That’s why job loss can be so catastrophic.
For example, one wage earner, whether single or head of a family, can have their earned purchasing power evaporate in a matter of days or weeks. Unless that person’s income stream is restored, in a short period of time, via a new job, unemployment insurance, while helpful, will not cover both living expenses and debt obligations. With personal savings at all time lows, in short order, payments on the home mortgage, car, and credit cards slide into delinquency.
Thus, as general unemployment increases, broad segments are affected.
While the number of potential replacement jobs decreases, the number of foreclosures and bankruptcy filings increase; and, the public costs of unemployment insurance, and other government programs, skyrocket.
That’s where we are now – in recession.
It is still a mild recession for most; but, for growing numbers of people it is already - or will become - much more severe, even dire.
That reality begs several questions for all Americans to contemplate, including, where are we heading next economically; what has been the effects of government interventions; and, what are the responsibilities of individual citizens and families, as well as the proper roles for government, public charities, and churches?
We’ll address each next time in this space.