the 16 hour shifts. Like working at Walmart in 2006 sleeping at 11 am waking up
at 10 pm (Beep, Beep, Beep!) so you can be at work at Walmart making $7 after taxes.
Work then do it again because all of your work you did the night before has vanished.

Having garnishments taking 40 percent of your income so there is no value in working
for $3 after taxes pay when the kids are running loose with the parents stuck at work
for 8 hours a day. It's better to not work!

All of this is bad for sales, growth. It sets consumer based pricing at poverty levels
as the most of the poor won't buy the high priced stuff forcing the prices lower
so they can buy it. Anything is better than nothing! Living within their means at
$8 after taxes pay.

The point????? Raise the minimum wage!!!!!! You get what you pay for!
Why impoverish the consumers they are the labor force also.
This about that question about not living in a third world country.
"What do you work for?" = "Paying the bills!" As most in small towns live
on less than 25 percent of their income! The 75 percent is on rent, bills etc!

~~~~~What Trump doesn't understand about the poor
By and large, Americans can find jobs today. But too often those jobs have wild swings in pay. A mechanic, for example, might earn $3,500 one month and then drop to around $1,000 the next, when customers don't materialize.

The working poor and, increasingly, the middle class are in a state of "persistent anxiety" about their finances, says Jonathan Morduch, the co-author of a groundbreaking new book, "The Financial Diaries," with Rachel Schneider.

President Trump tapped into exactly this deep economic unease during his campaign. He solution is to get more people working. He promised to create the most jobs of any U.S. president. It's a herculean goal, but even if Trump manages it, it probably won't be enough.

The reality is a lot of Americans who have jobs are still suffering. The authors of "The Financial Diaries" followed 235 lower and middle income U.S. families for a year, tracking every dollar they earn and spend. They found that the classic advice to work hard and "save, save, save" just doesn't pan out when so many families face several months a year where they are plunging into poverty, even if they have a job or two.

"This idea that people are misspending money, or are lazy, it's crazy," says Morduch, a New York University Professor of economics and public policy. He argues that America desperately needs better protections for hourly workers and a stronger safety net that can quickly help lower middle class families that fall into poverty for a few weeks or months of the year.

The Trump administration appears to be doing the exact opposite. Trump has proposed slashing funding for key safety net programs, and he has rolled back some Obama-era protections for federal contract workers.

Morduch was stunned by what he found when he closely monitored and interviewed 235 families. Most were working multiple jobs and not overspending at all. In fact, many were actually good savers. It's just their savings was almost always eaten up during the year to cover a "bad month."

He opens the book with Becky and Jeremy, an Ohio couple in their 30s with four kids. Jeremy is a mechanic who fixes the big trucks that crisscross America's highways. Trucks are far more likely to break down in the winter or summer. In those months, Jeremy makes as much as $3,400 a month after taxes. That translates to a healthy $40,000 income, after tax.

But his hours and pay crash during the spring and fall. One month it fell to $1,200. That puts his family below the poverty line. He and his wife had to borrow money from relatives and leave some bills unpaid, which wracks up more debt and stress.

At the end of the book, Jeremy is offered a job with lower total income for the year, but it guarantees a 40-hour work week with a stable paycheck. He takes it, and he and his wife rejoice.

"The basic story is you've got lots of workers who have hourly schedules and those schedules aren't consistent," says Morduch. That's true of waiters, dealers in casinos, grocery store clerks and fast food workers at Chipotle, McDonald's and other chains.

The real life stories in "The Financial Diaries" are backed up by a growing body of research and polling data.

A 2015 Pew poll asked Americas whether they "would prefer to have financial stability or to move up the income ladder." An astonishing 92% chose security over higher pay.

Morduch found a similar result. At the end of the year when he asked the 235 families the same question, 77% chose stability. Most, like Jeremy and Becky, were desperate for more consistent checks so they could plan their lives instead of constantly having to worry if the paychecks would go back up after a tough patch.

It might be tempting to dismiss "The Financial Diaries" as a small sample that isn't representative of America, but the country's largest bank found the exact same thing. The JPMorgan Chase & Co. Institute studied a random sample of 100,000 Chase bank accounts in 2015. There were huge swings in how much money people were earning one month versus the next.

"Volatility was even greater on a month-to-month basis than on a year-to-year basis," JPMorgan found. Some of that was due to months when families received tax refunds or a holiday bonus, but a lot of it was from fluctuations in pay, as "The Financial Diaries" chronicles in detail.

"The typical household did not have a sufficient financial buffer," JPMorgan concluded.
A lot of American families are on a "rocky road," Morduch finds. A simple way to help them is to require employers to let workers know their work schedules at least two weeks in advance, instead of changing it up last minute.
He also cautions that the working poor often turn to credit card debt or payday loans to get through the rough times. They need better options than that.
"We saw so many people get into trouble with credit card debt," he says.