In a deeply unequal America, many of our deepest pockets are keen
to find out.
As
anyone who keeps a household budget can attest, the unexpected happens all the
time. A refrigerator evaporator fan motor fails. Some part on your car you
never realized existed breaks down. A loved one passes away and you have to —
you want to — be at the funeral 1,000 miles away.
“Unexpected”
expenses like these will, sooner or later, hit all of us. But not all of us,
says new research out of the Federal Reserve, can afford them.
In
fact, nearly 40 percent of Americans “would have difficulty handling an
emergency expense as small as $400,” the Fed says.
A
fifth of American adults, it adds, had major unexpected medical bills last
year. An even larger share “skipped necessary medical care in 2018 because they
were unable to afford the cost.”
Meanwhile,
17 percent of American adults can’t afford to pay all their monthly bills, even
if they don’t experience an unexpected expense.
What
these stats like these mean in human terms? If you live in a place like
Northern California’s Bay Area, you need only look around to see.
San
Francisco, recent research shows, now has more billionaires per
capita than any other city in the world.
By one reckoning, San Francisco also has the highest cost of living in the world, as all those billionaires — and the rest of the city’s ultra rich — bid up prices on local real estate.
By one reckoning, San Francisco also has the highest cost of living in the world, as all those billionaires — and the rest of the city’s ultra rich — bid up prices on local real estate.
But
the Bay Area squeeze goes beyond the confines of San Francisco.
Nearby Oakland and Berkeley are facing enormous affordable housing shortages as well. The Bay Area as a whole now has more than 30,000 people experiencing homeless.
Nearby Oakland and Berkeley are facing enormous affordable housing shortages as well. The Bay Area as a whole now has more than 30,000 people experiencing homeless.
Two-thirds
of these people haven’t been able to find temporary sheltering services.
They’ve been living and sleeping outdoors, many in lines of RVs parked along
public rights-of-way like the waterfront in Berkeley. And that’s infuriated
nearby residents who paid big bucks for their residences.
Berkeley
city council member Kate Harrison has felt the fury first-hand — from
constituents who wanted the RVs of homeless people banned from the waterfront.
“I
paid a million dollars for my place,” one constituent told her, “and they have a better
view.”
Local
officials in Bay Area cities don’t know quite what to do. On one side, they
have people without shelter who have real and unmet human needs. On the other,
they have angry affluent constituents who want for little but have a big
megaphone.
The
more people spend on housing, Berkeley councilperson Harrison has come to
understand, the more “aggrieved” they feel.
“Only
the 1 percent here,” she adds, “feel economically secure.”
In
other words, inequality has local officials coming and going. The ranks of the
homeless are growing because almost all the gains from America’s growing
economy, as the Economic Policy Institute’s Elise Gould testified to Congress this past
March, are “going to households at the top.”
Empathy for the plight of the homeless, meanwhile, is withering away — particularly among society’s most fortunate, as the social distance between the top and the rest of society widens. The rich have climbed so far up the income ladder that they can’t see the humanity on the faces of people stuck on the lower rungs.
One
telling sign of our unequal times: In wealthy Bay Area neighborhoods, the Washington
Post reports, GoFundMe campaigns have
emerged “to finance lawsuits against affordable housing
proposals.”
Can
a society survive without empathy? In a deeply unequal America, many of our
deepest pockets are keen to find out.
Sam Pizzigati co-edits Inequality.org at the Institute for Policy
Studies. His latest book is The Case for a Maximum Wage. Follow him at
@Too_Much_Online. Distributed by OtherWords.org.