Freemarketeers are as obsolete as my old Commodore 64 (RIP). The "free" market, based as it is on speculation, exploitation and private ownership, cannot operate when the future is bleak, jobs are being lost by the millions, homes are falling into foreclosure and cars are being repossessed at historic rates (1.5 million cars and trucks in 2008, up 12% from 2007). From an social and economic standpoint, 2008 was a train wreck. To top off the dismal performance of the stock market, skyrocketing foreclosure rates and unemployment figures, it turns out that retail sales were down in December--double their projected fall to 2.7%. Retailers call the day after Thanksgiving "Black Friday" because this is the symbolic start of the holiday shopping season and the time of year when retailer first start to see profits (out of the red and into the black). With sales down 2.7% in December, it can be expected that many retailers would not have seen a profit in 2008--and with the credit markets still frozen, we should expect to see more stores closing up in the ensuing months. This leads to even more job cuts and the spiral downward continues. What is to be done?
1) Volunteerism: the more goods and services people are willing to donate to community projects, the better we'll be able to stave off the deleterious social and economic effects of the current crisis. People are already needed to staff food drives, soup kitchens and community shelters--the demand for dedicated individuals will only grow as the economy sinks.
2) Cooperative ownership of businesses: A business venture may be more feasible during economic turmoil if the rewards and risks more evenly spread across the business. This provides incentives for higher productivity in times of plenty and can entail greater job security in times of scarcity.
3) Community organizing: Government won't be able to assess or address the varied existential needs that will arise in the months to come in a timely enough manner. Communities need to organize and implement solutions to their problems. During times of economic uncertainty these issues will invariably include: unemployment, shortfalls in health care, poverty, homelessness, mental health issues, municipal transit, availability of nutritious food, crime and corruption in government... Community groups can form a bridge between a slow and possibly inadequate governmental response and eventual economic recovery.
4) Local initiatives to vie for government largess. If local government fails to address local needs, then community organizations can float initiatives for funding through other channels (state, federal, private, or through religious organizations).
Needs are only going to increase, as will the pressures of social disintegration--communities can and should take charge of these issues now. Check out http://www.volunteermatch.org/ to find organizations in your area to join. If you don't have any that meet your concern, organize one!
Thursday, January 15, 2009
Tuesday, January 13, 2009
For the love of pizza...
We've been trying to cut back on dining out since the economy started circling the drain. With a teenage boy in the house, pizza night has become a fixture over the years. We have sought out and found many excellent pizza joints up and down the east and west coasts, but with an average of $40 a pop (not including wine), we decided to come up with a basic pizza recipe that approximates what we love about this dish: thin crust, tasty sauce and just the right amount of cheese. It is a basic cheese pizza (we're purists), but you can top it with anything you want. The dough takes a little preparation, but it's worth it. The dough recipe is actually double what you need--I freeze half for another day--so if you want just enough for the two pizzas, cut the quantities for the dough portion in half.
Dough (this will make enough for four pizzas)
1 1/2 tablespoons yeast
2 cups warm water
1 teaspoon brown sugar
Put this in a mixing bowl and give the yeast 5 minutes or so to wake up (by the time you finish mixing the flours it should be ready to go).
5 cups unbleached white flour
1 cup whole wheat flour
1 teaspoon salt
2 tablespoons oil (pref. olive oil, but vegetable oil will do)
Mix the dry stuff together and add to the wet. Incorporate the flours a cup at a time in to the yeast mixture if mixing manually. If you have a mixer with a dough hook, use that and mix all at once. Toward the end of mixing, add a little more water if the dough seems too dry and inelastic; if too wet, add more flour. Take dough out of mixing bowl and knead on a floured counter top until it becomes smooth and pliable. Scrape out the mixing bowl and lightly oil. Then place the dough in the bowl, cover with a cloth and let rise in the warmer part of the kitchen until about doubled in bulk (between 1 and 2 hours).
Sauce (make sauce and cool while the dough rises--enough for two pizzas)
1 - 28oz. can of diced tomatoes (pref. organic)
2 teaspoons brown sugar
1/2 teaspoon salt
1/2 teaspoon oregano
2 tablespoons red wine (optional)
1 chopped clove of garlic (optional)
Place all sauce ingredients into a blender and blend. Pour contents into a sauce pan and simmer on med. low for 20-30 minutes (stirring often). Take off heat and let cool.
(Once the dough is risen) At this point I divide the dough in half and knead into two rounds--one I put into a plastic bag and stick in the freezer for the next pizza night, the other I divide and knead into two rounds. Let these rounds rise on the counter for about 30 minutes.
While the rounds rise on the counter, set two racks in the middle of the oven and preheat to 500 degrees (see caution below). Take two sheet pans, flip them upside down and oil their backsides (this is the surface on which you will cook the pizzas). Take the rounds and begin to gently stretch them into rectangles. Place the rectangles onto the sheet pans and carefully stretch them out to the edges--you want the dough to be stretched very thin (it will rise in the oven). Then spoon the cooled sauce on the dough.
Cheese (enough for two pizzas)
1 pound mozzarella (shred)
4 tablespoons parmesan
Sprinkle cheeses on the pizzas. Carefully place pizzas in the oven and cook for a total 12-14 minutes, swapping positions halfway through for more even cooking (if you don't, the pizza crust on the bottom rack may over-cook). Caution: 500 degrees is really, really hot, so keep your face away from the oven when you open it and use thick, dry kitchen towels when handling the racks or pizza pans. Also, if your oven is not clean it will smoke.
When the pizzas are out, use a knife to separate pizza from pan and place liberated pizzas on cooling racks (this keeps the crust somewhat crisp). While the process may look daunting, it really doesn't take that much effort and, once preformed a few times, goes quite quick. Two pizzas easily feed our family of three with a few slices left over for the next day. Depending on grocery prices in your area, the total cost per pizza is about $3.
Dough (this will make enough for four pizzas)
1 1/2 tablespoons yeast
2 cups warm water
1 teaspoon brown sugar
Put this in a mixing bowl and give the yeast 5 minutes or so to wake up (by the time you finish mixing the flours it should be ready to go).
5 cups unbleached white flour
1 cup whole wheat flour
1 teaspoon salt
2 tablespoons oil (pref. olive oil, but vegetable oil will do)
Mix the dry stuff together and add to the wet. Incorporate the flours a cup at a time in to the yeast mixture if mixing manually. If you have a mixer with a dough hook, use that and mix all at once. Toward the end of mixing, add a little more water if the dough seems too dry and inelastic; if too wet, add more flour. Take dough out of mixing bowl and knead on a floured counter top until it becomes smooth and pliable. Scrape out the mixing bowl and lightly oil. Then place the dough in the bowl, cover with a cloth and let rise in the warmer part of the kitchen until about doubled in bulk (between 1 and 2 hours).
Sauce (make sauce and cool while the dough rises--enough for two pizzas)
1 - 28oz. can of diced tomatoes (pref. organic)
2 teaspoons brown sugar
1/2 teaspoon salt
1/2 teaspoon oregano
2 tablespoons red wine (optional)
1 chopped clove of garlic (optional)
Place all sauce ingredients into a blender and blend. Pour contents into a sauce pan and simmer on med. low for 20-30 minutes (stirring often). Take off heat and let cool.
(Once the dough is risen) At this point I divide the dough in half and knead into two rounds--one I put into a plastic bag and stick in the freezer for the next pizza night, the other I divide and knead into two rounds. Let these rounds rise on the counter for about 30 minutes.
While the rounds rise on the counter, set two racks in the middle of the oven and preheat to 500 degrees (see caution below). Take two sheet pans, flip them upside down and oil their backsides (this is the surface on which you will cook the pizzas). Take the rounds and begin to gently stretch them into rectangles. Place the rectangles onto the sheet pans and carefully stretch them out to the edges--you want the dough to be stretched very thin (it will rise in the oven). Then spoon the cooled sauce on the dough.
Cheese (enough for two pizzas)
1 pound mozzarella (shred)
4 tablespoons parmesan
Sprinkle cheeses on the pizzas. Carefully place pizzas in the oven and cook for a total 12-14 minutes, swapping positions halfway through for more even cooking (if you don't, the pizza crust on the bottom rack may over-cook). Caution: 500 degrees is really, really hot, so keep your face away from the oven when you open it and use thick, dry kitchen towels when handling the racks or pizza pans. Also, if your oven is not clean it will smoke.
When the pizzas are out, use a knife to separate pizza from pan and place liberated pizzas on cooling racks (this keeps the crust somewhat crisp). While the process may look daunting, it really doesn't take that much effort and, once preformed a few times, goes quite quick. Two pizzas easily feed our family of three with a few slices left over for the next day. Depending on grocery prices in your area, the total cost per pizza is about $3.
Friday, January 9, 2009
Laid off?
According to recent data, 2008 marks the highest annual job loss since 1945 with a total loss of 2.6 million jobs--and forecasts for 2009 are not encouraging. If you recently lost your job or lose your job this year, there are a few things you can do to make the best of an otherwise bad situation.
1) Swallow your pride. This can be the most difficult obstacle because in the US we have this undercurrent of individualism that degrades those who ask for help. If it helps, the champions of this ideology are currently in Washington DC begging for handouts to keep themselves employed. The rules have changed, it's OK to rely on others for a while; in fact, embracing the idea of mutual support over cut-throat individualism may be our only way out of this debacle.
2) File for unemployment benefits, in some instances you can do this online. Benefits vary by state so check online to find out what kind of documentation you need to file.
3) Get food stamps now. Next to housing, the monthly grocery bill will drain your resources faster than anything else. The food stamp program is now called the Supplemental Nutrition Assistance Program (SNAP), find out if you're eligible online and visit your local SNAP office.
4) Along with foodstamps, consider supplementing with food from your local food bank (this link has a great foodbank locator).
5) If you have small children (up to age 5), don't hesitate to get on the WIC program. This will ensure a monthly inflow of healthy food for the kids.
6) Finally, if you have a little land, now would be a good time to consider planting a garden. It will help you feel more self-sufficient and pulling weeds can be quite relaxing.
7) File for medicaid , SCHIP or medicare to keep you and your family healthy.
8) Consider alternate housing options. If you're mortgage is too high, try to renegotiate a lower rate with your bank (tell them that you are looking at foreclosure otherwise and that time is of the essence). If you rent or are getting out of your mortgage (selling, renting, foreclosure, etc...), start looking for either a public housing arrangement, which, depending on your location, may entail getting on a waiting list, or find an apartment with lower rent.
9) Get back on the horse. Even while arranging for low income assistance, keep up the job search. Give yourself a goal of submitting X applications per day. Hit a range of employment possibilities: now is not the time to wait for that perfect job, get out and sling hash if you have to.
10) Keep morale up at home. Nearly everyone goes through tight times during their lives. Remember that this is only temporary. In the meantime, be careful to not take frustrations out on your kids or spouse; instead, circle the wagons and be supportive of each other--more so than usual.
11) Keep a tight rein on discretionary expenditures. Eat at home or sponsor a good old fashioned potluck for a change. Use your local library for internet, DVDs (consider comedies over drama or horror, see previous point), CDs and books. Take advantage of free local festivals, concerts, plays and lectures.
12) If you find that in the midst of job-hunting and applying for government assistance you still have time on your hands, start volunteering--this will feel empowering, get you out of the house and meeting people and contribute to a society-wide effort to confront the effects of the economic downturn.
Best of luck.
1) Swallow your pride. This can be the most difficult obstacle because in the US we have this undercurrent of individualism that degrades those who ask for help. If it helps, the champions of this ideology are currently in Washington DC begging for handouts to keep themselves employed. The rules have changed, it's OK to rely on others for a while; in fact, embracing the idea of mutual support over cut-throat individualism may be our only way out of this debacle.
2) File for unemployment benefits, in some instances you can do this online. Benefits vary by state so check online to find out what kind of documentation you need to file.
3) Get food stamps now. Next to housing, the monthly grocery bill will drain your resources faster than anything else. The food stamp program is now called the Supplemental Nutrition Assistance Program (SNAP), find out if you're eligible online and visit your local SNAP office.
4) Along with foodstamps, consider supplementing with food from your local food bank (this link has a great foodbank locator).
5) If you have small children (up to age 5), don't hesitate to get on the WIC program. This will ensure a monthly inflow of healthy food for the kids.
6) Finally, if you have a little land, now would be a good time to consider planting a garden. It will help you feel more self-sufficient and pulling weeds can be quite relaxing.
7) File for medicaid , SCHIP or medicare to keep you and your family healthy.
8) Consider alternate housing options. If you're mortgage is too high, try to renegotiate a lower rate with your bank (tell them that you are looking at foreclosure otherwise and that time is of the essence). If you rent or are getting out of your mortgage (selling, renting, foreclosure, etc...), start looking for either a public housing arrangement, which, depending on your location, may entail getting on a waiting list, or find an apartment with lower rent.
9) Get back on the horse. Even while arranging for low income assistance, keep up the job search. Give yourself a goal of submitting X applications per day. Hit a range of employment possibilities: now is not the time to wait for that perfect job, get out and sling hash if you have to.
10) Keep morale up at home. Nearly everyone goes through tight times during their lives. Remember that this is only temporary. In the meantime, be careful to not take frustrations out on your kids or spouse; instead, circle the wagons and be supportive of each other--more so than usual.
11) Keep a tight rein on discretionary expenditures. Eat at home or sponsor a good old fashioned potluck for a change. Use your local library for internet, DVDs (consider comedies over drama or horror, see previous point), CDs and books. Take advantage of free local festivals, concerts, plays and lectures.
12) If you find that in the midst of job-hunting and applying for government assistance you still have time on your hands, start volunteering--this will feel empowering, get you out of the house and meeting people and contribute to a society-wide effort to confront the effects of the economic downturn.
Best of luck.
Wednesday, January 7, 2009
The "new frugality" responsible for economic crisis?
The Wall Street Journal posted an article tagged "The New Frugality Worsens Downturn." The basic premise is that because of 2008's October surprise (i.e. the collapse of the financial sector, plunging stock market and the widespread destruction of wealth), American families, once the dynamo behind global economic growth, are beginning to save more, use credit less and live more within their means--leading to a sustained economic slump.
The author writes, "Americans, fresh off a decades-long buying spree, are finally saving more and spending less -- just as the economy needs their dollars the most." The assertions made by these kinds of statements is that the economy is sick and we need consumers to step up and do what they do best: go shopping. But this Bush-era argument is wearing thin in the days of post-Wall Street scandal. The fact is, Americans have been living far beyond their means for decades. Perhaps, just perhaps, after the illusions of wealth have all been dispelled and employment rates, car sales and stock quotes begin to reflect the reality that growth-at-all-costs is simply not sustainable, our expectations of what life is all about may also become more...reasonable. The GDP does not need to grow every quarter ad infinitum, the stock market does not owe you a 10% return on your investment each year, investment bankers do not need a 6-figure paycheck and nearly all Americans could and probably should make do with far less.
The "new frugality" is a harbinger of a society-wide adjustment of expectations. It is not a social malady, rather it is an opportunity for all of us to make conscious decisions about what kind of world we want to build on the ashes of outdated economic, ecological and social models--you know, the models that promoted the 60-hour work week, the 2-hour commute, over-scheduled kids, spouseless marriages, global warming, suburban sprawl, the collapse of innumerable species the growing gap between rich and poor, etc... No, the new propensity for families to save more and think more about what and how much they buy is an opening to a greener, more sane and sustainable future.
The author writes, "Americans, fresh off a decades-long buying spree, are finally saving more and spending less -- just as the economy needs their dollars the most." The assertions made by these kinds of statements is that the economy is sick and we need consumers to step up and do what they do best: go shopping. But this Bush-era argument is wearing thin in the days of post-Wall Street scandal. The fact is, Americans have been living far beyond their means for decades. Perhaps, just perhaps, after the illusions of wealth have all been dispelled and employment rates, car sales and stock quotes begin to reflect the reality that growth-at-all-costs is simply not sustainable, our expectations of what life is all about may also become more...reasonable. The GDP does not need to grow every quarter ad infinitum, the stock market does not owe you a 10% return on your investment each year, investment bankers do not need a 6-figure paycheck and nearly all Americans could and probably should make do with far less.
The "new frugality" is a harbinger of a society-wide adjustment of expectations. It is not a social malady, rather it is an opportunity for all of us to make conscious decisions about what kind of world we want to build on the ashes of outdated economic, ecological and social models--you know, the models that promoted the 60-hour work week, the 2-hour commute, over-scheduled kids, spouseless marriages, global warming, suburban sprawl, the collapse of innumerable species the growing gap between rich and poor, etc... No, the new propensity for families to save more and think more about what and how much they buy is an opening to a greener, more sane and sustainable future.
Friday, December 26, 2008
Trickle up economy
There are many good arguments for buying from locally owned businesses. The foremost is that your dollar goes much further in strengthening your community's economic base when you skip the Big Box or chain store and buy from a local retailer (see this summary of several recent studies). In the current economic crisis, supporting your community's economy is even more crucial. Vital communities require a diverse range of businesses to maintain higher wages, yet local businesses are the most vulnerable in this economic climate.
One reason for buying local has not generally been discussed (here's a list of the more persuasive arguments). Instead of waiting for bankrupt state governments, or the often ineffectual federal government, to fix the global economic tailspin, economically vigorous communities can contribute to a global solution through their philanthropy, sustainable socioeconomic models and their tax contributions (Big Box stores often receive tax breaks that border on the criminal).
So, when you make the effort to bypass one-stop shopping, or the convenience of the drive-thru chain restaurant, and buy local, you are not only strengthening your community's economy in ways that will ultimately reward you--you are also making a contribution to the institutions of state and federal governance that, like it or not, are key for stabilizing the overall economy.
Life without financiers?
While it is too early to declare the death of the American Financial Industry, it is not too early to think about life in a post-financier age. In fact many of us are learning to cope without credit, to think of retirement less as an investment strategy and more as a savings plan and to temper our expectations for a gold-plated future. As we stand around the hospital bead of our comatose rich Uncle Wall Street, perhaps we should take some time to think about what life would be like without him...
It is often stated that without fluid credit markets the American dream of owning your own house would be out of reach for most of us, that college education for the masses would be a thing of the past, and that business would close without access to easy credit. Perhaps, but we have to question the extent to which easy credit has simply driven prices up. There is a parallel correlation between the loosening of credit markets in the early 1990s and the dramatic increase in housing prices. If this is the case, is it reasonable to assume that without easy finance, and with a glut of empty houses on the market, that home prices would go down? Perhaps becoming much more affordable through private mortgage arrangements via the homeowner? Considering the damage to the world economy, we have to ask if the 15% increase in home ownership since the beginning of the 20th century (see Smeins 1999) was actually worth the trouble--especially since that very increase (once a point of validation for the finance industry's late 20th century alchemy) is slipping away at an alarming rate.
College education is easier to address as modern finance has little to do with students getting the necessary loans to attend college. I am case in point. I managed to run up fantastic debt in college without appeal to non-government backed loans. Of course there are other issues here. College endowments will shrink and that will affect scholarships and plans for college expansion--hopefully, it will force colleges to decide what their purpose is, are they a business or an educational institution? Often enough the two are at cross purposes. When tax revenue falls off, it will become harder for Uncle Sam to extend education loans in the same quantity, or so one would imagine. But I think that the Obama administration will place college education for the next generation high on its list of funding priorities.
As for the infamous "bridge loans" businesses apparently require to operate, perhaps businesses should, like households, operate within their means. For example, if a business owner regularly needs a quickie loan to make payroll, then perhaps she should stow that amount into savings and make it a part of her financial plan. If that doesn't work, maybe she needs to narrow the scope of her business. Business around the world are currently making these kinds of adjustments.
My point is that easy credit, as is now glaringly obvious, has been more of a problem than a solution (to paraphrase Uncle Marx, Groucho not Karl, "with a solution like that, who needs problems"). From multinational corporations to my house and your 401K, the current financial crisis is a re-evaluation of everything. Through across the board deflation, prices, salaries and futures will find a new level. My question is, will we be better off without Uncle Wall Street? Should we leave him in his coma, and get on the best we can? I think many of us already are.
Tuesday, December 23, 2008
Destruction of wealth
Recent numbers:
1) According to a report issued by the Fed: In the third quarter of 2008, U.S. households lost $647 billion in real estate; $922 billion in stocks; $523 billion in mutual funds; $653 billion in life insurance and pension fund reserves; plus $128 billion in private business interests.
2) The Treasury reports that $330 billion of the TARP have been allocated to banks, yet by far most of this money has gone into the "re-capitalization" of these banks. That is, this lump sum of taxpayer money has not worked as planned to loosen credit markets.
3) The amount of household wealth destroyed in the third quarter alone amounts to $2.8 trillion--apparently the worst quarterly loss in recorded history (although sources don't claim to adjust for inflation).
4) Deflation is here. U.S. consumer prices fell at an annual rate of 12%; producer prices fell at an annual rate of 26.4%; commodity prices are down as much as 70% from their peak.
All of this indicates that we are about to witness depression era levels of unemployment, business closings, bank failures and scarcity in the coming year.
What does this all mean? Things will likely be changing on an unprecedented scale. Make it a priority to create stability in your home, your community and beyond. Think about self-sufficiency and, beyond that, what you can do to make your community better able to withstand the shock of dwindling government largess. By all means, stock up on canned- and dry-goods, learn to bake and cook from scratch, put in a garden, etc., but also take time out of your week to donate time, money, goods and good will to community projects. Instead of "battening down the hatches" or "hunkering down," we'll get through this mess far better working together.
Subscribe to:
Posts (Atom)