Q. Dear Wizard:
It feels to me as though the poor are getting poorer, the middle-class is eroding and that we are facing recession, especially in my home state of California. Would you care to comment on these subjects and just what we can do about them? …A Silicon Valley friend.

A. I will respond in the context of what mature workers, and organizations that employ them, can, or cannot do to offset some of the problems you raise. Let's talk about poverty in your home state of California and about the erosion of the middle class in Silicon Valley. I'll leave the topic of recession on the back-but-interrelated-burner because of space constraints.

Before we get started:

I remind all readers that what happens in any state in the union, sooner or later, affects us all. And, when California, the 8th largest economy in the world, sends you lessons, count on your being affected sooner rather than later.

Once upon a not-so-long-ago time, Silicon Valley was immune to California's broader economic troubles. However,even your mid-waged, mid-aged income earners are struggling mightily today.

• 15% of the population of California is officially designated as poor by Federal standards. But is this figure correct? Not even close. I would place the real number of poor – including the nearly poor (the eroding middle class) at 20-22% in terms of measuring against the current estimate of 38 million Californians. The number can only get worse if older workers do not continue to work and, as a result, get poorer and cannot spend beyond buying the "bear necessities of life." According to the Bureau of Labor Statistics, the over 60 group is increasing by an average of 112% statewide during the period from 1990 to 2020. The hard numbers, by county, are a Google away. In summary: (1) Poverty is banging on the mid-income household's door. (2) Real earnings have declined in the valley, according to the San Jose Mercury News in a compelling article this past February 19th. (3) Poverty knocks loudest when people can't work. (4) Combine aging, shrinking mid-wage jobs, increasing low-wage-jobs and what have you got more of? Poverty, that's what.

What can you do? Encourage your employer to retain mature workers. If they need to know how to develop cost-effective recruiting, re-development and retention strategies for this segment of the working population, direct them to us – we will steer them in the right direction.

• The damage to the financial sector from the subprime crisis is worse, much worse, than widely reported in your state. By several accounts, 1 in 5 homes in California are in some stage of default or foreclosure. Your house – if you are fortunate enough to own all/part of a house –is worth less today than yesterday. Now, pray tell me, how do you feel? Poorer, perchance?

  What can you do? Other than hanging on, there really is not much you can do about this except to re-finance or discount your reliance on your house as they main source of your retirement income.

• Onward to the related subject of education in your area of California.

  The Valley's high school graduation rates are slipping:

  1. Roughly 1 in 4 Hispanic and 1 in 5 African American students drop out of high school.
  2. White and Asian students' drop out rates, while lower, are rising.
  3. California public education ranks near the bottom of all states in terms of achievement.

  Remember that what happens in one state affects us all. Allow me to "go wide" for a minute to present the bigger picture of the greater American population's educational challenges between our low-skilled workers and the high-skilled jobs on which our economy now depends.

  1. On a global scale, USA Boomers are the best-educated people.
  2. Our Gen X'ers (25-35 year old cohorts) rank 10th in the world for education.
  3. 25% of Americans have a bachelor's degree; Far from all degrees are of highly competitive value.
  4. One-third of college students drop out nationally.
  5. 1 out of 10 low-income students earn a four-year degree.

Carleen MacKay & Brad Taft
info@AgelessInAmerica.com