August 25, 2020
Despair Grips Lower-Paid White Workers
Long before COVID-19 upended our world, the lives of lower-paid, less-educated workers had already been coming apart.
“It’s the other epidemic, but it’s an epidemic that’s been occurring under the radar for a long time,” Anne Case said in her keynote address for the annual meeting of the Retirement and Disability Research Consortium, which was held online early this month.
Case, a Princeton University economist, was referring to the findings from her seminal work on the deterioration in financial well-being and rising death rates among white, non-Hispanics without a bachelor’s degree. Case, along with her husband, Angus Deaton, also at Princeton, have just published a book on their research, “Deaths of Despair and the Future of Capitalism.”
The deaths of despair they refer to are due to drug addiction, liver disease from alcoholism, and suicide. In writing this book, they are shining a spotlight on a phenomenon affecting people who no longer have a voice, in part because labor unions, once powerful advocates, have declined.
In 2018, some 158,000 white adults of all ages without a college degree died from addiction, alcoholism and suicide, according to Case and Deaton’s research – more than double the number in 1992 and on par with COVID-19 deaths to date.
But the death rate is just the tip of an iceberg of woe that includes an increase in physical pain, declining mental health, and a loss of a sense of self, Case said.
One disturbing trend is the relatively recent phenomenon of rising suicides among white women without a bachelor’s degree. Although suicides among their male counterparts are still much higher, women’s suicides in recent years have been increasing at roughly the same pace.
What is at the root of this despair? Case provides economic explanations, including a long-term decline in men’s wages and in the percentage who are employed. However, economics is inadequate to explain the despair. …Learn More
March 26, 2020
Money Shame Surfaces in Tough Times
It’s easy to overlook the emotions that swirl around money. But they often come to the surface when our financial security is thrown into question.
The spread of the coronavirus has kicked Americans’ financial anxieties into high gear, a Kaiser Family Foundation poll found last week. More than half of the workers who were surveyed fear they will lose income when their workplace is closed or their hours are reduced.
Reduced income is hitting low-wage, part-time and hourly workers hardest and fastest. But even among people with more financial resources, more than half are concerned they’ll have to dip into retirement savings or college funds.
Even when financial problems stem from events that are outside of an individual’s control, a feeling of shame can take over. Shame is the thread running through three TED videos that explore the emotions around money.
With economists increasingly predicting a recession in the wake of the virus, it might be useful to keep in mind the insights and coping mechanisms discussed by the speakers in these videos.
Shame is that “intensely painful feeling or experience of believing that we are flawed … based on our bank account balances, our debts, our homes, or our job titles,” Tammy Lally explains in the first video.
Lally, a financial coach, believes her brother was driven to suicide by his shame about his bankruptcy filing earlier that same day. She said she was judgmental at first but, after encountering financial problems of her own, came to a better understanding of the intense pressures her brother was feeling.
Lally’s and her brother’s shame around money was rooted in their childhood, she said: the siblings learned from their parents that money would make them happy. “We internalized that into the money belief that our self-worth was equal to our net worth.”
As the coronavirus pummels the stock market and slows the economy, many workers are feeling under enormous financial pressures. But Thasunda Duckett, who runs the consumer division of a major bank, said in a second video that people only compound the pressures when they blame themselves.
“We have a fraught relationship with money, because it comes with judgment,” she said.
Duckett and Lally both recommend one thing people can do if they’re experiencing money issues. To overcome some of the shame and anxiety requires letting the burden go by talking openly with others about money – you will quickly learn that you are not alone.
“Money can no longer be a taboo topic,” Lally said.
In 2007, a year before the financial crisis hit, Elizabeth White, a Harvard Business School graduate and one-time international consultant, was tumbling into “economic freefall.” …Learn More