Thursday, November 20, 2008

How Have You Been Doing? Got Your Turkey Yet?


Child hunger in US rose by 50 percent in 2007

By Kate Randall
20 November 2008

Some 691,000 children went hungry in America in 2007, a rise of 50 percent over the previous year, while one in eight Americans overall struggled to feed themselves. The figures are reported in a study on food security conducted annually by the US Department of Agriculture (USDA).

Of the 36.2 million people who struggled with hunger during the year, almost a third of these adults and children faced a substantial disruption to their food supply, meaning they went hungry at some point. The number of these most hungry Americans has grown by more than 40 percent since 2000, rising to 11.9 million individuals in 2007.

These statistics are all the more alarming since they do not reflect the impact of the current economic crisis. James Weill, president of the Food Research and Action Center, predicted the 2008 numbers would show even more hunger.

"There's every reason to think the increases in the number of hungry people will be very, very large," Weill said, "based on the increased demand we're seeing this year at food stamp agencies, emergency kitchens, Women, Infants and Children clinics, really across the entire social service support structure."

The USDA study covered about 45,600 households, selected as representative of the approximately 118 million households in the US. Households were classified as being "food secure," having "low food security" or having "very low food security," according to their answers to a set of questions, including:

• In the last 12 months, were you ever hungry, but didn't eat, because there wasn't enough money for food?

• Did you or other adults in your household ever not eat for a whole day because there wasn't enough money for food?

Households with children up to 18 years of age were asked additional questions, such as:

• In the last 12 months, did you ever cut the size of any of the children's meals because there wasn't enough money for food?

• In the last 12 months, did any of the children ever skip a meal because there wasn't enough money for food?

Children were identified as having "very low food security" if they lived in households that answered "yes" to 25 percent or more of the questions asked (calculated according to a formula designed by the study).

Some 691,000 children met the criteria. At some point during the year, these children went to school without breakfast, ate meals providing inadequate calories and nutrients, or went to bed hungry. Their families could not provide for them because they did not have the financial resources to do so.

These statistics translate into real and lasting suffering for society's youngest members. Research has shown that hunger and malnourishment have a profound impact on the mental and physical development of preschool and school-aged children. They are more likely to exhibit higher levels of chronic illness, anxiety and depression, and behavioural problems than well-fed children.

Uncertainty about the ability to provide adequate food is devastating for parents and families, both physically and mentally. Of the 4.7 million families estimated to suffer from very low food security, 98 percent worried that their food would run out before they got money to buy more. Some 94 percent reported that they could not afford to eat balanced meals.

Close to a third of these households reported that on occasion an adult did not eat for an entire day because there was not enough money for food. In 45 percent of these households an adult had lost weight because he or she could not afford enough food. Often parents went without so that the children could eat, or the youngest children ate at the expense of older siblings.

Conditions of hunger for these households were not adequately counteracted by assistance from the three largest federal food and nutrition programs—the Food Stamp Program, the National School Lunch Program and the Special Supplemental Nutritional Program for Women, Infants, and Children (WIC)—or by help from food pantries or soup kitchens.

Not surprisingly, the study showed that poverty is the greatest contributing factor to hunger. In 2007, the federal poverty line was set at $21,027 for a family of four, an amount woefully inadequate to provide for sufficient food and nutrition, let alone pay for housing, utilities and other necessities. In households where income fell below this line, food insecurity stood at 37.7 percent.

The rate of food insecurity was 22.2 percent for African-American households and 20.1 percent for Hispanic households. Food insecurity was also more prevalent in households headed by a single parent where there were children—30.2 percent for those headed by women, 18 percent for those headed by men.

Southern states saw the highest rates of food insecurity. Measured over three years, from 2005 through 2007, the states reporting the highest figures were Mississippi (17.4 percent), New Mexico (15 percent), Texas (14.8 percent), and Arkansas (14.4 percent).

Food insecurity is not restricted to inner-city or urban metropolitan areas, but is prevalent in rural and less-populated areas as well. The highest growth in food insecurity over the last nine years has been in the states of Alaska and Iowa, both of which saw a 3.7 percent increase in families who faced substantial food disruptions.

A majority of US households are concerned about the cost of food. A study released last month by the Opinion Research Group, commissioned by Minnesota-based Hormel Food Corp., showed that 84 percent of Americans are worried about rising food prices and 58 percent have had to make cuts in their food purchases as a result.

More than half of those surveyed have had to take steps to reduce food costs, including using more generic or store brands, eating out less often, buying less expensive cuts of meat and increasing their purchases of cheap staples such as potatoes and rice.

Of those polled, 14 percent said they or an immediate family member had received food from a food bank, soup kitchen, shelter or other charitable organization in the past year due to a lack of money for food.

Among those who had not, 21 percent said it is very or somewhat likely that rising food costs, a job loss or other circumstance might force them to seek help for food from a charitable organization in the future. These conditions will inevitably worsen as the economic crisis intensifies.

The growing hunger crisis should be seen within the context of the massive use of taxpayer funds to bail out Wall Street bankers and financiers. Hundreds of billions are being handed over to these interests, while no serious measures are being contemplated to confront a social crisis that will intensify rapidly over the coming months as layoffs mount and the recession deepens.


Waxman Defeats Dingell, Kicks Blue Dog Ass

By: Jane Hamsher Thursday November 20, 2008 8:40 am

In a stinging rebuke of the Blue Dog caucus, Henry Waxman has defeated John Dingell for Chairmanship of the House Energy and Commerce Committee.

Why, it seems like only yesterday the Blue Dogs were sniffing that the Steering Committee who recommended Waxman were a bunch of unrepentant hippies who didn't reflect the overall makeup of the Democratic caucus. (In fact, it was.)

This is a huge defeat for the Blue Dogs, who were hoping to use Dingell as a roadblock to keep any meaningful change from happening with regard to issues under the Committee's jurisdiction -- telecommunications and health care, energy and environmental protection, interstate commerce and consumer protection.

Though she never took a public position, nobody has any doubts that Nancy Pelosi orchestrated this.

This week the Senate voted to remain a bunch of self-protecting hacks by letting Lieberman keep his gavel, but the House voted for progress.

Anyone who thinks that other members of the House aren't soiling themselves over this huge blow to the traditional system of seniority and entitlement hasn't been paying attention.

(Oh Heavenly Day video by Patrick Dwyer courtesy Howie Klein)


Krugman on Auto Bridge Failure: You’re putting millions of jobs at risk!

By: Scarecrow Wednesday November 19, 2008 7:10 pm

Paul Krugman appearing on Rachel Maddow told the straight unvarnished truth, urging Congress to overcome lame ducks' "not our problem" mentality and confront the immediate need for a bridge loan to keep Detroit's Big Three solvent until a more responsible Obama Administration takes office.

Krugman noted that even if it were okay to allow the companies to fail during good economic times, it made no sense to allow them to go belly up and put at risk 1 to 3 million jobs right in the midst of a severe recession. The effect, he added, would be like a huge reverse stimulus, dragging the economy down.

Commenting on Congress' willingness to leave the decision to a stupid game of "chicken" with the White House, Krugman added, "We're on the verge of an irreversible decision taken almost in a fit of absence of mind."

Of course, the auto execs' flight to DC in their private jets added up to "stupid theatrics," but "that's not the point." Would be lose 1 to 3 million jobs and their health benefits just to punish twelve senior exectives?

Krugman's right. The Republicans and this White House are perfectly willing to devastate the economy and imperil millions as one last gift to a President Obama, especially if they think they can kill the auto workers union in the bargain.

As MSNBC explains, this is also "north versus south" again, in which Jeff Sessions argues that employees in Alabama who don't have health insurance should not be asked to bail out those with health insurance in Michigan. But what that means is that those with insurance should be forced to fail so that everyone can not have health insurance. Brilliant logic, Jeff.

Update: Dean Baker lays out the argument.

The Politics of Executive Pay

Posted by: David Welch on April 27

wagoner_hires.jpg
General Motors is going to have some explaining to do. A lot of explaining. As the auto maker gears up for what could be a landmark round of bargaining with the United Auto Workers union—a set of talks that could turn the union’s deal of super-cheap health insurance, paid layoff clauses and other goodies on its head—GM almost doubled Chairman and CEO Rick Wagoner’s compensation package from $5.5 million last year to $10.2 million this year.

Or did they? Wagoner took a salary cut last year from $2.2 million to $1.3 million. Throw in another $146 million in other compensation and he made almost $1.5 million in cash last year. He also received another $620,000 in non-cash perks. The biggest chunk of his package, about $6.7 million, comes from stock awards and option awards that weren’t paid out last year and won’t be until at least 2008. And Wagoner can only make money on some of those items if he gets GM back on track and pushes the stock price up, in some cases way up.

In other words, he can only get most of that $10.2 million later, and even then he only gets paid for hitting certain targets. Here’s why. Of his $10.2 billion package, about $3.6 million of it is in stock awards and $3.1 million in option awards. The stock awards actually have a fair market value of $4.7 million right now. But GM hasn’t issued the stock awards yet. Wagoner only gets them if he hits certain performance targets. He won’t know how much value they have—if any—until at least 2008. They may have no value. In all likelihood, Wagoner will get a nice payout from the $4.7 million in stock awards, but he hasn’t gotten it yet.

Same with his option awards. Wagoner got $3.1 million in option awards. But the lion’s share of them are pegged at a stock price of $40 or higher (it closed at $31.56 on April 27) in some cases much higher. In other words, Wagoner has to get his stock way up to cash in on those. Of course, he has a few years to exercise most of them, so Wagoner has a crack at making some money. Wagoner will likely end up getting more than the $1.5 million in cash that his 2006 pay package has already given him, but anything above that will come later and only if he delivers results.

Union rank and file may look at the total value and say that GM just gave Wagoner and his team a big payout. Other executives got similar deals. Looking at the accounting value of their compensation packages, Vice Chairman Robert A. Lutz, GM’s car guy, got a deal valued at $8.4 million last year, close to triple the $3 million he made in ’05. Vice Chairman and CFO Frederick A. “Fritz” Henderson made $5.2 million in total compensation. GM didn’t disclose his salary for 2005 because he wasn’t one of the Proxy Six. He was just Chairman of GM-Europe. But given his new status, it’s a safe bet that he got a bigger package in 2006.

That’s why GM has a lot of explaining to do. Calculating how much Wagoner & Co. actually received is no easy trick. The details are buried in eight footnotes worth of legalese in the proxy statement. Someone will need to explain that to the UAW when GM is trying to wrest concessions from the union this summer.

For this year, GM is giving slight raises. GM will boost Wagoner’s salary about $370,000 to $1.65 million. Lutz and Henderson got raises of $153,000 for 2007 to $1.3 million. That seems fair. Wagoner cut GM’s losses from $10.6 billion to $2 billion and pushed the stock up 53% last year. Lutz’s new models are getting plaudits from car critics and faring pretty well in the market. Henderson has been involved in every major cleanup job or headline deal for GM, whether it was sorting through the company’s accounting mess, negotiating a settlement with the United Auto Workers over GM’s bankrupt former parts maker Delphi Corp. or kicking the tired at Chrysler Group.

But here’s why the union may still get upset. Even though Wagoner only actually got paid a fraction of the $10.2 million, the deferred incentive-based parts of his package could still pay him a big sum. And if he ends up making big money on it, it will be after the union signs off on a deal that may have significant concessions. Wall Street would probably say he deserves the payout for pushing up the stock and getting union concessions. But the UAW? They might think Wagoner & Co. cashed in after the union workers gave at the office.

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Retirement dreams give way to despair, anger
Many grappling with golden year disappointments as nest eggs dwindle
By Melissa Dahl
Health writer
msnbc.com
updated 8:51 a.m. CT, Thurs., Nov. 20, 2008

It was so close. And then, it wasn’t.

Fifty-year-old Eddie Whitlock thought he was closing in on his hard-earned golden years. According to his master plan, in just five short years he’d retire from his job as executive director for Mental Health America of Northeast Georgia. Then he’d turn his attention to the important things: golf, travel and finally writing that novel.

But this fall, after months of watching his 401(k) dwindle and his stock earnings sink, he accepted his new retirement reality: His golden years would be delayed another 10. If they ever came at all.

“I really think I’ll be working until I die,” says Whitlock, who lives in Athens, Ga. “I’ll be at work till the day they carry me out on a stretcher with a coroner’s tag tied to my big toe.”

One of the biggest worries for those on the brink of retirement used to be how to fill all that spare time. But as the economic meltdown devastates the savings of millions of Americans, a rising number of older workers are now realizing that retirement instead will have to come much later than they'd planned — if at all. And some of those who had only just to begun to enjoy their leisure years are now having to tuck aside their dreams and, in some cases, their pride, to return to the workforce.

For many, feelings of hopelessness, despair, anger and shame have darkened what until very recently they'd banked on being a new beginning.

“It's a real sense of shock,” says Phyllis Moen, a University of Minnesota sociologist who studies adjustment to retirement. “Here they thought they were in control, and they created a life that works — and suddenly, they’ve lost control. I think what's happening is a real upending of expectations of the 50s, 60s and 70s — of what life’s going to be for this group of people.”

Psychologists say those going through this kind of financial crisis may feel a spike in anxiety, panic attacks and depression. And for some, suicide may seem like the only way out. One msnbc.com reader from Cleveland, Ohio wrote " I have contemplated suicide, but my family does not have enough money to bury me.”

During the Great Depression, suicide rates rose from 14 to 17.4 per 100,000 people in 1933, according to the American Association of Suicidology, a nonprofit organization that promotes research and training in suicide prevention.

Psychologists are cautious about saying whether they expect a similar increase during these financial hard times, but seniors are in an age group already at higher risk for suicide: Although adults 65 and older make up just 12 percent of the population, they accounted for 16 percent of suicide deaths in 2004, according to the Centers for Disease Control and Prevention.

“There’s going to be a profound sense of loss for some people who had expected to enter their last stage of life and just enjoy it — and now they’re having to go back to work,” says Jennifer Harkstein, a New York City clinical psychologist. “For people who have expected to be retired by 70 or 75, there’s going to be some loss, some grief, that they can’t go and live these years that they’ve planned for.”

For Whitlock, the biggest blow came from the increasingly volatile stock market, as he watched his nonprofit employer’s account lose 25 percent of its value over the last year and a half. When he says he’s too afraid now to even peek at his 401(k), he’s only half joking.

“In the old days, people would be guaranteed an income for life, and they’d have an age at which it was clear they should retire,” says Alicia Munnell, an economist and director of the Center for Retirement Research at Boston College. “We’re now shifting to an age of 401(k) plans, which is shifting all the risks and responsibility to the individuals.”

Downsizing dreams
For those who have retired, it’s a matter of downsizing dreams. So far, 63-year-old Edith Durrant’s retirement years haven’t turned out the way she pictured.

“My real dream always was to own a motor home and just travel,” says Durrant, a retired postal service worker who lives in Bellingham, Wash. Because she and her husband, Ben, had saved a modest nest egg, she says, “I didn’t think I would ever have to worry so much about money again.”

But five years ago, Edith Durrant, who is both epileptic and diabetic, had a particularly intense seizure that sent her into a coma for seven days. The cost of her hospital stay, her medications and the year and a half of care it took her to get well again drained everything the couple had saved for their retirement. Still, with her pension and Social Security benefits, they were doing OK — until Ben Durrant was laid off from his job as a sales manager at Office Max in June. Five months later, he’s still looking for work.

“Don’t get me wrong. We eat. We have a roof over our heads. By the look of my belly, it’s not bad,” says Ben Durrant, who’s 59. “But still, there’s the other side of it. You look on the Internet and it talks about these high fashion things and the trips and things like that. You look at them and you wonder — where did mine go? I’m not going to be able to do that. It’s a very sobering thought.”

Adjusting expectations
The Durrants have resigned themselves to their retirement reality, which is what experts recommend: During an economic downturn of this magnitude, it’s time to let go of most golden-year fantasies.

“I mean, I’m of that age. We’ve all had a disappointment,” says economist Munnell, who turns 66 next month. That’s the age she typically recommends that people retire, and she always imagined she’d follow her own advice. Now, she’s buckling down for at least another five years on the job.

“I’m very like everybody else — I felt like we had put aside enough money, but I didn’t plan on a buffer of 20 percent,” she says. Speaking for herself, she says, “The feeling is one of failure, even though it was really very hard to anticipate anything like this. You do feel like you failed.”

For those at or near retirement age, there’s no more time to save. There’s no magic investment to uncover. It’s best to face your 401(k) and lower your expectations — fast, Munnell says.

“You’ve got to play the cards you’re dealt, and play them the best you can,” she says. “Mourn if it’s a serious loss for you, but then, candidly — get over it.”

And then get to work. With the unemployment rate at its highest in more than a decade, those lucky enough to have a job should forget all thoughts of leaving, says Munnell, who co-wrote “Working Longer: The Solution to the Retirement Income Challenge,” published earlier this year. “(But) the problem is, it takes two to tango here. Employers have to be willing to hire people or to retain them.”

‘How many no’s can you stand?’
But many of those looking for jobs in their 50s and 60s didn’t plan on leaving their old jobs so soon. Some are pushed into early retirement, or laid off by hemorrhaging industries.

Each day since the day he was laid off from his sales job in June, Ben Durrant has looked for work. But as the days turn into weeks and months, he can feel his self-worth slipping. It doesn’t matter if he’s the best salesman there is, he says. He’s 59 years old. Few places will invest the time and resources into hiring someone that age, who might retire in just a few years, he says.

“In a lot of ways, it’s disheartening,” Durrant says. “How many no’s can you stand? It hurts after a while. It tears away at your self-image and your self-respect. We determine our self-worth out of the job we have. And you’re sitting at home and you’ve got three days worth of whiskers on you and you say, ‘I just want to stay home in my jammies,’ but you can’t.

“It knocks your self-esteem down, but you just have to say, ‘I’m worth this,” and go out and try one more time,” Durrant says.

He’s getting used to the idea that he’ll be making much less money than he was as a manager; he’s now looking at jobs that would pay $10 or $12 an hour. “That’s pretty hard to deal with when you want to go visit the grandkids,” says Durrant.

Finding ways to cope
“For people at the top of their earnings, regardless of their area, when they're offered jobs that are eight or nine dollars an hour, they just can't reconcile that. They think, ‘I'm worth more than that,’” sociologist Moen says. But that was then. Now it’s key to “get away from the idea of what you were, ‘cause you’re not going to get paid what you used to get paid,” she says.

For those facing dire financial problems, take the job you get, Moen says. Think of it as a stop-gap, because “it’s easier to get a job when you have a job,” she says.

And each time a self-loathing idea floats through your brain — Could I have worked harder? Saved more? — squash it.

“The biggest thing to recognize is, yes, you’re in this and yes, you’re going to have to cope, but it isn’t your fault. It’s a public issue,” Moen says. “This is not something you caused. You need to try to weather it, but it’s not your fault.”

If you can get a job, “it will be satisfying in the sense that this is a scary time, because it seems like everything is out of control and no one knows what’s happening, but if you can control something like that, you can say to yourself, ‘Well, I got out and I got a job,’” Munnell says. “Control what you can control.”

In order to gain a little control herself, Munnell has banned herself from watching too much Bloomberg or CNN and obsessing over how far the market dipped today. Other experts suggest squirreling away what little you can — even just $50 extra a week, to experience the magic of watching a savings account that’s slowly growing, to remind yourself that some things are still in your control.

Otherwise, let your family talk you down, take long walks with the dog and keep in mind: No one has this thing under control, experts say.

“We know that life hasn’t handed us a bowl of cherries. We got half a bowl of pits,” Durrant says. “But, dangit, you do what you need to do. You pop your head up the next morning and go on.”

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