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Let's suppose a woman named Jackie has worked at a greeting card company for many years. She's married to Bert, and they have two children, both under the age of 10. Bert drives a truck and is paid well, but Jackie’s job secures the family medical benefits, including dental, vision and a decent life-insurance program.
But Jackie was laid off Monday morning, along with 299 of her peers. The severance package is reasonable, and her employer did all he could to soften the blow, but suddenly losing a large piece of the family income is a shock. She knows she will receive about 85 percent of her pay from unemployment for the next six months, but what then? Jackie had come up through the ranks and been promoted due to her hard-working ethic. She was unable to afford college and does not have a degree--other than the one from the school of hard knocks. But her image within the company was extremely positive, but all of that time and reputation cannot be put on a resume. Employers want to see that degree, which validates one’s level of experience and ability. Perhaps one in ten of the people laid off with Jackie will gain employment at the same level, but most will likely earn half or maybe three-quarters of their previous pay.
Real Problems
Let’s assume that Jackie and Bert are typical Americans, with a mortgage balance of more than $100,000 and $15,000 to $20,000 in credit-card debt. This total came from food, fuel and bills that could not be paid readily, like car repairs. When the government sat back and watched fuel prices go through the roof and ”tsk, tsked” those mean people overseas, Jackie and Bert put $4.50 per gallon of gas in their tank so they could get to work. They charged it--they had no choice--and spent more in that stretch than they had in the two prior Christmases. Their government really gave them no choice.