Burden of the Bourgeoisie - Essay Example

Burden of the Bourgeoisie Elizabeth Warren and Amelia Warren Tyagi have made a strong case for the much maligned middle in their book. The doomsday pundits of “Affluenza” quote a string of figures and data calculated to show the irresponsibility and callousness of the middle class. They tell us horrifying tales of how much the American families have sunk deep into debt, and how, nevertheless, they hanker for luxuries and spend more and more on unnecessary fripperies. We are told that American middle class families are so obsessed with designer clothes, branded shoes, restaurant meals, and gadgets like microwave and ipod as well as air conditioned cars that they don’t care if they cannot repay their debts.. The bankruptcy bill passed on April20,2005 by the Bush administration merely strengthens the idea that the American middle class is made up of greedy, irresponsible people, who prefer to file for bankruptcy in stead of repaying their debts, and who think bankrupts lead a carefree life. The press too adds to this note of gloom saying that people spend more on luxury goods and on bigger and fancier houses and cars that they can ill afford. The critics also say that there is more competition among neighbors to own the best branded goods, while at the same time the altruistic instinct of supporting education or culture has diminished. Economic data of present times show that families now have more money to spend as more members are earning. The typical two income family of the present where both the husband and wife are earning make75 percent more than what a typical family of the last generation earned. Although they have more to spend, their savings have drastically fallen. They are the educated class, having decent jobs, but they find it difficult to pay their medical bills. Filing for bankruptcy has increased drastically among this class. Warren and Tyagi argue that the reason for the financial crisis among the middle class is not their spendthrift habits, but that they have to spend much more for basic necessities, like housing, school for the children, healthcare and basic expenses. Families who face the calamity of foreclosure, are isolated, instead of being supported. The authors put up a strong case against the credit industry which is at the bottom of the myth of overspending by the middle class. They conclude by giving a number of suggestions for improving the situation. America is an affluent society, considering the global situation. The middle class, which is the backbone of the American society has never been so prosperous as it is now. .But it is becoming harder and harder for them to have a comfortable life. They are working harder now just to pay for the basics, but still they are blamed for their inability to meet their financial obligations .Unjust accusations are leveled at them as squanderers of money and irresponsible borrowers. A little reflection will convince us that the middle class, far from being irresponsible, is a hard working, decent set of people which only wants to live comfortably and bring up its children as good citizens. Improvement of schools, improving the public transport, making healthcare free and strict regulations to control the credit card industry are some of the remedies which can be implemented to help ease their burden of debt. An average American now owns a car, a color television, a home, many gadgets which make life easy, whereas an average Indian or Chinese would think of all these as prerogatives of the high income group. It s not uncommon for an American elementary school teacher to own two cars ,but a similar school teacher from an African country can only dream of it. Even considering the situation in the times of our grandparents, the present day bourgeoisie have a better deal. ‘Thrift’ was the operating word in the times of our grandparents, and ‘spend’ seems to be the operating word now. Our grandparents usually had their meals at home, going to the restaurant once in a while, as a treat. The present generation eats most of its meals in restaurants. In our grandparents’ time a family owned one car while now, each member of the family seems to have one, adding to the green house gases in the atmosphere. We cannot deny that we own and use many more gadgets and gizmos than our grandparents ever dreamed of. At the same time, the rate of filing for bankruptcy among the middle class has risen alarmingly. What was supposed to be a shameful thing in the past is now considered clever. No wonder that so many economists, sociologists, politicians and even judges talk about this supposed obsession of the middle class for unnecessary consumer goods. It is well known that what is luxury for one generation is a necessity for the next. Take the case of the color television which was a symbol of luxury a generation ago. Now color television is a part of our life- no one can do without it. The ubiquitous computer, which we cannot do without now, was considered the tool of the scientists and inventors not so long ago. The microwave oven which was a gadget used by the well-to-do twenty years ago is a necessity now. The gadgets are becoming better and more fuel efficient, thus being more eco- friendly than the gadgets of earlier times. It is heartening that the middle class is going in for eco-friendly products now even though it is a big burden on their finances. Discarding a fuel-guzzling, carbon-spewing car in favor of a fuel-efficient, eco-friendly car can hardly be termed extravagance. Nor should it be called irresponsible spending. The cars of today are much safer than the old ones, and safety is the prime concern of parents when their children are concerned.. The critics proclaim that the middle class goes on buying branded products. If the CFC –free new refrigerator is more fuel efficient, it makes sense to buy the new refrigerator than to hang on to the green- house- gas- emitting old one. Let us consider how Americans are spending on clothes. The pundits would have it that Americans are going like crazy for designer clothes and high fashion products. This craze for designer clothes is supposed to be one of the causes for the financial crisis. The facts speak otherwise. Now people no longer wear suits and ties to work. These formal clothing of yesteryear have been replaced by cotton trousers, cotton shirts and knit tops, which are far cheaper than suits. Cotton is eco-friendly, while synthetic fiber is not. It has been found that a middle class American spends much less on clothing now than what he did thirty years ago .Earlier, children had different shoes for school, church and play, which had to be replaced every six months. Now they make do with one pair. Toddlers now have cheap tennis shoes. The advent of discounters like Marshall’s and Target offer much cheaper clothes all over the country. It is easy to maintain these cottons as they can be laundered at home, thus saving on dry cleaning. Cotton is cool in summer and warm in winter as it is a bad conductor of heat. This property of cotton saves so much energy expended in air conditioning and heating, thereby reducing our carbon footprint. The critics cry themselves hoarse about the money spent by the middle class on restaurants. Eating out has increased tremendously now as both the husband and wife are working. Restaurants offer food from all over the world –Japanese, Chinese, Thai, Indian.. Eating different kinds of food broadens the mind, and enriches the senses. This way, the present generation is more fortunate than the older generations . Since families eat out quite often, their grocery bill is reduced. People have started eating healthier foods like vegetables and fruit instead of red meat. They buy their cereal in bulk at places like Costco. According to Warren and Tyagi, they spend 22 per cent less on food than twenty years ago! The consumption of steak has reduced, and this fact alone would cheer the hearts of environmentalists who say that we should cut our consumption of beef to reduce methane emissions into the atmosphere. Let us now consider homes of the middle class. The size of the homes have increased over the years, and so has the cost. Old homes need repairs which are exorbitantly costly The middle class places great value on education. A middle class couple with two children would like their children to go to a good school .A good school where not only the teaching is good but also which is safe With more and more reports of juvenile crimes in and around schools, people want to send their children to schools where there is security. It is well known that the inner city schools are mostly on the point of collapse. This forces the couple to buy a home in a good school district, which in turn, causes a big strain on their finances as real estate value has gone up dramatically in districts with good schools. In fact, the single most significant factor for real estate price to go up is the presence of a good school in the district. Race, religion or nearness to hazardous dumps does not affect the real estate value as much as the presence of a good school. The middle class couple will both have to work just to support the mortgage on their home. Now that they have moved away from the city center and Mom has started working, they need a second car. The family has an additional financial burden of the second car, which has become a necessity. Since Mom is away from home for long periods every day, they have to spend on child care. Since Dad and Mom are both earning, the family income goes up, and so do the taxes. Another thing that adds to their burden is health care. Many people have employer-subsidized health insurance, the cost of which has also risen high. Many more people of the middle class do not have employer-subsidized health insurance, or any health insurance. Some do buy expensive health insurance in the open market. All these and other hidden costs add up and they start missing some payments on their credit cards. Immediately, the interest rate jumps from 9.9% to29.9% which they can ill afford. The couple finds life unbearable. No wonder that they opt for bankruptcy! Now that we know what ails the middle class, let us now consider ways of improving their situation. Housing is the greatest financial burden they bear. Real estate prices are linked to the proximity of good schools in the district as we have already seen. The most important thing to be done is to improve the quality of schools. We can learn from countries like Switzerland and Germany who have excellent primary education systems. When most of the schools are good, parents do not feel constrained to move to expensive districts. Health care for all the citizens must be subsidized by the federal government. The example of Great Britain in this matter is worth studying. The NHS has been there in Britain since 1948. It is based on the ideal that good healthcare should be available to all, regardless of wealth. It is financed entirely from taxation, so that it ensures that people pay according to their means. Recently the British Health Minister announced that prescription charge increases will stay below the rate of inflation for the tenth consecutive year. In the United States, the cost of health insurance could be reduced. Credit card issuers and mortgage lenders must be held in check There should be a law to prevent foreclosures. Stringent measures should be enforced to see that they do not charge exorbitant rates of interest. Regulations should be strengthened to hold the credit industry in rein. The contracts should be made transparent so that people who borrow understand and appreciate the risks. The public transport system in all cities must be improved so that the dependence on automobiles is reduced. This is also eco-friendly, as fewer cars on the road means lesser emissions. If there are good buses and trains to take you to your destination, commuting will be faster and hassle free. Working women and men will not have to spend hours on the road, and trying to find a parking space. Public transport will also be cheaper. Although the American middle class is not spending irresponsibly, one cannot deny that, unlike their counterparts in Asia or Europe, they use up a lot of the world’s resources. Their granite counter tops flatten India’s hills, their wooden floors deplete Brazil’s forests, and their two cars deplete the world’s fossil fuel stocks and emit green house gases. It is high time that they changed their environment-unfriendly habits. The middle class has always been a steady, hard working and educated class in all societies. The American middle class with its good values has been the inspiration for many great writers like O .Henry and John Steinbeck They were the people who built the country. These people were the support of the country in times of distress. We do an injustice to them when we proclaim that they have suddenly become avaricious, selfish and irresponsible. When we analyze the facts carefully, it becomes evident that the American middle class is a decent, hardworking, overburdened stratum of people who are the victims of short sighted policies. . Works cited Warren, Elizabeth and Amelia Warren Tyagi .The Two Income Trap:Why Middle-Class Mothers and Fathers are Going Broke Basic Books 2003 Read More