In her impassioned, desperate diatribe on the increasingly untenable position of working parents—caught between work and child care in the reopening economy—food writer Deb Perelman asks her readers two incredulous questions:
"Why isn't anyone talking about this? Why are we not hearing a primal scream so deafening that no plodding policy can be implemented without addressing the people buried by it?"
As it turns out, those primal screams were waiting patiently for Deb Perelman to lead them in unison. Within minutes of her article going live in the business section of The New York Times, thousands of users on Twitter were sharing the link accompanied by choice quotes like, "Allowing workplaces to reopen while schools, camps and day cares remain closed tells a generation of working parents that it's fine if they lose their jobs, insurance and livelihoods in the process."
As Perelman's article makes clear, while law-makers and government officials have arranged plans to ensure that economic conditions return to normal as quickly as possible for wealthy business owners, there has been little apparent concern for how reopening measures would affect families with school-age children.
I released the primal scream that we -- and countless other parents for whom this situation isn't just untenable, i… https://t.co/o0XVE1JGvg— deb perelman (@deb perelman)1593697918.0
In Perelman's case, living in New York City, this lack of consideration reached a breaking point when she became aware of current plans for the fall school term. In order to ensure that each student is afforded a minimum of 65 square feet of classroom space, only a third of students will be in the school building in any given week—the other two thirds learning remotely.
For the time being, while the science on how COVID-19 is contracted and spread by children remains unclear, these sorts of measures are seen as necessary to prevent sudden, overwhelming spikes in the infection rate. But for parents like Perelman and her husband, this means that two weeks out of every three, their children—one approaching kindergarten, the other entering 6th grade—will need to be home.
The fact that Perelman's husband is among the tens of millions who have been laid off during the COVID-19 lockdown has made it possible to maintain child care while Perelman works from home, setting her own exhausting hours.
But what happens to them and countless other parents who are struggling to keep their children educated and supervised when he is rehired or forced to start looking for a new job? How are they supposed to pay their bills and take care of their children?
The problem is obviously even worse for parents who may not have had the option—like Perelman—to work from home, or haven't had the resources to maintain their children's education with online tutors and extra school supplies.
Here's what schools could look like this fall amid pandemic l GMA www.youtube.com
As Perelman points out, these and other issues with remote learning have already affected student outcomes and have likely expanded the existing achievement gaps along racial and socioeconomic lines. But those issues are certain to get worse as more and more parents are forced to return to work without viable child care options.
While the wealthy will be fine, many in the middle class (particularly mothers) will be forced to choose their children over their long-term career plans. And as for poor and working class parents, far too many will have no choice at all—will have to keep working and leave their children unsupervised.
While the proximate cause of this mess is obviously the coronavirus pandemic gripping the world and requiring adaptive measures to counter its spread, there is a deeper issue that can be tied—as with so many societal problems—to the structure of capitalism.
It's the same problem that English philosopher Bertrand Russell pointed out in his essay "In Praise of Idleness". It's the same problem that recurs on a near constant basis in our society, but it's most evident in the aftermath of a crisis: At every opportunity to give workers more freedom, we instead choose to increase productivity.
When Russell published the essay in 1932, he had in mind the aftermath of World War I, when soldiers returned home from the front, effectively doubling the workforce.
As he notes, living standards and productive industry had been maintained throughout the war thanks to mechanization and thoughtful planning. The populous remained fed and clothed and housed despite the loss of so many workers to the war.
Less work was needed to achieve the same outcome, which meant that—when those workers finally returned—there was the option to allow everyone to work half as much and still make a living wage.
NYC has an elaborate four-phase reopening plan that doesn’t even mention daycare lol https://t.co/vGAq9GQszJ— Jason Schreier (@Jason Schreier)1593698748.0
But no. Instead productivity was increased, workers were laid off, and it was still necessary to work 40 hours a week to get by. And that's where things in England, the US, and much of the world remain to this day.
The same dynamic was in play in the second half of the 20th century as it became the norm for women to join the workforce. There were twice as many workers, but rather than cut the work week in half, we kept it at 40 hours, increased productivity, and allowed wages to stagnate so that two incomes were soon necessary for a basic standard of living—and working mothers were still expected to perform traditional child care duties.
We've invented so many machines and systems to make our work lives more efficient and our home lives more convenient, but instead of framing these advances as opportunities to increase our freedom—to reduce the work week to 20 hours, as Russell suggests, and give workers the opportunity to redirect their energy toward their passions and interests, we treat them as tools to increase profit for those at the very top.
They replace workers with automation and outsourcing and pay those who remain less while investors and executives rake in more. Because growth of investment is the ultimate ideal driving the whole machine—even if that machine is wringing the life out of workers and the planet alike.
Right now around half of working-age Americans aren't working. The work force is set to return in a big way in coming months—just as it did after WWI. If we shifted our priorities toward a more humane objective, we could see this crisis and the aftermath not as another occasion to benefit the wealthy and push working people to their limit, but as an opportunity to increase the freedom and the happiness in the world.
We need universal child care. https://t.co/qu6BVe4E9q— Jamaal Bowman (@Jamaal Bowman)1593694704.0
Shift to a 30-hour work week (without reducing pay) and give workers—especially working parents—some flexibility for when they work those hours. Suddenly child care and home-schooling wouldn't be nearly such an overwhelming burden. Better still, provide them with that child care. Suddenly workers would have energy left over to find new ways to thrive—rather than only surviving.
It may seem far-fetched, but changes like this have happened before when workers were united. The only thing preventing it now is that we haven't all joined our voice with that primal, deafening scream and demanded what we deserve.
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.