I just watched a youtube video of Elizabeth Warren’s 2008 lecture “The Coming Collapse of the Middle Class.” It was very clear and helpful. I’m going to distill it, and add a few thoughts of my own. I hope that you will chime in on a subject we haven’t explored yet: the intersection between promoting giving and politics. Why is this intersection important?
Between 1970 and 2007, the median 2 parent family increased expenses on:
* houses by 76%,
* health insurance by 74% (if healthy and employer-sponsored),
* cars by 52% (because families used to have 1 car on average),
* child care by 100% (a new expense),
* taxes by 25% (because moms are now working in addition to dads).
The family paid 50% of its income for those five things above on 1 income back in 1970. But now, the family pays 75% of its income for those things on 2 incomes.
The family saved 11% of total income in 1970, and now we save a whopping 0%. In fact, we are in debt. We’re assuming more risk and stress. What happens if one parent loses a job or gets really sick? What happens if we need to care for elderly parents? So how in the world is the average middle class Christian family going to give towards global poverty, when we feel like we’re skating on the edge, or already treading water?
If I’m interested in giving, and in helping other people give, I’ve got to be interested in the system and not just individual choices. I’ve got to care about why our big “non-negotiable-feeling” expenses (housing in wealthy school districts, etc.) have shot up so much, not just why we are in more consumer debt. So why has this happened?
One reason is that in the 1970’s, bank mortgage law changed to consider 2 incomes and not just 1 income; that shifted the entire real estate market towards larger homes. Now in many places, it’s not even possible to get a mortgage without 2 incomes. We need to go back to smaller homes, so that we can afford mortgages on 1 income. We really have to consider living in intentional Christian community, in the city and the burbs. In the long run, Christian real estate developers and policy makers need to leverage their influence in city planning and housing policy. Bringing down housing costs would free up dramatically more money to give.
Our overall health has really changed over the last 40 years, too. For those of you who know me, you know that my family and I are really into eating healthy because society’s change in food is making us sicker. One in three Americans born after the year 2000 will have diabetes. So we’ve got to eat healthier and ask stores to carry healthier foods. We need to stop Monsanto and other companies making genetically modified food, which gives us allergies and inflammation. We need higher standards for testing and packaging. We need to stop giving $8 billion in subsidies to corn producers, which doesn’t go to the farmers anyway but rather chemicals and oil companies. And dare I say that we need a public option to drive down health insurance costs? Private health insurance companies made a 26% profit during 2009, during the depth of this recession! Why is insurance a profit-making industry? Lowering our health costs would free up more money to give in the long run.
We need to raise the tax rate on the rich. It’s fairly clear from the 1920’s, 1980’s, and the 2000’s that rich people do not stimulate the economy or create jobs. They put their money in risky financial investments that then “need” government bail outs. The rich give less as a % of their wealth, so helping the lower and middle classes will result in more giving overall.
We need to reign in banks and financial institutions. They changed the real estate market, then bet against middle class families in the mortgage crisis. They promote overconsumption and debt. They oppose the Consumer Financial Protections Bureau which is like opposing a “list of ingredients” on our food packaging, etc. And on a global level, the IMF and World Bank are dubious. The ancient Jewish, Christian, and Greek suspicion of interest rates was well founded, because they recognized how the rich could further take advantage of the poor through interest rate lending. Unregulated profit motives and unchecked private power will always grind down the face of the poor especially.
I’m sure you can think of more, and I’d like to consider it. If we care about giving, and especially middle class giving, then we need to care about the systems we live in, and not just individual consumer choices, as important as those are. What do you think?