The additional cost of poverty...

Labor Market Information is something that is available at every One-Stop Career Center and can help people determine which industries are likely to grow and where the job vacacies are and will be. These centers are **free of charge ** to anyone who wishes to use them, and also have workshops on resume writing, interview skills, links to other resources such as Dress for Success and Transitional Assistance, subsidized child care, and some (albeit limited) funding dollars for skills training and other vocational prgrams.

Now, I’m not saying that these will solve all the problems of unemployment; far from it. But I do always mention them as a great—and underused—resource for un- and underemployed people.

Some people won’t qualify for financing…or the financing they will qualify for is the super-high-interest, never-get-ahead kind that was cited as poor financial decision-making earlier in the thread. As someone who once owned a car that cost way too much to repair when it did need repairs, but was at least free from a monthly payment, I know how difficult it is to get the money saved up to rectify that situation.

Illness or medical bills are a factor in nearly half of all bankruptcies in America. Inability to pay medical bills is a serious problem for a lot of Americans.

Going bankrupt has a very bad effect on your credit rating, which creates all kinds of other problems. Anything you buy on credit is going to be a lot more expensive than it would be to someone with a better credit rating, but that’s not going to be your only problem. A bad credit rating makes you less desirable as an employee to many companies, so it’s going to be harder to find a job. It’s going to be much harder to find a place to live- of course it would be harder to get a mortgage, but apartment complexes also take credit ratings into account when evaluating prospective tenants. Some insurance companies will look at your credit score when determining your rates, so you might pay more for insurance, or find it harder to get insurance.

I went to university in California several years ago. All I got in the way of financial aid were loans (which I’m still paying off) and a grant that almost everyone qualified for that was about $1,000 a year. My income the year before was just under $14,000. I had to fight for even that as they wanted to factor in my father’s income, despite my having been completely independent and having basically no contact with him for three years.

I got no monetary support from my family whatsoever and I had to prove that I got nothing before the university would even consider dispensing aid. I had to write a letter of appeal and get four letters of testimony from people who knew both my father and me, and they almost denied my appeal on the grounds that two of the letters were from family members, my aunt and my uncle; they preferred that letters come from someone who was not family. :rolleyes: Yeah, everyone knows lots of people who are close enough to know intimate details about their familial relationships and financial support, but who are also not relatives.

If I hadn’t been slightly stubborn and willing to put in the considerable time and effort to push past all this crap, I wouldn’t have gotten anything, and I wouldn’t have been able to go to school. Even with the loans, it’s not like it’s a free ride. I have been paying about 20–25% of my after-tax income toward them for the last 6 years and I still have an outstanding balance.


Another hidden expense for the poor is transportation. Cars are sometimes cheaper and always much more convenient than public transport. I had to get from my house, close to SDSU, up to UCSD for a job during the last few months before graduating and going to Japan. On my motorcycle (bought because it was cheaper than any halfway decent car I could find) I could get there in 25–30 minutes, with a cost of $400 a year in insurance, probably less than a buck for gas, and pretty low maintenance. It cost me about $5.50 (if I remember correctly) and well over an hour of my time to take the bus round trip after I’d sold my motorcycle and had to rely on public transportation for my remaining time in the country.

That’s close to $1,500 a year for transportation that takes 2 or 3 times as long and is nowhere near as flexible. That cost is for a fixed trip between two points, with a transfer. If you have to go anywhere else, that’s an added cost. If I’d gone anywhere besides work and home, it would cost me another $2-something for each leg, effectively doubling the cost of my transportation for the day. It’s not that reliable either. Busses would come early or would sometimes be full, in which case the driver sometimes wouldn’t even stop. If you miss the bus because the driver was ahead of schedule and you weren’t right at the stop when the bus passed by (happened to me once, though I was actually early if the schedule had been followed properly) or couldn’t get on due to crowding, you were out of luck; you’d be late and there’d be nothing you could do about it.

A mental cost: the route schedule was complicated, hard to parse, and you had to know all the stops to be sure of getting off at the right one. It took me a few days to feel confident that I was going to make the right transfers, and I’m both educated and probably smart enough to qualify for Mensa membership. Imagine how hard it is for someone who isn’t all that intelligent or used to figuring out complicated information.

You guys who keep talking about how easy it is to make good, you’re incorrect and your attitude stinks. Entrepreneurship is a gamble. My parents worked their asses off for years to build up a business, and when my mother got cancer it all evaporated as fast as frost in sunlight. Her medical costs were mostly covered by health insurance, but without her my father and grandmother couldn’t keep the businesses running and had to sell everything, most of it at a loss. No further income, close to no realized profit, and nothing to show for over a decade of work. That’s what happens to a LOT of small businesses. Just because you were successful doesn’t mean everyone will be.

My family went from having to take government charity and foodstamps when I was a little kid and my father got laid off from GM; to being lower-middle class through taking a chance, borrowing money from anywhere they could get it, and putting in a lot of hard work (my mother typically worked 12 hour days six days a week, and my father had to commute an hour each way to a job he hated but kept for the medical and dental benefits); right back to wondering if we were going to have enough money for food next month. You’re sometimes poor just because life sucks, not through any fault of your own. Work, sacrifice, and planning only goes so far.

Yeah, but what’s bankruptcy? You’ve got to take what I said in context with everything I said about poverty in America. Everything you mention are obvious, well-established effects of bankruptcy for any reason, not just for medical bills you can’t pay. My point was that there’s no true American poverty. Yeah, life sucks and it’s hard and you may not know where your next meal is coming from or you may skip a meal or lose your job and have to find another or make your kids work or whatnot, but it all works out. They’re only poor relative to you and I; they don’t live in shanties without potable water; they’re not laden with infectious diseases; they’re able to get by. There’s no fundamental right to comfort, i.e., no one ever said life was going to be easy.

And it doesn’t mean you will continue to be. Some folks don’t remember that.

-Joe

I found this book, “The Working Poor” to be excellent.

The biggest issue with the poor is there is no safety net. If I get an overdraft notice, big deal. If I have to go the doctor, big deal. If I get a flat tire, big deal. If I’m an hour late to work, big deal. If my kid hurts themselves, big deal. The small problems in life are just that, small problems. For the poor any of those things can be crushing catastrophes that quickly eat up whatever safety cushion they may have built up.

I can’t disagree with anything you’ve said Balthisat, but jeez, how about a little compassion? Poor people here may have it easy compared to third-world countries but that doesn’t mean life isn’t absolutely shit for them!

You may not have meant it quite that way, but i think some of the posters in this thread are just taking exception to the slightly callous attitude that some posts seem to convey.

You mention the point of relativity, and you are right, but it works both ways. People in third-world countries aren’t being blasted with commercials showing all the luxury goods they can’t afford and TV programmes showing the comfortable life that they should consider normal.