love the life you live Peace Corps Cambodia ☮: November 2011

okay sorry but someone on Facebook posted this link up and i think its to funny not to re post on this blog. I would also like to say this occupy wall street has my support while i understand why some people may see them not pin pointing how to take action aka no solution to the problem and just whining they are making people take notice. I guess when you have no work to go to you mine as well OWS. however whats so concerning to me is that our own president condemned the way protesters in the middle east were being treated but when it comes time to see how american gov treats protesters the treatment is no better. I think no matter what most people are not happy with the current situation and want change however can we find a solution i don't know? anyways i copy and pasted both the web sites i have so enjoy!

At this moment, a whole lot of people, most of them 15 to 20 years younger than me, are protesting in every major city. What are they angry about? A lot of things, some of which are partially my fault.

See, I'm a part of Generation X, the post-Baby Boom era kids who grew up on a mental diet of Beavis and Butthead and Alice in Chains. We wrote poems about how angry we were at our fathers, wore goatees like weapons and made panties burst into flames by playing Pearl Jam's Black on our acoustic guitars. We were a bridge from the Baby Boomers to all you guys who are in high school and college now. And I'm pretty sure we fucked up that handoff pretty badly.

This is not a sarcastic apology, I'm not a big enough dick to write all of this as a backhanded insult about how lazy and entitled you are. Because you're not.

I'm honestly apologizing for ...

#5. Making You Ashamed to Take Manual Labor Jobs

During one "Occupy Wall Street" protest, somebody from the Chicago Board of Trade dumped McDonald's applications on the protesters. This made me think of a viral Facebook post that David Wong showed me the other day:

Via Weknowmemes.com

If you know who that came from, we'd love to give him/her credit for the post. And a high five or something.

Because yes, you guys are getting hammered for being too lazy or "entitled" to take on a low-paying job, and for standing up and demanding help paying for college, etc., instead of just being happy "flipping burgers." People my age and older will go on and on about how in our day we weren't too good to get our hands dirty when the good jobs dried up.

But I'm pretty sure we taught you the opposite of that. And the Baby Boomers taught us.

Photos.com
"Lesson 12: When you have brown people over, always smile. They can sense your fear."

See, we were raised on 1980s movies and sitcoms, and the "cold, unfeeling grownup who works too hard" was the villain in half of them. The whole point of these "body switching" comedies -- where a kid winds up in the body of a grownup -- was that the career-driven workaholic dad learned what life was really all about. The message was clear: If you work too hard, you'll lose your soul.

The characters who worked their asses off were shown to be stiff prudes who come down on the lighthearted main character with an iron fist. Or maybe that person is the main character, but by the end they realize that the only way to truly enjoy life is to lighten up and embrace their inner child. They finally stand up and quit their grindstone job in a hail of applause, and live a life of stress free bliss. As a side note, at some point, those people had to urinate ... so the little kid trapped in the dad's body was physically handling his dad's cock. That image is on the house -- you're welcome.

Photos.com

By the time the Grunge Era came around, the "slacker" and "loser" characters were heroes, the guys who knew that life was really all about having fun. We were a self-depreciating group of people who proudly declared that we were what our parents always wanted to be: laid back and carefree. "Loser" and "slacker" were terms of endearment. We knew that the whole suit-and-tie job was a one way ticket to becoming Principal Vernon from The Breakfast Club. So many of us ended up slacking our way into fast food jobs. We were the guys from Clerks.

Flash forward a couple of decades, and most of us are now parents. We've since found out that there's not much market for making a really good honey bear bong or winning a contest for having the dirtiest flannel shirt (first place four years running, thank you very much). We've cut our hair, bought some decent work clothes and moved on -- lesson learned. But that fast food job stuck with us. It became a scare tactic to use on our own kids. We want them to have something better.

Photos.com
"When we smile, it means that something that was recently inside of us ... is now inside your pizza."

But here's the thing: Those Baby Boomers who started this "you don't want to flip burgers" bullshit did flip burgers. Or roof houses, or mine coal, or wax porn stars' assholes. And that wasn't something to be ashamed of back then -- that was the era before you needed a bachelor's degree to get a job waiting tables (but more on that in a moment). But at some point between my grandfather's time and now, getting your hands dirty became something to be ashamed of. My generation perpetuated that. We made it socially unacceptable to:

A) Do any job that requires sweat and/or a uniform.

B) Work 70-hour weeks to get ahead.

So if you don't do either of those things, what's left? Getting an education and waiting for a good job in your field. But now, when we catch you doing that, we mock you and tell you to go flip burgers. And that's bullshit. We told you your whole lives that those jobs were for idiots and failures. You think you're too good for those jobs because that's what we've been fucking telling you since birth.

Photos.com
"Give me shit all you want -- my car has gas and my fridge is full of stolen chicken."

#4. Implying That College Would Guarantee You a Good Job

Last month, I overheard a conversation between a steakhouse waiter and an older couple he was serving. He knew the couple, but not intimately. They politely asked how his classes were coming along, and he said that he had in fact graduated with a degree in architecture. For the next several minutes, the old couple awkwardly tried to reassure him that something would come along while he attempted to justify to them why he was serving steaks for a living.

It was painfully clear that he felt like a failure, and that he dreaded having this conversation with every older member of his family he encountered. Having to put a positive spin on his own life, trying to reassure them that he wasn't a failure, or lazy, or hadn't dropped out of society due to a drug problem. Yes, I did get my degree. No, they're not hiring.

Photos.com
"I cannot only tell you the year, but I can break down its exact molecular composition."

So, here's the thing. You have to go to college. Your parents told you that, I'm telling my kids that. Every high school teacher you have or had told you that. ("You don't want to wind up flipping burgers, do you?")

And they're not wrong; if I'm an employer looking at 200 applications to fill one job, and 50 of them have bachelor's degrees, those are going to be the ones I move to the top of the pile, even if the job is that poor bastard who shakes a sign outside of Little Caesars.

The problem is that we've sort of set you up to think that after high school, the next step is college, and after that you just jump in and start working at the job you went to college for. We kind of implied that this "college to job" transition is as natural and orderly as "high school to college." That is, if you get the right grades, you "graduate" to it. That's not true, and it's our fault that so many of you think that.

Photos.com
"A master's in psychology? Pretty impressive. How would you say that qualifies you to answer the phone?"

See, our parents told us that because they didn't actually know. As a generalized whole, they didn't go to college. You have to realize how recent the whole "everybody goes to college" thing really is. It was only two generations ago that college educations were rare -- in 1950, less than 10 percent of adults had bachelor's degrees (hell, only half even graduated high school). People back then were less mobile and more likely to stay in the town where they were born. That meant that their options were limited; men joined the military, or went to work at the local factory/warehouse/whatever was hiring. Women got busy having babies and being waitresses/secretaries/whatever was hiring. College was something that smart kids and people with money did. And they probably thought those college kids had a free ticket to a nice job in an air-conditioned office.

So when they worked hard and gave their kids the opportunity to get a degree, they thought they were giving us what those fancy smart kids got: an automatic job with a hotass secretary to feel up. Sexual harassment wasn't a thing yet.

Photos.com
It was considered more of a perk than assault.

Now everybody has a degree. It's the baseline minimum. So when you finally take those first steps out of university life and enter the work field, it's an absolute system shock to find out your $30,000 to $100,000+ bachelor's degree doesn't guarantee you a position in your field of study ... possibly ever. At least 40 percent of you who get degrees will wind up in jobs that don't require a degree at all. And the rest will wind up in jobs outside the field they studied.

Again, it's not that you shouldn't get a degree. Far from it. It's that the system we've declared to be the default also happens to be fucked. And not in the good way ... in the "chick breaks a porn record" way. You're not going to use 90 percent of what you learn.

I have dozens of examples of this in my inbox right now. People who have been where I've been -- poor and struggling, willing to do whatever it takes to get out of that soul-crushing hole. After years of it, they finally have enough and decide to go back to college. So I ask, "OK, that's a good idea -- then what?" And they don't know. They hadn't considered that even after graduation, they might be in exactly the same position as they are right now ... plus another $50,000 worth of debt. Nobody told them, or at least didn't tell them loud enough.

Photos.com
"BRING LUBE!"

So, yes, you're frustrated and angry about that. You have a right to be.

#3. Adding Seven More Years to Being a Teenager

In my parents' day, it was always just sort of assumed that at age 18, you pack your shit and get the hell out of the house. Go back 40 years and you find everybody getting drafted into the military at that age (Vietnam and before that, Korea, and before that, World War II). When you got back, you started having babies. So if you were still living at home at age 25, they made you stay in the attic and told the neighbors you had died from tuberculosis.

Things started to change with the "everybody goes to college" era. Going to college means you're probably not supporting yourself, you're living in temporary student housing and your parents keep your old bedroom in place for when you come back for the summer. So then if you don't get a job out of college, you're right back home at age 23, possibly still sleeping on a bed shaped like the Millennium Falcon.

Via Thechive.com
OK, so I actually would own that, even as a successful adult.

So now you guys are living in a world where kids don't move away from Mom and Dad until their mid 20s to lower 30s. And it's the same story with marriage -- today you tend to marry in your late 20s, as opposed to my parents' generation, who did so five years earlier.

But this has created a very annoying, ugly side effect in the culture: the phenomenon of the immature Man-Child. The twenty-something dude with his collection of anime action figures, the guy pushing 30 who's still sticking it out with his garage band and spends his nights getting in screaming matches with teenagers on XBox Live, the hipster who spends 80 percent of his income on wacky ironic clothes and mustache growth supplements.

Photos.com
This man gets no apology. He brought that upon himself.

In other words, we've extended the awkward teenage years into the mid to late 20s. Now, I would not be apologizing for this if it was just the result of social and economic factors outside our control. But the problem is that we made a hero of that person. Think Kelso in That '70s Show, or Joey from Friends. My generation aspired to be that guy, the kid in a grownup body with simple, childish appetites and aspirations. I was that guy for years -- a dude can get very popular doing that.

But let me tell you from experience, the longer you put off adulthood, the harder the transition is.

And staying home longer does delay it -- a huge part of becoming an adult is living on your own and finding out through trial and error what works, living through seemingly simple things like balancing your budget, cooking your own meals and learning how to get blood stains out of your ceiling without repainting.

Photos.com
Long story.

And what's going to happen is you're going to run into a whole lot of people who still judge you according to the age scale set by my parents' generation -- that you should have your shit together by 23.

So you grow up in a culture that tells you maturity is for boring assholes, and then suddenly you get dumped into a world that expects maturity.

So, what are the protesters so upset about, really?

Do they have legitimate gripes?

To answer the latter question first, yes, they have very legitimate gripes.

And if America cannot figure out a way to address these gripes, the country will likely become increasingly "de-stabilized," as sociologists might say. And in that scenario, the current protests will likely be only the beginning.

The problem in a nutshell is this: Inequality in this country has hit a level that has been seen only once in the nation's history, and unemployment has reached a level that has been seen only once since the Great Depression. And, at the same time, corporate profits are at a record high.

In other words, in the never-ending tug-of-war between "labor" and "capital," there has rarely—if ever—been a time when "capital" was so clearly winning.

Click here to see what the protesters are so upset about >

Let's start with the obvious: Unemployment. Three years after the financial crisis, the unemployment rate is still at the highest level since the Great Depression (except for a brief blip in the early 1980s)

Image: St. Louis Fed

Jobs are scarce, so many adults have given up looking for them. Thus, a sharp decline in the "participation ratio."

Image: St. Louis Fed

And it's not like unemployment these days is a quick, painful jolt: A record percentage of unemployed people have been unemployed for longer than 6 months.

Image: St. Louis Fed

And it's not just construction workers who can't find jobs. The median duration of all unemployment is also near an all-time high.

Image: St. Louis Fed

That 9% rate, by the way, equates to 14 million Americans—people who want to work but can't find a job.

Image: St. Louis Fed

And that's just people who meet the strict criteria for "unemployed." Include people working part-time who want to work full-time, plus some people who haven't looked for a job in a while, and unemployment's at 17%

Put differently, this is the lowest percentage of Americans with jobs since the early 1980s (And the boom prior to that, by the way, was from women entering the workforce).

Image: St. Louis Fed

So that's the jobs picture. Not pretty.

And now we turn to the other side of this issue... the Americans for whom life has never been better. The OWNERS.

Corporate profits just hit another all-time high.

Image: St. Louis Fed

Corporate profits as a percent of the economy are near a record all-time high. With the exception of a brief happy period in 2007 (just before the crash), profits are higher than they've been since the 1950s. And they are VASTLY higher than they've been for most of the intervening half-century.

Image: St. Louis Fed

CEO pay is now 350X the average worker's, up from 50X from 1960-1985.

Image: G. William Domhoff, UC Santa Cruz

CEO pay has skyrocketed 300% since 1990. Corporate profits have doubled. Average "production worker" pay has increased 4%. The minimum wage has dropped. (All numbers adjusted for inflation).

Image: G. William Domhoff, UC Santa Cruz

After adjusting for inflation, average hourly earnings haven't increased in 50 years.

In short... while CEOs and shareholders have been cashing in, wages as a percent of the economy have dropped to an all-time low.

Image: St. Louis Fed

In other words, in the struggle between "labor" and "capital," capital has basically won. (This man lives in a tent city in Lakewood, New Jersey, about a hundred miles from Wall Street. He would presumably be "labor," except that he lost his job and can't find another one.)

Image: Robert Johnson

Of course, life is great if you're in the top 1% of American wage earners. You're hauling in a bigger percentage of the country's total pre-tax income than you have at any time since the late 1920s. Your share of the national income, in fact, is almost 2X the long-term average!

Image: David Ruccio

And the top 0.1% in America are doing way better than the top 0.1% in other first-world countries.

Image: David Ruccio

In fact, income inequality has gotten so extreme here that the US now ranks 93rd in the world in "income equality." China's ahead of us. So is India. So is Iran.

Image: G. William Domhoff, UC Santa Cruz

And, by the way, few people would have a problem with inequality if the American Dream were still fully intact—if it were easy to work your way into that top 1%. But, unfortunately, social mobility in this country is also near an all-time low.

So what does all this mean in terms of net worth? Well, for starters, it means that the top 1% of Americans own 42% of the financial wealth in this country. The top 5%, meanwhile, own nearly 70%.

Image: G. William Domhoff, UC Santa Cruz

That's about 60% of the net worth of the country held by the top 5% (left chart).

Image: G. William Domhoff, UC Santa Cruz

And remember that huge debt problem we have—with hundreds of millions of Americans indebted up to their eyeballs? Well, the top 1% doesn't have that problem. They only own 5% of the country's debt.

Image: G. William Domhoff, UC Santa Cruz

And then there are taxes... It's a great time to make a boatload of money in America, because taxes on the nation's highest-earners are close to the lowest they've ever been.

Image: National Taxpayers Union

The aggregate tax rate for the top 1% is lower than for the next 9%—and not much higher than it is for pretty much everyone else.

Image: G. William Domhoff, UC Santa Cruz

As the nation's richest people often point out, they do pay the lion's share of taxes in the country: The richest 20% pay 64% of the total taxes. (Lower bar). Of course, that's because they also make most of the money. (Top bar).

Image: G. William Domhoff, UC Santa Cruz

And now we come to the type of American corporation that gets—and deserves—a big share of the blame: The banks. Willie Sutton once explained that the reason he robbed banks was because "that's where the money is." The man knew what he was talking about.

Image: AP

Remember when we bailed out the banks? Yes, and remember the REASON we were told we had to bail out the banks? We had to bail out the banks, we were told, so that the banks could keep lending to American businesses. Without that lending, we were told, society would collapse...

So, did the banks keep lending? Um, no. Bank lending dropped sharply, and it has yet to recover.

Image: St. Louis Fed

So, what have banks been doing since 2007 if not lending money to American companies? Lending money to America's government! By buying risk-free Treasury bonds and other government-guaranteed securities.

Image: St. Louis Fed

And, remarkably, they've also been collecting interest on money they are NOT lending—the "excess reserves" they have at the Fed. Back in the financial crisis, the Fed decided to help bail out the banks by paying them interest on this money that they're not lending. And they're happily still collecting it. (It's AWESOME to be a bank.)

Image: St. Louis Fed

Meanwhile, of course, the banks are able to borrow money FOR FREE. Because the Fed has slashed rates to basically zero. And the banks have slashed the rates they pay on deposits to basically zero. So they can have all the money they want—for nearly free!

Image: St. Louis Fed

When you can borrow money for nothing, and lend it back to the government risk-free for a few percentage points, you can COIN MONEY. And the banks are doing that. According to IRA, the "net interest margin" made by US banks in the first six months of this year is $211 Billion. Nice!

Image: Institutional Risk Analytics

And that has helped produce $58 billion of profit in the first six months of the year.

Image: Institutional Risk Analytics

And it has helped generate near-record financial sector profits—while the rest of the country struggles with its 9% unemployment rate.

Image: Reuters (Felix Salmon)

And these profits are getting back toward a record as a percentage of all corporate profits.

Image: The Big Picture

And those profits, of course, are AFTER the banks have paid their bankers. And it's still great to be a banker. The average banker in New York City made $361,330 in 2010. Not bad!

Image: New York Times, New York State Comptroller

This average Wall Street salary was 6X the average private-sector salary (which, in turn, is actually lower than the average government salary, but that's a different issue).

Image: New York Times, New York State Comptroller

So it REALLY doesn't suck to be a banker.

And so, in conclusion, we'll end with another look at the "money shot"—the one overarching reason the Wall Street protesters are so upset: Wages as a percent of the economy. Again, it's basically the lowest it has ever been.

Image: St. Louis Fed

So now you know what the protesters are upset about!

Image: AR McLin via Flickr

Now check out...

Wednesday, November 30, 2011

Women’s Health Fair

Tuesday, November 15, 2011

You Have Failed Us All

#5. Making You Ashamed to Take Manual Labor Jobs

#4. Implying That College Would Guarantee You a Good Job

#3. Adding Seven More Years to Being a Teenager

Click here to see what the protesters are so upset about >

Let's start with the obvious: Unemployment. Three years after the financial crisis, the unemployment rate is still at the highest level since the Great Depression (except for a brief blip in the early 1980s)

Jobs are scarce, so many adults have given up looking for them. Thus, a sharp decline in the "participation ratio."

And it's not like unemployment these days is a quick, painful jolt: A record percentage of unemployed people have been unemployed for longer than 6 months.

And it's not just construction workers who can't find jobs. The median duration of all unemployment is also near an all-time high.

That 9% rate, by the way, equates to 14 million Americans—people who want to work but can't find a job.

And that's just people who meet the strict criteria for "unemployed." Include people working part-time who want to work full-time, plus some people who haven't looked for a job in a while, and unemployment's at 17%

Put differently, this is the lowest percentage of Americans with jobs since the early 1980s (And the boom prior to that, by the way, was from women entering the workforce).

So that's the jobs picture. Not pretty.

And now we turn to the other side of this issue... the Americans for whom life has never been better. The OWNERS.

Corporate profits just hit another all-time high.

Corporate profits as a percent of the economy are near a record all-time high. With the exception of a brief happy period in 2007 (just before the crash), profits are higher than they've been since the 1950s. And they are VASTLY higher than they've been for most of the intervening half-century.

CEO pay is now 350X the average worker's, up from 50X from 1960-1985.

CEO pay has skyrocketed 300% since 1990. Corporate profits have doubled. Average "production worker" pay has increased 4%. The minimum wage has dropped. (All numbers adjusted for inflation).

After adjusting for inflation, average hourly earnings haven't increased in 50 years.

In short... while CEOs and shareholders have been cashing in, wages as a percent of the economy have dropped to an all-time low.

In other words, in the struggle between "labor" and "capital," capital has basically won. (This man lives in a tent city in Lakewood, New Jersey, about a hundred miles from Wall Street. He would presumably be "labor," except that he lost his job and can't find another one.)

Of course, life is great if you're in the top 1% of American wage earners. You're hauling in a bigger percentage of the country's total pre-tax income than you have at any time since the late 1920s. Your share of the national income, in fact, is almost 2X the long-term average!

And the top 0.1% in America are doing way better than the top 0.1% in other first-world countries.

In fact, income inequality has gotten so extreme here that the US now ranks 93rd in the world in "income equality." China's ahead of us. So is India. So is Iran.

And, by the way, few people would have a problem with inequality if the American Dream were still fully intact—if it were easy to work your way into that top 1%. But, unfortunately, social mobility in this country is also near an all-time low.

So what does all this mean in terms of net worth? Well, for starters, it means that the top 1% of Americans own 42% of the financial wealth in this country. The top 5%, meanwhile, own nearly 70%.

That's about 60% of the net worth of the country held by the top 5% (left chart).

And remember that huge debt problem we have—with hundreds of millions of Americans indebted up to their eyeballs? Well, the top 1% doesn't have that problem. They only own 5% of the country's debt.

And then there are taxes... It's a great time to make a boatload of money in America, because taxes on the nation's highest-earners are close to the lowest they've ever been.

The aggregate tax rate for the top 1% is lower than for the next 9%—and not much higher than it is for pretty much everyone else.

As the nation's richest people often point out, they do pay the lion's share of taxes in the country: The richest 20% pay 64% of the total taxes. (Lower bar). Of course, that's because they also make most of the money. (Top bar).

And now we come to the type of American corporation that gets—and deserves—a big share of the blame: The banks. Willie Sutton once explained that the reason he robbed banks was because "that's where the money is." The man knew what he was talking about.

Remember when we bailed out the banks? Yes, and remember the REASON we were told we had to bail out the banks? We had to bail out the banks, we were told, so that the banks could keep lending to American businesses. Without that lending, we were told, society would collapse...

So, did the banks keep lending? Um, no. Bank lending dropped sharply, and it has yet to recover.

So, what have banks been doing since 2007 if not lending money to American companies? Lending money to America's government! By buying risk-free Treasury bonds and other government-guaranteed securities.

Meanwhile, of course, the banks are able to borrow money FOR FREE. Because the Fed has slashed rates to basically zero. And the banks have slashed the rates they pay on deposits to basically zero. So they can have all the money they want—for nearly free!

When you can borrow money for nothing, and lend it back to the government risk-free for a few percentage points, you can COIN MONEY. And the banks are doing that. According to IRA, the "net interest margin" made by US banks in the first six months of this year is $211 Billion. Nice!

And that has helped produce $58 billion of profit in the first six months of the year.

And it has helped generate near-record financial sector profits—while the rest of the country struggles with its 9% unemployment rate.

And these profits are getting back toward a record as a percentage of all corporate profits.

And those profits, of course, are AFTER the banks have paid their bankers. And it's still great to be a banker. The average banker in New York City made $361,330 in 2010. Not bad!

This average Wall Street salary was 6X the average private-sector salary (which, in turn, is actually lower than the average government salary, but that's a different issue).

So it REALLY doesn't suck to be a banker.

And so, in conclusion, we'll end with another look at the "money shot"—the one overarching reason the Wall Street protesters are so upset: Wages as a percent of the economy. Again, it's basically the lowest it has ever been.

So now you know what the protesters are upset about!

15 Mind-Blowing Facts About Inequality In America