Tuesday, July 11, 2006










the money trap.........

With the cost of gas raising on a moment to moment basis, and the cost of utilities following fast in the same footsteps, I wonder how the generation behind us will survive in today's economy. Even making minimum wage pay (which is five times higher from when I first started working in the late 1970's) is not enough to sustain the basic necessities, and it gets harder and harder to become creative in finances.

We were all taught to put money away for a rainy day..... you know, the day that misfortune slams you out of nowhere, and it's essential that you have to take that carefully calculated bank account and tap it for necessary funds that will easily see you out of trouble. Ha! Is there really such a thing? Only with the Robbing Peter To Pay Paul Bank is it possible (at all) for me.... and I know I've raised it to a high art form. It wasn't easy, and took years of practice; but like a bike, once mastered, always learned. I'm also fortunate to have been born with the bargain gene, so any roller-coaster rides are like a swing at the playground. Sometimes I get pushed a little too high for my liking, but I always manage to find ground zero no matter what.


So all this thinking about money and survival made me wonder what the state of affairs are like on a larger scale.... beyond the scope of my own tribulations. How do the people of countries around the world survive their financial woes? I let my fingers do the google dance . Beyond all the statistics, I managed to boil down a few facts that came through loud and clear. It seems that countries that allow their commerce and economy to grow, spend somewhat less on defense, and more on the common citizen in education, have communities that thrive.

A shining example of this, is the difference between North and South Korea. Communist North Korea censors their television and news, and all reports come from state-run agencies. (Insert Big Brother here.) During the mid to late 1990's, the economy took a significant turn for the worse, and people were starving to death due to famine; numbers reaching up into the 600,000's With the fall of Communist Russia, much aid was cut off, and many citizens were defecting across the border to China in search for food. Foreign aid arrived by 1999, and although it helped to reduce the high number of deaths due to famine, North Korea continued on their nuclear program, which pretty much sucked out the funds to help a starving nation. It was reported in 2005 that the World Food Program could see imminent danger of conditions returning to the same numbers of the decade before, but the government was reported to have mobilized millions of city-dwellers to help out the rice farmers. However, we now sit on a tightrope of diplomacy over the missile issue.... but that's a story for another day.

Democratic South Koreans may be oppressed by their leaders to some extent, ( aren't we all to some degree??) but not nearly like North Korea. Since their 1987 free elections, South Korea, has become the 10th largest economy of the world; having the 2nd highest number of broadband connections per capita in the world. They have become leaders in computer games, digital displays and mobile phones, while still maintaining their traditions in cuisine and ancestral worship. In a word, they have flourished. Yes, they did receive our aid during the 1950's, but they sunk their money into commerce and the nation has grown into an international competitive country.

What about other countries? Well, the wealthiest ones still provide aid in the form of money, supplies, or volunteers.... the US being the leader in that area. That money could be well spent on it's own citizens, yet governments spend millions in aid to foreign countries. But how do they know the needed supplies are getting to the population? We don't necessarily.... but by the looks of repressed societies, and absent or low economies, we can get a hint that all is not well in their neck of the woods.... especially if the citizens are suffering. Least wealthy countries have a hard time maintaining on their own, nevermind when a natural disaster happens.... and that's where "special aid" comes into the picture.

It breaks our hearts when we hear of tsunami's and earthquakes that wipe out whole villages and towns. We jump on the bandwagon of "drives for money" to show our support in order to build back some normalcy to the shattered lives of the survivors. Private citizens also donate millions on their own. After all, this is a true immediate emergency, and our hearts bleed at the visuals we see of the destruction. As one of the wealthiest nations in the world, the United States is still the leader when it comes to aid.... donated or not. Personally I am proud of that statistic, but at the same time cynical. That always has me questioning if the money is making it to the right areas or not. In many cases money was circumvented through the channels enough that the real citizens in need only received crumbs, while the military and government officials made out like fat rats in a cheese factory. Sadly, many African countries are guilty of that.

So it's not like we aren't giving enough, it's more like it's being wasted by societies that repress their citizens. Be it either by countries building up their nuclear programs, while starving their citizens, or giving the aid to incompetent officials who have corrupt governments, the proof is in the pudding when you see societies of people that are held back from flourishing. The aid they receive should help them well on their way, if the government they have had allowed it to happen.

Our government collects our taxes, and it works better for everybody if we all have a steady job to collect those taxes from. We also have disability benefits for a plethora of reasons for those who can no longer work. So our government not only gives to other countries, it also gives at home. It can be said of the train-wreck of Katrina, that we didn't give enough... the government should have given more. Well they kind of did, believe it or not. It was so mismanaged by incompetents on our own side that the aid once more slide out crumbs while being tangled in the mire of bureaucracy. Then there were the reports of the $2,000 check issued to recipients who spent it at the Walmart for TV's or X-Box games. That didn't sit too well with a lot of us.... but then, mismanagement issues were also the reason for that. So giving was not the problem. Granted, a check for $2,000 is certainly not enough to start over a life, but if you lived in Africa, you'd be grateful.... and if you were totally wiped out, $2,000 duty free is better than no dollars.

So I thank my lucky stars everyday that I live in a country where re-inventing myself is a matter of mind over defeat, and not a death sentence because I have a government that will repress that life away from me. I may have to pay some exorbitant prices for gas and utilities, groceries and clothes.... but at least I have the means, ability, and freedom to live in a society that offers choices. Sure, I'm not a happy camper when it comes time to make those quarterly tax payments... and a little trip to Peter and Paul Bank is humbling, but I still live in a country where I can own my own money pit, and hope the best for the generation behind me. With all its sham and drudgery, we at least live in a society that promotes commerce, and education..... a lot of poorer countries have neither, and it does make all the difference.

11 Comments:

Blogger Skye said...

You raise some of the same questions I ponder about but then I just end up finding the ways and means of taking care of the crisis. Hey, have something for you so e-mail me some time. :)

9:16 PM  
Blogger Neo said...

Ellen - I saw a spot on World News tonight about something similiar. How will American's deal with saving for retirement when they get to that age.

I actually dread that moment because I haven't saved zip. Too busy living check to check to find the money to put aside.

When it comes to foreign aid, that's all well and good, but you have to take care of your own people first.

There are 45 million American's without ANY health coverage.

In a country of roughly 300 million people that's a pretty large number.

I don't mind giving if it helps. Sadly as you've said, that money never finds the people it was meant to find.

Hopefully we find a way to fix that in the future.

Great post.

Peace & Hugs,

- Neo

10:09 PM  
Anonymous Anonymous said...

Excellent post, Ellen. Never know what I will find here on your blog but I am always impressed with anything you choose to say and how well you say it! I agree with what Neo said and can relate to the check to check thing. I've never had a savings account and have no retirement so I'm being really nice to my son and hoping he'll take care of me when I'm old :)

You made some great points...food for thought.

10:26 PM  
Blogger Snaggle Tooth said...

Good spot of educational research ya put in there.

Defense spending was an interesting indicator, you noticed - because war has historically been touted to boost economies for republican presidents of the USA of the past until the recent 2 decades,(beginning with George H.W. Bush), since the method seems to've not had the desired economical effect.

When there's no choices to make, often ya wouldn't know enough to know that it's different elsewhere. That's the difference education makes.
Ghana is where I think of when poor population topics arise.

I also was amused by your mention of The Peter robs Paul Bank! I was just saying those words to a neighbor earlier today (sans the word, "Bank").
Seems impossible to get ahead these days, never mind keep up! We should be greatful we have control over any of our living arrangements!

10:35 PM  
Blogger awareness said...

Lots of food for thought.

Right before I read your post, I was reading an article from the National rag up here in Canada. A columnist was making some of the same points you make, though focusing on Afghanistan. Lots of money has been raised by organizations etc and sent over with go'vt money, and yet, buidling the infrastructure for that country has not occured. Where is the money going?

So much waste....

It seems like inflation and cost of living is going up, up, up, and our paychecks remain stagnant. It is a constant push pull thing.....trying to stay afloat financially.

But...........we do live in countries where there is opportunity, where at least there is a social safety net for most. Yes, people do definately fall through the cracks.......and we must help them..........but all in all, our lifestyle and opportunities are like the pot at the end of a very long rainbow that most of the citizens of this world will never reach.

6:00 AM  
Blogger awareness said...

We do have borders......and we must look after our own, but I'm a firm believer that we are all citizens of a global family. It is our responsibility to look after our family.

If only we could find a better way to get the food and money directly to the people and not to the nasty dictators and corrupt presidents............

6:03 AM  
Blogger Ellen said...

skye~
Yup, we all manage to live from one crisis to another.. with very little remaining left over at the end of the day. Did you klnow that only the top 1% of the population (of the world) make a salary of over $100,000. The rest of us just meander through life hoping there are enough programs in place to take care of us when we no longer can take care of ourselves. Poor foreign countries have no hope whatsoever.

I sent an e-mail last night, did you get it?

************

neo~
Through my lifetime, aid to foreign countries has been something I've grown up with. It wasn't until my Dad pointed out that many of these countries on the receiving end usually get very little of what we send if it were in a repressed society. The government officials of these countries did well by it though.

As far as retirement... well I do have SEP & Keogh accounts that I am letting work for me, as I can no longer put in the funds each year that I should. Besides that, I have several pieces of land with my name attached. In other words, I am asset rich, but cash poor.. and am insured to the hilt. If I were to drop off the face of the earth tomorrow, hubby and son make out well.

I agree with you about the health coverage. As one of the richest countries in the world, we do have one of the most appalling health plans in effect. Canada and Europe are kings in that area, and we should pay more attention to their methods. However, the problem is deeper.... and fodder for another post another day.

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barbara~
I had to laugh at your remark about your son because it brought up a funny thought. I remember watching "Dumbo" with my son when he was little (and we must have seen it a million times). If you remember the end, Dumbos Mom was riding in her own train car, retired and famous for being the Mom of the circus wonder. I would always tell my son: "See, Dumbo took care of his Mommy in her old retired age.... just like you'll need to do for me when I get old".
Not too sure it sunk in, but I still said it.

************

snaggle~
Good point about the economy boost when there is war, but times have indeed changed. Now we sink money into the war chest and let the real problems sink to the bottom. When will governments ever understand that without it's populace, they cease to exist as a country? It is more important to take care of the citizens than it is to build weapons... and I don't care what they call them, they are all of "mass destruction".

Living paycheck to paycheck is just a fact of life for many people, and I still am baffled by the rising costs of goods. If you make it too far out of reach for the people without raising the wage base, what are you hoping to accomplish? Oh well, there are some wealthy ones out there... just look at the cost of homes. Many subdivisions are going up in and around Atlanta and most start in the "low" $4-$500,00's. You'd have to mortgage yourself up to your eyeballs to afford one.

I had to laugh... seems like you are familiar with my banking methods.....

************

awareness~
I found a report on google search that asked the same question of how aid could go directly to the people instead of governments. It seems that the people need education first in order to know how to use that aid, and build a better infastructure... such as agriculture, etc. The problem was that governments kept their people poor for a reason, and what needed to be done was to restructure the government... which is not an easy quest, as many of these countries pass the leadership down to even more corrupt leaders. It's a vicious circle. Perhaps if some leaders were a little less greedy....????

7:15 AM  
Blogger Skye said...

no, I didn't get it. ;(

11:27 AM  
Blogger Scott said...

Great post Ellen. Remember when thre was the huge feed Ethiopia campaign? I watched a documentary after it about how little money actually ever made it to the poor people in the country. The aid went to the military in power so that they could purchase more weapons and further starve their population. It was a truly disasturous thing. I believe the whole concept of foreign aid needs to be looked at, but like you I am very proud that the Canadian government, like the US, is still willing to help despite the cynisism.

Scott

3:26 PM  
Blogger Skye said...

try this: wnada_2003@sbcglobal.net (I might just delete that off the blog anyway.)

8:33 PM  
Blogger Ellen said...

ej~
I did read thae statistic that the US did give the most, but least percentage-wise when it came to GNP. Makes me wonder where that is
going when you see so many deprived in this country.... espcially after the bad hits we've taken lately. But that only means we have a nation of very wealthy people, not so much government money, just the private sector money. After all, Bill Gates alone is worth over 60 billion.

Good point about the healthcare system... we really do need an overhaul in that area.

************

scott~
I remember that documentary, and it's not very uncommon that a lot of other countries have done the same thing to us. It is a system riddled with many flaws. I think we should just drop over supplies and goods... weapons should never be part of the equation. But then, many deals are made behind the deals we make, and we end up with the world in the state it's in now. Goes to show you the system desperately needs a tweaking.

************

skye~
Thanks, and sent!

6:19 PM  

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