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I've been mulling over a few things to blog about. But until they come together, here is a collection of the best articles and blog posts I've read recently about unemployment.
I'm just full of it..
To give you a sense, I am 5ft 1in tall and weigh 110 pounds, my BMI is 20.8 (right in the middle of “normal” weight), but I could be as skinny as 98 pounds and still be considered “normal” (not underweight). If I was tipping the scales at a whopping 133, however I’d be considered “overweight.” Many take offence to the fact that there are two classifications for fat and only one for skinny. I take offence to the following:
BMI doesn’t take into account body fat or muscle. It also doesn’t take into account diet and exercise, or family history. There are plenty of unhealthy sedentary skinny people who eat nothing but junk food. While conversely there are plenty of healthy people with a predisposition to be larger than “normal” who are active and eat well.
Which is why it’s surprising the a company like Whole Foods would use employees BMI (along with better measurements such as low blood pressure, and not smoking) as a measure of healthiness and subsequently size of employee discount. The idea program of course is to encourage the employees to be healthier thus costing the company less in insurance costs. But shouldn’t a Giant Health Food Store give larger discounts to those that are the least healthy? Making those $10 strawberries affordable?
For a great illustration on just how crazy pants BMI classification is, check out Kate Harding’s BMI slideshow of women of various sizes with their BMI classification next to their pictures.
It was a big to-do in the news today that Bloomberg was the fourth biggest charitable contributor in 2009. Call me cynical, but my first thought was, “nice PR” and my second “yeah but I bet the amount wouldn’t be as impressive if you compared it to how much he has.”
So like any good unemployed journalist, I set about finding the answers. Here, the 10 richest people in America and what they gave last year.
Who Net worth What they gave % of their income |
1. Bill Gates net worth: $50,000,000,000 gave: $350,000,000 which is: 0.7% |
2. Warren Buffett net worth: $40,000,000,000 (not on Philanthropy’s top 50) |
3. Lawrence Ellison net worth: $27,000,000,000 gave: $46,907, 838 which is: 0.1% |
4. Christy Walton net worth: $21,500,000,000 (no one in the Walton Family was in top 50) |
5. Jim C Walton net worth: $19,600,000,000 |
6. Alice Walton net worth:$19,300,000,000 |
7. S. Robson Walton net worth: $19,600,000,000 |
8. Michael Bloomberg net worth: $17,500,000,000 gave: $254,000,000 which is:1.4% |
9. Charles Koch net worth: $16,000,000,000 (both Koch’s were not in the top 50) |
10. David Koch net worth: $16,000,000,000 |
So of the 10 richest people in America, only three are among the 50 biggest charity contributors. And of those Bloomberg is the highest at 1.4%, the other two give a generous less than one percent.
Which isn’t to belittle the important work and lives saved the their millions helps fund, I just wonder if we’d be doing so much ooo-ing and ahh-ing and back patting at a person of lesser means contributing 0.1% to charity.
Let’s put it in perspective shall we?
Net worth is simply assets vs. debts, so it doesn’t take into account how much you made that year. So say a person has a net worth of $75,000 (most of us should be so lucky), to be on par with the Bill and Melinda Gates (leaders in philanthropic giving), you would only have had to give $525 to charity last year. A nice gesture sure, but nothing worthy of a press release.
Put another way, Oprah Winfrey, a person synonymous with good will, is 141 on rich list, with a net worth of $2,300,000,000, meanwhile she’s an impressive #25 on the charity list, giving $41,404,281—that’s still only giving 1.8% of her money. Meanwhile, I’ll estimate my net worth at $20,000, and I spent $900 on charitable giving last year. That’s 4.5% of my net worth on charitable giving. Bam! I’m more generous the Oprah!
“Due to the difficult economic times” I have lost two jobs in the past six months. But even this, to people who have been unemployed for a year or more sounds enviable. Which is part of the problem. With unemployment at 10% and people in dire straits, the prevailing attitude seems to be one of “you think you have it bad, at least you aren’t XYZ.”
And it’s true, it’s hard to muster sympathy for someone’s small raise or lack of bonus when you’ve had your pay cut or lost your job (something I’ve been guilty of over the past year). But there in lies the problem. The job situation is so bad that no one can complain; if you have a job at all you should be grateful.
But it seems that companies are using the poor economy as an excuse to screw over workers who feel trapped and turn bigger profits. It’s no surprise then that more Americans hate their jobs now than at any other point in the past 20 years, with fewer than half saying they are satisfied.
Here, a few semi-personal* examples of employers taking advantage of the recession:
In all of these scenarios, the employers haven’t needed the money, they were all still profitable, and doing better even than in years past, but saw the recession as an excuse to profit from their employees who faced little other options to seek something better. Which is exactly why so many people are dissatisfied in their jobs—they are being screwed over and they just have to take it and not complain, because “at least they have a job.” The same excuse has been used to cut costs by laying off employees and making the ones that remain work longer hours without complaint out of fear of being the next to go.
Of course this environment of fear isn’t a sustainable work model, yet it’s working pretty well right now and the lack of job growth and increased job dissatisfaction are proof.
President Obama’s proposed plan to increase job growth would give companies a $5,000 tax credit for each new worker they hire in 2010, while businesses that increase wages or hours for their current workers in 2010 would be reimbursed for the extra Social Security payroll taxes they would pay. Incentives to increase jobs and boost stagnant wages or inadequate hours are ideas that I’m mostly behind, but I wonder how many larger employers would take Obama up on the offer.
A $5,000 tax credit may sound like a decent incentive to a small business owner, but to larger companies, it’s a drop in the bucket to what they can save by simply enlisting cheap labor. And these days, with so many so desperate for work, the labor is cheaper and more experienced. Many will work for free just to keep something on their resume, and those who won’t will take positions below their skill level or as “ permant freelance” or “long-term temps,” the financial benefit for employers (aside from paying lower hourly rates) is huge cost savings in relation to benefits like health care and paid time off—a savings of well over $5,000 per employee.
It’s not that I think Obama’s plan is bad, it makes sense, I’m just skeptical that it will work. And I honestly don’t know what will aside from employees and job seekers revolting and refusing to be taken advantage of, but we aren’t really in the position of financial power to do so.
*These three stories are accounts of employers of people in my life, and I’m sure are kind of easy to figure out.