Assignment 10

Poverty is a social issue that impacts many of us today. In this economy it is all around us. People we know in a personal capacity have been affected. This assignment was one that forced me to think about our society as a whole and realize how big this issue really is. Poverty is never something one hopes to experience in his/her life time.

For this assignment, I interviewed very dear friends of mine who have been affected by the economy and who are now at poverty level. She was an administrative assistant and he was a project manager at a construction company. Together they made $68,000.00 a year to provide for their three kids. When the economy was at its worse, she lost her job first (December of 2008). Next, he lost his job two months later in February, 2009. About six months later, they lost their house and moved in his aunt’s basement to try and make ends meet. Below is a list of their expenses when they were living in their house.

Mortgage: $1500.00

Food: $450.00

Car payment: $300.00

Medical Insurance: $600.00

Child Care: $667.00

Phone/Internet/Cable: $150.00

Car Insurance: $120.00

Electric/Gas: $166.00

Water: $210.00 (for three months)

Clothing: $120.00

Entertainment: $150.00

If you were to do the math, that brings their total monthly bills to $4,293.00. If we multiplied that number by twelve to get their yearly expenses we would get a total of $51,516.00. During this time they were living well within their means. After the economy took a turn for the worst and they lost their homes and jobs, they made $2,468.00 per month on unemployment. That totals $29,616 a year between the two of them. Their number one priority was their kids so after they foreclosed on their house, some of the first items to go were child care, phone, cable, internet, entertainment, medical insurance for just themselves (they kept the kids on). They got a car that they bought out right so they would not have to pay a car payment. Living in his aunt’s basement they paid $500.00 a month toward the expenses of the home. Their clothes shopping now took place at the good will instead of name brand stores. Life had changed dramatically for these two within a matter of months.

I learned so much from doing this assignment. I really have a better understanding of the current state of our economy. After hearing this story, I took a moment to appreciate every single thing I have in my life. What worries me most about this situation is that when you experience something like poverty, a person will go to any lengths to ensure the survival of themselves and their kids. If increasing poverty rate continues, our economy may never flourish as it once did.  And average Americans may never have a chance at a healthy life.