Today’s posts concern the broad topic of “poverty” in recognition of today’s worldwide efforts by “Blog Action Day ‘08″ to bring poverty to the forefront of discussion. Why discuss poverty at a personal finance site? Some Geezeo users are addressing individual financial hardships due to job loss, unforeseen medical bills, or crippling amounts of debt. These Geezeo users find comfort connecting with others in similar situations. We need a reminder that the terms “poverty” and “working poor” are somewhat subjective — but that those affected by such conditions in this country and around the world affect us all.
Here are four reasons poverty impacts you personally:
1. Recent economic booms left out the working poor. Our economy is getting better at creating two broadly defined types of jobs: “skilled” and “unskilled”. Those in the “unskilled” category continue to see opportunities to make “living wages” decrease. (Wages have stagnated for over ten years). Quite naturally, segments of these people fall into food- and shelter-insecure lives.
To solve this problem we need national leadership that provides job training for the so-called “new economy”. We also need to build an economy that isn’t based on 19th-century ideas. That takes a national vision of training everyone in our society for economic productivity, and a commitment of money to make this possible.
Why This Affects Your Money: Taxes. Some dare call taxes “unpatriotic”. When you vote November 4th you’ll either be supporting the broad infrastructure necessary to lift more people into working conditions… or you won’t for fear this will cost YOU too much.
2. Worldwide cheap labor provides cheap goods for all. A worldwide economy allows those of us in the West to purchase cheaply produced goods. As a nation we’ve all become accustomed to buying things that do not reflect the true cost of production. And in particular, the true cost of production by the people who do everything from growing your winter-time fruits and vegetables, making your sneakers, or cultivating your coffee.
Why This Affects Your Money: So how do you know if what you’re buying hasn’t been produced by the exploitation of poverty-stricken, desperate people unable to eat?
You make a commitment to purchase “fair trade” or “local” whenever possible. Sometimes that costs extra. And to go back to point #1 — not everyone can afford the “luxury” of voting with their purchasing dollars.
3. Rising health care costs. Approximately 45 million Americans, or one in six, were found to lack health insurance, the largest number since data was first collected in 1987 (source). One misfortune can literally bankrupt a family.
Why This Affects Your Money: If you do not carry adequate health or car insurance, your savings, investments, and ability to earn wages could be drastically removed with one accident. More bankruptcies are caused by the inability to pay medical bills than nearly every other cause. It’s obvious to see that people burdened by bankruptcy PLUS an inability to work fall into poverty-stricken situations.
When you vote you can demand that our country address health care reform. Changing our system so that it is more affordable to all will go far in preventing unnecessary suffering.
4. You can now fight poverty directly. Poverty is a social ill that has always been here — but now, we have one more weapon beyond donating our time and efforts: technology.
Why This Affects Your Money: Instead of using the old model (i.e., give charitable donations and hope they arrive at their destination), now you have a range of tools to give directly. For example, you can use Kiva to give microfinance loans directly to impoverished regions of the world. Or you can choose peer-to-peer lending to help people here at home. And, you can encourage your friends, family, and associates to contribute to groups of charitable organizations using tools like Givvy.com, among others.
It is important to remember that no matter the condition of your personal finances there are others in this country and abroad who suffer greatly. Take steps to protect yourself from poverty and be brave enough to reach out and help others where possible.
Related:
Poverty Among Women Increasing During Retirement – 4 Tips to Help Prevent this Happening to You!
Imagine a World Where Shares are Shared…
Is Your Spending Vulgar, or Virtuous?
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