One of the greatest benefits of a site like DailyKos is the wide range of topics coming from a progressive (read realistic) perspective that is largely absent from the corporate media's version of events. As I've lurked, responded, and written here, I've learned incredible amounts about many issues, notably economic ones. I've become an aficionado of the posts of bonddad, Jerome, and others, and generally take their dire predictions seriously. My wife and I have been curtailing our spending and paying down debt whenever we could.
Turns out it wasn't enough.
By way of background, we have been comfortably middle class for years, despite the occasional curve ball thrown by fate. My wife's main job provides health insurance, while her second job is/was "play money". Both of my jobs go towards household bills and upkeep, and any extra goes into debt relief. This was always sufficient to keep the wolves at bay in the past, but things began to look bleaker last spring when my dad died.
As it was unexpected, we hadn't prepared for many of the expenses associated with his death, and I was forced to put it on the plastic, which had previously carried no balance. Coupled with an ongoing liability related to my dad's property, I found I could not pay down that credit card debt, and have been limping along with a fat balance charging interest every month. Not good, but not sinking, either. In my business (tourism), there is often a hefty payday around the holidays, and I figured I could put a dent in my debt with that.
Then came the 24 hours.
It started Wednesday night when my wife hit an obstacle in the road, which tore out the oil pan in her Volvo. With little warning, the engine seized. We're looking at $8-10k in repairs, and there's not enough equity to sell the car. Insurance may or may not pay up (they're very good at what they do), so a lawyer has been retained, not for free. We also need to rent a car for the next few weeks while the Volvo gets a transplant.
The next morning my nose, which had been bleeding sporadically for four days, erupted pretty badly, and I was forced to leave work. I have had nosebleeds before, but this is much worse than usual. It required a trip to the ER, where the doc cauterized the friable area and sent me on my way. Unfortunately, the bleeding has resumed and I cannot return to work until it is under control. On the way back from the ER, my Subaru (yes, that Subaru) started going critical. It has a piston out of whack, and the estimate stands at $1800. Last night, we totaled up the likely costs of the last 24 hours, and we cannot pay for these events in under four years. That's if there are no other surprises.
Boo-frickin-hoo, right? I mean, compared to Katrina victims, or those facing medical crises without insurance, or the majority of the elderly, this is child's play. And it is. I don't mean for a second for this post to be a 'poor me' piece. It's about the fragility of the 'safety net' so many of us have built for ourselves in a society that no longer provides for the unfortunate.That safety net was one I began putting in place when I could no longer believe the corporate media's spin that all is well in the economy, and I should spend as fast faster than I earn. The posts on DailyKos have tracked much more closely to my own experience and observations than the entertaining mush spewing from my TV. And the pressures which have turned a series of events from inconvenient to serious are felt by many others.
Whatever my wife hit did not belong in the road. How long it was there is unknowable, but I remember when road obstacles were quickly removed by police or DPW for safety reasons. Budget cutbacks, fueled in part by the anti-taxation fever in this country have reduced road maintenance dramatically in our entire state. (message to motorists - you're on your own)
Quality products are slipping in quality. I bought my car because it is reknowned for safety and reliability. I have maintained it superbly and drive it daintily. The explanation for such a major breakdown can only be a flaw in the production of the car. Some googling has shown that the new Subarus are more troublesome than at any time since the late eighties. That would have been nice to know before I bought the car. (tangent - I have noticed this trend with purchases ranging from ski equipment to clothing to electronics in the last few years). Quality control has dropped off the radar in today's deregulated 'take the money and run' business climate. (Message to consumers - you're on your own).
Medical costs are exploding, even for the insured, as the quality suffers. I'm lucky enough to have insurance. Pretty good, pretty expensive insurance. But my bill for yesterdays fun (including a two hour wait) will be in the $250 range. The total bill will likely top $1200. For a soldering job and no diagnosis or advice on preventing future occurrences. I can't see the point of going back today, so I'm writing this in spurts (pun intended) between bleeds. I have had several experiences with medical professionals that left me with no diagnosis. This is just the latest. Needless to say, I am unable to resume work until I can be sure this won't happen again. Substantial bleeding on a mountainside is scary enough, but for it to happen while I'm responsible for another person's safety is crazy dangerous. And this happened during the most lucrative week of the year for me. (Message to the sick - you're on your own).
Climate change is affecting the economy. Prior to the events of this week, my income for the ski season so far has been off about 20% as there has been virtually no snow here or in the major Northeastern cities where our customers live. Prior to this season, even in poor snow years, my income has always grown or remained steady. This year is different. There has been a depression of the tourism industry in general, coming on the heels of a disappointing fall foliage season (high gas prices and drab foliage due to warm temps). My wife's second job (tourism - based) has been virtually a bust this year as well. That means the usual cushion against misfortune is that much thinner. In our case, with increased expenses prior to Thursday, the cushion was already gone.
The economy is hurting. Badly, for most of us. The pundits and others in thrall to the powerful use stats based on averages to obscure this fact, but it's right there in plain sight:
The customers aren't coming.
Everything costs more, and performs less.
Working just as hard as yesterday pays less than yesterday.
My comfortable status, informed and frugal as it was, needed only a few small hits to be destroyed. Heeding the warnings of the Cassandras on this site has likely softened the blow (refinanced the mortgage, paid loans off early, lean Christmases), but being forced to borrow our way out of (into?) trouble has set us back years. That means no contributions to the IRA, no savings of any kind until 2010, which snowballs the problem down the road to the (questionable) Social Security and Medicare years. I think of it as "borrow it forward". Two months ago, Mrs kamarvt and I were considering new appliances to replace the aging energy hogs we've had forever. Now I'm hoping to keep my internet connection.
Message to everyone but the truly rich - it can too happen to you.
Have a safe, loving, and unsurprising New Year, Kossacks.