It’s the government, stupid
I am reading “Strapped: Why America’s 20- and 30-somethings Can’t Get Ahead” and it’s depressing the living shit out of me.
Right now I’m reading about soaring college costs and how they compare, in inflation-adjusted dollars, to tuition costs in the 60’s. Scary. And statistics about how people who enroll in two-year/community college are less likely to get their bachelor’s. And about how our knowledge-based economy rewards “hypereducation” — master’s degrees and PhD’s, with a bachelor’s as just your run-of-the-mill starting point.
I am worried for my sister, who is not able to go to the state college I attended in the late 90’s because it’s too expensive. I’m worried for my brother, who has something like eleven million dollars in student loans. And I’m really damned worried for Owen.
Iain and I attended the same college, one year apart; we were both there only because we were offered full-ride scholarships and felt it would be foolhardy to turn them down. (Somehow I still ran up about $4k in student loans: Mostly beer and rent money, but still.) But I think that our virtually free college careers had us thinking that we don’t need to bother saving for Owen’s college, because it stood to reason that, with our genes, he’d be a shoe-in for some merit-based academic scholarship. And even if he didn’t earn a scholarship (which, we told ourselves, would be his own damn fault for slacking off), being made to pay his own way would be a good way to teach him independence and self-reliance. We have worked very hard ourselves to make our own way, independent of our parents, and would like him to have the same sense of accomplishment. (Of course, “independent” is kind of a relative term. I did live at home for two weeks post-internship and pre-Real Job; my folks did bail me out on a credit-card payment or two; and my folks gave us a beautiful wedding. And we have accepted “loans” and furniture from his parents. And probably other generosities I have heretofore forgotten.)
But between reading this book and having read Perfect Madness I am getting a very uncomfortable feeling. The direction this country has taken since Bush I and Reagan and Bush II — well, let’s just say I am in no way feeling safe and secure as a middle-class (oh, fine, lower-middle-class) American. And I am feeling especially panicky and short of breath at the thought of what this society is going to be like in 17 years, when Owen is ready for college.
It fucking scares me. And I haven’t finished this book, so maybe there’s some good economic advice beyond “hoard like Scrooge;” I hope there’s also some advice for getting the government to make with some compassionate relief. I know: Let’s bring our troops home, ITMFA, and start spending money on day care, schooling and higher-education. And paid ma/paternity leave. And flexible jobs. And affordable healthcare.
Oh wait. That would be crazy.
Fuck Pittsburgh. I think we better reconsider moving to Canada.
Comments
11 Responses to “It’s the government, stupid”
Leave a Reply
recent flickr
-
my sewing tutorials
See my tutorials featured on SMS' Handmade Holidays!
Me, elsewhere
- del.icio.us bookmarks
- flickr photolog
- last.FM music profile
- please send vodka
- ravelry knitting notebook
- twitter tiny updates
Et cetera
blog hosting: Meancode Media
Supa, I wouldn’t be so scared about Owen’s college future. What I’d be worried about — make that “terrified” about — is that, because of the war in Iraq, is that if we pull our troops out without making sure that the government over there has the troops capable of stabilizing the country, is that in ten or fifteen or twenty years, we might have to go back for a THIRD time … (and we might be forced to do so with a conscript militarym i.e., Private Owen). That’s what would be scaring the hell out of me.
i honeslty think that health care is a major fuck up in your country. no offence. i think it is what gives a lot of us here in Canada, of the same age, an advantage. We have started saving for Char’s university tuitition, a little bit every month. The government matched the first grand or so i think. And now, when we have birthdays and such, we just ask for money towards that (at least from grandparents, etc). We figure she doesn’t need more toys. I am sorry you are feeling depressed about this. I think you guys are still 10 years younger than Mark and I and own your own home, and are smart, etc. I see hope.
And yeah, y’all talk about Canada, but when you see the tax rate you run screaming like a little boy.
My best to you and your peeps and fam.
xo
The best thing we ever did was consult a financial planner. He set us straight, when Christopher was still crawling. We learned all about 529 plans, where to sock away the money for the best returns, and even how to save for *us* for later. We still plan on encouraging both of them to get scholarships (either academic or sports; we’re not picky) and we both want them to have jobs while they’re in school, but we feel confident that they’re going to have the money they need.
I feel fortunate that we are in a position to save. I know many people continue to live paycheck to paycheck, and I can imagine how scary that must be.
There was an article in the WSJ recently about how Americans are overextended because we buy too much house and too much car, not because we’re buying too much latte. I would tend to agree with that, especially hearing from Kyle about the situations that many of his clients are in (interest-only loans that are suddenly shooting up to ridiculous rates), and from my own experience collecting on delinquent sub-prime car loans. I could hardly believe the monthly payments that these people had.
and then seeing YOU scared scares me, and for my future triplet daughters and one son. yikes.
I hear they have an awesome maternity plan in Sweden. But I’m not blond. Oh well.
I myself have about 20K in student loans; my parents didn’t put money away for me, but they did help out a tiny bit the first 2 years. I have to pay that money back, and slowly I(we) am(are). Our neighbors are a doctor and a medical intern. They just bought a new house (at least 300K), have a baby, owe over 300K in student loans and lease 2 expensive cars.
(shoot, i didn’t finish!)
Anyhow, I see people living that way, and I see people who have only paid cash for things (albeit, they are old, but still). Most people seem to be getting by. We are getting by. If I think about it too much, it scares me. So I try not to think. Once we get completely on our feet, I think we can start saving for college. But until then, it’s about food, shelter and the debt.
On the one hand, it’s about being smart. On the other hand, look at all the nice things there are! If you can maintain the balance, things work out pretty good.
It’s a catch 22 with the college thing. My folks were pretty poor at the time and the good old government threw enough money our way for me to afford to go to a 30K per year school. I came back home after the first year and I got the short end of the stick due to my dad getting a pay raise- they offered me 2 dimes to rub together and a boat load of student loans. What you save can and will be held against you. Times have changed though, from what I hear Pell Grants are a thing of the past. You’re damned if you do and damned if you don’t.
As for us adults, don’t sweat it. You and Iain don’t live in a McMansion, don’t eat take-out every night of the week, and don’t drive matching hummers. Given those odds you’re bound to catch up eventually. Right? Oh fuck it, don’t listen to me, I’m a Pollyanna, go buy a lottery ticket and curse the government. I sympathize with the fear, I haven’t even started a 401K yet.
Snay. We cannot leave abruptly, I’ll give you that. But the longer we stay the more expensive it gets, in terms of dollars spent and blood shed.
You all are making good points: JenB, that the taxes are high in CA; Candace, that hiring a financial planner would be wise and sensible; MGM, that some people are overspending on things like houses (though in B-more, it’s hard not to); Elizabeth and Rachel, that we are all getting by, still, nonetheless.
Some days I worry myself sick, and then some days I go buy a new sofa. You know.
Katie. This fear, it is something to be aware of. But don’t let it frighten you into thinking you’ll never be solvent; and certainly don’t let it scare you from pursuing a 4-year degree [or more] because the fact is, that degree is going to be necessary for getting a good job. All is not lost. There is still hope.
As a current college student who gets considerable financial aid, I always marvel at my peers whose parents shell out full pop for college. Assuming they make $100,000 a year, that’s still almost half of their income going towards higher education! That’s absolutely absurd!
If I have kids, I’m getting my ass to Europe, where college is part of their social democratic paradise.
I feel the same way. Scared for my kids, scared for the world at large, particularly living in America. Canada is looking mighty inviting. And they have lots of nice bloggers, too!