Saturday, August 1, 2009

How to make the best of the Recession

How to make the best of the Recession

The economic recession was, for the most part, an unexpected phenomenon. Certainly there were some who warned of the havoc “out of control” spending and “draconian” tax cuts were reeking on the national budget. Nonetheless few, save Nouriel Roubini, an economist at the Stern School of Business of New York University, were able to forecast the devastating economic consequences of the subprime mortgage meltdown. As Vice President Joe Biden, in discussing his regret about not advancing a more robust economic recovery plan, admitted, the administration had “misread” the depth of the economic crisis. The advent and extent of the economic crisis was no less surprising for economists in other countries as well. Eminent economists in England, for example, according to a recent report in the London Observer, apologized to the Queen for not predicting the credit crunch before it occurred. And while news of financial turmoil - bank failures and subsequent financial rescues, the Bernard Madoff “Ponzi Scheme”, looming bankruptcy of American automobile companies, a federal government largely on credit to the government in China - has been an ever-present fixture on television sets, radio dials and the internet, the consequences of the subprime meltdown has been all too real and keenly felt by millions of ordinary Americans, who have been laid off from work, had their homes foreclosed, and lost almost all their life savings, and, even worse, are finding it difficult to secure new employment, let alone jobs that are commensurate in compensation to ones they held previously. In the wake of what has now been deemed, by President Obama, as the worse economic recession in over half a century, how would one best grapple with the new and uncertain economic terrain?

The economic recession, naturally, has ignited disparate psychological reactions in the collective American psyche. On the July 27, 2009 edition of the news program 60 minutes, it was reported that sales of guns, often the most dangerous kinds, have skyrocketed as the dimensions and effects of the economic recession took shape. As one enthusiast at a gun show put it to an interviewer on the program, justifying in part the need, particularly in the current environment, to stock up on more weapons: the state of the economy harbingers a proportionate increase in crime and it is essential, therefore, the American populace be fully armed in order to protect itself, should it arrive, from the ensuing “chaos.” Notwithstanding invoilable second amendment constitutional protections, one should, first, recognize that this is precisely the least constructive way to cope with the uncertainty arising from the current economic malaise. Secondly, one should certainly - as perhaps a majority of Americans, who are less despondent about the future and, similarly, have a less fanciful imagination of the remedies for the sociological consequences of unemployment – engage in the following activities, depending on one’s situation in the current economic environment: cutting back on discretionary spending; diligently looking for new employment, or in some cases taking a pay cut; and, yes, going to the movies or buying wine to occasionally take one’s mind off news of the economy. There is a third and important step one should take, however, in order to not simply cope but “make the best of” the economic recession, one a growing number of Americans have engaged in: that is, use the current economic condition to open one’s eyes to the plight of poverty both in this country and beyond its borders and, to the extent that one is able, take the initiative to help those who are less fortunate, to make a difference.

It is important one should be under no illusion about the nature and magnitude of poverty in America and around the world. The definition of poverty in America, according to the Census Bureau, is an individual making under $9,393 or a family of four making under $14, 680 in annual take home salary. Even before the onset of the current economic recession, the perception of America as place where poverty was non-existent did not, to say the least, match the reality. As recent as 2003, statistics at the Census Bureau indicated that as much as 36 million Americans qualified for the designation of “impoverished.” What is more, the 2003 statistics, ominously, actually represented an increase of over one million newly impoverished Americans compared to the previous year. It is safe to say that with the arrival of the economic recession the number of Americans living in poverty has increased exponentially. Moreover, before the recession (which is now truly international in scope), the problem of severe and chronic impoverishment has been a significant moral concern in many parts of the world. In his path-breaking book The End of Poverty, influential Columbia University economics professor Jeffrey Sachs wrote “World Bank economists Shaohua Chen and Martin Ravallion . . . (have) estimated that roughly 1.1 billion people were living in extreme poverty in 2001, (t)he overwhelming share of (whom), 93 percent in 2001, live in three regions: East Asia, South Asia, and sub-Saharan African.” (20) The world’s poor, according to Professor Sachs,

face challenges almost unknown to the rich world today – malaria, massive droughts, lack of roads and motor vehicles, great distances to regional and world markets, lack of electricity and modern cooking fuels – challenges that are at first harrowing to contemplate . . . (24)
It would take more than the efforts of a relatively few, though benevolent, unemployed Americans to fully address, let alone solve, the crisis of poverty in America and around the world.

Why then should one volunteer? And more importantly, how can one truly make a difference? One only need to recall the spirit of solidarity and volunteerism that gripped the nation in the aftermath of the 9/11 attacks to know that whenever tragedy has hit America's shores, Americans, motivated by compassion and emboldened by courage, have audaciously refused to be overwhelmed by fear and valiantly rose to the challenge of rebuilding the nation. President Obama picked up on and channeled this desire to make a difference early in his presidency, by encouraging citizens to go out and volunteer. And, as news from NPR and The New York Times have indicated, Americans willingly, indeed eagerly and in record numbers, volunteered their time to a variety of worthy nonprofit organizations, including the Bowery Mission, Big Brothers Big Sisters, The Salvation Army, the Taproot Foundation, the United Way, Continuum Hospice Care, God’s Love We Deliver, among others. While many of those volunteering are unemployed or working for much less than they were previously, it is also true that many of those receiving the volunteer service are new entrants into the ranks of the impoverished; helping them to get back on their feet could go a long way toward giving them a fighting chance to re-enter the workforce as the economy starts its recovery. Moveover, similar to the theory of the Butterfly Effect in nature, engaging in isolated, though courageous, acts of compassion can have a ripple effect that can spread like wildfire to inspire many more to join the cause of volunteer service, illuminating a path to opportunity and recovery where once only darkness seemed to exist. The charitable admonition by the non violent revolutionary and servant leader Mahatma Gandhi is quite telling in this regard: “be the change you wish to see in the world.”

Volunteer service, what is more, benefits society in ways that extend beyond merely the betterment of the condition of the recipient of the altruistic action. The late great tennis champion and humanitarian Arthur Ashe perhaps said it best: “true heroism is remarkably sober, very undramatic. It is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost.” Indeed, for many in society, being employed means more than receiving a paycheck every payroll cycle: it signifies a reason for getting out of bed each day; a means to financial security, or support for one’s wellbeing and family; a community of friends, or a network of associates; a sense of achievement and fulfillment of one’s dreams; even, in some cases, usually where the goals of the organization has a positive social impact or is in perfect synchronicity with one’s personal vision, a purpose for living. The consequence of job loss, therefore, can be devastating to one’s self esteem and sense of self. Being altruistic in one’s actions toward others, however, particularly after one loses a job, can bring one meaning and purpose in life. As countless books and studies on happiness and positive psychology have revealed, to the extent that it has now become common knowledge, the sense of fulfillment one gets from serving others far outweigh the satisfaction one may receive from the typical job. The silver lining through months of financial turmoil and economic gloom is making a difference and finding personal fulfillment in volunteer service.



Works Cited

Sachs, Jeffrey. The End of Poverty: Economic Possibilities for Our Time. New York: The Penguin Press, 2005. Print

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