Wednesday, May 5, 2010

DeepWater Horizon

As you may have heard, an oil rig has exploded off the Southern Coast of the US, causing a spill almost certain to be the worst in human history, with a potentially devastating impact on the local environment and everything that lives in it (which would be everyone that is alive).

http://news.yahoo.com/s/ap/20100502/ap_on_bi_ge/us_gulf_oil_spill

http://en.wikipedia.org/wiki/Deepwater_Horizon_drilling_rig_explosion

In the news, and in political emails, and among people's conversations, there is talk about what BP did wrong, how they might have prevented it, whether the government response was quick enough, how consumers should react....

But the truth; which almost no one wants to admit is:

This is OUR fault.
If you drive a car, ever, for any reason, you are personally responsible for the spill.

If you don't own a car, but sometimes you borrow one, or get a ride with a friend, or take the bus, or take a long-distance train, if you fly or travel by ship, that oil was being drilled for you.
If you are a hard-core oil abstainer, never travel long distances, do all short trips by bicycle, nearly everything you buy, food, clothes, books, paper, your bicycle, the computer you are reading this on right now, was both produced and transported with the help of oil.

We don't get to blame oil corporations, or government, or BP executives, and the capitalist economy. It is US. All of us.
Instead of writing angry letters or boycotting a particular company, how about taking this opportunity to use a little less oil yourself. However much that is, make at least a little change, and use a little less.

Buy something used which you would normally have bought new.
Ride public transit, a bicycle, or walk, when you don't have that far to go.
When you do drive, drive a little slower.
And stop accelerating toward red lights - it won't get you where you are going any faster anyway.

Wednesday, April 28, 2010

Awareness of white privilege VS actually working to change it

A couple friends of mine are taking a class on being a "white ally" - race awareness and relations, power and privileged, and counteracting racism.

One of them mentioned to me some critical feedback she had offered and it got me to thinking in more detail what has always bothered me about those sort of discussions, but up until now never quite pinned down.

The following is not a commentary on that class in particular, as I know essentially nothing about it, but rather a critique of a few general ideas I have heard and read on the topic in the past:



1 There is no such thing as "people of color"
-The impact of past racism (including slavery) and present racism does not effect all races equally, nor all in the same way.
- A black american and a white american likely have more in common with each other than with a fresh-off-the-boat Vietnamese person. A white american whose family has been in the US for generations likely has more culture in common with a black american than with a first generation eastern european immigrant with whom they share skin color.
-The very term "people of color" encourages white people to think in terms of a false dichotomy of 'us' (all white people) and 'them' (everyone else). It not only homogenizes all other races, it also makes everyone not white into an "other".
-Lumping all non-white cultures into one category, while giving white an entire separate category in itself suggests a type of superiority.
-This dichotomy also discounts the existence of mixed race individuals (officially 2% of US society, but really much higher - most surveys, as well as society, force people to choose one identity, even if they are in fact mixed)

2 Historical racism is the single largest cause for modern black poverty, and poverty does generally correlate with crime. However no historical or sociological factors can excuse individual behavior. No matter what circumstances a person is born into, they have a choice about their own behavior. Apologizing for, ignoring, discounting, or explaining away black crime rates, drug rates, or general anti-social behavior (e.g. boombox on a crowded train) does nothing to increase equality, and does not bring less conscious white people about as allies.

3 Discrimination is explicitly illegal. Talking about "institutionalized" or "systemic" racism does not address the issues which are most relevant today. While there are still white supremacists in the US, their view has become as unacceptable in mainstream society as it once was only among civil-rights activists. The president of the US is 1/2 African. This does not mean that the conversation about race is over. However, it does mean it is time to change that conversation.

For example, talking about power hierarchies is mostly nonsensical today. If racism = racism + power (as is often claimed by race activists), this does not imply that only whites can be racist, because whites do not have any particular power over other races. There are minorities in the role of police officer, judge, congress person, boss, professor, etc. as well as whites in poverty, in jail, or otherwise powerless. If you ignore all individual circumstances and look only at the whole society, then no one can be racist, because society is no one person.

4 Rarely is it explicitly acknowledged how much - and in what way - individuals (primarily, but not exclusively, white) continue to benefit from past racism. This nation was taken by force from the American Indian, built largely by African slaves (as well as Asian indentured servants) and thanks largely to not only racism, but also inheritance and locally funded education, past disparities directly result in present disparities. Even if one's own ancestors never killed Indians or owned slaves, the mere fact of living in this country means you personally benefit from those who did.

5 Not all non-white people are poor. Not all white people are middle class or wealthy. Class and race are not interchangeable. To speak about them as if they were interchangeable represents a stereotype - it implies a universal truth based on a statistic. The implication itself is racist.
Replacing discussions of poverty, economics, and class with discussions of race is a tool those with power (white, yes, but a special subset of white people - wealthy conservatives) use to polarize the working class. They emphasize criminals and welfare recipients (read: blacks) or immigrants (read: hispanics) and leave unspoken as a given the unity between white Americans of different classes. This helps prevent what should be a natural alliance of the lower class against those who exploit them.


6 What keeps the racial status quo in our society is not a social issue, but rather an economic one.
What too few people talk about is the way in which the condition of one generation affects the next.
After slavery blacks were supposed to get land. This was not a hand-out, but merely a way to compensate, to allow them to begin to catch up. This never happened.
Since poverty is inherited just as surely as wealth, the only way to level the playing field short of paying reparations (with 145 years interest) today would be a strict inheritance tax on not only the wealthy, but the middle class. This would include not only cash, but things such as houses and family businesses.
The single largest factor in predicting an individuals success in life is their education. Pre-school is the best indicator of how well a child does in school. It will be impossible to ever have a equal society without universal, mandatory, publicly financed pre-school. Schools in America are funded 50% or more by local taxes. This system guarantees that schools in poor areas are underfunded and schools in wealthy areas have better resources and an easier time keeping good teachers. Locally funded public schools is an amazingly effective method of retaining the status quo, while appearing on the surface to be neutral and fair. To counteract generations of inherited poverty, ignorance, and a cultural mindset of being separate from society, America should be offering fully funded college for all low-income high-school graduates. And because poverty and ignorance are inherited no matter one's color, this should be extended to anyone who can't afford it.


Racism, in the sense of individual people with power holding stereotypes about a race and acting on that prejudice against individual members of said race, is a relatively small factor in modern America. Formally institutionalized racism is a thing of the past.
Were all of society, at all levels, to suddenly become "color blind", the trends set in motion hundreds of years ago would continue none-the-less. For this reason educating individuals about the existence of "white privilege" can not do much to change anything. If energy is going to be invested into change, it should be invested where it will do the most good.
Its one thing to be aware of culturally insensitive language. It is another all together to recognize that the economic system we take for granted perpetuates the impact of slavery, and that no matter how aware one is in their personal relationships, you directly benefit from the current system - and then work to change that system, even if it means undermining your own economic advantages.
This would mean advocating significant increases in middle class taxes, to fund more social programs. This would mean taking the time to counter the "tea-party" people, pointing out that true justice demands a redistribution of wealth. It would mean protesting to get colleges fees raised, in order to pay for scholarships. This would mean, instead of donating money / time / materials to your own children's school, donating that same time and money to the poorer district a few miles away.

Me personally, I have been called ni**er on more than one occasion. But (not counting by other black people who use it casually - that is whole different topic) it has been in each case by a meth addict (one disowned by her family, and the other evicted from a trailer park). These are people with no power, no influence. These are people so low on the social strata, all they have left to feel even mildly good about themselves is to find someone to hate, for any reason they can. As much as it roils the blood to hear it, they are harmless. The people and ideas that maintain the status quo - including associations of particular races with poverty, drug use, crime, etc - are not overtly racist; in fact, in most cases not even necessarily sub-consciously racist. Racism set up the status quo, but economics is what maintains it. Capitalism, the free market, individualism, and the republic system of government (as opposed to true democracy) all play a part in maintaining the present as it was in the past. If we want a just society, those are the things that we need to look at first.

Tuesday, April 27, 2010

Response to "Turning Hustlers into Entrepreneurs"

"Turning-Hustlers-into-Entrepreneurs" discusses the possibility of increasing micro-credit in order to support independent "black market" business people. As someone who has been running a successful off-the-books business for several years, I believe the major obstacle is not a lack of credit, but rather a government which is geared toward big business.
As the examples in the article illustrate, people are already doing what they are doing, without capital. What they lack is official legitimacy. Many entrepreneurs, such as myself, would love to "go legit", but it is not a realistic option.
I understand and support the idea that government regulate business to protect consumers. The problem is that government does not take the size of a business into account in the requirements it imposes on operating legally.

For example, a single guy with a pick-up truck doing local deliveries pays the exact same state license fee as a company with a fleet of semi trucks. The least insurance available to him is a million dollars of coverage with a 1-2 thousand dollar annual premium, even if he never comes close to transporting a million dollars worth of goods. Every city he works in requires its own separate business license. If he needs to hire a subcontractor on occasion, he needs to buy worker's comp insurance at a minimum, and possibly more. Being self-employed, he pays an additional tax (which an employer would otherwise cover). And of course by staying underground, he avoids paying any income tax on his business revenue.

All of this can easily add up to thousands of dollars. That sum may be inconsequential to a corporation with annual sales in the millions of dollars, but to a small independent, going legit would cost me about 20% of my entire net revenue, more than two months income.

The solution to this is not to finance small business to help them pay for theses fees - these fees are annual, and taking loans only increases risk. The solution is to have license fees proportional to net revenue, instead of being fixed amounts, requiring insurance companies to offer a full range of coverage options, including (potentially less profitable) low limit policies, and restructuring tax code so there isn't a penalty to being self-employed. Similarly, laws making it difficult or illegal to run certain types of business from home could be relaxed, (for example, allowing small scale retail in otherwise residential districts), eliminating the need for a dedicated store-front, a major on-going expense.

Reducing the government imposed costs of running an independent business legally would , without the additional risk incurred (for both the investor and the entrepreneur) by accepting loans or the costs incurred by providing grants. It would also increase tax revenue, by encouraging existing underground businesses to come above the radar and join the mainstream economy.

Monday, April 26, 2010

Global Warming Revisited

The following was a "letter to the editor" I submitted to a progressive magazine in response to articles on global warming:



In "American Psychosis" you point to the many people who acknowledge global warming, but do not change much, if anything about their destructive lifestyles, and in "Hot Air" talk about the point of view of skeptics and deniers.

I run a certified green hauling business. I modified my delivery truck to get 30mpg (from 15mpg) and run it on 100% biodiesel made from recycled veggie oil. I also work part time supporting people who bicycle to work (at a business which runs at a loss because our main service is free). I live in a 250square foot home and use less than $5 worth of electricity most months.
I also have some background in science, including degrees in earth science and biology, and generally track down sources for claims I read.

Having read arguments on both sides, I am not convinced that humans are significantly contributing to climate change. While I admit I haven't kept up with the latest research, I have yet to see several points addressed:

1 The climate naturally goes through cycles of extremes. The current climate reflects roughly where it is expected to be. Our methods of determining past temperatures are not precise enough to tell us the rate of change over small periods of time in the past, and so it is difficult to determine if what we see today is abnormal.
2 Geologic data suggests that in past periods of climate change, temperature has always changed first, with CO2 levels changing as a result of temperature change, not the other way around. This does not necessarily indicate it is what is happening this time, but it could account for what we are seeing.
3 Climate predictions are only as good as the models they are built on, which in turn are only as good as the computers that run them. We simply do not have computers powerful enough to accurately model something as complex as the earth's climate. Last I heard, in order to reduce complexity to a manageable level, most models omit details such as water vapor (arguably the single most important variable) all together.
4 Human caused climate change is frequently referred to (particularly in liberal media sources) as having "scientific consensus". According to Pew Research center 86% of scientists concur. While 86% is clearly an overwhelming majority in a democracy, in science 14% is too large a minority to simply ignore.

But here's the thing:
It doesn't make one bit of difference if humans are contributing to global warming or not.
Whether we are causing it or not, its happening (that doesn't take predictions, just measurements - its happening)
Therefor we should prepare for it.
Even more important: independent of global warming, our lifestyles are harming the ecology of our planet. Even if an individual feels no moral reason to care about life other than humanity, it is undeniable that we are totally dependent on the environment for our own survival.

Regardless of climate change, our driving and electricity generation cause air pollution, which in turn causes cancer, asthma, acid rain and many other air quality issues. Drilling for oil and mining for coal (or uranium) causes massive destruction - when things are running as they should - never mind the occasional catastrophic accident. Vehicle manufacture itself takes an enormous amount of raw material (as well as energy) all of which must be mined/refined/transported and which carries an ecological price tag. Auto accidents are the number one killer of all Americans below 40 and remains one of the top causes of death and injury at all ages. Their is evidence that the lack of exercise associated with driving is the number one factor in the obesity epidemic. The fact that we consume far more energy than we can produce domestically puts us at risk, both politically, economically, and militarily.

All of these problems would remain if we switched to electric (or fuel cell) cars. Most would remain even if we discovered cold-fusion or some other unlimited supply of cheap energy.
And of-course all would also remain if humanity decided to combat global warming with a grand geo-engineering project.

The exclusive focus on "human-caused climate change" makes it easy for people to write off environmentalism, because the science is not, in fact, conclusive (as of yet). It also encourages the idea of using technology to "solve" the issue, with potentially unintended consequences. And it completely ignores all of the other real, urgent, indisputable problems that our lifestyle has created.

Whether it turns out humans are accelerating climate change or not, our course of action needs to be the same:
One way or another, the earth will eventually get warmer, and people need to be ready to adapt.
One way or another, the American lifestyle is destructive and unsustainable, and we need desperately to downsize our extravagances: give up the car, stop flying, eat vegetarian / organic / local, cut electricity use, buy less stuff, shop locally (when buying is necessary), waste less water, and live in locales that are naturally hospitable to humans (i.e. not the desert)

We can either focus on gradually changing those things now, voluntarily, or we can ignore them and have them changed for us in the future, in which case the change will be very unpleasant, and likely include violence.
Addressing climate change does little to address any of those issues, and where it does it is only incidental.
While I understand the good intention behind keeping environmental issues on the forefront of everyone's minds, I believe that the single-minded focus on global warming is actually counter-productive - even if it does turn out to be true.

Monday, December 14, 2009

Christmas Lights

So many people, when the subject of christmas lights come up, they acknowledge they are nice, but go on to add "but they are a waste of energy".

As someone who feels strongly that American's use of energy and resources is morally unacceptable, I would like to be very clear about this:
Christmas lights are NOT a waste of energy.

That 80% of car trips have only the driver or a driver and one passenger, yet seat from 5-7 people is a waste of energy. That we live, on average, 20 miles from our jobs is a waste of energy. Uninsulated attics and unweather stripped doors and windows in houses and power steering and air conditioning in cars, all electric kitchens, and cars that weigh 50% more than they did 20 years ago and have 200% more power are all enormous wastes of energy.
Buying enormous amounts of crap that no one really needs and that get shoved into a closet or thrown out after a few weeks wastes energy in manufacture and transport.

Not one of those things provides any significant increase in quality of life. None of them make people happy to be alive. At most they provide a tiny increase in convince. At worst they do nothing but cost money. None of them create joy.

In a land where profit is considered the only motivating factor for nearly everything in life, filled with people who don't know their neighbors, where 50% of people can't be bothered to take the effort to use their turn signals, for a few weeks a year people do something with no financial benefit, no increase in comfort or convenience, no direct personal benefit.
You don't even see them from inside the house. Everyone else passing by sees them.
They turn an ordinary neighborhood into a magical place.
They create joy.
Which makes them one of the few valid uses of energy in this country.
Because ultimately, making it enjoyable is really the only point there is to life.

So go ahead and enjoy those giant flashy displays and don't for a second feel guilty about it.
Put up your own even.

You can get a strip of LED lights for less than $10 that use less than 5 watts of power, (far less than a single florescent light bulb).
I even found a set for under $5 that runs for days on just (rechargeable) AA batteries.

But LED or no, the lights are worthwhile and good.

A world without christmas lights is not a world worth saving.

Friday, December 4, 2009

The Wine Barrel (population and parenthood)

The Earth has been around about 5 billion years, life about 4 billion.
Half a billion years for animals, 200 billion for mammals.
200,000 years of humans.
For the first 192,000 years or so, the human population was under 10 million people world wide.
Increasing 10 fold took 6000 more years.
We rocketed from 100 million to a billion in just over 2000 years.
The next billion only took 120 years.
And then 30.
And since the 1950s, we have added a billion people every 13 years or so.

We are at around 6.75 billion people now.

http://upload.wikimedia.org/wikipedia/commons/b/b7/Population_curve.svg

Its estimated that it will hit 9 billion in about another 30 years.
That new 2 and a quarter billion people will be our children.

We like to point to the 3rd world, to Asia and Africa, but in the measure that matters, the US is by far the most overpopulated country in the world, as well as one of the fastest growing.

Population is only an issue because of the finite resources the Earth can provide. If we had unlimited resources there wouldn't be any reason not to keep increasing indefinitely.

If everyone used the same amount of water, land, and energy, and caused the same amount of pollution as the average person in the third world, we would all be ok for a long time to come. Due to lack of ability, what we call poverty, people in the third world tend to use less than their share of world resources.
The average person in the first world uses 5 times more than the overall world average.
The average American uses 20 times more. Each of us uses about 20 times more water, 20 times more fuel and electricity, 20 times as much land to produce our food, produces 20 times more waste and pollution.
Which means that in the big picture, each of us counts for 20 people.

So our 305 million population may as well be 6.1 billion, far more than China's 1.3 billion. They would have to increase some combination of actual population and consumption per person by far before we could legitimately point the finger at them.

It also means that each child we have counts as 20 people, turning our fertility rate of 2.1 (already above the replacement rate of 2) into the equivalent of 42 per woman, 6 times higher than the highest rate of any third world country - and almost 17 times higher than the world average.

In the US alone there are 200,000 children waiting to be adopted.


It is one of the most basic and universal desires is to reproduce. How could it be any other way? Because if that drive weren't passed along genetic lines, our ancestors wouldn't have bothered, and we wouldn't be here to think about it.

There has been a widespread assumption that because it is natural and universal that therefor it should be considered a human right.

Our modern world does not resemble the savanna we evolved on. We also have biological instincts to eat whenever food is available in case it isn't tomorrow - and the result is rampant obesity - and a good number of us making the conscious choice to go against instinct and manipulate ourselves in ways that take into consideration the reality of our world. Violence is natural and universal, but we agree as a society that the costs are not acceptable and make the conscious decision to repress it, both as individuals and as communities.
Because, we can do that, we can think, and make choices.

To make wine or beer, you start with grape juice or grains and add microorganisms.
For them it is an incredible feast! Sugar and carbs as far as the eye can see, no predators, no competition, perfect weather. So of course they have a really good time, girl fungus meets boy fungus, there's plenty to feed the babies and things just couldn't be better. And then after a while they literally die from drowning in their own waste products as the population gets completely out of control.
(And then we drink that waste product, but that's another topic entirely)

Human beings, in theory, are a lot more intelligent than yeast. They don't even have brains. As individuals we can choose not to have children. But as a whole, an outside observer would not see much difference between the species. As a whole, we continue to breed at a rate related only to the resources available today, with little or no regard to how sustainable those resources are.

A great many people - including liberals and environmentalists and those who are childless by choice - become indignant when this topic is brought up. Reproduction is considered by many to be a fundamental (God-given?) right, and suggesting otherwise brings to mind eugenics programs, or the murder of female infants when China first instituted its one-family/one-child program when sons were the only form of social security the society had. Those are not inevitable outcomes.

As a specie all societies choose to discourage some of our natural instincts in such a way that slight personal restrictions result in a far happier society over all. It may be perfectly natural for me to want to punch some annoying person right in the face, but the government isn't going to give me a tax break for doing it.
Just the same, it is only natural that I want to have my own kids, related to me by DNA, but if it is going to end up making life that much more difficult for all of the people who are already here, perhaps a tax penalty is more appropriate than a credit.

Average cost for fertility treatment is $12,000, and 12% of US couples seek it. In about 1/2 the states this is covered by insurance.
Given the 200,000 existing children who need homes, I find this immoral. Think what medical services could be provided to people who are already here with that $4 billion.


Governments could encourage this simply by removing tax breaks for kids.
I don't actually think that is going to happen.

But you and I can still choose on our own to act, even if everyone else isn't likely to fall in line. Its been calculated time and again that simply having a baby has greater impact than all the imported GMO processed food and single-person commutes in SUVs could ever hope to have. From an ecological standpoint, it would be better to drive a hummer and eat at Mickey Ds but adopt your child then to live the hippy lifestyle in a solar powered yurt with a grey-water garden and create 3 brand new babies of your own.

And now we get to the real crux of the matter.
Being aware of this, just how much personal sacrifice are we willing to make? I want the experience of creating a child. I also want to avoid being an amoral hypocrite. (A moral hypercrite? Yes. I aspire to be a hypercrite someday.)
Like most people, I have developed a defensive rationalization to allow me to not feel guilty about doing what I wanted to all along, even though I really know better.

The way I see it, I personally can't be expected to be held responsible for or make up for the excessive consumption of everyone else around me. I couldn't if I wanted to. I personally have a sustainable ecological footprint (i.e. if everyone on the planet used the same level of resources as me, we'd all be set indefinitely). If me and my hypothetical future partner have 2 kids, once we die, overall, the population hasn't gone up. If we have just one, its gone down by one. That seems like a decent compromise to me. I'd like to have one, and adopt one. (As a bonus, I can choose to have one of each gender, and more precisely choose the age spread).

Many people object to ideas around population control as an emotional response to implied guilt about already having children, and feeling defensive about kids that are already here. A potential person has nothing in common with a real human being who is actually here. Acknowledging that resources have a finite rate of renewal is not a personal attack on you. No one is saying your child isn't wonderful or that you made any "wrong" choices. All I am saying is, however many blessings you have, stop now.

Similarly some people in these discussions suggest that if any one who advocates population control should kill themselves if they really mean it. This equates the mere idea of a person, a hypothetical, potential person, with an actual specific person who is here right now, thinking and breathing and feeling. We aren't talking about abortion here. Not having a kid is not killing by any definition. Any discussion about who a person who does not exist might possibly become is equally ridiculous. That kid who could someday be is no more likely to become the next president than it is to be a serial killer who enjoys torturing victims.

Bottom line is, having less children today will be much less painful than wars of dwindling resources some number of decades in the future.

Saturday, September 26, 2009

Spoiled: The Economic Downturn, Luxury as Necessity, and "Struggling" in the Modern Economy.

My original comment was not meant to imply I don't believe that there are tangible effects on people (most notably unemployment, which is certainly up compared to a few years ago).
All I said was that media and politicians largely made it up. I think it is a self-fulfilling prophesy to an extent, where in people hear constant messages that times are tight, therefor they cut back on consumption, therefor retail markets fall, therefor manufacturers cut back, and employers start laying people off. Which fuels the beginning of the cycle even more. This is why business analysts track "consumer confidence". In fact, to a large extent it is what the stock market is all about. Its less a question of how well a company is doing and more one of how popular are they. If people think its doing well, they buy, which itself drives the stock price up. It works both ways, so if everyone is convinced the market is doing bad, they sell so they don't lose too much by waiting, and then companies don't have the capital to invest.

-

I think it is totally unreasonable to adjust what it means to be "poor" based on those around you.
If we did that, billionaires could claim to be poor if those around them are multi billionaires. In fact, everyone except for the single richest person in the world would be "poor".
Clearly there should be some objective standard of poverty.
I think the only reasonable one is the point at which you have a reasonable fear of not being able to provide the basic necessities for oneself and family. Food, shelter, clean water. If you can afford so little food that it affects your health, you can claim to be poor.

It doesn't have to be a "big" car. If you own a car, you aren't poor. Period. Never mind that most people in the world couldn't even afford the up-front purchase price of a car. Much higher than that in the long run is costs for fuel, insurance, parking and tolls, maintenance, tickets...
For hundreds of thousands of years of human existence even the wealthiest people in the world could not buy cars.
Only in the US do people honestly believe that they are a "necessity".
All over the country people claim to be struggling who are paying for cable TV. They eat out and buy $2 cups of coffee. They have cell phones and internet connections. These are things most people and the world can't afford. They are not basic necessities.

Supposedly a person in the bay area needs 3 times the federal poverty level in order to live "comfortably"
http://articles.latimes.com/2007/oct/17/business/fi-wages17
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/10/17/MN0ISQEFP.DTL

They take it for granted that everyone needs a car.
And since when does every 6 year old need her own room?!
In the case of the 2nd article, I have no contempt for the person they profile. She (rightly) considers herself middle class.
(Hopefully, after having been interviewed she doesn't change her own standards).
Now, going into collection, obviously a problem. Thing is, that is another of those uniquely American things: living beyond your means.
The whole recession started because of people deliberately buying beyond their means with interest only loans. The whole idea being, buy something you can't afford and assume that the market will go up enough to cover it. Then, surprise! The people who were living beyond their means defaulted on their loans.
Consider that the size of an average new home has increased 250% over the past half century.

Then banks didn't want to lend. "Credit crunch". Well, again - the solution to a credit crunch? Don't live beyond your means. http://www.huffingtonpost.com/harry-moroz/forget-the-squeeze-the-mi_b_263100.html

Thing is, poor people don't get lines of credit extended to them in the first place. Because they are poor. The people who go to Labor Ready for temp work, the people who live here in the trailer park, they don't get loans for houses or new cars. They don't have credit cards. Most of them don't even have bank accounts. They pay rent with money orders and bring paychecks to check cashing places.

This is poverty: http://www.utne.com/Politics/Squatter-Villages-Tent-Cities-Informal-Urbanism-Economic-Crisis.aspx
And it was around long before the foreclosures on sub-prime loans started piling up.

In my line of work, between my low rates, and my green focus and good reputation, I end up having a huge range in terms of the incomes of my customers (hence the sliding scale idea).
I get students and people on SSI who genuinely can't afford more than me. I get others who live in 6 bedroom 3 story houses in the hills. I have been nonchalantly handed $100 tips on more than one occasion.

I also work with day laborer sometimes. These are people who will work for pretty much whatever you offer to pay them, work incredibly hard, and never complain. I ask them about work, about home, they invariably tell me: they are getting very little work here. Very little. But it is still better than the situation back home. That's why they are here. They work for less than minimum wage since they lack language skills and legal papers.
A customer yesterday mentioned her mother used to work for Nike in Vietnam. The company ships the product clear around the world because the people will work for a fraction of the US minimum wage. But she said it was a very decent salary compared to other options available to the people there.

The worldwide average income for an adult is roughly $7000.
http://hypertextbook.com/facts/2006/MateNagy.shtml (note, this is over a decade out of date - the inequality has grown since)
That's including the 1st world; including the US.
This is in "purchasing power parity" - accounting for not only exchange rates, but what you can actually buy with a given amount locally.
$7000.

Over 80% of the worlds population has an annual income below that rate.
The world median income is $1700.
http://www.boston.com/news/world/articles/2007/10/07/average_earnings_worldwide/

So, yeah, I do think that is pretty much just the homeless who have a legitimate claim to poverty in this country.

There are plenty claims that the economic downturn hits the poor hardest: but then, they are putting people who own $290,000 4-bedroom townhouses in the category of "working class"
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/16/AR2008101603605.html

The truly poor don't have far to fall. A recession can not possibly affect them as much as someone who has tens or hundreds of thousands of dollars of annual income to potentially lose.

-

The last thing I wanted to mention is about how profit distribution ties in to unemployment.
In this country it has always been accepted as a given by almost everyone that 100% of the increase per worker in productivity due to advances in technology goes to the owners of the company, and not to the employees.
For example, say someone invents a machine that allows a worker to produce 2 times more widgets per hour.
What happens is (since the market for widgets hasn't grown, so they don't need to produce twice as many) the company lays off half it's work force, produces the same amount of widgets, sells them at the same price, and increases its profit substantially (paying half the wages, but making the exact same revenue).

There is no inherent reason that they couldn't instead reduce all of the workers hours 50%, while increasing wages 100%. Neither the employees nor the company loses any money. They both make exactly the same as they did before. The only change is the workers have half the work hours, and can use the rest of that time however they choose.
In the 2nd option no unemployment is caused.

In actuality productivity per worker has increased roughly 20 fold over the past century.
Over the same time (adjusted for inflation) wages have only increased 7 fold. The entire rest of that increase has gone to profit - ultimately to the upper class, who own the means of production.

Profit is after business expenses and costs and taxes, after wages, even after salaries to the CEO and upper management, often in the millions (even among companies that are losing money - even ones that got federal bail out money paid million+ salaries.)
Profit is what is left over after that. It goes to people who do literally no work for it at all.
There are industries which make as much as 20% profit margins.
http://money.cnn.com/magazines/fortune/global500/2009/performers/industries/profits/

So when companies claim they "have to" lay off workers because they are making less revenue, I say they are full of crap. If they are making ANY profit, anything over breaking even, they have no justification for laying people off. If they are paying upper management 6 digit incomes, there is no justification for laying off their lowest wage earners.
In many European countries (and Canada) that is actually illegal. The government can (and will) sue a company for laying off workers unnecessarily. In these places it is understood that the whole purpose of the economy is to serve the needs of the people, not to make people with investment capital even richer.

We could reduce unemployment to the minimum possible by having overtime kick in at, say, 35 hours a week. Then to maintain current levels of production, companies need to hire 15% more people just to get back to the level they were at before.

There is nothing inherently good about creating wealth (or widgets for that matter) just for its own sake.
Going from multi-millionaire to billionaire will cause no overall long-term increase in happiness.

But instead of increasing the income of the destitute and struggling up to the level of secure in basic necessities, as a society we have been allowing - even encouraging - all of the increase in wealth to go to the top levels of society. The ranks of middle class conservatives and libertarians push for this hardest of all: http://answers.yahoo.com/question/index?qid=20090128071009AADfUVw
http://www.motherjones.com/mojo/2009/09/snapshots-tea-party

-

It's human nature to want more than whatever one has, and to want more than everyone around you.
And everyone wants to believe they earned what they have, no matter how strong the evidence against it, because its easier on the conscious than admitting being greedy and amoral.
Its what explains the "pull yourself up by the bootstraps" myth.
You can see it in everyone who rallies against illegal immigrants. They will insist it has to do with following laws for the sake of laws, but suggest making all immigration legal, and you find out its really about allowing them government benefits and taking American's jobs. The only way to justify it would be to claim that some people "earned" being born in a first world country. (People always have the "us vs them" xenophobic mentality that makes benefiting at the expense of others ok as long as they are "others")
I think that, just like with laws to discourage violence, or the use of birth control, discouraging some of our basic instincts is better for everybody; the desire to always have more, on a planet with finite resources, is what makes people who live extravagant lives in this country think they are poor. I think that's not ok.

The economic downturn means that people who lived excessively unsustainable lives now live moderately less unsustainable lives. It's actually not enough, but its a start.
I think that's a good thing.