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Archive for Saturday, July 30, 2011

Falling into poverty: Economic setbacks make Lawrence couple, like many Americans, lose security, gain fear

July 30, 2011

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Lawrence couple struggles through financial hardship

A local couple going through a time of financial hardship talks about how they are getting by with assistance from local food banks. Enlarge video

Dodie Coker casts an expression of concern as her husband Roy talks about the couple's financial troubles and his concerns about losing their house, Tuesday, July 19, 2011, in their Lawrence home.

Dodie Coker casts an expression of concern as her husband Roy talks about the couple's financial troubles and his concerns about losing their house, Tuesday, July 19, 2011, in their Lawrence home.

Roy and Dodie Coker pick through the vegetables available at the Just Food warehouse Monday, July 25, 2011. The couple say this is the first time they have been pushed to accepting food from a food bank.

Roy and Dodie Coker pick through the vegetables available at the Just Food warehouse Monday, July 25, 2011. The couple say this is the first time they have been pushed to accepting food from a food bank.

The unemployment rate for Douglas County from 2006 to 2011, which has risen from 3.4% in 2006 to 6.4% in 2011. The numbers for each year are for May, except for 2011, which displays the July numbers. Statistics taken from the Bureau of Labor Statistics.

The unemployment rate for Douglas County from 2006 to 2011, which has risen from 3.4% in 2006 to 6.4% in 2011. The numbers for each year are for May, except for 2011, which displays the July numbers. Statistics taken from the Bureau of Labor Statistics.

It wasn’t supposed to be like this.

Roy and Dorothy “Dodie” Coker raised children in Lawrence, worked for years at local businesses, and for 17 years steadily paid the mortgage on their home on Pawnee Street.

Roy, 58, and Dodie, 61, should be slowing down, getting ready for retirement, enjoying weekends with their three grown children and spoiling their four grandchildren.

Instead, the Cokers are learning their way around the local social service system, scratching and clawing to pay the bills.

They’ve been to an area food pantry for the first time, filled out applications at SRS, and begun selling possessions — all with the goal of not losing their home.

“My expectation is that my next address will be the homeless shelter,” Roy said.

The couple is one of many trying to prevent the growing threat of “situational poverty” plaguing people across the country, said Donna Beegle, a poverty researcher and educator.

“That’s really our latest epidemic,” she said.

The Cokers are finding out the hard way that it’s getting more difficult to live the lifestyle they’re accustomed to. This year, they’ll probably join the 20 percent of Douglas County residents who fall under the poverty level — about $14,000 for a couple.

That’d just about cover the mortgage, but not much else. Add in some unfortunate events — such as health problems — and a couple like the Cokers barely have a chance in today’s economy.

‘Black cloud’

On a recent weekday, Roy hobbled around his home as he and Dodie prepared for their second visit to the food bank.

“It was a rough night,” said Roy, referring to another sleepless evening, because of a hernia on his left side that needs surgery.

He popped another pain pill and steadied himself for the trip to the Just Food pantry. They’ve already received their allotted monthly bag of food from the pantry, but they can stop by whenever they need to, to pick up fresh produce and bread.

The financial troubles the couple face trickled in, culminating with a bankruptcy filing last year. The troubles are now showering down on them, threatening their home and mental stability.

“Nothing’s working out right,” Roy said.

Roy had worked for Kmart Distribution Center for 22 years, but lost that job earlier this year.

He found part-time work as a stocker at a local business, making $9 an hour. He worked there for about a month, but during one of his shifts in June, Roy lifted some boxes and felt a sharp pain in his stomach. Off work for two days, his employer sent him to the worker health clinic the company participates in at Lawrence Memorial Hospital. Doctors told him he had a hernia and would need surgery.

Are you among those living on the brink?

From Census figures and other data, here are some estimates for the cost of living.

• Median housing cost in Douglas County each month, including rent/mortgage, utilities, insurance and taxes: $1,423.

• Monthly food costs for family of four: $972

• National average adult monthly debt payments (credit cards and student loans): $211

• National average per-person credit card debt: $5,100

• Monthly cost of having a vehicle, including payments, gasoline, insurance, repairs: $609

• Annual health insurance premium: $4,824 for one person, $13,375 for a family.

• Estimated total monthly cost for a family: $4,330

• Average Douglas County family median income: $5,416, before taxes.

His employer has 90 days through workers’ compensation laws to determine whether the injury was job-related, leaving Roy in a painful holding pattern. The Cokers have health insurance from his past job through COBRA, but that will run out by the time the 90 days is up in August. So, Roy waits for the medical treatment, and isn’t able to work. He said he’s skeptical about what the determination of the workers’ compensation claim will be. He said his employer has repeatedly brushed off his phone calls.

Priority No. 1 for the couple, Dodie said, is Roy’s health.

“He needs to get that operated on,” said Dodie, who has health problems of her own.

She had a hysterectomy earlier this year because of the discovery of some pre-cancerous cells. She recovered, but a few weeks ago some friends, aware of the couple’s struggles, offered to take her to a movie to cheer her up. At the movie, Dodie slipped, breaking her elbow and spraining her ankle.

“There’s a black cloud over my head,” she said.

Since the injury, she’s been off work from her part-time job at Children’s Learning Center. Despite her injuries, she’ll be going back to work soon, and said her employer has made arrangements to accommodate her injuries.

At this point, the couple need “some money coming in,” she said.

Dodie receives nearly $800 a month in retirement from a previous job. Roy isn’t bringing in any income. Even with Dodie working part time, it’ll be difficult to cover the $1,100 monthly mortgage. Then there’s the medical bills, piling up on their kitchen table. Going to the mailbox is now a dreaded daily chore.

Between the two of them, they’ve racked up thousands in medical bills.

Not alone

It’s unknown how many families like the Cokers are at risk of losing their home locally or across the country. But the numbers hint that the Cokers are probably joined by millions of other Americans.

The causes are wide, varied and systemic, Beegle said, citing high unemployment, the housing and credit crunch, and few safety nets for people in the Cokers’ situation.

The Cokers were unable to make their mortgage payment for the first time in June, and there doesn’t seem to be any program out there to fill that gap. Roy has insurance on the home that could lower his payment temporarily in case he is injured at work, but his employer has refused to fill out the paperwork, he said.

In visits to social service agencies, they’ve found no quick fix. There are some programs available, but the couple doesn’t seem to fit neatly into any of the criteria for housing assistance.

Charlotte Knoche, director of housing assistance for the Lawrence-Douglas County Housing Authority, spoke about some options for the couple, such as rental assistance — if the couple lose their home — for people over age 50. The problem: a nine-month to two-year waiting list.

Many of the available programs are also small in scale, such as utility assistance and housing rehabilitation, said Margene Swarts, city of Lawrence community developer manager and coordinator of the Community Commission on Homelessness. But large-scale assistance isn’t as available, making homelessness a real threat for people like the Cokers.

“I hear more and more about how many homeless families we see,” Swarts said.

In Douglas County, the number of home foreclosures — what the Cokers hope to avoid — has skyrocketed. In 2006, there were 84 homes in Douglas County auctioned because of foreclosure. In 2010, that number jumped to 214.

Sally Bartlett, supervising case manager at the Lawrence Community Shelter, said the shelter sees a few families who are homeless for the first time. With the current economic climate, Bartlett said there’s a real concern that more will follow in coming months and years.

While Kansas and Douglas County have kept unemployment rates below national numbers, the area has seen a marked increase since May 2006, when the rate was 3.4 percent. In May of this year, the unemployment rate was 5.7 percent.

Roy doesn’t expect to return to his job stocking, as the hernia has already showed him the work is probably too much for his age. When he’s healthy, he’s hoping to find work somewhere, anywhere, he said.

Waiting game

Until Roy hears back about the workers’ compensation claim, he has no income. He can’t work until the hernia is fixed, which can’t be done until the claim is settled.

He’s sold his truck. He and Dodie now share her 2006 Toyota Camry.

They’ve told few friends or family about their economic troubles.

“I’m embarrassed,” Dodie said.

She and Roy are still trying to come to grips with needing help.

“I’d rather be a giver than a taker,” Roy said.

Recently, a neighbor gave Roy $100 to help pay the utility bills. They didn’t want to accept the gift, but had no choice.

“You do what you have to do,” said Dodie, who talked about one day — when they’re back on their feet — donating to the food pantry that has helped them. “I’m grateful for what’s out there.”

After taking out two mortgages, the couple are in a tough position with their home. They owe about as much as it’s worth. At this point, they’ve considered walking away from the home and downsizing to an apartment — something they talk about reluctantly.

Roy talked about all the work he’s put into the house the past 17 years. Dodie talked about raising their kids in the house.

“This is my home,” she said.

Dodie will soon be eligible for Social Security retirement benefits, which she plans to take early at age 62, rather than waiting for the larger monthly payment she could receive at 67.

While they wait, they try to stay positive.

“For a week, (losing the home) is all we talked about,” Dodie said. “It’s driving me crazy.”

Roy said he’s been overwhelmed by the anxiety, sending him into depression — made worse by the waiting. Between the two, Roy is more pessimistic about their prospects, and has called the Lawrence Community Shelter to find out if there’s room for the couple.

“That’s reality,” he said.

Dodie, on the other hand, keeps saying she’ll do whatever it takes to get back on their feet.

When she hears Roy talk about losing the house and moving into a shelter, Dodie says, “Not if I can help it.”

Comments

devobrun 3 years, 1 month ago

This story leaves out a lot that happened to the Cokers over the years. People who have had steady jobs for their lifetime and reach the age of 60 and have not saved.......spent their money. They spent their money on the house, the kids, the truck, the entertainment. They weren't putting $100 or $200 in the bank every month. They didn't put the Christmas bonus in a series e bond in 1978.

Mrs. Coker had a job that yielded a pension. Apparently Kresge didn't force Roy to put money away. If you are 60 and still living hand-to-mouth, you didn't plan ahead.

"After taking out two mortgages, the couple are in a tough position with their home."

People in their 50s should never take out another mortgage on their home. It should be paid off by now. Whatever lifestyle they lived over the past 30 years did not pay off the house. Indeed they took out a second mortgage. Outrageous. They are paying the price for their lack of planning and discipline over the last 30 years.


Shaun Hittle, what is the point of the article? If it was a warning to younger folks that they should plan ahead, then you blew it. If it was to complain that there are no programs to help such people, well get used to it. The government is broke. There will be fewer programs in the future. Way, way fewer programs, folks.

That means that everybody should plan for hard times in the future. No utility programs. No stimulus packages. No Caribbean cruises for you. When that $1500 windfall comes in....save it. Maybe you'll get another one in a coupla years and you can pool the money and refinance the house. Then you can cut your monthly payment by $80 and put that into the bank for just these days.

Shaun, wake up. The government programs are dieing. They have to. The wealth of the U.S. is dwindling and looking to the government for assistance is absolutely the wrong thing to do. It won't happen and decrying the demise of programs is useless.

Oh, and if you did buy a U.S. government bond in 1978? Sell it tomorrow. On Tuesday it might become worthless.

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just_another_bozo_on_this_bus 3 years, 1 month ago

Do you know the Cokers? Or are you just assuming you know their situation so you can make a broad point at their expense?

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devobrun 3 years, 1 month ago

They are 60 years old and broke. They had jobs that yielded a pension. And Roy worked for Kresge for 22 years.

Did they have additional unmentioned expenses? That was the nature of my first sentence.....there is a lot unsaid. But if they took out a second mortgage, they were sucking wind a while back.

Do I know that they blew the money? No, and I didn't say that. What I said is that were spending money and not saving. That is obvious.
So to answer your question directly, bozo, no I don't know the Cokers, nor do I assume anything about their situation.

The article provided the information that I commented on.

The Cokers had jobs, bozo. The Cokers have no money, bozo. They are 60. They spent the money, bozo. Sheesh.


And that should be a lesson to everybody else out there. Save some money as you go through life. Don't spend it all. You will probably need it when you are 60 and you need a hernia fixed, and you can't work, and you can't make house payments. The government won't help. And for whatever other needs, like utilities help, forget it. Those days are gone.

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ResQd 3 years, 1 month ago

It is a good lesson, however, who would have known your life sometimes turns upside down. Gone are the days my hubby and I made over 100k per year, after both of us being laid off. What did we do with our money - the same thing everyone else did. We put braces on our childrens teeth, bought a home, fixed up the home, paid off our credit cards, paid off our cars, and put the children through college. Where do we stand now? Together we are starting over in our mid 50's, with a home mortgage that is overvalued and we cannot sell. We are making less than 35k together per year now. Times are tough for us but we are survivors. The US government spends hundreds of billions of dollars a year supporting illegal immigrants in this country; it's a crying shame that there aren't more services for the unemployed, underemployed, disabled, and eldery who are legal citizens, in these tough economic times. Until you've walked in our shoes, you have no idea what it's like. Let the comments fly!

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3 years, 1 month ago

Life does throw you curve balls that hit you square in the head and despite doing the right things prior still knocks you on your butt.

Your's is a very common story today. Hard to recover from a setback like your's.

I do agree that as a country we need to get our priorities straight. Wonderful that we provided aid to Haiti and had all those fundraisers for them, wonderful we send foreign aid to other countries including China and wonderful that we are spending billions and sacrificing our men and women to rebuild Iraq and Afghanistan, but hey, let's put all that on hold and take care of our own at home first.

Do the Cokers and you deserve help? I can say this, you deserve it more than any Haitian, Iraqi or Afghanistani does. Let's put America and Americans first.

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chootspa 3 years, 1 month ago

I don't have a problem with foreign aid for Haiti. I have a problem with tax cuts for millionaires and subsidies for oil. I have a problem with cuts to social security when it doesn't contribute to the deficit and people like the Cokers are going to end up getting their checks in the homeless shelter.

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3 years, 1 month ago

Why is it ok to use our tax dollars to help Haitians when we have people suffering here? Shouldn't we take care of our own first?

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chootspa 3 years, 1 month ago

We can and should take care of both, and foreign aid is a very small sliver of our spending. The Cokers still have homeless shelters and food stamps. The Haitians don't even have that much. That doesn't mean it's ok for either situation to happen, and we do have the resources for both as long as we don't squander them by giving out tax cuts and no-bid contracts to those who don't need the help.

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3 years, 1 month ago

Speaking of squandered resources Haiti takes the award. They have squandered the resources provided to them time and time again. Ever wonder why Haiti languishes in poverty and yet the Domican Republic which shares the same island doesn't? I do.

But again, why should one dollar go to any foreign country when there are Amercians in need? We have children going to bed hungry each and every day. We have children that lack medical care. We have children that lack safety and love and yet, we give to other countries. I think it needs to stop, but that is just my opinion. You obviously don't share it and that is okay. We live in America and can have different opinions.

You're probably right about if we didn't squander our resources and allow abuses we'd have enough for both, but that isn't how it is, is it?

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chootspa 3 years, 1 month ago

I'll agree that Haiti is a freaking mess for many reasons, but no, I will not get down with the notion that we're an island all ourselves. I do think we need to spend a lot less time with the warmongering overseas, speaking of squandering resources.

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devobrun 3 years, 1 month ago

ResQd above was making 6 figures. You want to tax her so that she cannot pay for braces, college, etc and still have something left.

Had she payed a few thousand dollars a year less in taxes while they were making $100k, they wouldn't be scraping by on $35k now.

Oh, and if the millionaires paid a little less in taxes, maybe ResQd would still have a job.

Sorry Chootspa, when millionaires pay to the government, it is money lost to the economy.

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just_another_bozo_on_this_bus 3 years, 1 month ago

"Sorry Chootspa, when millionaires pay to the government, it is money lost to the economy."

That's absurd. It stays in the economy just as surely as if the millionaires had spent it otherwise. It just gets spent on things other than what the millionaire would have, and quite likely creating just as many jobs, albeit different jobs.

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TopJayhawk 3 years, 1 month ago

Hey Bozo. Long time no talk. Paying taxes and keeping it in the economy are not the same thing. Paying taxes is one of the least efficient things you can do with money. By the time all of the beurocricies get their cut. About 30% of every dollar is just gone.

Millionaires spending money stimulates the economy, it generates tax revenue, and it is efficient.

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chootspa 3 years, 1 month ago

Really? It's lost to the economy? Because teachers, policemen, firefighters, and garbage collectors don't actually buy things at stores or in any other way stimulate the economy?

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devobrun 3 years, 1 month ago

No, they don't actually produce anything. They don't build anything. They don't create any jobs. Yes, they spend money. That goes to Walmart and then to China.

Teachers produce students who look for jobs. Policemen arrest those who don't have jobs and commit crimes. Firefighters inspect buildings and make life miserable for those who have extension cords in their offices. And finally, garbage collectors just haul off the stuff discarded from China.

Not a job created from the lot.

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just_another_bozo_on_this_bus 3 years, 1 month ago

Why couldn't have just admitted that you were wrong, rather than resorting to his bit of absurdity?

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camper 3 years, 1 month ago

They enable jobs. It would be hard for one to get to work when he has to clear the garbage form the street (while uneducated), punch a few criminals in the face, steer away from a raging fire, and dodge potholes.

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chootspa 3 years, 1 month ago

I see. Well, I'm really not sure why we're paying you then. You apparently aren't productive.

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50YearResident 3 years, 1 month ago

Add Africa to your list. The biggest money pit ever dug.

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just_another_bozo_on_this_bus 3 years, 1 month ago

Yea, the European colonialists dug as many pits as they could there, drained as many resources as they could and destroyed every society in their path.

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grammaddy 3 years, 1 month ago

Amen ResQd! Life happens. There's no way to be prepared for everything that may come along. Unfortunately this story is true for a lot of us. I raised 4 kids alone, without child support. We lived paycheck to paycheck. There was never anything left to save.We survived and will continue to do so. I dare anyone to walk in these shoes.

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overthemoon 3 years, 1 month ago

I understand entirely, being in the same boat. I don't think, however, we spend as much on 'supporting' illegal immigrants as you suggest. But we do spend trillions on inefficient and outdated military programs, pay huge amounts to subsidize businesses who don't need it, and waste billions on redundant and ineffective bureaucracy. We should be spending on investments on the future that would produce jobs and provide a sustainable living for all of our citizens.

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Alceste 3 years, 1 month ago

".....it's a crying shame that there aren't more services for the unemployed, underemployed, disabled, and eldery who are legal citizens, in these tough economic times......".

Very true.

But the question must be asked.....were you troubling yourself about the lack of services for this population group when you were living large on that over $100k per year money? The problems and lack of services you outline have been the norm for a long, long, long, long, time.

It's sad that it takes becoming a member of the disenfranchised to really understand and see first hand the shaft that's been being given by the likes of Brownback whilst he was a US Senator and his "C" Street group of cronies.......

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ResQd 3 years, 1 month ago

You are absolutely correct! Never in my wildest dreams, call me naive, did I think it I would lose my security. What an eye opener, to say the least!

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overthemoon 3 years, 1 month ago

Yes, in fact I was. As a longtime moderate liberal, I believe strongly that our country is measured finally by the way it treats its weakest citizens. I made contributions, paid taxes without grumbling, and most importantly, raised my child to strive to be successful, but to have compassion for those who didn't luck out on the stork lottery.

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just_another_bozo_on_this_bus 3 years, 1 month ago

So it was merely pretext for an anti-government rant. As if you need one.

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Jimo 3 years, 1 month ago

All this article illustrates is that, as the U.S. has grown wealthier and wealthier in the last few decades almost all of that increase has landed in the hands of a few. The middle class is left with their standard of living ebbing year by year by year. That's a well documented phenomena and without precedent in American history (with one exception: the era preceding the Great Depression).

Peddling some 'self reliance' crap isn't helpful. Or complaining that the Average Joe didn't feed his kids cat food or keep goats in the backyard.

Wake up. America's wealth belongs to all Americans. A couple like this who have worked all their lives deserve a roof over their head and the last thing they should be worried about is how to pay for their medical care. This couple's predicament is unknown in other developed nations but common in the third world.

Self reliance is a concept celebrated in American culture. But American history is comprised primarily of mutual alliance. Both are necessary. America wasn't built on the back of Ayn Rand.

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3 years, 1 month ago

No America's wealth doesn't belong to all Americans, just the opportunity to get your share of that wealth belongs to all Americans and legal immigrants.

There is no guarantee that you should be wealthy in this country. The only guarantee is that you have an opportunity to work hard to earn wealth.

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just_another_bozo_on_this_bus 3 years, 1 month ago

"No America's wealth doesn't belong to all Americans, just the opportunity to get your share of that wealth belongs to all Americans and legal immigrants."

And that "opportunity" is largely a myth.

Fact is, there is more social and class mobility in Europe now than there is in the US.

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devobrun 3 years, 1 month ago

The wealth that used to be in this country does not now reside in the hands of a few wealthy Americans. It belongs to the Chinese. Where have you been, Jimo?

Our government budget is about 1/2 interest payments on the national debt. Chinese hold most of that. And corporate bonds are similarly owned by Chinese and other people in other countries.

When you pay taxes, you pay the Chinese to grow their economy.

Actually America's wealth was built and then Ayn Rand came along. That wealth came at a price. People prior to 1970s took risks. They were allowed to operate in an environment of limited government control. Excesses happened and Americans became the ugly Americans......but they sure had a lot of money.

Now we are just the ugly Americans. And multi-national companies make their money in Brazil and India. In America, they close stores and lay off workers. Work and business and money go to India because they don't have OSHA, ADA, SEC, EPA, or mandatory health insurance. The costs of labor in the U.S. drove out any work that could be shipped overseas.

And the few Americans who remain wealthy stay that way by investments in multi-nationals, or foreign companies. America is a big bag of gas. There is virtually nothing inside it anymore. No businesses, no workers, no educational institutions leading the way toward a new paradigm.
It's like putting in an IV connected to China and watching America exsanguinate.
You think the Cokers have a problem? See what happens to America when you bleed the Comptons dry.

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pittstatebb 3 years, 1 month ago

The Central Bank of China owns about 7-8% of the 14.5 trillion dollar national debt. Next up is Japan with about 6% of the debt. Total foreign ownership is about 31%.

The interest payment in 2010 was 0.413 trillion out of a budget of 3.552 trillion. So the interest payment was 12% of the budget.

http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt http://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm http://en.wikipedia.org/wiki/2010_Uni...

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Jimo 3 years, 1 month ago

You need to get that hole in the head patched before more falls out.

You confuse government debt with wealth. Our economy produces $15,000,000,000,000 of new wealth each year to be added to total of wealth approaching $200,000,000,000,000. Of total wealth, 38% is held by just 1% of Americans - and that figure has been growing rapidly. By definition, that means that Americans, such as the couple in this article, are getting smaller and smaller shares of the pie. 99% of Americans get the remaining 62%, with that figure rapidly shrinking. There's nothing natural about that division. It is the result of policies we have chosen to follow - or more accurately, the policies that our political class have chosen in return for bribes. It's exceedingly unfair and arrogant to blame the couple in this article for not foreseeing how corrupt those at the top would be and how extensively they would shirk their responsibility to the nation in return for a little more cash and a little more access for themselves.

For conservatives, that should be an alarming trend, if for no other reason than that it is unsustainable and will eventually cease (one hopes peacefully).

Total U.S. government debt is just above $14,000,000,000,000 (almost 100% of 1 year's production and 7% of all wealth). Of that, over $4,000,000,000,000 comes just from the Bush tax cuts!

"Our government budget is about 1/2 interest payments on the national debt."

It could be half. Or it could be 6%. I'm going with 6%.

Given the depths(!) of your confusion on this general topic (you're not alone - just look at the Tea Party), I believe your time is best spent sitting down and reviewing the budget of the U.S. rather than having me continue down the other items on your list. Below is a link. Good luck.

http://www.gpoaccess.gov/usbudget/

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goodcountrypeople 3 years, 1 month ago

I'm all for mutuality--when competent, self-aware, caring people are involved. In Douglas County this appears not to be the case. People here have been trained-up to spout a mindless ideology of "helpfulness" with zero knowledge or understanding to back that up. Lip service is all. Most people have huge inner resources and can help themselves far better than strangers could. No one enjoys being made the butt of ignorance; the pity-party theory of human relationships is insulting and puts false limits on people. Lame-brains are no one's ideal companion. Destructive, wrong-headed"help" makes a hands-off attitude of non-intervention look healthy. Some people need to learn to mind their own business.

I find this article itself to convey offensive ageist stereotypes and an "ain't awful" attitude toward minor physical limitations. I'm sure the reporter is just trying to tell the story from the couple's standpoint, but to me it comes across as patronizing. It sounds like this guy's is getting screwed over by his employer, who according to the article is blocking several resources (such as insurance and mortgage benefits) R. should be entitled to. When safety nets are built into the social system no one loses their their dignity by accessing what they need.

Charity, on the other hand, is demeaning and turns some people into second-class citizens.I resent f-tard, backwoods Kansans who train their kids to have Jesus complexes(for example, insisting you are helping despite what the victim of your poor judgment may feel is the same as actually being useful--haha you bunch of prejudiced killing machines). when for the most part they are quite poorly educated, have never learned to think , and seemingly have extremely poor judgment.Good intentions without the smarts to back them them up lead straight to heck. That's what's wrong with places like KS and MO

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mom_of_three 3 years, 1 month ago

You don't know their situation and neither do I. But it could have been medical bills or family emergencies which hampered their savings. OR they could have already went through it after he was laid off. Raising three kids isn't cheap, (braces, school, etc.) and unforeseen circumstances such as what the cokers went through can really hurt the bank, no matter how much you save and try to look ahead. Unless you are a millionaire, you can't save enough to cover ever unforeseen circumstances during retirement.
And I think the article is just telling the story of a couple of who was living a decent life and how one bad circumstance or several, can turn your life upside down, no matter how well you plan.

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chootspa 3 years, 1 month ago

I'm so glad that you are superior to this couple in every way and don't at all sound like a classist jerk.

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just_another_bozo_on_this_bus 3 years, 1 month ago

The problem for the Cokers and nearly everyone else of somewhat limited means is that we live in such a consumerist culture-- and to that extent, I guess I'm somewhat agreeing with Devo. But it's not just the direct (over)consumption of the average Joe or Jane.

Even if you are extremely frugal, you're still paying for the profligate consumerism that surrounds you. Every time you pay an electric bill, you pay for the private jets that the utilities think their executives need to have to operate these companies, along with countless other extravagances. The same is true of about every other expense that confronts us.

Bottomline, the extreme flow of wealth from the bottom 80% to the top 1%, and especially the top 0.1%, over the last 30 years has drastically distorted the economy, as those at the top seek to satisfy their every whim, at the tremendous expense of everyone below them. Resources are spent satisfying the unlimited wants of those at the top, rather than the great needs of billions at the bottom of the world's societies.

I'm sure Devo will say that's just the way the cookie crumbles, but I don't see why he should expect anyone on grim side of life to find that a satisfying response.

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chootspa 3 years, 1 month ago

I doubt they got any sort of valuable financial advice other than Devo's hindsight kibitzing. They certainly didn't learn it in school, and they were most likely offered deceptive advice from the bank about that second mortgage. Attempts at getting real consumer protections enacted have been repeatedly gutted by the GOP. We can't have consumers actually empowered and educated because they won't fuel the economy, and at the same time we'll blame them for the lousy choices they made because they "should have known better."

So we can either continue with the consumerist society and set up a parallel safety net, or we can fight the entrenched financial system and work to educate consumers on wise choices. My bet is that neither of those things happen and we continue to wholesale transfer our wealth from the poorest to the richest. It's the American way.

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Crazy_Larry 3 years, 1 month ago

A universal healthcare system would help everyone. How many families in the USA are one sickness, one injury away from bankruptcy?

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dieseltoe 3 years, 1 month ago

maybe you should drink your tea with a little compassion

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verity 3 years, 1 month ago

Devobrun, you jump on here and make the first comment, acting like you know the Cokers, then later, when called on it, admit that you don't. You have make a lot of assumptions, putting them out there like the assumptions are facts.

You, sir, are despicable.

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verity 3 years, 1 month ago

Should be "You have made . . . "

So irritated I posted too fast.

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3 years, 1 month ago

So what is the idea? Share it with us.

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George Lippencott 3 years, 1 month ago

Really, and how does "SRS" pay for that service??? I know we set up the "I don't pay enough taxes" fund and that will do it. I bet you will be the very very generous contributor.

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Moved_On 3 years, 1 month ago

A very sad story. It takes a lot of savings and no debt to feel comfortable approaching retirement.

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gl0ckUser 3 years, 1 month ago

Kansas Hates poor people. If you want Aid you need to move to Alaska. There are lots of support programs and you can always live off the land !

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chootspa 3 years, 1 month ago

This snark is sadly true. They do love to suckle the government teat in Alaska.

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George Lippencott 3 years, 1 month ago

Paid for by big oil! Maybe if we had big oil we could tax it and have more services. Our friends in Alaska have historically not paid state taxes and got a check from the state each year.

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chootspa 3 years, 1 month ago

You'll ruin the magical chant. If you cut state taxes, business will magically come. Looking at the reason they can afford to do that is cheating.

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1petadvocate 3 years, 1 month ago

devobrun, you make it clear that you are part of the problem that faces Americans across the country today. In your eyes the hands at the end of your arms were designed for helping yourself, not others. They also tend to vote, and decide in favor of, those that believe the same way. Over time, the un-empathetic and unsympathetic have landed us sitting in front of our news source, hoping that for the first time in history, the people who believe as you do, and have been proven wrong many times, finally come to some agreement to allow our country to continue running. The day will come when some unknown devastation hits you and yours and will be faced with decisions you never imagined you would have to make. That's life. You may believe, in your smug little way, that you are set and ready for such an event. Hopefully, big-business crooks will not have cooked the books and wiped out your pension; you won't lose you job and find insurance companies are no longer on your side, your kids wont need surgery or hospitalization., the rising cost of education won't have you working 2 jobs to send your kids to school, you won't have to work 2 hours just to afford a gallon of gas and a gallon of milk (minimum wage is great, isn't it?), the state you live in won't suddenly cut the funds that keep your job alive.....the list goes on and on. Think about re-thinking your stance; someday, because that's how life is, you will want and need help. The last thing you will find helpful is an all-knowing self-righteous individual standing on his soap box telling you what you should have done. Good luck.

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George Lippencott 3 years, 1 month ago

$18K a year (or more) per poor person paid for by about 60% of the population (and my little study did not couns SSI or workers comp). We are not pikers. How about some understanding as to why this situation exists as opposed to attacking both ways? Where is that money going???

Yes JIMO, we should ask more from the rich. The problem is there are not enough of them to even pay for our current annual deficit.

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dieseltoe 3 years, 1 month ago

why is it since theirs not enough rich people to pay for our current deficit this should excuse them from any raises in their taxes

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Jean1183 3 years, 1 month ago

Braces?! Pleeezzzzzzzzzz.....most times braces are NOT a necessity, they are for cosmetic purposes. I could have benefited from braces as a child but my parents could not afford them. I have turned out just fine with crooked teeth and my parents didn't go into debt.

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christie 3 years, 1 month ago

It's their own fault for NOT voting Republican... Tax Breaks for the RICH will solve the problem - if only they would have listened.

Oh wait - after 10 years of these tax-breaks for the rich where are all the so-called jobs that was supposed to create???

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chootspa 3 years, 1 month ago

Ask Devo. He thinks we should let Lucy keep holding the football. This time she'll let us kick it. Promise!

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George Lippencott 3 years, 1 month ago

LJW, thank you for an interesting article documenting hardships being experienced by some of our fellow citizens. In the "thred" listed below, I have begun a series of Blogs on the social safety net. See: http://www2.ljworld.com/weblogs/loyal-opposition/2011/jul/30/the-social-safety-net-a-dialogue/

Perhaps as part of this article the LJW could determine from our various governments the set of programs for which a family in such circumstances would qualify. I would presume from the discussion, but would like clarification, that unemployment, Medicaid, food stamps, disability, workers compensation, housing assistance and perhaps other programs might be there to help.

In past article the LJW has made real effort to personalize our economic disaster. It seems to me it has done little to document the assistance that all of us make available to individuals in these circumstances – doing a real disservice to all of us paying for those services (or presuming we are). Over to you LJW.

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3 years, 1 month ago

Along the lines of what you just said, I think one of the challenges for someone who has worked hard all their life and suddenly find themselves in dire circumstances is knowing what services and aid are available to them. It is not always clear how to access services and how to navigate the rules and how to expedite/access aid when it is needed but you have someone telling you no.

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George Lippencott 3 years, 1 month ago

Well, I know of at least one taxpayer-funded entity that helps people find their way through the system - they live in the county services building. Maybe the LJW should help now that they have highlighted a potential problem - is the problem real or imaginary?

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deec 3 years, 1 month ago

He would not qualify for unemployment, as injury-related unemployment is not covered, Medicaid would not apply, as as I understand, they still have some private insurance, They might qualify for some food stamps; I think the cutoff for a family of two is $1200/mo income. He is trying to get workers comp. but the employer is sitting on the paperwork. Anecdotally, SSI is routinely denied the first time or two that you apply, and the average time to get approved is around two years. He probably also wouldn't qualify for SSI until the worker's comp claim is resolved. I think they recently reopened the waiting list for section 8 and subsidized housing. I'm not sure what the average wait time for a unit/certificate to become available is.

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George Lippencott 3 years, 1 month ago

Thank you. Sounds like we have a broken system.

Is there no way to force the former employer to complete the paperwork - obviously it is not in his interest to do so. Are they forced to pay under COBRA or can he stop and then qualify for Medicaid? Why two years. Kind of like VA benefitrs. We delibretely underman the system creating a big backlog. Sounds counter productive?

What about the wife. It sound like she was employed at some point?

LJW why do you not do the homework and help these people find what they might be eligible to receive and not limit your reporting to using them.

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Katara 3 years, 1 month ago

The only way to force the employer to complete the paperwork is to sue them. This requires money for a decent workman's comp attorney unless you have an attorney who will work on contingency and even then that takes a big chunk out of any settlement.

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Katara 3 years, 1 month ago

Workman's comp is tough. Many people don't understand how it works or what their rights are if they are injured at work. This allows an employer to take advantage of them and the situation.

I would suggest that Roy contact the Kansas Dept. of Labor to see if they can put some pressure on the employer to do their paperwork.

http://www.dol.ks.gov/wc/about.html

It is a long process unfortunately and it does not sound like the Cokers have a lot of time to work with.

It sure would be nice if an experienced workman's comp attorney would take the Coker's case pro bono.

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Serenity Walters 3 years ago

The Low income housing and Section 8 housing waiting list is open for two bedrrom and above. The one bedroom waiting list for section 8 and housing is closed. As a couple they would only qualify for a one bedroom unless there was a medical need for two bedrooms. Senior housing is open that is for individuals 50 years and above located at Babcock, Clinton Place, and Peterson Acers.

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camper 3 years, 1 month ago

I know people like (blank). And some of them are the most bitter people I have ever known. They preach this self reliance line as someone mentioned above, but meanwhile have their own issues and receive benefits from both the government and family. And then in the most hypocritical fashion complain about Big Government, Socialisim, Universal Health-Care.....the same hand that feeds them. I'm no psychologist, but there must be some sort of denial going on with them.

The fact is, most of us are one layoff away from losing our home mortgage. One unfortunate turn in health from racking up thousands of dollars in health bills. One tragedy away from losing sanity. None of which can be predicted and not even the best series e bond can cover.

One thing we can do is try to help one another and do our best to elect officials who's priorities are in line with us citizen's priorities. And when people speak untruthfully, call them on it. Base your call on facts. Don't allow them to say untrue things that can catch and contibute to ignorance.

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TopJayhawk 3 years, 1 month ago

Actually it is more of a "reaction formation."

I think all the fine folks of Lawrence should each pony up about $25.00 or $50.00, and help them out. A lot of you could help them. You see, We always want the Gov. to do something. How about good old Nieghbor helping nieghbor?

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beatrice 3 years, 1 month ago

BAA, I actually agree with you. I don't know the situation in this case nor am I saying this about this case in particular, but it is difficult to feel sorry for people who knowingly spent beyond their means and are now broke. If a second or third mortgage was taken out as a way to "cash in" on equity to buy cars, vacations, etc., then shame on them. While I am socially liberal, when it comes to my own finances I am far more conservative. Live below your means and save, save, save has always been the best way to go in my opinion. Like you, I too get mad at seeing those who purchased mcmansions and drove Hummers are too often the same people now defaulting and asking for assistance. We are all paying the price for their indulgences. Those in difficult situations despite their best efforts are really paying the price because of services being cut or used by too many who should have known better.

However, I don't feel the end user is only to blame. Should the institutions that so freely lent money to those wanting a fancier car or bigger house be held responsible, especially when they knew they were lending to people who were stretched beyond their means? The banks didn't care, because they were bundling loans that people had little chance of ever repaying and selling them as investment bonds. The bankers made money initially, then passed the big losses on to unsuspecting investors. We allowed this to happen through deregulation of banking practices, which on a political level, happened over the years and under both parties.

Part of the problem is what we aren't teaching in schools and, unfortunately, in many homes. Money managment should be a regular class for students at different levels. Why should we care if all children can do advanced algebra if they don't know how to balance a personal budget or their own checking account?

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deec 3 years, 1 month ago

Or perhaps they were blue collar/working class and there was no money left at the end of the month once the basic living expenses were paid. What's the average income in Lawrence? It'd guess around $30K. The assumption that nearly everyone who has no savings for retirement squandered their money during their working life is maddening. Lots of people have no extra money after they take care of the monthly expenses like housing, food and utilities.

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George Lippencott 3 years, 1 month ago

Good point. How do we convince people like me that somebody fits your definition and not BAA's definition?

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handley 3 years, 1 month ago

entitlements to the rich and large corporations, by not paying their fair share is what is bringing this country down. It is just like congress wanting to have a balanced budget on the backs of the middle class. Until large corporations pay taxes employment won't increase.

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Carol Bowen 3 years, 1 month ago

So, Roy is 58 and lost his job after 22 years. I have to wonder if he was getting too close to collecting retirement benefits. Does KMart practice age discrimination?

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beatrice 3 years, 1 month ago

Discrimination of any kind is very hard to prove.

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Paul Decelles 3 years, 1 month ago

Devo,

You know better than to fall into that "blame the victim" routine.

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camper 3 years, 1 month ago

There should be a balance between saving, living within your means, and taking risk. Our way of life is based on taking risk. We do this when we decide to go to college,start a business, when we buy a house, and whenever we take a loan of any sort.

No need to go out and buy a house way more expensive than you can afford, but even if you buy a modest one or bare minimum, you are taking risk. If we did not have this system of risk, we would be a third world economy.

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wsks 3 years, 1 month ago

Christmas bonus? Caribbean trip? Bigger house (on Pawnee)? Some of the assumptions in these comments about squandered money are unreal for many people.

Less of this hard-hearted political posturing, please, and more reality. There are plenty of jobs in Lawrence that pay just enough to get by, without saving--and Lawrence isn't a cheap place to live.

Half of all bankruptcies start with medical bills.

And do Caribbean trips by the super-rich make anything, or create jobs for Americans? Wall Street doesn't make anything at all, and it seems to draw away our jobs just as fast as it drains the nation's wealth.

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LadyJ 3 years, 1 month ago

Gold star plan. If I could quit working I would be happy to babysit grandkids. Have been known to take them to work with me though.

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notanota 3 years, 1 month ago

It would ease unemployment by removing older employees from the workplace and allow the younger employees to enter it and pay into the system. I like it.

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Linda Endicott 3 years, 1 month ago

Saving? Saving what? Far too many people work countless hours just to make ends meet, and there isn't anything left over...and I grew up that way...we frequently didn't have enough even to make ends meet...and no, we didn't go to the social service agencies and get help, or go to family or friends...qutie frankly, poverty doesn't breed friends well, and even if you do have friends, none of them have any money to help you out with, either...

So what did we do? We did without, that's what...we had our electricity turned off more times than I can remember...we had our gas turned off numerous times...and back in those days they didn't have any handy-dandy laws saying they couldn't turn it off if it got too cold out...they didn't give a damn whether you froze to death or not...

And we went without meals...many meals, especially at the end of the month, because no matter how hard my mother tried to make the money last, there just wasn't enough of it...they also didn't have free school lunches back then, so I spent many a day in school with no lunch, and not much for supper when I got home...but somehow, we survived...

Now, I have a job...unfortunately, it's one that relies on state and federal government funding, so you never know when that may come to an end...and yeah, I used to have a 401 (k)...until the company decided they no longer wanted to give us matching contributions, so that ended...I could have kept it going on my own, but with no matching funds, it would have taken me a hundred years to save enough for retirement...

I did put that money in the bank...where it is now earning a whopping .01 something-or-other in interest...big whoop...at one point in time all the banks around here used to give you 5.25% interest...well, not anymore...it changed abruptly, and they didn't even notify me when it changed...they didn't notify anyone...and the interest rate probably won't go up anytime soon...gee, those nice banks need to make some profit off of my money, don't they? even though they don't care about giving me a profit off of it...somehow it doesn't seem right, fair, or even legal for them to use my money loaning it out to other people, yet I don't get any compensation for it...

So don't harp at people about not saving...not everyone has a $50,000 a year job...or any money left over to save...

Poverty just sucks, doesn't it?

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LadyJ 3 years, 1 month ago

I know of plenty of people who had pension plans only to see them disappear or decrease dramatically through no fault of their own. Ask the State of Kansas about that. Let's not even get into Enron. I have heard of cities that have run out of money to pay their retired employees. Savings can disappear with the loss of insurance, divorce or the loss of a job. I prefer not to pass judgement.

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akt2 3 years, 1 month ago

Roy might need a work comp attorney. As soon as they determine it is a work comp injury, he will get his medical care. I believe the company will then be obligated to start paying roughly 75% of his wages. If he wants to take it further he can go for a rating when he reaches his maximum medical improvement. That would result in a settlement. And to Jean 1183, braces can be a necessity. Depending on if you are willing to do the right thing for your child. That could mean working extra or making payments to the orthodontist. I personally did not want my child to go through her teen years with crooked, fanged teeth. The payoff for me is that she started high school with a beautiful smile. One less thing for her to be self conscious about. It's called parental responsibility.

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ResQd 3 years, 1 month ago

Thank you, I chuckled at this. My daughter had a huge gap between her two front teeth and her wolf teeth did not come down. She also had too many teeth and 4 had to be pulled before they could even get started. The money I spent on the orthodontis was almost a necessity. I was lucky to have had the money at that time, however.

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kansas_o_kansas 3 years, 1 month ago

I saw a dentist exactly ONCE before I turned 18. As an adult I've paid for my own braces and $1000's in in other dental care. I've worked with people in their 20's who have ended up with dentures. One of the best gifts you can give your own child is good dental care. And that includes braces.

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think_about_it 3 years, 1 month ago

Well if you spend your retirement on your daughter's braces to just to help her self esteem you had better hope she can support you in your old age.

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parco814 3 years, 1 month ago

Another story confirming that Kansas is the Mississippi of the Midwest, or should I call it Midworst.

On one hand, I value these stories for their thorough investigations and their portraits of good people in complicated, painful situations. On the other, I always have to steel myself for the inevitable victim-blaming swill from the reactionary swine message boarders that delight in pointing out that poor people are poor because they are bad people.

You victim-blamers know who you are. Smug, self-satisfied, useless excuses for human beings. I'd call you cockroaches, but at least cockroaches fulfill a purpose in our biosphere.

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Angie Dick 3 years, 1 month ago

I happen to know these fine folks, have for many years. They are both VERY kind HEARTED and VERY HARD WORKING FOLKS. It breaks my heart to see them in this situation. Dodie is a very strong headed woman and has the heart of pure Gold. Roy would do anything for ya in a heartbeat if he could. They are wonderful people. Let's all pray they can make it through this. I know I am.

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Alceste 3 years, 1 month ago

From a 2005 New York Times financial pages article:

When F. Scott Fitzgerald pronounced that the very rich "are different from you and me," Ernest Hemingway's famously dismissive response was: "Yes, they have more money." Today he might well add: much, much, much more money.

The people at the top of America's money pyramid have so prospered in recent years that they have pulled far ahead of the rest of the population, an analysis of tax records and other government data by The New York Times shows. They have even left behind people making hundreds of thousands of dollars a year.

Call them the hyper-rich.

They are not just a few Croesus-like rarities. Draw a line under the top 0.1 percent of income earners - the top one-thousandth. Above that line are about 145,000 taxpayers, each with at least $1.6 million in income and often much more.

The average income for the top 0.1 percent was $3 million in 2002, the latest year for which averages are available. That number is two and a half times the $1.2 million, adjusted for inflation, that group reported in 1980. No other income group rose nearly as fast.

The share of the nation's income earned by those in this uppermost category has more than doubled since 1980, to 7.4 percent in 2002. The share of income earned by the rest of the top 10 percent rose far less, and the share earned by the bottom 90 percent fell.

Next, examine the net worth of American households. The group with homes, investments and other assets worth more than $10 million comprised 338,400 households in 2001, the last year for which data are available. The number has grown more than 400 percent since 1980, after adjusting for inflation, while the total number of households has grown only 27 percent.

The Bush administration tax cuts stand to widen the gap between the hyper-rich and the rest of America. The merely rich, making hundreds of thousands of dollars a year, will shoulder a disproportionate share of the tax burden.

President Bush said during the third election debate last October that most of the tax cuts went to low- and middle-income Americans. In fact, most - 53 percent - will go to people with incomes in the top 10 percent over the first 15 years of the cuts, which began in 2001 and would have to be reauthorized in 2010. And more than 15 percent will go just to the top 0.1 percent, those 145,000 taxpayers. (CONT.):

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Alceste 3 years, 1 month ago

(Cont.): The Times set out to create a financial portrait of the very richest Americans, how their incomes have changed over the decades and how the tax cuts will affect them. It is no secret that the gap between the rich and the poor has grown, but the extent to which the richest are leaving everyone else behind is not widely known.

The Treasury Department uses a computer model to examine the effects of tax cuts on various income groups but does not look in detail fine enough to differentiate among those within the top 1 percent. To determine those differences, The Times relied on a computer model based on the Treasury's. Experts at organizations representing a range of views, including the Heritage Foundation, the Cato Institute and Citizens for Tax Justice, reviewed the projections and said they were reasonable, and the Treasury Department said through a spokesman that the model was reliable.

The analysis also found the following:

¶Under the Bush tax cuts, the 400 taxpayers with the highest incomes - a minimum of $87 million in 2000, the last year for which the government will release such data - now pay income, Medicare and Social Security taxes amounting to virtually the same percentage of their incomes as people making $50,000 to $75,000.

¶Those earning more than $10 million a year now pay a lesser share of their income in these taxes than those making $100,000 to $200,000.

¶The alternative minimum tax, created 36 years ago to make sure the very richest paid taxes, takes back a growing share of the tax cuts over time from the majority of families earning $75,000 to $1 million - thousands and even tens of thousands of dollars annually. Far fewer of the very wealthiest will be affected by this tax.

The analysis examined only income reported on tax returns. The Treasury Department says that the very wealthiest find ways, legal and illegal, to shelter a lot of income from taxes. So the gap between the very richest and everyone else is almost certainly much larger.

The hyper-rich have emerged in the last three decades as the biggest winners in a remarkable transformation of the American economy characterized by, among other things, the creation of a more global marketplace, new technology and investment spurred partly by tax cuts. The stock market soared; so did pay in the highest ranks of business.

One way to understand the growing gap is to compare earnings increases over time by the vast majority of taxpayers - say, everyone in the lower 90 percent - with those at the top, say, in the uppermost 0.01 percent (now about 14,000 households, each with $5.5 million or more in income last year).

From 1950 to 1970, for example, for every additional dollar earned by the bottom 90 percent, those in the top 0.01 percent earned an additional $162, according to the Times analysis. (Cont.):

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Alceste 3 years, 1 month ago

(Cont.):From 1990 to 2002, for every extra dollar earned by those in the bottom 90 percent, each taxpayer at the top brought in an extra $18,000.

President Ronald Reagan signed tax bills that benefited the wealthiest Americans and also gave tax breaks to the working poor. President Bill Clinton raised income taxes for the wealthiest, cut taxes on investment gains, and expanded breaks for the working poor. Mr. Bush eliminated income taxes for families making under $40,000, but his tax cuts have also benefited the wealthiest Americans far more than his predecessors' did.

The Bush administration says that the tax cuts have actually made the income tax system more progressive, shifting the burden slightly more to those with higher incomes. Still, an Internal Revenue Service study found that the only taxpayers whose share of taxes declined in 2001 and 2002 were those in the top 0.1 percent.

But a Treasury spokesman, Taylor Griffin, said the income tax system is more progressive if the measurement is the share borne by the top 40 percent of Americans rather than the top 0.1 percent.

The Times analysis also shows that over the next decade, the tax cuts Mr. Bush wants to extend indefinitely would shift the burden further from the richest Americans. With incomes of more than $1 million or so, they would get the biggest share of the breaks, in total amounts and in the drop in their share of federal taxes paid.

One reason the merely rich will fare much less well than the very richest is the alternative minimum tax. This tax, the successor to one enacted in 1969 to make sure the wealthiest Americans could not use legal loopholes to live tax-free, has never been adjusted for inflation. As a result, it stings Americans whose incomes have crept above $75,000.

The Times analysis shows that by 2010 the tax will affect more than four-fifths of the people making $100,000 to $500,000 and will take away from them nearly one-half to more than two-thirds of the recent tax cuts. For example, the group making $200,000 to $500,000 a year will lose 70 percent of their tax cut to the alternative minimum tax in 2010, an average of $9,177 for those affected.

But because of the way it is devised, the tax affects far fewer of the very richest: about a third of the taxpayers reporting more than $1 million in income. One big reason is that dividends and investment gains, which go mostly to the richest, are not subject to the tax.

Another reason that the wealthiest will fare much better is that the tax cuts over the past decade have sharply lowered rates on income from investments. (Cont.):

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Alceste 3 years, 1 month ago

(Cont.):

While most economists recognize that the richest are pulling away, they disagree on what this means. Those who contend that the extraordinary accumulation of wealth is a good thing say that while the rich are indeed getting richer, so are most people who work hard and save. They say that the tax cuts encourage the investment and the innovation that will make everyone better off.

"In this income data I see a snapshot of a very innovative society," said Tim Kane, an economist at the Heritage Foundation. "Lower taxes and lower marginal tax rates are leading to more growth. There's an explosion of wealth. We are so wealthy in a world that is profoundly poor."

But some of the wealthiest Americans, including Warren E. Buffett, George Soros and Ted Turner, have warned that such a concentration of wealth can turn a meritocracy into an aristocracy and ultimately stifle economic growth by putting too much of the nation's capital in the hands of inheritors rather than strivers and innovators. Speaking of the increasing concentration of incomes, Alan Greenspan, the Federal Reserve chairman, warned in Congressional testimony a year ago: "For the democratic society, that is not a very desirable thing to allow it to happen."

Others say most Americans have no problem with this trend. The central question is mobility, said Bruce R. Bartlett, an advocate of lower taxes who served in the Reagan and George H. W. Bush administrations. "As long as people think they have a chance of getting to the top, they just don't care how rich the rich are."

But in fact, economic mobility - moving from one income group to another over a lifetime - has actually stopped rising in the United States, researchers say. Some recent studies suggest it has even declined over the last generation.

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George Lippencott 3 years, 1 month ago

Thank you

The super rich get richer and pay less to the common pot The "poor" get poorer and pay little or nothing to the common pot The burden falls on those between $75 and $300K. Could that be the tea party??

I might also point out that public policy decisions such as renewable energy, auto fuel efficiency, utility carbon emmissions and the like hit hardest at the lower income level. The rich hardly notice the changes on their three homes.

The top cohort of taxpayers includes people making as little as $85K and as much as hundreds of millions. A nurse and a cop in many of our cities make more than that. It is time for the "hard" left to acquire the right target.

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Alceste 3 years, 1 month ago

I think the quote below applies to Moderate (focus being on that $75k figure):

One reason the merely rich will fare much less well than the very richest is the alternative minimum tax. This tax, the successor to one enacted in 1969 to make sure the wealthiest Americans could not use legal loopholes to live tax-free, has never been adjusted for inflation. As a result, it stings Americans whose incomes have crept above $75,000.

The Times analysis shows that by 2010 the tax will affect more than four-fifths of the people making $100,000 to $500,000 and will take away from them nearly one-half to more than two-thirds of the recent tax cuts. For example, the group making $200,000 to $500,000 a year will lose 70 percent of their tax cut to the alternative minimum tax in 2010, an average of $9,177 for those affected.

But because of the way it is devised, the tax affects far fewer of the very richest: about a third of the taxpayers reporting more than $1 million in income. One big reason is that dividends and investment gains, which go mostly to the richest, are not subject to the tax.

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MattressMan 3 years, 1 month ago

"He found part-time work as a stocker at a local business,"

"Roy has insurance on the home that could lower his payment temporarily in case he is injured at work, but his employer has refused to fill out the paperwork, he said."

I'd like to know what this fine upstanding business is that is holding up the wokers comp claim and also wont fill out the paperwork for the mortgage/insurance company. If it is a business I frequent I'd maybe have to look elsewhere to spend my money.

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LadyJ 3 years, 1 month ago

If you find out, let me know too.

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mom_of_three 3 years, 1 month ago

I hope things work out for them. I know how things can come up when you least expect it, no matter how hard you plan. You make enough and pay for braces, broken bones, and whatever kids need, and then you think it will be easier when they grow up. But then the unexpected happens. You go through savings (which you might have hoped to add to since and when you were healthy) and things just start happening. Sometimes, no type of planning can cover what happened to this couple.
I wish them the best of luck.

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tomatogrower 3 years, 1 month ago

I wish they would name the employer who is keeping them in limbo with workmans comp. He should be getting that operation soon.

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Kim Murphree 3 years, 1 month ago

Save?? Who has had the money to SAVE??? Ever since the lies of "trickle down economics" most working Americans have had to spend what they have on increasing costs of education, health care (which is appalling in its cost!), fuel (for commuting to more than one job), utilities, insurance, and general goods to keep families fed and clothed. So, then, when later years come and jobs are lost, what shall we do? Shall we let people become homeless and then deny them any place in our community to go? Tell me, how is that possible? People who have paid taxes and raised families right here in Lawrence--do we just sit back and say--you should have done better? You know, I always wonder at this--especially for those who say they are Christian (see Acts 2:38-45 for a clue as to how you are supposed to react). I think this couple has exhibited personal responsibility--I imagine their kids are educated, and raised, and knew that they were loved--and so, now, what? And how many more are feeling this pain? Thanks for writing this Shaun. The reaction sure shows us what kind of people we are, here, in Douglas County.

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Crazy_Larry 3 years, 1 month ago

I certainly hope you don't mind if I use facts to dispute the rubbish you spew forth on a daily basis.

FDR was president from 1933 to 1945. In 1941 as many as 40 percent of all American families lived below poverty level. In the late 1950s, the poverty rate for all Americans was 22.4 percent, or 39.5 million individuals. These numbers declined steadily throughout the 1960s, reaching a low of 11.1 percent, or 22.9 million individuals, in 1973. Over the next decade, the poverty rate fluctuated between 11.1 and 12.6 percent, but it began to rise steadily again in 1980. By 1983, the number of poor individuals had risen to 35.3 million individuals, or 15.2 percent.

For the next ten years, the poverty rate remained above 12.8 percent, increasing to 15.1 percent, or 39.3 million individuals, by 1993. The rate declined for the remainder of the decade, to 11.3 percent by 2000. From 2000 to 2004 it rose each year to 12.7 in 2004. Since the late 1960s, the poverty rate for people over 65 has fallen dramatically.

University of Michigan's National Poverty Center: http://www.npc.umich.edu/poverty/

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Crazy_Larry 3 years, 1 month ago

Wasting trillions of dollars? I think you meant the "war on drugs."

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