Middle Class Feeling The Pain Of Recession

Friday, September 11, 2009
Topics: Economy, Politics
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90.3’s The Sound of Ideas examined the struggles of the suburban middle class, and where people who are accustomed to a higher standard of living are turning for help. Ideastream’s Bill Rice reports.

BR:  The United Way of Greater Cleveland’s 2-1-1 First Call for Help helps people who are in economic crisis connect with a wide range of services from government and non-profit agencies.  Typically, most calls would come from the urban center, says 2-1-1 Director Steve Wertheim, but that’s rapidly changed

Wertheim:  “We got very few call for foreclosure assistance from the outer ring suburbs, 2-3 percent even five years ago.  When we looked at it thus far this year, what we call the outer ring suburbs now represents about 20 percent of the total pie of folks calling.”

BR:  And they’re calling for all kinds of services – from health care to foreclosure assistance to help finding a job.  Food pantries report a dramatic rise is assistance to suburban families – 190 percent this past year, according to Wertheim. 

Unlike many in the city who fell victim to the turmoil brought on by the explosion of subprime mortgages, many suburbanites seeking help are people with traditional mortgages that they can no longer afford them because they, or someone in their family, has lost a job. 

Magyar:  “What we are seeing is that the clients that are coming in the door are people who never thought they would be in this position.”

That’s Lori Magyar, Client Coordinator for Avon/Avon Lake Community Resource Services.  She says unemployment can quickly change things for most suburban residents, and that requests for help at her agency have risen 90 percent since last year. 

Magyar:  “The impression is you live in this beautiful home in the suburbs, you have this nice cushion to fall back on, and I think reality is most people don’t.  They’re lucky if they have the money to make it through a month.  When they’re looking at a couple of months of an unemployment situation, it’s going to take all of the resources that they have.”

BR:  Unemployment insurance is certainly a help, and benefits can go as long as 79 weeks.  Ohio’s unemployment fund ran dry months ago, and the state is currently borrowing federal money to sustain it – it has to, under federal law.  That’s a big worry for state officials watching the budget.  Hundreds of millions of dollars will begin accruing interest in a little more than a year, and if the borrowed money isn’t paid back by the end of 2012, the feds can require the state raise taxes to do so. 

That’s probably not something Michael Gerson of Shaker Heights is worried about.  Gerson considered himself solidly middle class… until he lost his job last February.

Gerson:  It’s a very difficult feeling.  I’ve never been without a job and all of the sudden I’m unemployed.  And you begin to get a feeling of less than self-worth.  It’s a very difficult situation to be in.

BR:  Gerson turned to the Jewish Community Federation in Beachwood for help finding a job.  He found one recently.  And he has this advice for those in a similar circumstance. 

Gerson:  Don’t be afraid to turn to the people who are out there.  And there are definitely people out there and orginanizations out there in each individual community.  Whether it’s the Jewish community or Slavic community or another community, there are people there to help you, and I would suggest you try to find them because they do help tremendously.

BR:  You can hear the entire Sound of Ideas conversation.  Just go to our web site: WCPN.org. and click on Sound of Ideas.