The Greatest Depression
By Tiffany M. ROCK
The time of year has come when the federal government either asks us to pay our fair share of income taxes or those of us who are lower income get a little money back. I have noticed this year that my, more privileged, upper middle class friends are quite agitated about the bill they have received from the federal government. They seem to be directing this outrage toward those who are receiving money back. One post said specifically, "For all those, that race to get your tax refund that you did nothing for, to spend it on shit you don't need instead of paying off bills, YOUR WELCOME! I worked really hard this past year to pay for that junk! Enjoy!" When I read that, I felt the anger boil up in my system. I thought that a witty post explaining how wrong she was would make me feel better. I would explain that people receiving an income tax refund are receiving it because they did work. They merely make well below the amount of money needed to maintain their family size. I would explain that people who receive tax refunds do pay off bills with their money because it's the only time they can recover from the long struggle of the 12 months between tax refunds. They use that money to pay off bills, or to buy a vehicle that they hope will keep running until the next time they get a refund. Yes, they do buy a few luxury items, like some new clothes or shoes that they can't afford to buy throughout the year; unlike like the upper class who can buy whatever they want or need any time they feel like it. I would point out that the upper class are the ones who have houses full of things they DO NOT need. But then I realized, this girl really just has no clue. She was born into privilege and has secured a privileged life. She never has had to suffer the struggles that the working poor have to deal with on a daily basis. This is hatred that is displaced and fueled by ignorance. I wondered if she could even comprehend what it's like to be one of us. Then I wondered if our struggle was really as bad as it seems. So, I did what I do and I researched. I put together a spreadsheet to compare the cost of living for each decade since the great depression. What I found out, even shocked me. We were taught in school that the Great Depression was the worst time for poverty in America; but the reality is that those living in poverty today are living in far harder economic times than we have ever seen in America. Even during the Great Depression was it easier to afford food, housing and shelter than it is today. Our middle class currently has it harder than ever before and the middle class may no longer exist if this trend continues. But how can that be? Well let me explain...
My Grandmother grew up during the Great Depression which spanned from the late 1930's through the mid 1940's. Most of WWII took place during this time. FDR was president and most average Americans were struggling to get by. When most people think of poverty, they think of starvation. So how much did my Grandma's parents have to pay for some basic food during the Great Depression? Say a loaf of bread, a gallon of milk, a dozen eggs and a pound of ground beef. The answer $1.30. You must be thinking, "Wow, that's cheap!" But keep in mind that Grandma's Daddy only made 83 cents an hour and he had to work for an hour and a half to buy those basic groceries. The lowest wage earners during the depression only made 36 cents an hour and it took them about 3 and a half hours to buy the same food. But not to worry, the depression ended and FDR set the American citizens up for an outstanding economic recovery. By the 1950's, when my Mother was born, my Grandfather only had to work an hour and 20 minutes for those groceries and by the time my Mother had me in the 1970's the average family only had to work for 41 minutes to buy the same food. But my Mother was a single Mom and she was supporting me on a minimum wage of $2.30/hr and she still had to work an hour and a half to buy her groceries. By the 1990's, I was a young adult and a young mother myself. The average American income was $28,960 which works out to about $13.92/hr and most people only had to work about 25 minutes for the same groceries. Seems like things had definitely shaped up for the average American family since the Great Depression. But we were working for federal minimum wage which was $4.25/hr and it still took us an hour and a half of work to buy the same groceries. No different than the working class of the depression era. Seems a bit unfair, but it was getting better right? Well finally, after 20 years we have worked our way up to the average household income of $40,523, that's about $19.48/hr. We work 34 minutes to buy those groceries. What happened to the 25 minutes in the 1990's? Our daughters, who are now 19, are making minimum wage, which is currently $7.25/hr. It still takes them an hour and a half to earn enough money to buy those same goods. They are no better off than my Great-Grandparents were during the Great Depression. So the poor are still equally poor right? Wrong! The poor are still equally hungry. Once we factor in a few more aspects of survival you will see why our poor today are far more impoverished than they were during the Great Depression.
Other than food, we need two basic things to survive, shelter and transportation. Let's go back to Grandma's life in the Depression and look at the cost of owning a home and a car. By the 1940's, Henry Fords innovation in the automotive industry, with the creation of the assembly line, greatly lowered the cost of the automobile and had made cars affordable to the average family. A brand new car cost $850. Grandma's Daddy had a Chevrolet and he was very proud of it since it had cost him half a years salary. Gas was only 11 cents a gallon and he only had to work 8 minutes to afford a gallon of it. The poorest Americans had to work twice as long as Great Grand Daddy for a new car and gas but they still found it affordable.
When Grandma got a Dodge Wayfarer in 1958 it only cost her $1510 and was also only a half a years salary for Grandpa. Gas was then 18 cents a gallon and Grandpa only worked 7 minutes to buy that gallon of gas. Those working for minimum wages now only had to pay two-thirds of a years salary for a new car and 11 minutes for a gallon of gas. Things were looking up.
When my Mother bought her first new car she needed nearly a years salary for that car, gas was 36 cents a gallon and she only worked 5 minutes at minimum wage to buy a gallon. Good thing too because those 70's cars were gas guzzlers!
By the time I bought my first car in the 1990's a new car was twice the yearly salary of a minimum wage earner. But gas was still cheap and cars were even better on gas.
Today, it cost 68% of the average American's income for a new car and that's not including interest. Our daughters are driving used cars because a new car isn't even affordable. It would take two entire years salary, on minimum wage to buy a new car. That's twice as long as it took the poorest during the Depression to buy a car. And gas prices are the worst they ever have been. My daughters must work 9 minutes for each gallon of gas. Transportation has gotten more expensive, and more vital than ever. It's not like switching back to riding a horse around town is an option in most suburban areas. This makes life tough on the poorest Americans and it gets even tougher when we look at the cost of housing.
Home ownership is the American Dream, or so we have been told. During the Depression my Great Grandparents bought their home for $3,920 which was a total of just over two years of Great-Grand Daddy's salary. Remember that is how long my daughter will need to pay off a new car today. Can you see where this is going? Even the minimal wage earners could pay for that home in 7 and a quarter years. Grandma's home was bought in 1952 and it cost $8,450 which was two and a half years of Grandpa's salary. It took the poorest twice as long to pay for a home. When I was a baby Mom had to pay $23,450 for a home which was 5 years of her minimum wage salary. By the time we bought a house in the 90's it cost $123,000 and that was nearly 7 and a half of minimum wages. Today the average home costs $238,000. In reality, that's almost a quarter of a million dollars. It would take 16 years of our daughters entire minimum wage income to pay for an average home. That's over twice as long as the poorest in the Great Depression. I wonder how she will ever aspire to own her own home?
Has the American dream failed us? Even during the Great Depression we could better afford the basic necessities like food, transportation, and shelter better than we can today. This is what all of those numbers sum up to. During the Depression life's basic necessities took 20% of the average monthly income, and 52% of income of the poorest. The 70's were the best of times, they cost the average earner only 14% of their income and only 28% of the minimum wage earner. But today the average American pays 26% of their income for those basic necessities and the poorest of us are giving up 71% to barely survive. That is what's left of the American Dream.
This is the saddest of realizations. So now I ask you, when was the worst time for American poverty? Did you even realize that you were living in the worst economic time in American history? Those upper-middle class friends of mine may not have realized this at all, but those of us living it, we know. I want my upper class friends to know that I understand their upset. You don't want to foot the cost of providing for the poor in America. You think that we should have done better for ourselves. We should have gone to college and got better jobs. Well let me fill you in on the struggle. Most minimum wage earners today aren't even being given 40 hours a week at their jobs thanks to the Affordable Healthcare Act. Businesses have reduced hours to below 30 hours a week to take advantage of a clause in the AFA that allows them to deny healthcare coverage to those working less than 30. This generally forces the poor into working more than one job in order to get by. Not to mention the need for more income, those you think are doing nothing for their tax returns, are working two or more jobs and still falling into the category of impoverished. Most have no time to fit college into their work schedules. Especially not if they are trying to raise children as well. That's the next thing you will say...why have all those kids you can't afford? Why? Because birth control is a luxury afforded to the wealthy. Especially those of us who are median wage earners and do not quite qualify for state assistance for birth control. I, for example, have wanted to have my tubes ties for years now. But my health insurance deductible is $5,500/year for our family. The surgery for sterilization would cost that much alone. I do not have the money to pay that deductible. I have an adverse reaction to hormonal birth control. So we rely on the good old Trojans (when we can afford them). I worry every month that I will be starting all over again with a new baby. Trust me, I am not the only one in this position. Not all poor people want to have a ton of children. I suppose we could opt for celibacy, but when you have no money for anything else fun in life...well you get the picture.
But if you can no longer blame the poor, and you still don't want to pay for the poor, who the hell do you blame? You can start with the Top 1% of wage earners in America. That 1% of the population who holds nearly 50% of the wealth in America. Those guys net worth has sky rocketed since the glorious 1970's. As you watch the earnings of the very rich raise to grossly gluttonous levels; you watch the poor driven into the worst conditions in American history. As you watch these few American's revel in luxury; you see the middle class slowly disappear. As they buy multi-million dollar homes; your neighbors are loosing theirs to foreclosure. And are they being asked to help pay for the poor? Are they writing their check to the IRS and paying their fair share, like you had to this month? Believe it or not, they do not! Most of their wealth is protected by corporate tax exemptions. These people own our government and are the elite, ruling class in America. And you, the upper-middle class are playing the game just like they want you to. You don't hate them, you aspire to be them. You have displaced your hatred onto the poorest. You have judged those who have nothing, while throw your hard eared dollars into the pockets of those who have it all. Every time you cast judgment towards your fellow American, you are making yourself part of the problem. I understand your anger, upper-middle class friends. But please, open your eyes and see that we are all in this fight together. Some of those people who are collecting food stamps today, were driving a Mercedes and living your life a decade ago. It doesn't take much for you to become someone just like me. Don't be part of the problem, become part of the solution. You may still hold hope for the future and for the future of your children. I, however, do not. I wonder what will be left for our grand child who will be born soon. I wonder what kind of hope there can possibly be for 20 years from now...this, Our Greatest Depression.
