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"We Are The New Vintage"
Jobs Are The New Assets
Wanted to share an interesting article I just read...
Remember when jobs weren't worth your small talk? Think back a year or two. Picture yourself at a cocktail party or maybe picking up the kids from soccer. How did the conversation go? You talked about your house. A new deck! You talked about your portfolio. Gotta go small cap. Did you mention how much pleasure you derived from bringing home a steady paycheck? Probably not. "Land was valuable, and capital was valuable, and labor — who cared?" says David Ellison, a Boston-based money manager. "The attitude was, As long as I buy a few homes and invest in a hedge fund, I'm done. I can sit in my chair and watch football games."
We now know how that ended up. Your portfolio is down 50%, your mortgage is worth more than your house, and your savings account is barely visible. The job, meanwhile, is making a roaring comeback. Not in a statistical sense, of course. We are in a recession, after all: at 8.1%, unemployment hasn't been this high since 1983. But in terms of the American psyche — and a household's balance sheet — we're rediscovering the job as the most valuable asset a person can have.
For years, we felt quite the opposite, and understandably so. From 1999 to 2006, the value of real estate owned by individuals more than doubled as the homeownership rate hit a record high. The money the typical family had in the stock market soared from just 28% of financial assets in 1989 to a full 53% in 2007 as the percentage of families in the market jumped from 32% to 51%.
Houses and stocks — those were the things we paid attention to, the things that gave us the confidence to be good American consumers (hello, home-equity- lines of credit). At the same time, the percentage of income we saved dropped and dropped and dropped -until, thanks to the power of credit cards and other debt, it went negative in 2005. That was neatly explained away by the "wealth effect": we spent money we didn't have because we felt — and technically were — richer because of our assets.
All the while, we blissfully ignored a little concept economists like to call human capital. The cognition you've got up there in your head — your education and training — it's worth something. We can extract value not just from our homes and our portfolios but from ourselves as well. The mechanism for extracting that value? A job. "The income you earn from working is like the stream of interest income you might get from owning a bond," says Johns Hopkins University economist Christopher Carroll. "Think of it as a dividend on your human wealth."
Human capital is worth quite a lot. Gary Becker, the Nobel Prize-winning University of Chicago economist, figures that in a modern industrialized economy, 75% to 80% of a person's economic output comes from human capital (as opposed to, say, land or machinery). Of course, during the bubble years (first stocks, then housing), the noneconomists among us didn't exactly think about it that way. "People became mesmerized by how rich they were," says Becker, "and didn't realize the crucial asset they had in their earning power."
The tide is now turning. To see how, let's check back in with the savings rate. After it went negative in late 2005, it meandered back into minimally positive territory. Then, last year, it started bounding upward. By the fourth quarter, we were saving 3.2% of what we brought in. In January we hit 5%. No longer are we disrespecting our paychecks, treating employment income as an also-ran source of wealth. "People are realizing their job is their real source of financial stability," says Ellison, "that they have to live within the means of their job, not within the means of their assets. We're relearning how to create wealth."
As we do this, we'll start looking at our jobs differently. If that thing you do at the office every day is suddenly your sole financial lifeline, you'll approach it more cautiously. When you've got only one chip left, you're much less willing to put it on the table. In this new era, a predictable salary is more appealing than the chance of scoring big with bonuses and stock options. And having a government job — one of the last bastions of security — looks even better. One day soon you might find yourself perusing a list of the fastest-growing, best-paying professions, trying to picture yourself as an actuary. And instead of spending thousands of dollars to build a new deck, you're more likely to use that money to take a class.
Careers expert D*** Bolles sees another shift coming. If as a society, we turn our attention back to work — if we dote on our jobs as much as we did on our homes and portfolios in an earlier era — then we'll have to start asking deeper questions about why we do what we do. In December, Bolles noticed that a book he wrote in 1970 was back on the best-seller list. What Color Is Your Parachute? is about job-hunting and career-changing, but it's also about figuring out who you are as a person and what you want out of life. "Why are people rushing out to buy a book that talks about more meaningful work?" asks Bolles. "They're realizing they have to rethink work if they've got no Plan B. It reframes the whole issue of, What type of work am I willing to do?"
That almost sounds like a happy ending: the flagging economy has finally set us straight on how valuable our work is. Too bad it has also made work that much harder to come by. So often we don't know the true value of what we have until it's gone.
Remember when jobs weren't worth your small talk? Think back a year or two. Picture yourself at a cocktail party or maybe picking up the kids from soccer. How did the conversation go? You talked about your house. A new deck! You talked about your portfolio. Gotta go small cap. Did you mention how much pleasure you derived from bringing home a steady paycheck? Probably not. "Land was valuable, and capital was valuable, and labor — who cared?" says David Ellison, a Boston-based money manager. "The attitude was, As long as I buy a few homes and invest in a hedge fund, I'm done. I can sit in my chair and watch football games."
We now know how that ended up. Your portfolio is down 50%, your mortgage is worth more than your house, and your savings account is barely visible. The job, meanwhile, is making a roaring comeback. Not in a statistical sense, of course. We are in a recession, after all: at 8.1%, unemployment hasn't been this high since 1983. But in terms of the American psyche — and a household's balance sheet — we're rediscovering the job as the most valuable asset a person can have.
For years, we felt quite the opposite, and understandably so. From 1999 to 2006, the value of real estate owned by individuals more than doubled as the homeownership rate hit a record high. The money the typical family had in the stock market soared from just 28% of financial assets in 1989 to a full 53% in 2007 as the percentage of families in the market jumped from 32% to 51%.
Houses and stocks — those were the things we paid attention to, the things that gave us the confidence to be good American consumers (hello, home-equity- lines of credit). At the same time, the percentage of income we saved dropped and dropped and dropped -until, thanks to the power of credit cards and other debt, it went negative in 2005. That was neatly explained away by the "wealth effect": we spent money we didn't have because we felt — and technically were — richer because of our assets.
All the while, we blissfully ignored a little concept economists like to call human capital. The cognition you've got up there in your head — your education and training — it's worth something. We can extract value not just from our homes and our portfolios but from ourselves as well. The mechanism for extracting that value? A job. "The income you earn from working is like the stream of interest income you might get from owning a bond," says Johns Hopkins University economist Christopher Carroll. "Think of it as a dividend on your human wealth."
Human capital is worth quite a lot. Gary Becker, the Nobel Prize-winning University of Chicago economist, figures that in a modern industrialized economy, 75% to 80% of a person's economic output comes from human capital (as opposed to, say, land or machinery). Of course, during the bubble years (first stocks, then housing), the noneconomists among us didn't exactly think about it that way. "People became mesmerized by how rich they were," says Becker, "and didn't realize the crucial asset they had in their earning power."
The tide is now turning. To see how, let's check back in with the savings rate. After it went negative in late 2005, it meandered back into minimally positive territory. Then, last year, it started bounding upward. By the fourth quarter, we were saving 3.2% of what we brought in. In January we hit 5%. No longer are we disrespecting our paychecks, treating employment income as an also-ran source of wealth. "People are realizing their job is their real source of financial stability," says Ellison, "that they have to live within the means of their job, not within the means of their assets. We're relearning how to create wealth."
As we do this, we'll start looking at our jobs differently. If that thing you do at the office every day is suddenly your sole financial lifeline, you'll approach it more cautiously. When you've got only one chip left, you're much less willing to put it on the table. In this new era, a predictable salary is more appealing than the chance of scoring big with bonuses and stock options. And having a government job — one of the last bastions of security — looks even better. One day soon you might find yourself perusing a list of the fastest-growing, best-paying professions, trying to picture yourself as an actuary. And instead of spending thousands of dollars to build a new deck, you're more likely to use that money to take a class.
Careers expert D*** Bolles sees another shift coming. If as a society, we turn our attention back to work — if we dote on our jobs as much as we did on our homes and portfolios in an earlier era — then we'll have to start asking deeper questions about why we do what we do. In December, Bolles noticed that a book he wrote in 1970 was back on the best-seller list. What Color Is Your Parachute? is about job-hunting and career-changing, but it's also about figuring out who you are as a person and what you want out of life. "Why are people rushing out to buy a book that talks about more meaningful work?" asks Bolles. "They're realizing they have to rethink work if they've got no Plan B. It reframes the whole issue of, What type of work am I willing to do?"
That almost sounds like a happy ending: the flagging economy has finally set us straight on how valuable our work is. Too bad it has also made work that much harder to come by. So often we don't know the true value of what we have until it's gone.
Views: 37
Replies to This Discussion
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VendorPermalink Reply by Kim Bombshell on -
Call me a cynic, but when they quote a statistic regarding the stock market, beginning at 1989, I think there is a slant. Most of you are too young to remember the crash of 87, where, "millions of people lost their retirement and savings." Sound familiar?
I just wish people would shut up about the damn recession! I remember in 1992, when I moved back home, (and was subsequently unemployed for 2 YEARS from age 25-27) how the phone company man said, as he was hooking up my phone, that every phone he'd done that month was an adult moving home with their parents. Americans and the media just have SHORT MEMORIES! This stuff is all cyclic. In 5 years everyone will talk about the Dow Jones is hitting an all time high.
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Permalink Reply by Soda Shop Sue on
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yah.. dido!
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VendorPermalink Reply by Kim Bombshell on -
Hey, who remembers the savings and loan scandal regarding Charles Keating? Savings and Loan Institutions were closing left and right, fraud with loans was rampant. GO CHECK YOUR HISTORY! It's not even long off history. This stuff happened in the early 90s.
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Permalink Reply by Anita Fixx on
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Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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VendorPermalink Reply by Kim Bombshell on -
Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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ArtistPermalink Reply by Mummy's Little Monster on -
The whole recession proof job is so true! I've never been overly proud of my fast food type job, but right about now I'm sitting pretty. I work at a Tim Horton's which is a coffee fast food combo store. I can attest to the fact that sales are up, and actually very strong right now. When people have less money to spend on fancy meals they quickly turn to fast food. Its a cheap and filling option, and in our case moderately priced coffee is a great choice for those avoiding the wallet rape offered at Starbucks! ((which I love and drink anyways haha!)) McDonalds is doing especially well right now, in fact the fast food burger is selling so well right now that upscale restaurants are starting to add decently priced burger meals to their fancy menu to try and entice customers to come and spend a few more bucks than the average fast food joint while still getting the nice "night out for dinner" feel. Basically anyone who is out of work and not highly skilled may find this to be a good type of job to get by on for a bit. As sales grow, more employees will need to be hired to serve the demand, and right now demand in fast food is a reality!
Kim Bombshell said:Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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Ride it out stop b*******...wow..your response sounds a bit harsh. It shows you're never been through financial hardship yourself. And uh...socialism? When did I EVER mention that. Not that it would be a bad thing for working people who really need the help. Or is socialism for corporations and the wealthy as we have now better for you? AIG and executive bonuses...I rest my case.
I'm not going to bother responding to your reply again if it's that rude.
Oh and Pizza Pizza is a HUGE franchise here in Ontario...sounds pretty damn recession proof yet they still laid us off. Don't think it's so easy for other people. It may be for you but not for others, just think about that a little. Use compassion.
Kim Bombshell said:Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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VendorPermalink Reply by Kim Bombshell on -
You have no idea what kind of financial hardships I have had or am having, because I don't focus on it. The only reason I get to go to Viva this year is because I am working for people there. My room is paid for by the label I work for, my wristband by one of the bands, AND I will be working for a percentage of merch I sell. It's all about finding a way to make things happen for you, and attitude has so much to do with it.
It just irks me to constantly hear about "how tough things are" and blaming the government and corporations for the recession. I've lived through a lot tougher times than these and came out of it a stronger, wiser person. It starts with attitude. If you are constantly focused on the negative, you will wallow and not grow or find solutions. Once you realize there is a solution, you can work towards it.
Anita Fixx said:Ride it out stop b*******...wow..your response sounds a bit harsh. It shows you're never been through financial hardship yourself. And uh...socialism? When did I EVER mention that. Not that it would be a bad thing for working people who really need the help. Or is socialism for corporations and the wealthy as we have now better for you? AIG and executive bonuses...I rest my case.
I'm not going to bother responding to your reply again if it's that rude.
Oh and Pizza Pizza is a HUGE franchise here in Ontario...sounds pretty damn recession proof yet they still laid us off. Don't think it's so easy for other people. It may be for you but not for others, just think about that a little. Use compassion.
Kim Bombshell said:Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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VendorPermalink Reply by Kim Bombshell on -
During the recession in the early 90s, when I was unemployed for 2 years, I volunteered for a non-profit and learned a lot of new computer skills which helped me. I took a low level, low paying job doing some admin. for a medical practice, which helped me move up to my next position somewhere else. I worked hard, was open to learn, and became a person "in demand" in that field.
Mummy's Little Monster said:The whole recession proof job is so true! I've never been overly proud of my fast food type job, but right about now I'm sitting pretty. I work at a Tim Horton's which is a coffee fast food combo store. I can attest to the fact that sales are up, and actually very strong right now. When people have less money to spend on fancy meals they quickly turn to fast food. Its a cheap and filling option, and in our case moderately priced coffee is a great choice for those avoiding the wallet rape offered at Starbucks! ((which I love and drink anyways haha!)) McDonalds is doing especially well right now, in fact the fast food burger is selling so well right now that upscale restaurants are starting to add decently priced burger meals to their fancy menu to try and entice customers to come and spend a few more bucks than the average fast food joint while still getting the nice "night out for dinner" feel. Basically anyone who is out of work and not highly skilled may find this to be a good type of job to get by on for a bit. As sales grow, more employees will need to be hired to serve the demand, and right now demand in fast food is a reality!
Kim Bombshell said:Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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VendorPermalink Reply by Kim Bombshell on -
I forgot to mention I had no car from 1991 to 1994 and had to rely on public transportation. I don't live in a big city, so I had to get up extra early to make sure I was able to catch the bus to be at work on time. My boyfriend didn't have a car either, and we bought one together and shared rides. We were a single car family until about 3 years into our marriage, when a family member GAVE us an old car to use. That was in 1998.
Kim Bombshell said:During the recession in the early 90s, when I was unemployed for 2 years, I volunteered for a non-profit and learned a lot of new computer skills which helped me. I took a low level, low paying job doing some admin. for a medical practice, which helped me move up to my next position somewhere else. I worked hard, was open to learn, and became a person "in demand" in that field.
Mummy's Little Monster said:The whole recession proof job is so true! I've never been overly proud of my fast food type job, but right about now I'm sitting pretty. I work at a Tim Horton's which is a coffee fast food combo store. I can attest to the fact that sales are up, and actually very strong right now. When people have less money to spend on fancy meals they quickly turn to fast food. Its a cheap and filling option, and in our case moderately priced coffee is a great choice for those avoiding the wallet rape offered at Starbucks! ((which I love and drink anyways haha!)) McDonalds is doing especially well right now, in fact the fast food burger is selling so well right now that upscale restaurants are starting to add decently priced burger meals to their fancy menu to try and entice customers to come and spend a few more bucks than the average fast food joint while still getting the nice "night out for dinner" feel. Basically anyone who is out of work and not highly skilled may find this to be a good type of job to get by on for a bit. As sales grow, more employees will need to be hired to serve the demand, and right now demand in fast food is a reality!
Kim Bombshell said:Ride it out...b******* about it won't make it better.
A suggestion, learn a trade that is recession proof. Or go into a business that is recession proof. Usually something that has to do with a vice, is recession proof. My husband is in Casino Management. The count has been UP since the recession.
I worked in the medical field, learned the trade during the recession of the early 90s.
My original point is, this has happened before. It will happen again. If we panic, and move towards more socialism, it will only get worse.
Anita Fixx said:Umm...well I always knew work was VERY valuable. I mean I have NO frickin clue what exactly a portfolio is or a hedge fund or whatever. The only I could count on for income was my job. Remember how conflicted I was about spending New Year's Eve at work? I felt bad for abandoning them at such a busy time..now I feel like an idiot. They obviously didn't give a s*** about abandoning most of their employees in Toronto. They just closed down the Toronto office because they sold the real estate to a condo developer. Now they just have call centers in Hamilton and Ottawa...how perfect and cheap is that!
I'm concerned for this city because corporations are leaving it for greener (as in cheaper labour and costs) pastures. This started BEFORE the recession but now they have an even better excuse.
As for history: Yes, I remember the recession of the early 90s. Yeah, I was a kid but I can recall the fact my dad lost his job. That we had to use the food bank sometimes and that almost everyone we knew had lost their jobs. It was a pretty crappy time to grow up if you were working class. I really hope things do recover like they did back then but it's looking pretty bleak. Every job fair I go to there are hundreds of people lined up for even the most shitty jobs. Not to mention the thousands of people in the U.S losing their HOMES...where are these people gonna go? I would not wanna be there. Although Canada is not doing well either...and we were so damn smug that the recession wouldn't hit Canada like it did in the States. Wrong, wrong, wrong. If they didn't even get that prediction right I don't wanna think what's to come in the future.
I hope I find a job SOON but it's NOT looking good at all. And I do NOT need stock options or mutual funds or whatever s***...All I need is a roof over my head, food in my belly and little bit of savings. I'll die a happy person with that.
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Permalink Reply by Ellie Retrophilia on
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I don't tend to trust in "earn fast money" schemes to begin with which is exactly what the hedge fund is. And many of the stock options. True "wealth" is made by working hard. There are few executives that do that...made it to the top through honest to goodness hard work. Some are born in to luxury and others were overnight. My method has always been to save money, learn to do without some things and don't buy what I can't afford. If I have to use a credit card and can't pay it off within a short period of time then I don't necessarily need it. Really the whole recession boils down to people having very few financial skills and making very poor financial decisions...one of them being the subprime mortgage. That fiasco has been contributed to by banks wanting to make easy money fast and borrowers who don't educate themselves, read the fine print or realize what they can truly afford. You can't buy a $300K house on a $150K per year salary.
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VendorPermalink Reply by Kim Bombshell on -
300K at 7% over 30 years works out to a mortgage of about 3k a month. 150K Salary, after taxes, is about 9-10K a month. That is a reasonable risk.
It's the "liar's loans" that broke the industry. Refinance and using fake documents to verify income that people didn't have. Also loans that didn't verify income. It mostly happened to low-income people. This was made possible by the Senate passing the "fair lending act" (Senator Obama played a big part in getting it passed!) and it was signed by Clinton. It forced institutions to allow these "Liar's loans." Subprime Loans were often granted under the "fair lending act." Greedy real estate brokers, and Loan officers were the biggest culprit in this down swing and banking crisis.
Ellie Retrophilia said:I don't tend to trust in "earn fast money" schemes to begin with which is exactly what the hedge fund is. And many of the stock options. True "wealth" is made by working hard. There are few executives that do that...made it to the top through honest to goodness hard work. Some are born in to luxury and others were overnight. My method has always been to save money, learn to do without some things and don't buy what I can't afford. If I have to use a credit card and can't pay it off within a short period of time then I don't necessarily need it. Really the whole recession boils down to people having very few financial skills and making very poor financial decisions...one of them being the subprime mortgage. That fiasco has been contributed to by banks wanting to make easy money fast and borrowers who don't educate themselves, read the fine print or realize what they can truly afford. You can't buy a $300K house on a $150K per year salary.
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