A TREMBLING WORLD – Part Three

A TREMBLING WORLD

Part Three

Wednesdays with Dr. Joe

About twelve years ago, a high-ranking Colorado state representative spoke to our local Kiwanis Club.  He was uncharacteristically somber, as he put on his prophetic hat.  In so many words, he predicted that within about ten years—even if relatively flush times continued—Colorado would begin running out of money: “We are coming to the end of an era, Friends.  Social Security, born in the depths of the Great Depression when life expectancy was around 45 to 50, was feasible and possible for our nation to continue; but FDR had no way of knowing that life-expectancy would move up and up and up until today it is nearing 80, with many Americans living on retirement for a longer period of time than their career years (many into their 90s, and even 100s), placing an insupportable burden on a retirement system based on 65.”

He continued, “Mark my words, we are fast reaching the time when Social Security and guaranteed medical assistance will have to be curtailed.  You will no longer be able to assume the state will cover Mom’s late life medical expenses; we will once again, as Americans did up until the Great Depression, face a world where families took care of their own, where all three generations lived in proximity to each other—they had to.”

So it is likely that Obama’s dream that all Americans will henceforth be guaranteed cradle-to-the-grave healthcare may very well be the swan song of Social Security as we once knew it; now we are discovering that the money just isn’t there for such a utopian concept.  Exacerbating our fiscal plight no little is the double whammy of America’s continued substance abuse  (drugs/tobacco, alcohol) and out-of-control eating, together, through diseases such as lung cancer and diabetes, killing close to a million of us a year..

Metaphorically, it’s like America is waking up after a sixty-year binge (made possible by credit cards and houses used as glorified ATMs).  In Christmas in My Heart 13, my wife Connie tells of a Christmas during the early 1950s when en route from California’s Monterey Peninsula to her home in Fortuna (near Eureka), a major storm blew in, the Eel River flooded and washed out Highway 101 in places; so Connie and others were stranded in Garberville.  The lady who was driving them home hadn’t banked on a flood, having just enough money to cover the gas costs to get them home.  Not for motels and extra food.  So what did they do?  They agreed to do the motel’s laundry, make up the bedrooms, etc., in return for having a room to sleep in.  For since the motel manager didn’t take checks and credit cards didn’t exist yet, you either had money or you didn’t.

As our son Greg said recently, “Dad, for 50 years we’ve been spending money we didn’t have.’  Up until three years ago, at least twice a month we’d get calls asking us if we didn’t want to take out another loan on our house.  Those days will most likely never come back, at least in our lifetimes.

More and more of us today are either using only debit cards or charging only what we can pay off at the end of the month.  We do this because many of us live in perpetual fear that we will join those who owe more than their homes are worth, so that, if we lose our jobs, we too will be forced to declare bankruptcy and be evicted from our own homes.

Across the nation today, our grown children, unable to even get a job, are forced to remain at home with Mom and Dad.  Those who predict the economy has rounded the corner and heading up are proven wrong again and again. The world’s leading economists are grave, warning that it might be years—even decades—before we regain what we had three years ago.

Just as was true with the Great Depression of the 1930s, this one is global too, so there is nowhere to escape to.  Also, just as was true when Teddy Roosevelt became President close to 110 years ago, never has the gap between the rich and the poor been as great.  Even while the banks and corporations are failing, unbelievably they continue to pay their CEOs millions a year.  Same for sports stars, landing contracts in the hundreds of millions while schools, libraries, parks, post offices, etc., are being forced to lay off employees or close.  Misplaced priorities are all around us.

However, if a crash does come—it won’t be all bad.

More on that next Wednesday