http://www.nytimes.com/2013/02/03/business/americans-closest-to-retirement-were-hardest-hit-by-recession.html?pagewanted=2&_r=0&ref=business
Everyone in all age
groups is being punished on trying to be employed due to the economy. The young graduates are in debt and those in
their 30’s do not own their own homes because they cannot afford to buy a house.
(Rampell) It was the worst timing for
the people that just retired because their “savings and home values fell
sharply at the worst possible time: just before they needed to cash out.” People who are in their 50s that have been
laid off have been looking for work for years.
Arynit has been looking for a job
for 5 years and the reason people like her are not rehired she says “because they
think you’re a health risk.” This is
terrible only 1 of 6 were rehired and those that are still working have had to
take pay cuts. They cannot afford to go
back to school so what are they supposed to do.
We are headed in wrong direction and if we keep it up we will just
dig ourselves in a hole that just keeps getting deeper.
A problem addressed by this article as well is that the older, near retiring age people are being forced to re-enter the job market or continue in their job, if they have one, because the interest rates on savings (which were hoped to be high) are very low. If you are working less, out of work, or retired, those savings amounts were important. Yes, this is a good time for borrowing, but I question if the Fed is doing the right thing by keeping interest rates so low. That could be a crucial problem for consumers in this economy as well.
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