One in five American men don't work: Where's the outrage?
finance.fortune.cnn.com
finance.fortune.cnn.com
My employee could be living in a shack having had every single item of worth repossessed... but if they can do their job well, why wouldn't I hire them?
In any case, I know what you mean - I'm from Canada, and arrived in the US after the financial meltdown and subsequent tightening of the credit belt. I still don't have a credit rating since I couldn't convince any major bank in the USA to give me a credit card. Yes, this includes secured credit cards (i.e., you leave a month's credit limit with the bank in cash, if you miss your bill at all, they take the entire sum... aka zero risk for the bank) And yes, my credit in Canada is stellar - but that counts for absolutely zip in this country.
It's not until very recently that I was able to flash about an employer's name and convince one of them to cut me some slack. It'll be months still before my credit score populates - this has made renting apartments, and just about everything a nightmare.
The only way I've been able to skate by is by flashing an offer letter and pay stubs showing I make >3x the US median income... imagine if my pay was dead average... I'd be fucked.
The trouble with that thinking is of course the multitude of reasons that someone can get into debt through no fault of their own - especially in the US with health care - the fact that people often mature faster than their credit score recovers, not to mention situations like your own where there's no credit score to begin with.
I'm glad that in my native Australia, as another poster pointed out, it's illegal to discriminate based on credit score for hiring purposes. It seems that the small amount of good businesses may get from this discrimination is way out balanced by the harm it causes society in general - though obviously I'm preaching to the choir here :)
Citibank also has a program where if your a 'newcommer' and can show proof of $1000-$2000 average balance in an american bank account for 3 months or $5000+ in a canadian bank account for 6+ months, they will give you a credit card. They'll need the employment verification letter with your total compensation and address (and passport, and SSN card, and other standard things). If I'm guessing your wage correctly you can get a $9000+ credit limit card from citi. I went to a citibank on El Camino close to Stanford.
Thirdly, Capital One has a newcommer card. I just filled out the application for that online and I got a $500 limit card. I think you just need a new/blank SSN for that one to work. If you can actually talk to an actual person, you might be able to get a better credit limit. They also offered to open a secured card with me when I talked to them on the phone.
http://www.capitalone.com/creditcards/newcomer-credit-card/
Also if you've had an RBC account for 6+ months in Canada, you can get an american credit card from them over the phone. They're a big PITA about it although so I eventually didn't go that route. HSBC premier clients can get sweet credit transfer services worldwide, the US included. I was told in Canada that they do credit transfers after having any sort of account for 3 months with them, but the HSBC banker said they thought only premier clients could get that (that was at the palo alto branch where ~90% of their clients are premier clients, on a barely staffed saturday, so she said she might be wrong). On the east coast TD bank also has a much larger presence, but they will only service you if you live on the east coast. Also American Express canada will also transfer your card over to the US if you've had a card with them in Canada. Also applying for those airline credit cards inside airports and W-8BEN and the employment letter might work too.
If you want to avoid credit checks most of the time, go room mates and explain you just moved from canada. As long as you have a job most roommates don't care about credit histories. People in the bay area are big flakes about roommates, pounce on it and get it setup (deposit and all) right there if you like the place.
Also, best kind of banking there is BoA ebanking for atm cash/check deposits and charles schwab for your paycheck/main account. Schwab refunds all ATM fees worldwide and they don't charge a currency exchange spread, unlike the %2-3 you get everywhere. Great for whenever you fly back to Canada, or travel anywhere in the world. They don't give duplicate cards although, you have to open another free account with them to do that.
For folks who do not have exactly this situation, the easiest way to boostrap up a US credit card history is to go to the bank you have direct deposit with (they have the most reason to like you) and ask to open a secured card. They will open a special savings account and require you to fund it, generally to the tune of $500. That account is then frozen: it continues to accrue (pitiful) interest, but you can't withdraw it. They will simultaneously issue you a credit card with a $500 limit. It is exactly like every other credit card: you pay interest if you revolve balances, it has to be paid on time, and it reports to the credit bureaus.
After 6 to 12 months of "good behavior", they will a) unfreeze your deposit and b) "upgrade" the credit card from a secured card to one of their standard beginning product lines. Expect something like a $2,000 limit at a fairly unfavorable interest rate, much like you'd get if you were a college student.
Continue periodically buying a stick of gum on that card and paying it when it is due, and you'll have 800 FICO within about two years.
Years ago, when I graduated from HS, I had my credit ruined for me by a thief. What I know now that I didn't understand then was that if I had pressed charges, things would have gone differently. But somehow I've managed to slither through life with almost no credit. It's sad to see that times have changed.
Not hiring people with bad credit seems to me to be patently absurd. Talk about kicking someone when they're down - as if non-payment of debt was a crime!
It seems that the likely result of this for most is the development of a disenfranchised underclass of black market employees.
Having healthcare attached to employment makes this all the more despicable.
Why aren't people in the U.S just rioting in the streets?! This is the real outrage.
*the Company may terminate your employment without notice (no payment in lieu of notice will be paid) in any of the following circumstances:
×If you become unable to pay your debts as they become due
×If you are declared bankrupt;Does "unable to pay your debts as they become due" mean that if you make a late payment or get a month behind, they can fire you?
I went over the contract with the HR team back in the states (I was transferred over to Oz) and they thought these clauses were very strange. Especially considering that Australian workers have much stronger labor rights in practically every other way compared to the US.
Again, not a lawyer, and only passingly familiar with this stuff, so excuse me if I'm stating the obvious or if it's the same the world over.
The poor tend to have a lower rate than the rest of the population. http://commons.wikimedia.org/wiki/File:Voter_Turnout_by_Inco...
I imagine this discrepancy is even larger for low-turnout elections but I haven't seen data to confirm or deny that suspicion.
What jobs are asking you your credit score?
Also, companies can tell when low scores result from sparse history or poor decisions. They don't just get a 3-digit number. The issue here isn't low scores per se, but low scores resulting from poor history.
I find it interesting that this 'tale of two cities' situation is becoming more pronounced.
So you've got a bunch of companies sitting around waiting for a miracle to happen. Maybe HR imagines that a Google product exec will fall from the sky and accept $40k a year.
I wonder how much of this is due to the job market. Is it a supply and demand issue, where there are simply so many applicants that HR can sit back and wait for the perfect candidate? Or is the reluctance to hire less-experienced workers a long-term behavior shift that will stick around even if the worker supply dries up?
Down the path of "outrage!" lies discussions about abortion, gay rights, appropriate levels of taxation, health care systems and any number of other topics that people feel VERY STRONGLY about.
According to wikipedia, http://en.wikipedia.org/wiki/Incarceration_in_the_United_Sta... 2.3 million people were incarcerated in the US, and 93% are male, so that's 2.1 million men.
The article also says 4.3 Americans have been jobless for months if not years. If this number includes those who are in prison, that means that nearly half of what is counted as unemployment is actually within the prison system.
Part of me says there are way too many people in prison, but the other side says, what if these people weren't in prison? Would the actual number of people competing for jobs be higher?
But you're talking about a dramatic change in US public policy. A first-order approximation is not sufficient, and higher-order approximations depend heavily on what guesses you want to make about the social outcomes.
But there would also be more demand since those same people would also be buying things.
[-1]I also suspect that this is the main source of the incarcerations. But I'm not a US resident, I don't have any data here, either.
From http://en.wikipedia.org/wiki/Incarceration_in_the_United_Sta...
I couldn't find a better breakdown of fed vs state prisoner population numbers.
The ratio of retirees to workers continues to get worse. In the 1940s, there were 42 workers per retiree. Today there are 3.3 workers per retiree.
So you have a shrinking group of people who are actually producing (total workforce minus unemployed, minus goverment workers, minus workers who exist due to government purchasing) and a growing number of people who get a chunk of that production.
This does not end well.
Is regulatory capture a problem at some agencies? Sure. Are some departments outdated or ineffective? Sure. But it is irresponsible to look at a few cases and claim that the entire government is a problem.
You want to see less government? Visit Yemen or gangster Russia
Quite a strange statement given that the governments of both those countries are central to their problems and deeply involved in crime and corruption themselves. In Yemen the government employees shoot innocent people in broad daylight with impunity. Real libertarian haven they've got there.
One can ask for less government without wanting to be ruled by a warlord.
If 1.5 out of 5 people are retired, 1 out of 5 people aren't working, and 1 out of 5 people work directly or indirectly for government, that's about 70% of the population surviving because the government writes them a check (probably a bit less-- some retirees actually saved money for retirement).
This is pretty rampant sexism for 2011. Don't want it to go unnoticed.
It's been more than a generation since women started making more money than men in some households due to increases in equality between the sexes. The phrasing and positioning used implies that a stay-at-home dad is something that we should be reacting to as an economic problem.
In other words, it required the assumption that men are the proper breadwinners in heterosexual households.
Members of households all need to contribute, and while I am neither female nor married, I have heard from many married females that unemployed men do not generally tend to assume the duties of housekeeping. That is to say, the wife winds up both breadwinning and housekeeping, and the man does not contribute. This is broken.
It's sexist of me to generalize (and certainly I hope if I wind up married and unemployed, I won't let my partner take all the burden), and it may well not be what the author was thinking of, but if we take feminine anecdotes at face value there are more reasons to encourage men to be breadwinners than simply because it's their role.
And salaries for women still tend to be lower than those for men. Is it sexist to point this out?
I don't think it was a sexist statement, but rather the focus is on "getting by." It could've been "getting by on his partner's wage" (if he were homosexual).
What if there was a tax that made the one made in China cost $70 - you think the one made in USA would have a fighting chance? I think so. It would create a whole bunch of jobs because there would be less impulse to move jobs overseas.
What if that $50 was used for single payer health care so that "job providers" didn't have pay for health insurance or play that game and compete with the international market.
Any they'd keep shipping jobs overseas because of the healthy margins selling in overseas markets. Start taxing that stuff too and see how many corporations decide that being a US company isn't so awesome anymore...
Have you seen the mountain of shipping containers in our ports from inbounds with no outbounds? They are stacked a dozen high over HUNDREDS of acres of land. No exaggeration.
We are the only potential consumers of our own products - because every other job has been shipped overseas that can easily shipped. Most of what is left is services and assembling components made elsewhere (auto industry).
[0] http://www.nationmaster.com/graph/eco_exp-economy-exports
If everyone had to spend 3 times as much on the things they buy, then they would have even less available money than they do now.
So they would probably stop buying, which would really hurt the economy.
Or they would cut out health insurance and other things.
Not an idle consideration on a planet with finite resources and an ecosystem being pushed beyond its limits.
Unfortunately that's a recipe for economic disaster.
> Not an idle consideration on a planet with finite resources and an ecosystem being pushed beyond its limits.
Not really. The resources are effectively infinite because they are never destroyed, they only get changed into various different forms. We can keep making things, then remaking them into different things basically forever.
And the ecosystem is not anywhere near its limits (not that making less things would help it even if it was). There are definitely areas where things are bad, but the good areas far outweigh the bad.
Woah, since when?
For one thing, making things (and remaking them) takes a tremendous amount of energy, which uses fuel, of which as of yet we are still running on finite reserves (disregarding the environmental angle completely, even).
Secondly, when you chop down a tree and make it into paper, that paper may be recyclable, but never in the exact same form (there's a reason recycled paper is not used in many applications of paper). Not only that, many items that we make are not practically recyclable, or dangerously so - see: recovery of precious metals from electronics. Nigh impossibility unless you want to burn the rest of it away, spewing toxic chemicals into the atmosphere and causing skyrocketing cancer rates.
Until we have infinite, free energy and the ability to transmute matter at will, we cannot keep remaking things forever, not even close. No amount of recycling will even come close to the environmental and resource savings of simply not making something in the first place.
I never mentioned the word recycle. I don't expect anyone to recycle paper. Instead you compost or burn the paper, and grow a new tree. The elements that make up paper are infinity reusable.
The same for the precious elements in electronics. True, we do a poor job of recovering them today, but we could change that easily, and keep making and destroying electronics forever without running out.
We don't even need to recover them, we have plenty in mines. We could store the electronics in a big hole in the ground (for example in an old mine) and only use them much later when we need to. The only reason we do try to recover them is for money, not because we are going to run out.
By far the majority of the stuff we build is made of just a few elements: silicon (in concrete), carbon, nitrogen, hydrogen, oxygen (those four make up plastics, wood, and lots more) and iron. We are not going to ever run out of those - the planet is made of them.
We could keep making and destroying things forever without running out. All we need is energy. (There is no need to transmute elements.)
The rest of the elements could be easily recovered with technology like http://en.wikipedia.org/wiki/Plasma_arc_waste_disposal - run that on a big landfill and you get every element you need after some refining.
Scientific consensus for CO2 atmospheric levels to limit warming to 2 degrees C in the next century: 350ppm. Current levels: 390ppm
Massive over-fishing of ocean fish-stocks? Yep, happening right now.
And that's just two examples I can think of now.
Claiming that we're nowhere near the ecosystem's limits is naive, delusional and dangerous. The laws of nature, despite the beliefs of most economists, don't worry about what causes "economic disaster".
And over-fishing is a problem, I agree. I did say there were areas with trouble. But there is a solution: farmed fish. Meaning we are not at the limit, we just need to be smarter about what we do, which was my point.
And I don't think a protectionist customs scheme is what you want. It could boost local manufacturing on a short them, but eventually the lack of incentive makes them fall behind. Then you have whole industries producing stuff nobody would buy, except for the fact that anything imported is way overpriced.
USA has a quite large domestic economy, but it still probably isn't enough for the companies there if they are not competitive elsewhere.
Protectionism never many a country rich. Only production of goods and services that people actually want will do that. This may require people to upgrade their skills, but so be it.
And, I think everyone is outraged when it comes to what's going on in Washington right now.
The issue is that a lot of these companies are only expanding overseas, so they're not really ready to hire and train people. Much of their profits come from cutting back on their junior staff, from laying off the next generation of skilled workers.
However, I don't think I'd be interesting in bringing somebody up from absolutely nothing. It's just too big a risk and an investment. I think the fundamental problem is that the American public education system just isn't training people in the skills they need to succeed in a modern economy.
In the education reform arena, what we should concentrate more on is patching workers. Most people could probably gain hackable proficiency in languages like Java or Python in 6 months or less. We need to be concentrating on this sort of thing, not making high school and college better.
An example: the retraining benefits attached to UI are often meager and highly targeted towards special interests (the construction and healthcare industries seem to loom rather large in my conversations with EDD). What we could be doing instead, at least in California, is directing the CCs and CSUs to create 6 month curricula in more portable skills. Again, we could be teaching scripting languages plus basic data analysis skills.
I was able to jump into programming because I was lucky enough to get a solid math & science education that nurtured whatever innate talent I had. The kind of analytical thinking it takes to do higher-level information work can't be taught from scratch in a few months.
Both my parents teach at the University level and they tell me that the students they see coming into their classes now can't even write a simple, logically coherent essay.
That would eliminate lots of liberal arts majors very quickly, replacing them with more technical people who are better motivated for difficult subjects. It's not an elegant solution, but it's probably easier than untangling the knot of education or somehow getting the political will to slice it in twain.
There is a shortage of employable people in the US, and a glut of unemployable. To me, this means that our culture and our education system need a lot of help.
Some of the jobs quoted in the article are short workers because they're relatively new. "Managing integrated supply chains" is something most workers would have learned only recently, since before the spread of IT in the late 1990s/2000s it was pretty much the province of major corporations.
That only worked when people stayed with a single employer for years. These days they would take the training and get a better job somewhere else.
But yeah, training would be more likely if you either took a lower salary (part of your income comes in the form of training) or agreed to stay with the firm for a number of years.
There are not many obvious sustainable solutions that don't involve the government suddenly deciding to reallocate pork funding to major public works or otherwise taking unlikely actions which would dramatically alter the current climate.
Meanwhile, it's a good time to start a business. It probably won't create many jobs and it might not take off, but at a minimum it will be good experience and it will look better than a few blank years on the resume.
edit: not that it doesn't deserve to be.