As Obama administration officials put into place the first major wave of changes under the health care legislation, they have tried to defuse stiffening resistance ”” from companies like McDonald’s and some insurers ”” by granting dozens of waivers to maintain even minimal coverage far below the new law’s standards.

The waivers have been issued in the last several weeks as part of a broader strategic effort to stave off threats by some health insurers to abandon markets, drop out of the business altogether or refuse to sell certain policies.

Among those that administration officials hoped to mollify with waivers were some big insurers, some smaller employers and McDonald’s, which went so far as to warn that the regulations could force it to strip workers of existing coverage.

Read it all.

Now government statistics are emerging to confirm just how dramatically life has changed for the middle class ”” roughly defined as that half of all U.S households making between $25,000 and $80,000 a year. The economic dead center is represented by households earning the median income of $49,777, according to a recent report from the Census Bureau. Of the 117 million households in the U.S. today, half make more than that amount, and half make less.

Consider these recent government statistics:

In 2009, median household income decreased in 34 states and increased in only one: North Dakota.
Nearly 4 million people fell out of the middle class last year and now live below the federal poverty line. More than 14 percent of the population is under that line, set at about $11,000 annual income for one person or $22,000 for a family of four.
In 2009, enrollment in Medicaid, the medical insurance program for low-income Americans, exceeded 48 million, or a record 15.7 percent of the U.S. population.
As of June, more than 41 million people were collecting food stamps. That was up by 6.4 million, or 18 percent, from the previous year.

Read or listen to it all.

Middle-class Americans made their deepest spending cuts in more than two decades, slashing spending on such discretionary items as restaurant meals and alcohol during the recession.

Households in the middle fifth of the population sliced their average annual spending to $41,150 in 2009, the Labor Department said Tuesday in its annual spending breakdown. That was down 3.1% from 2007 and 3.5% from 2008, the steepest one-year drop since records began in 1984. The drop came even as those households’ after-tax income remained relatively stable over the two years, at an average $45,199.

Read it all.

O Lord Jesus Christ, who at the carpenter’s bench didst manifest the dignity of honest labour, and dost give to each of us our tasks to perform: Help us to do our daily work with readiness of mind and singleness of heart, not with eye-service as menpleasers, but as thy servants, labouring heartily as unto thee and not unto men, so that whatever we do, great or small, may be to the glory of thy holy name.

–John R. W. Stott (1921– )

….the law requires all plans to meet the 80% to 85% threshold (also known as the “medical loss ratio”). And that’s a problem for “mini-med” plans such as the ones offered by McDonald’s, which typically have high administrative costs — a consequence of insuring businesses with high employee turnover.

The threshold is also problematic for insurers that have a comparatively small number of customers, like Principal, which has sold fewer than 1 million health policies. The more customers an insurer has, the easier it will be to meet the threshold — its fixed administrative costs can be spread across more people.

McDonald’s is likely to obtain a waiver from the feds that will allow it to continue its current insurance plan, and another insurer (United Healthcare) has agreed to take over Principal’s customers after it exits the business. Still, the reports raise the question of why the feds should be setting minimum medical loss ratios in the first place.

After all, in a free-market system, profits should be limited by competition, not by regulation.

Read it all.

In previous recessions, there has been widespread pessimism about the overall economy. But this recession was the first since the survey began in 1967 when more people expected their own incomes to fall.

Before this recession, no survey ever showed as few as 15 percent of Americans optimistic about their own prospects. But since October 2008, when the financial crisis intensified after the failure of Lehman Brothers, the figure has been below 15 percent. Similarly, the proportion of pessimists had never been as high as 15 percent before the financial crisis, but it has been above that figure for the last two years.

At the height of the financial crisis, in March 2009, less than 8 percent of Americans expected their incomes to improve, while about 24 percent anticipated a decline. The figures released this week showed about 10 percent were optimistic about their incomes, while about 16 percent still expected a fall.

Read it all.

This comes as a 19 page pdf–read it all. The whole thing is full of interesting tidbits, but to me the most interesting material is on page 4 in table 5 in the last column (entitled “Total”).

Anti-austerity protests erupted across Europe on Wednesday ”” Greek doctors and railway employees walked out, Spanish workers shut down trains and buses, and one man even blocked the Irish Parliament with a cement truck to decry the country’s enormous bank bailouts.

Tens of thousands of demonstrators poured into Brussels, hoping to swell into a 100,000-strong march on European Union institutions later in the day and reinforce the impact of Spain’s first nationwide strike in eight years.

Read it all.

With Charleston hosting 52 of the nation’s 87 surviving Medal of Honor men this week, a common thread among many in their ranks is that they came from large, working-class families where self- reliance, unit strength and attention to duty were learned at an early age.

“Everything depended on what you were supposed to do,” Williams said Tuesday, speaking of life on the cash-strapped cow farm. “If you didn’t get something done you got in trouble with the rest of the family,” he said, “not only with the mother and the father.”

And just like in the military, there was no questioning of work or orders.

“You did it because it had to be done,” said Williams, who along with Baker agreed that they excelled during critical moments on the battlefield probably because of the values instilled back home.

Read it all from the front page of the local paper.

The European Court of Human Rights ruled Thursday (Sept. 23) that a church organist’s employment rights were ignored when he was fired by a Catholic church for remarrying outside the church.

The court said German churches have some latitude in firing staff who violate the faith’s moral tenets, but said it must be weighed against the prominence of the job and the worker’s own rights.

The case involved Bernhard Schuth, the longtime organist at St. Lambert parish in Essent, who separated from his wife in 1994 and started a relationship with another woman in 1995.

Read it all.

Work and celebration are intimately connected in the life of families: they condition choices, influence relations between married couples and between parents and children, affect the relation of families with society and with the Church. Holy Scripture (cf. Genesis 1-2) tells us that the family, work and the feast day are gifts and blessings of God to help us to live a fully human existence. Daily experience attests that the authentic development of the person includes the individual, familial, and communal dimension, activities and functional relationships, as well as openness to hope and to the Good without limits.

In our days, unfortunately, the organization of labor, conceived and realized in function of market competition and maximizing profit, and the concept of feast as an occasion for escape and consumption, contribute to the break-up of the family and the community and to the spreading of an individualistic lifestyle. Thus, it is necessary to promote reflection and efforts at reconciling the demands and the periods of work with those of the family and to recover the true meaning of the feast, especially on Sunday, the weekly Easter, the day of the Lord and the day of man, the day of the family, of the community and of solidarity.

The next World Meeting of Families constitutes a privileged occasion to rethink work and celebration in the perspective of a united family open to life, well integrated into society and the Church, attentive to the quality of the relationships and to the economy of the family unit itself.

Read it all.

Economic experts may believe the recession is over, but try telling that to the public.

Seventy-four percent of Americans believe the economy is still in a recession, according to a new CNN/Opinion Research Corporation poll. Only 25 percent think the downturn is over.

Read it all.

Winston Churchill once moaned about the long, dishonourable tradition in politics that sees commerce as a cow to be milked or a dangerous tiger to be shot. Businesses are the generators of the wealth on which incomes, taxation and all else depends; “the strong horse that pulls the whole cart”, as Churchill put it. No sane leader of a country would want businesspeople to think that he was against them, especially at a time when confidence is essential for the recovery.

From this perspective, Barack Obama already has a lot to answer for. A president who does so little to counter the idea that he dislikes business is, self-evidently, a worryingly negligent chief executive. No matter that other Western politicians have publicly played with populism more dangerously, from France’s “laissez-faire is dead” president, Nicolas Sarkozy, to Britain’s “capitalism kills competition” business secretary, Vince Cable (see article); no matter that talk on the American right about Mr Obama being a socialist is rot; no matter that Wall Street’s woes are largely of its own making. The evidence that American business thinks the president does not understand Main Street is mounting

Read it all.

Tens of thousands of people will lose their jobs within weeks unless Congress extends one of the more effective job-creating programs in the $787 billion stimulus act: a $1 billion New Deal-style program that directly paid the salaries of unemployed people so they could get jobs in government, at nonprofit organizations and at many small businesses.

In rural Perry County, Tenn., the program helped pay for roughly 400 new jobs in the public and private sectors. But in a county of 7,600 people, those jobs had a big impact: they reduced Perry County’s unemployment rate to less than 14 percent this August, from the Depression-like levels of more than 25 percent that it hit last year after its biggest employer, an auto parts factory, moved to Mexico.

If the stimulus program ends on schedule next week, Perry County officials said, an estimated 300 people there will lose their jobs ”” the equivalent of another factory closing.

“It’s very scary, because there’s just no work,” said Brian Davis, a 36-year-old father of four, who got a stimulus-subsidized job with the City of Lobelville after he lost his job of 17 years at an auto parts plant that shed hundreds of jobs. Now he faces the prospect of unemployment again.

Read it all.

“It’s like the American dream in reverse.” That’s how President Barack Obama, ten days after taking office last year, described the plight of Americans hit by the faltering economy. His catchy description fell short ”” the dream has turned into a nightmare for tens of millions.

So much so that an opinion poll this week showed that 43 percent of those surveyed thought that “the American Dream” is a thing of the past. It “once held true” but no longer does. Only half the country believes the dream “still exists,” according to the poll, commissioned by ABC News and Yahoo against a background of dismal statistics on growing poverty, inequality, unemployment, and Americans without health insurance.

Before turning to the gloomy numbers, a brief detour to the meaning of the phrase “the American Dream,” long a familiar part of the U.S. (and international) lexicon. The survey defined it as “if you work hard, you get ahead.” That’s neat shorthand for the concept that the American social, economic and political system makes success possible for everyone….

Read it all.

Even as Wall Street rallies on the National Bureau of Economic Research announcement that the recession ended in June 2009, Gallup finds — more than a year later — that 88% of Americans believe now is a bad time to find a quality job.

The percentage of Americans holding these views about finding a quality job is as high now as it was a year ago, and higher than it was at this time in 2008, when the recession was fully underway. Three years ago, in September 2007 — just prior to the official beginning of the recession that December — 55% held this view of the job market.

Read it all.

At a time of growing tensions involving Muslims in the United States, a record number of Muslim workers are complaining of employment discrimination, from co-workers calling them “terrorist” or “Osama” to employers barring them from wearing head scarves or taking prayer breaks.

Such complaints were increasing even before frictions erupted over the planned Islamic center in Lower Manhattan, with Muslim workers filing a record 803 such claims in the year ended Sept. 30, 2009. That was up 20 percent from the previous year and up nearly 60 percent from 2005, according to federal data.

The number of complaints filed since then will not be announced until January, but Islamic groups say they have received a surge in complaints recently, suggesting that 2010’s figure will set another record.

The federal Equal Employment Opportunity Commission has found enough merit in some of the complaints that it has filed several prominent lawsuits on behalf of Muslim workers.

Read it all.

Patricia Reid is not in her 70s, an age when many Americans continue to work. She is not even in her 60s. She is just 57.

But four years after losing her job she cannot, in her darkest moments, escape a nagging thought: she may never work again.

College educated, with a degree in business administration, she is experienced, having worked for two decades as an internal auditor and analyst at Boeing before losing that job.

But that does not seem to matter, not for her and not for a growing number of people in their 50s and 60s who desperately want or need to work to pay for retirement and who are starting to worry that they may be discarded from the work force ”” forever.

Read it all.

When American taxpayers bailed out General Motors, the company was split, with the best assets going to the reorganized automaker of the same name. This new General Motors is selling cars, making money and preparing a public stock offering.

The least valuable assets, including the run-down factories in Flint, were left in the shell of the old G.M., now named the Motors Liquidation Company.

This company has filed a bankruptcy reorganization plan that lays out how it will clean up and sell off the dozens of unwanted pieces of what was once the world’s largest automaker.

But the process is slow, and while plant closings have already cost jobs and tax revenue in many communities, the empty factories themselves are now becoming a burden.

“When General Motors closed shop in Flint, they just turned the lights off,” said Chris Swanson, a captain with the Genesee County Sheriff’s Department, which has made nearly two dozen arrests this year at the Flint North complex on charges of theft, assault with intent to murder and others.

Read it all.

Earlier this year, Illinois said it had found a way to save billions of dollars. It would slash the pensions of workers it had not yet hired. The real-world savings would not materialize for decades, of course, but thanks to an actuarial trick, the state could start counting the savings this year and use it to help balance its budget.

Actuaries, including some who serve on the profession’s governing boards, got wind of what Illinois was doing and began to look more closely. Many thought Illinois was using an unorthodox maneuver to starve its pension fund of billions of dollars, while papering over a widening gap between what it owed and how much it had. Alarmed, they began looking for a way to discourage Illinois’s method before other states could adopt it.

They are too late. The maneuver, and techniques that have similar effects, are already in use in Rhode Island, Texas, Ohio, Arkansas and a number of other places, allowing those states to harvest savings today by imposing cuts on workers in the future.

Read it all.

Late last year, my wife gasped: “What’s wrong?” She saw me hunched at the computer, the online bill pay program flickering, my face blank and my hands limp in my lap.

“It’s gone,” was all I could say. Years of mounting debt, tens of thousands of dollars of it, had disappeared in five minutes. It was beyond belief, and I just sat staring at the screen.

Our financial deliverance was a big retroactive check for my wife’s first years of disability. After receiving the check, I sat down immediately to pay off the credit cards that we had run up since she had to stop working.

That’s right. We paid our debts. We had borrowed to pay huge, persistent medical bills, used credit cards to buy groceries and medicine when paychecks couldn’t stretch far enough, and I worked extra jobs to juggle the payments.

Read it all.

Few people need a census report to tell them that more people are living in poverty during this recession, but there it is: nearly one of every seven people in the United States was living in poverty last year.

It was the highest rate of poverty since 1994, and the largest number of people living in poverty, 43.6 million, since the government began keeping track 51 years ago.

The U.S. Census Bureau also reported stagnant incomes and rising numbers of people without health insurance, both of which contribute to poverty and a national trend of a declining middle-class standard of living that began in 2000.

“These are very tough times,” said East Cooper Community Outreach Executive Director Jack Little. “People are hurting who have never hurt before.”

Read it all.

….given the combination of the expiration of the home buyer tax credit and the increasing number of loans moving to final foreclosure, we knew that home prices overall would take a hit, but it would take a while.

Well we’re here.

Two new reports out today prove the consequences of oversupply of organic inventory (12.5 months on existing homes in July according to the National Association of Realtors) and the shadow inventory of foreclosed properties (estimates vary widely and wildly). CoreLogic’s Home Price Index shows home prices “flat” in July as transaction volume continues to decline. “This was the first time in five months that no year-over-year gains were reported,” according to the release. In June, prices were up 2.4 percent year over year. In addition, “36 states experienced price declines in July, twice the number in May and the highest number since last November when prices nationally were still declining.”

Read it all.

At the Cooper Tire plant in Findlay, Ohio, Jack Hartley, who is 58, works a 12-hour shift assembling tires: pulling piles of rubber and lining over a drum, cutting the material with a hot knife, lifting the half-finished tire, which weighs 10 to 20 pounds, and throwing it onto a rack.

Mr. Hartley performs these steps nearly 30 times an hour, or 300 times in a shift. “The pain started about the time I was 50,” he said. “Dessert with lunch is ibuprofen. Your knees start going bad, your lower back, your elbows, your shoulders.”

He said he does not think he can last until age 66, when he will be eligible for full Social Security retirement benefits. At 62 or 65, he said, “that’s it.”

After years of debate about how to keep Social Security solvent, the White House has created an 18-member panel to consider changes, including raising the retirement age….

Read it all.

The diversity of the United States’ population has been well-documented: a multi-ethnic mixture of more than 310 million people, comprised of individuals from a wide range of educational and economic backgrounds. Providing effective leadership for such a country is exceedingly challenging. The range of worldviews, faith perspectives, and personal dreams and expectations held by Americans makes it difficult for a national leader to possess a comprehensive and coherent point-of-view that a majority of the public will support. The latest national survey by The Barna Group underscores the breadth of opinions and concerns that Americans possess.

Read it all.

During the recession, political and business leaders have held out the promise that American advances, particularly in green technology, might stem the decades-long decline in U.S. manufacturing jobs. But as the lighting industry shows, even when the government pushes companies toward environmental innovations and Americans come up with them, the manufacture of the next generation technology can still end up overseas.

What made the plant here vulnerable is, in part, a 2007 energy conservation measure passed by Congress that set standards essentially banning ordinary incandescents by 2014. The law will force millions of American households to switch to more efficient bulbs.

The resulting savings in energy and greenhouse-gas emissions are expected to be immense. But the move also had unintended consequences.

Rather than setting off a boom in the U.S. manufacture of replacement lights, the leading replacement lights are compact fluorescents, or CFLs, which are made almost entirely overseas, mostly in China.

Read it all.

Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats’ efforts to trumpet their signature achievement before the midterm elections.

Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators.

These and other insurers say Congress’s landmark refashioning of U.S. health coverage, which passed in March after a brutal fight, is causing them to pass on more costs to consumers than Democrats predicted.

Read it all.

More than 160 Muslims have enlisted the federal government in two discrimination lawsuits against JBS Swift meatpacking plants, where they allege blood and bones were hurled at them, bathroom walls were covered with vile graffiti and company supervisors disrupted their efforts to worship during Ramadan, ultimately firing many Islamic employees.

The two Equal Employment Opportunity Commission lawsuits filed last week allege a pattern of religious and national origin discrimination and a hostile work environment at two plants – in Greeley, Colo., and Grand Island, Neb. The cases may rank among the largest Muslim discrimination lawsuits since the terrorist attacks of Sept. 11, 2001, unleashed a backlash against Muslims in the United States, government officials said. In the last five years through fiscal 2009, religious charges have grown 44 percent overall, and 58.4 percent for Muslim workers, according to EEOC data.

The JBS Swift cases, which involve mostly Somali refugees who joined the plants’ diverse and often immigrant-based workforce, stand out not only for their size but also for their details, EEOC officials said.

Read it all.

Pundits are restless, an election looms ”“ so this week, President Barack Obama is proposing yet another round of special favors, aimed at improving the economy. Prominent columnist Paul Krugman wants the plans to be “bold” and to involve huge amounts of money. Here’s a contrasting view: government should stop declaring recovery plans, bold or otherwise.

Maybe the constant announcing of new plans ”“ especially plans backed by borrowing or tax cuts ”“ is, itself, an impediment to economic growth.

Read it all.

….this non-policy yields broader lessons about the modern workplace.

For instance, ever more companies are realising that autonomy isn’t the opposite of accountability ”“ it’s the pathway to it. “Rules and policies and regulations and stipulations are innovation killers. People do their best work when they’re unencumbered,” says Steve Swasey, Netflix’s vice-president for corporate communication. “If you’re spending a lot of time accounting for the time you’re spending, that’s time you’re not innovating.”

The same goes for expenses. Employees typically don’t need to get approval to spend money on entertainment, travel, or gifts. Instead, the guidance is simpler: act in Netflix’s best interest. It sounds delightfully adult. And it is – in every regard. People who don’t produce are shown the door. “Adequate performance,” the company says, “gets a generous severance package.”

The idea is that freedom and responsibility, long considered fundamentally incompatible, actually go together quite well.

Read it all.