Key GOP donor backs Dem after House Republican ousted over Trump impeachment

In an article in Politico called “Key GOP donor backs Dem after House Republican ousted over Trump impeachment” by Natalie Fertig, a “former Romney financier David Nierenberg says he is siding with moderation over far-right rhetoric in Washington State.”

Republican Joe Kent, left, and Democrat Marie Gluesenkamp Perez stand in a room in front of a white wall and door.

A few key paragraphs are noted below. A link to the full article can be found at the end of the post.

“David Nierenberg has funded a lot of Republican candidates over the years. But when GOP Rep. Jaime Herrera Beutler lost her primary in August, he switched sides to fund Democrat Marie Gluesenkamp Perez over the Trump-backed Republican who advanced to the general election.

‘I immediately went to work,’ Nierenberg said. ‘And I think I’ve now transformed myself from Jaime’s largest bundler to Marie’s.

Gluesenkamp Perez’s campaign team confirmed Nierenberg has raised over $100,000 for her campaign from his network of moderate Republican donors since the August primary. But the money is only part of the story in a district that has been center stage in the fight for moderate Republican voters — and for the future of the GOP — since Herrera Beutler’s votein 2021 to impeach Donald Trump over the Jan. 6 Capitol riot earned her a primary challenge from Republican Joe Kent….

Most of his big money donations in the last decade have gone to Republicans, but Nierenberg says he’s generally looking for candidates willing to work across the aisle — a breed of politician that voters are choosing in rapidly declining numbers.

I want Republicans in leadership positions in the party to see this. Not only has the GOP leadership embraced the unenviable requirement to believe The Big Lie and sow it seeds, they must also join in the petulant stance of destroying those who dared to speak the truth against the former president.

Quite simply, any governing body that punishes its truth tellers and exposing them and their family to threats of violence while aggrandizing its liars is not a party who has veritas and gravitas. How can someone take this party seriously if they let this kind of stuff happen? Again, just this weekend, the former president put a target on Senator Mitch McConnell’s back and made a racist remark against McConnell’s Asian-American wife, who just happened to be in Trump’s cabinet.

This is not just being “rough around the edges” as the former president’s sycophants like to say. On top of his many other attributes that are unbecoming of a president, much less a decent human being, putting people in danger and making denigrating racist comments is the simply the former president acting like a class A jerk. People who support him would not teach their kids to act like the former president does on a routine basis. They would not tolerate it. So, why should we not call it out?

I saw where the Mr. Pillow guy lost his appeal to avoid the continuance of the defamation lawsuit against him by Dominion Voting Systems. He is in a long line of people who flew to close to the Trump sun and got sucked in by its gravitational pull and are now suffering the consequences. I have long said the happiest people in America in 2016-17 were folks who declined Trump’s offer to work for him. The second happiest were their spouses.

I applaud Mr. Nierenberg for his funding a non-extreme candidate. We need more civil discourse, not less. We need more people to act the opposite way the former president acts. We need leaders who can disagree without taking someone’s head off.

https://www.politico.com/news/2022/10/03/gop-donor-backing-democrat-washington-00060099

Financial suggestions from an old fart (a reprise)

Recognizing there are many places for financial advice, as an old fart, I thought I would offer some specific examples on ways to save money. Some of these are in reaction to various conversations I have had with my children, nieces and nephews, but regardless of age, it does not hurt to validate your thinking from time to time. Please take these for what they are worth, examples of lessons learned, pitfalls avoided and plans executed when I was prescient enough to listen to someone else beforehand. NOTE: I am not a financial advisor, so please do not interpret this as coming from such.

  • Don’t have too many credit cards. I have one debit and two credit cards – you will pile up too much debt otherwise and expose yourself to identity theft with too many. Pay down your largest interest rate first and close it out. Don’t just cut up the card, cancel it as identity theft can still occur – trust me on this.
  • If you are working and have access to a 401(k) or 403(b) plan, for God’s sake use it. If there is a match, find a way to contribute up to the maximum match percentage. You will retire from some place and the cash provides cushion if you are laid off (company’s do that and it has happened to people who are better at their jobs than you are). You are throwing money away otherwise.
  • Do not play the lottery. I repeat, do not play the lottery. You might as well throw the money out the window. Lotteries are a regressive tax – it means people who can least afford to pay taxes, contribute to the lottery. Use the money instead in the 401(k) or 403(b) plan.
  • Avoid online fantasy team and sports betting. You are playing against an audience using multi-variable regression tools for their predictions. A very small percentage of people win the bulk of the money, with everyone else in the red. If you do play, set a small budget.
  • Avoid payday lending. In the bible, usury is a sin. In Dante’s Inferno, there is a level of Hell for payday lenders of the day. These guys are a step away from legbreakers. You will go into a death spiral of debt if you succumb.
  • If you can’t get a job, try volunteering for a charity group. The networking is good as people will see your energies on showcase in a good way. Plus, the psychic income is rich. By working, you will avoid depressive thoughts and can use your energy in a positive way. Some non-profits may be able to figure out a way to get you some income. Plus, you can see ways to tap services if needed.
  • If you have some money to invest – think dividend paying stocks with low P/E (price to earnings) ratios. Take the price per share of the stock and divide it by the earnings per share. If 20 or under, it may be worth the effort. These companies may also have Dividend or Customer Purchase plans you can access online. This means you buy the stock without a sales charge driectly from the company.
  • You do not need to own the newest gadget or thing. Companies do this to get you to buy something. I am not impressed by who owns what. Most people are not. If people are more impressed by your gadgets than you, then you may want to hang around a different crowd.
  • Be smart with your fast food purchases. Do not buy the drinks there as the margins are huge on liquid. Get out of your car and go inside. You are wasting a ton of gas waiting in line and it may be faster if the line outside is long. Read the calorie chart – the Affordable Care Act is requiring disclosure. This will help you be less of a train wreck later on. And, please do not supersize as you will become what you eat – supersized.
  • Better yet, eat more meals at home and yes, eat the leftovers. The savings are huge. I will never die of food poisoning in my own house, so I usually have to be quick with the leftovers before my wife tosses them.
  • Avoid eye level purchases in stores, especially if you are woman. Not to be sexist, but the highest margin items in a grocery store are at the eye level of a 5’5″ woman. Also avoid out-of-place stuff at the end of an aisle or by the cashier. The stuff by the cashier is lethal. While we are at it, do not go inside a convenience store when you pump gas unless it is to use the restroom. Their margins are huge inside on purchases.
  • Reduce water usage by not running water while you shave, brush your teeth, etc. Also, get a lower flush toilet or put a small enclosed container of rocks in the tank as this will reduce the water usage. Use the energy saver setting on dishwashers.
  • Shut off electrical devices overnight. This will save energy plus it will slow the deterioration of modems, routers, computers, etc. And, it will reduce a fire hazard.
  • Go generic on all prescriptions (some generics are the same pill). Use the store brand ibuprofen, decongestants, etc. as they work just as well. Not all pills are the same as one of my sons breaks out in a rash with one generic, but the brand is fine, so use trial and error.
  • Get a second and third opinion on surgeries or diagnosis. Especially, back surgeries. Sometime surgeries can do more harm than good. If you need one, make sure you get all the answers to your questions and have exhausted other options.
  • Walk to errands. Take a couple of shopping bags and walk to the store. You will be healthier, plus you will buy less because you cannot carry it all back.
  • Don’t drink so much. I don’t drink anymore, but have drunk enough for a lifetime before I quit fifteen years ago. You would be amazed at how much you save, plus the better health pays dividends. My last straw was a friend who died at age 59 because of alcoholism. I can tell most people drink more than they tell people. So, find ways to cut it back. Trust me, I know.

That is all I have for now. I hope this was useful. I am sorry about the preaching on the last item, but that is a big-ticket savings item. I welcome other ideas as I want to learn how to save more as well. Please provide additional suggestions below.

Mental health spending on the rise

From a recent article in Benefits Pro, which is a recurring newsletter for benefit professionals:

“Overall spending on mental health services increased from 6.8% to 8.2% between 2013 and 2020, according to a new study published by the Employee Benefit Research Institute (EBRI).

Approximately 1 in 5 adults and 1 in 6 youth experience mental illness each year, and these rates have been rising,’ Paul Fronstin, director of EBRI’s Health Benefits Research and co-author of the study, says in a statement. ‘Over 20 million Americans have a substance use disorder.

The COVID-19 pandemic has exacerbated mental health issues nationally and in the workplace. With increases in both the number of individuals diagnosed with mental health disorders and use of health care services, higher spending is of great concern to plan sponsors of health benefit programs.'”

This trend has been supported by other sources of information, especially as it relates to the impact from the pandemic. When I traveled around with a Behavioral Psychologist who would help our corporate clients set-up mental health programs around depression and obesity management, mental wellness help-lines, etc., she would cite a statistic that 1 in 5 adults would have some form of depression in their lifetime. That is now a dated statistic, as the above surveys cites 1 in 5 per year.

Her main thrust is people who are battling depression to any degree should get counseling. She hated to see anti-depression medicine prescribed by general practitioners, as that just helped with the depression not get at the cause and management. If you know of anyone who is experiencing depression, please encourage them to seek counseling.

There is no shame in getting help from someone qualified to give it. This also goes for other disorders that someone might be dealing with – substance abuse, anxiety, paranoia, OCD, schizoid personality disorder, PTSD, etc. It is not uncommon for someone to have multiple diagnoses. And, I include PTSD, as one need not be in battle to experience post-traumatic stress disorder, as homeless mothers and kids or victims of domestic violence will tend to have PTSD issues as well.

Twenty-five seconds showers

Regardless of whether elected officials want to talk about this, we have a global water crisis that has been building for some time. Here in the states, it manifests itself in three ways: more severe droughts in drier areas, evaporating and depleting water sources, and too many lead pipes still being used to provide water to cities.

And, this is before climate change has made the situation worse. I have cited before a statistic from a Duke Energy report that said climate change will cause evaporation from their water sources by 11% more than before. The folks out in the western part of the US are seeing major river sources at risk with so many competing users and states. The same is true in other parts of the world such as Cape Town, South Africa and in Chile, eg.

So, there are many things we must do combat these problems. The first one is to get elected officials to stop their discussions around exaggerated and contrived topics and to start discussing real problems. Politicians are often too late to the game as they get little credit for actually thinking ahead to avoid a problem getting worse. That is unfortunate, as that is precisely what we need them to do.

The possible solutions are many, but none may be a panacea. With climate change, our water crisis can be boiled down to one sentence – too much sea water and too little fresh water. So, one solution would be to convert sea water into potable water. It is expensive and earlier attempts do not taste as well, but that may be the best option for us. This is more evident in places like Miami and surrounding areas where the Biscayne aquifer is protected by porous limestone which will not hold back encroaching sea water. But, I have not heard either of the two senators or governor mention this.

One approach that would help a great deal is to use less water to generate power. What gets talked about so little in renewable energy is many of the approaches do not need water. Solar energy with photovoltaic panels and wind energy do not need water. Fossil fuel and nuclear energy must use water to boil into steam and turn the turbines. Granted the water gets release after its used back into the source, but a portion evaporates each time. And, fracking to retrieve natural gas takes a huge amount of water that cannot be reused.

Another partial solution is cut down on usage, hence the title of this post. The twenty-five seconds showers come from those who served in the Navy on a ship. That is how much fresh water a sailor had to bathe. So, the sailor would rinse off for five seconds. Stop the water and bathe with soap. Then, turn the water back on and rinse off for twenty seconds. 25 seconds. I know most folks shower much longer than that, but just think of the impact if everyone just halved their shower time, even more so if they decreased it to something measurable in seconds.

The above is a good metaphor for cutting usage of fresh water along many lines. We need to plant more indigenous plants that grow better in an area. There is a reason alfalfa and wheat are grown in the midwest – they grow in the wild. We could also use more rain barrels for watering or build gardens and water gathering devices on the roof of buildings. And, there plumbing approaches that reuse shower water to flush toilets, etc. Finally, some locations have had success in significantly filtering sewage water into fresh drinking water.

Then, there is that lead pipe thing. Which is its own animal. Unless we want to keep on poisoning people, we need to do something about changing the pipes. The Flint, Michigan pipe issue is not an anomaly. I read where Chicago is having issues as well, but these places are only the tip of the icebergs.

I kept this piece short with intention. It deserves greater scrutiny and discussion, but we need to discuss them rather than some of the things that we do discuss. I feel like our elected officials are a bunch of Nero’s fiddling away. But, in this case, we don’t have the water to put out the fire.

When real people are used as pawns

Three governors of states have decided to play with people’s lives in an overt way to win some delusional wedge issue to garner votes. These governors have decided to transport migrants and refugees from Venezuela and other places to Democrat majority cities for them to deal with the problem. Our friend Jill has a good piece on the subject which I will link to below.

Here a few thoughts that share how I feel about stepping on the neck of the disenfranchised:

If grandstanding were an Olympic sport, these three prone-to-exaggerating governors would vie for the Gold. If bullying the disenfranchised were a Commandment, these three prone-to-condescending governors would be very pious. If letting your dog go in your neighbors yard without clean-up was a character trait, then these prone-to-screwing-people governors would be honorable..

The migrant stunt is just poor form, but not outside of these three governors’ modus operandi. I did read the migrant stunt is not playing well with Latino Americans in South Florida, nor should it. People need to recognize when folks are grandstanding, bullying and screwing people like these governors often do. 

With that said, I am all for healthy and civil debate on how to help and deal with the influx of people from other places. Ironically, before he turn and ran from his greatest legislative achievement, Senator Marco Rubio (of that very same South Florida) was part of a gang of eight Senators who helped pass a pretty good immigration bill in 2013. The Speaker of the House chose not to bring it to a vote, although it would have passed, because Republicans felt it was a better election issue if left unpassed. This is the same reason the last former president was talked out of his wall funding for DACA deal the same day he agreed to it.

Working together should not be as hard as the elected officials have made it. My strong advice is stop the grandstanding and get in a room and work things out. Truth telling and civility would be helpful.

Civil discourse and truth are needed – letter sent to the editor

I sent this letter into the editor of my newspaper yesterday. I hope they publish it. Please feel free to adapt and use.

It continues to trouble me that too many Americans are following the lead of extremists and committing violence when they don’t agree with something. It also troubles me that we are letting sources of disinformation and propaganda like QAnon, InfoWars, select politicians, et al inflame our opinions. Please ignore these folks as they are doing our nation a disservice.

As an independent who leans progressive on some issues and conservative on others, I can assure you neither party has all the good ideas and both have some bad ones. We must have civil discourse and bipartisan agreement to move important solutions forward. And, we need to use facts and speak truthfully or the solutions will miss the mark.

Politicians owe us the truth. If they cannot shoot straight with us, they need to resign or not run for office even if they happened to have served before. Full stop.

A few straightforward suggestions to fight poverty (a reprise)

The following is a reprise of a post I wrote three years ago. After the pandemic and its lingering tentacles, along with increased apartment prices due to a housing boom fueled even more by investors buying up property, it is even more of a concern today. I welcome your ideas and thoughts.

“If incarceration had come to define the lives of men from impoverished black neighborhoods, eviction was shaping the lives of women. Poor black men were locked up. Poor black women were locked out.”

The above quote comes from the Pulitzer Prize winning book “Evicted” by Matthew Desmond. Its subtitle is also telling – “Poverty and Profit in the American City.” The dilemma is we have a poverty problem that stretches from urban to rural America. Yet, it manifests itself daily in the eviction courts of American cities and towns, whether it is from apartments, houses or mobile homes.

The book speaks of how fragile the rental community is regardless of race, yet the black community tends to have a higher rate of exposure to evictions in urban areas. Unexpected expenses, transportation problems, and tragedies can push people paying a very high portion of their rent over the edge and out the door. Ideally, 30% of family income should be toward housing and utilities. Too many of these folks are paying well above that percentage.

It should be noted that there are other drivers of fragility. Some have opioid and other dependencies. Some are fragile due to too many children that stretch the budgets of even the best planners. Some are in downward spirals with unsupportive landlords. And, many of those unexpected expenses that arise are healthcare related.

What are some suggestions to remedy these issues? Based on my experience as a volunteer Board member helping working homeless families and my reading, I would like to throw out some ideas for consideration.

First, we need to talk more about it. America has a huge disparity in distribution of wealth which is not talked about enough by leaders. Where and to whom one is born are greater predictors of success as the American Dream  has waned for too many.

Second, we need to fund more family planning efforts not less. There is a high correlation between poverty and large families. When family planning is funded and birth control access and education are increased, poverty declines, system health care costs decline and abortions decline.

Third, more mechanisms to reduce evictions need to be in place and funded. Crisis assistance funds show success in helping keeping the electricity on and, when funded, reducing the number of evictions. Stopping homelessness (or fragility) before it starts can make a huge difference and will have a positive echo effect.

Fourth, we must invest in impoverished  areas making them more suitable for families both with opportunity and resources. In their absence, crime and other poor influences fill the void.

Fifth, while I have concerns about the new Tax law (passed in early 2018) with its impact on debt and heavy emphasis on the wealthy and corporations, a huge opportunity was missed when we could have added an increase in the minimum wage tying it to automatic increases due to wage inflation. I worry that less money than expected by the law’s drafters will end up in the hands of workers.

Sixth, we must address our opioid crisis in America. And, we must look at our rising numbers needing mental health counseling. To be frank, cutting access to healthcare and mental care insurance benefits are not the answer. We should actually be expanding access where it does not exist. We must stabilize access and cost of healthcare, yet opposite measures have been taken in the past few years under the guise of political gain.

Seventh, too many go hungry in the United States, especially children. That may be one of our greatest tragedies as a nation. We must address food deserts where grocers choose not to go. Too many are living off horrible fast food or nothing at all. Food co-ops would be a big help to those areas, but they need help funding the build-out.

There are many more ideas, but these will help. On the investing front, many locations have seen success with using historical tax credits leveraging private money. There is a concept called ABCD (Asset Based Community Development) which shores up or repurposes a deteriorated asset creating jobs and revitalizing areas.

But, first we need to talk about this real and pervasive problem.

When you choose not to decide, you still have made a choice (an encore post)

I wrote the following post four years ago. It remains relevant today. Make a stand, march or picket, contact your leaders, and vote.

If you have followed this blog for any length of time, you will know that I love cleverly worded song lyrics. The above title comes from an unexpected source (if you don’t follow the band) – a song called “Free will” by the rock band “Rush.” I find this lyric, penned by drummer Neil Peart, compelling as it speaks to people who choose to do nothing in the face of obvious problems. Martin Luther King saved some of his criticism for the silent people who did not condemn Jim Crow actions.

People choose not to vote because they do not like the choices. But, “none of the above” is not an option and one candidate tends to be worse or represents worse. If you did not vote because you did not think Brexit or Trump would win, you water down your right to protest. And, I would add there are seven white supremacists running for office, empowered by a US President who won’t condemn racist actions and has made racist statements. So, your vote does matter.

If you witness a daily assault on civil rights, women’s rights, truth, media, science, allies and environment and don’t speak up, then you condone the actions as acceptable.

– It is not OK for leaders to lie multiple times a day.

– It is not OK to have governmental websites delete data that run afoul of unsubstantiated opinions by leaders.

– It is not OK to demean people because they dare criticize a leader’s point of view.

– It is not OK to promote violence toward these same people, as some people act on these suggestions and the assaulters and/ or the targets get hurt or go to jail.

– It is not OK to demonize groups of people or exaggerate causes of problems, as it is hard enough to solve real problems with real data.

– It is not OK to ignore real problems or have faux efforts to address them. Gun deaths, poverty, health care access and costs, infrastructure deterioration, increasing debt, environmental degradation, climate change, etc. are real problems.

Please do not remain silent. Speak up. Call or email your representatives. Attend marches and protests. Share diplomatically your opinion, but listen to theirs. Find a way to get your opinion heard and heeded. Calling someone a name is not the way to be heard.

The other day as I was looking for a new battery for my cordless mower, a store clerk and I chatted about the need to move toward renewable energy. While he supported the eventual move, he said renewable energy is “seven times” the cost of fossil fuel energy. I responded and said that is a ten-year old argument. The costs are now more on par. In fact, there is a city in Texas who chose to be 100% renewable energy powered as its CPA mayor said financially it is a better deal. Did he hear me? I don’t know, but he would not have  if I had not listened to his argument and responded.

Do not follow the words of the song lyric. Choose to decide.

From the Holocaust to Hogan’s Heroes – Robert Clary’s story

For those of us who grew up in the 1960s or watched a lot of reruns on television, there was a comedy show about a prisoner of war camp in Germany during World War II called “Hogan’s Heroes.” One of its stars was a diminutive and funny character named Corporal LeBeau, played by French actor Robert Clary. Yet, while a POW camp is a not a concentration camp where Jews were exterminated, Clary also had the horrid experience of being a survivor of the real Holocaust in a camp called Buchenwald.

I learned this watching a movie made in 1982 called “Remembrance of Love” starring Kirk Douglas, Chana Eden and Pam Dawber where two young lovers were split apart by the Nazis and Douglas’s character went to a Holocaust event in Israel to see if she was still alive. Clary played himself in the film as an ambassador to these Holocaust survivors.

Per Wikipedia, here is Clary’s early story:

“Born in 1926 in Paris, France, Clary was the youngest of 14 children, 10 of whom would die in the Holocaust. At the age of twelve, he began a career singing professionally on a French radio station and also studied art in Paris. In 1942, because he was Jewish, he was deported to the Nazi concentration camp at Ottmuth, in Upper Silesia (now Otmęt, Poland). He was tattooed with the identification ‘A5714’ on his left forearm. He was later sent to Buchenwald concentration camp.

At Buchenwald, he sang to an audience of SS soldiers every other Sunday, accompanied by an accordionist. He said, ‘Singing, entertaining, and being in kind of good health at my age, that’s why I survived. I was very immature and young and not really fully realizing what situation I was involved with … I don’t know if I would have survived if I really knew that.

Writing about his experience, Clary said,

‘We were not even human beings. When we got to Buchenwald, the SS shoved us into a shower room to spend the night. I had heard the rumours about the dummy shower heads that were gas jets. I thought, ‘This is it.’ But no, it was just a place to sleep. The first eight days there, the Germans kept us without a crumb to eat. We were hanging on to life by pure guts, sleeping on top of each other, every morning waking up to find a new corpse next to you. … The whole experience was a complete nightmare — the way they treated us, what we had to do to survive. We were less than animals. Sometimes I dream about those days. I wake up in a sweat terrified for fear I’m about to be sent away to a concentration camp, but I don’t hold a grudge because that’s a great waste of time. Yes, there’s something dark in the human soul. For the most part, human beings are not very nice. That’s why when you find those who are, you cherish them.'”

Clary published a memoir, From the Holocaust to Hogan’s Heroes: The Autobiography of Robert Clary, in 2001. Rather than summarize his career before and after “Hogan’s Heroes,” I encourage you to link to the Wikipedia article on his behalf. He was often asked to distinguish between the fictional POW camp and the real concentration camp he survived.

“Stalag 13 is not a concentration camp. It’s a POW camp, and that’s a world of difference. You never heard of a prisoner of war being gassed or hanged. When the show went on the air, people asked me if I had any qualms about doing a comedy series dealing with Nazis and concentration camps. I had to explain that it was about prisoners of war in a Stalag, not a concentration camp, and although I did not want to diminish what soldiers went through during their internments, it was like night and day from what people endured in concentration camps.”

To this day, there are people with hard-hearted and hateful motives who want people to believe the Holocaust did not happen, that over 6 million Jews, gays and lesbians and gypsies were not exterminated by the Nazis in World War II. This is not only a blatant attempt at disinformation, it truly is evil. It is on par with people trying to white wash all the bad things in history committed by humans against one another and the Holocaust ranks as one of the greatest atrocities in our history. These Jews and others were arrested, stripped, starved and gassed, because of some lunatic idea set forth by Adolph Hitler and his henchmen.

Interestingly, Clary remains alive and well at the age of 96, one of the last two survivors from the “Hogan’s Heroes” show. Yet, he said he still has nightmares at this age and lost many of his siblings due the Nazi genocide. We must never forget what happened to Clary and his family among the multiple millions of Jews and others that were impacted.

https://en.wikipedia.org/wiki/Robert_Clary

Nickel and Dimed in America – a tribute to Barbara Ehrenreich (may she RIP)

Yesterday, I learned that Barbara Ehrenreich passed away at the age of 81. From the Associated Press,

“Barbara Ehrenreich, the author, activist and self-described ‘myth buster’ who in such notable works as ‘Nickel and Dimed’ and ‘Bait and Switch’ challenged conventional thinking about class, religion and the very idea of an American dream, has died at age 81…A prolific author who regularly turned out books and newspaper and magazine articles, Ehrenreich honed an accessible prose style that brought her a wide readership for otherwise unsettling and unsentimental ideas. She disdained individualism, organized religion, unregulated economics and what Norman Vincent Peale famously called ‘the power of positive thinking.’”

I wrote the following post nine years ago about the need to increase the minimum wage. Fortunately, many states and cities did this very thing to get folks closer to a living wage.

**************************

The walkout this week by restaurant workers to protest poor wages is indicative of a major problem we have in this country. We have a poverty problem in this country with far too many people living in poverty or paycheck to paycheck. As I have noted in earlier posts, the disparity between the “haves” and “have-nots” has grown wider at the same time our socio-economic class mobility has greatly diminished. Where we are born and to whom we are born are now greater indicators of success than they used to be. To compound the problem, those who are in the upper income echelons are having a more difficult time appreciating the challenges faced by those who are not. More on this later.

In Barbara Ehrenreich’s book “Nickel and Dimed (in America),” she chronicled her efforts and those of her co-workers, in trying to live on minimum or near-minimum wage jobs. Her conclusion is these jobs perpetuate poverty. She notes a variety of factors which include not being able to afford healthcare, not being able to save, poor food habits as fast food was the cheapest and most convenient food, being a slave to the work schedulers, being tied to mass transportation schedules due to gas prices, and having to work more than one job. She also noted in the restaurant jobs, people having to work when they are sick, because they needed the pay. Getting by was the best you could hope for. Getting ahead was quite difficult as you were treated like a commodity. I would add this contention is supported by Dr. Cornel West and Tavis Smiley’s book “The Rich and the Rest of Us.” A summary of the key findings in the book can be gleaned from the attached post.  https://musingsofanoldfart.wordpress.com/2012/10/20/the-rich-and-the-rest-of-us-a-must-read/

Currently, the federal minimum wage is $7.25 per hour. In some places, the state or local minimum wage is higher (Illinois, California have $8.00; Arizona is $7.47 and the city of San Francisco is $9.79, e.g.). Yet, a living wage is higher in these locations. A living wage varies by geography and is based on the cost of living to provide shelter, food, healthcare and basic necessities. Attached is a link to a MIT website that will allow you to see the calculation of living wage by area. http://livingwage.mit.edu/.

Per this MIT website, in my home county in North Carolina, a living wage is now $10.02 for a single adult and $19.68 for a one parent, one child family. In other higher cost of living areas, the living wage can be a few dollars more. As of this writing, President Obama has proposed an increase in the federal minimum wage from $7.25 to $9.00. While not enough, the increase is a tangible step forward. Per a Gallup Poll in March 2013, this proposal is supported by 70% of Americans. The result is even higher for women, Democrats, moderates, non-whites, adults who earn less than $24,000 per annum, and young adults. 2/3 of Americans who are seniors, Independents, and earners between $24,000 and $60,000 support the change. It is only beneath 67% for men, Republicans conservatives,and upper middle class earners and above.

Those who decry this change cite that we will end up with fewer jobs as a result. I have seen data on both sides of this argument. To me, there is a huge cost of turnover in retail and restaurant jobs due to lost productivity of the staff, but also of the department and store manager. The manager has to spend more time back-filling a job or making sure people are on the floor, than focusing on customer service and selling merchandise. Any measure a retail company can do to reduce this churn shows up in better productivity. Per the attached link, Costco seems to believe this, as they pay their people far more than the minimum and are doing quite well. http://money.cnn.com/2013/08/06/news/economy/costco-fast-food-strikes/index.html.

We have a problem in this country, which will only get worse, if we do not remedy it. This is a key reason I have been a staunch supporter of Obamacare. While imperfect, it does speak to the healthcare insurance needs of those who are now uninsured. And, many of those who cannot afford insurance are working in retail and restaurants. Yet, we must pay people better. Will it cause the number of jobs to go down? My guess is for some employers it might, but for many it won’t. In my consulting work with retail and restaurant employers, I have observed the employers who treat their employees as commodities will never have the productivity and customer service of those who treat their employees as key in their ability to sell products and serve customers. These latter companies work back from how can we serve the customer better.

And, when you hear someone who is doing more than fine financially state that increasing the minimum wage is a poor investment of money, please respond the better off people are, the less they will depend on those so-called hand-outs the well off seem to hate. I do not like to use the term hand-outs, as helping people survive in tough times is an appropriate investment of resources, yet for an audience that tends to use this term freely, it is an argument that might resonate. Plus, the more we all have to spend, the better off the economy will be. Let’s increase the minimum wage. It is time.

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Thank you Barbara Ehrenreich – you made us think and sit-up and take notice.