According to financial advisors – at least, those I spoke with in early 08 and in 07 – a person is considered “rich” when they have saved 3 months worth of their salary, not including RSPs. (For any American readers, an RSP – Retirement Savings Plan – is a Canadian version of a 401K… kinda.) I’m just curious, and I’m also well aware that no answers will actually be given, but think about how many people you know who actually have that amount of money set aside… I would guess it’s not very many, if any. Now, turn on the TV or read the newspaper or check out your favourite Website’s newsfeed, and it doesn’t quite take a genius to know that there’s a pretty grim economic situation “out there”.
• People are getting laid off: In a strange and twisted way, it’s better than quitting or being fired because it gives you the opportunity to seek government assistance. But – in a crazy cycle – this would then put the government back into more debt…
• Banks aren’t lending (although, apparently in Canada, they’re going to start again): But credit isn’t exactly the best solution.
• Businesses are closing doors or going bankrupt.
• Stock markets are crashing – so, watch those RSPs and 401Ks!
In short: it’s ugly. And if you’re not one of those “rich” people (see above), losing your job may mean you could be about 2-3 weeks away from living in poverty… I’m sorry; I don’t mean to scare the pants off you (please, it's too cold - keep them on), but it’s a reality we live in.
Why did I bring this up? And, why so early in a New Year when we are all suppose to be chipper with positive vibes and grand intentions?
I bring it up because I think it’s important for all of us to be aware that the issue of poverty is not happening just to “other people” who have made mistakes. It could happen to anyone of us; and it could happen outside of this economic crisis. I bring it up because we need to seize this time as an opportunity to understand the importance and urgency of programs that make a real and significant impact in the lives of those who do live in poverty. We need to invest in them and make them work now. (Check out other posts for info on such programs.)
• People are getting laid off: In a strange and twisted way, it’s better than quitting or being fired because it gives you the opportunity to seek government assistance. But – in a crazy cycle – this would then put the government back into more debt…
• Banks aren’t lending (although, apparently in Canada, they’re going to start again): But credit isn’t exactly the best solution.
• Businesses are closing doors or going bankrupt.
• Stock markets are crashing – so, watch those RSPs and 401Ks!
In short: it’s ugly. And if you’re not one of those “rich” people (see above), losing your job may mean you could be about 2-3 weeks away from living in poverty… I’m sorry; I don’t mean to scare the pants off you (please, it's too cold - keep them on), but it’s a reality we live in.
Why did I bring this up? And, why so early in a New Year when we are all suppose to be chipper with positive vibes and grand intentions?
I bring it up because I think it’s important for all of us to be aware that the issue of poverty is not happening just to “other people” who have made mistakes. It could happen to anyone of us; and it could happen outside of this economic crisis. I bring it up because we need to seize this time as an opportunity to understand the importance and urgency of programs that make a real and significant impact in the lives of those who do live in poverty. We need to invest in them and make them work now. (Check out other posts for info on such programs.)
If you’re not a softie and you need more hardened facts, let’s go back to the “Coordination Team” post. If we can take people living in poverty, provide them with the skills needed, they can help fill the gaps in the shortage of labour issue. If we teach the new skills (for example renewable energy vs. coal) then we create a generation ready for the next challenge. And, if we do this with more people – meaning more people in more jobs getting paid – then we can let the people inject money back into the economy. Ever heard of supply and demand?
Don’t raise your eyebrow(s)! (The plural possibility is because I don’t know what kind of frowner you are…) I’m not suggesting that this is going to be an overnight success, nor am I suggesting that this is a miracle cure. I’m simply suggesting that this might be something we want to explore.
We’re bailing out the car industry – to the tune of multiple billions of dollars. We’re bringing down interest rates and attempting to increase accessibility to credit – because of course, indebting the nation even further will no doubt help us in the long run. (Please note the sarcasm.) So why can’t we focus on the people and give them a genuine opportunity to make a difference in their lives, in the future of their country, and – who knows, in the future of the world? Notice the suggestion of giving opportunities, not fish.
Did you know that there are 293 ways to make change for $1.00? Then, there must be as many ways - if not more - to positively impact the world we live in. If so, then I'd like to count the ideas proposed in this blog as some of the possible ways to have a real impact in the lives of those living in poverty, in our communities and in our countries.
(Check out www.thestar.com/poverty for some news on how Ontario is planning to deal with the issue of poverty. Got comments and ideas, let me know!)
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I think this is a great blog Judi ... and as I read you day after day, I learn so much! May I suggest though that one of the roads out of individual poverty is to help people know how to take advantage and full advantage of those great institutions (cultural and leisure), in our wonderful North American, that are there for all of us (and can be enjoyed fully, either free or at a relatively small price) ... I'm talking about libraries, parks, museums, free Sunday concerts, cultural events on television or on the radio, websites of those cultural organizations, where one can pick a field of knowledge and learn to one's heart's content!!! or all the free information that those organizations will send out, just at the asking. I know people of particularly humble means ... who are millionaires culturally because they greatly enjoy what's around them ... I see them and admire them (for they are truly content with 'their lot'! ... So if we can encourage people to make different kinds of choices, we can help them out of a mind cycle of poverty ... and then that could even help lead them out of a financial cycle of poverty. Just have been wanting to throw that into the mix ... to add my 2 cents worth to your excellent blog! Marty
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