It's The Economy Stupid

It's The Economy Stupid

When kids ask parents, 'Are we rich?'

Giving children too much information about your finances can be a mistake, says one expert.

Advice for all ages 

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• Parents' money mistakes
• Telling kids about debt
• Prenups on the rise

Only types of debt you should ever hold

There are times when debt can actually help you create wealth rather than destroy it.

Good debt vs. bad debt 

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• 3 ways to boost net worth
• Easy ways to cut debt
• The year's worst stocks

The real legacy of the economic crisis: The 99ers

In Washington, the debate about extending unemployment insurance is just another contentious political exercise. It's a game for the repugicans. Of course, Senators and their staffers have well-paying jobs with excellent benefits (all taxpayer funded, of course.)

But, it's a harsh reality for the 99ers:

In the coming weeks, the Senate is expected to resume its debate about whether to extend the emergency jobless benefits that were passed in response to the steep increase in unemployment caused by the recession. But people like [Dwight Michael] Frazee, who have suffered the longest in the downturn, will not be part of that conversation. They are among the 1.4 million workers who have been unemployed for at least 99 weeks, according to the Labor Department, reaching the limit for the insurance. Their numbers have grown sixfold in the past three years.

The 99ers are glaring examples of the nation's most serious bout of long-term joblessness since the Great Depression. Nearly 46 percent of the country's 14.6 million unemployed people have been out of work for more than six months, and forecasters project that the situation will not improve anytime soon. Currently, the Labor Department says there are nearly five unemployed people for every job opening.

Frazee, 50, has applied for work at more places than he can remember since he lost his construction job two years ago. He has tried car dealerships, Kmart, Home Depot and the funky shops on the boardwalk in Seaside Heights, near Toms River. He looked into becoming a commercial crabber, working in title insurance and as a bail bondsman. But no dice.

While searching for work, he lived on $585 a week in unemployment payments. But the checks were cut off in May when he reached 99 weeks. Now Frazee, who is married and has a 5-year-old daughter, is in a financial free fall with no safety net.

And, this should make all those repugicans who are blocking unemployment extensions very proud:

The longer he is out of a job, the more unemployable he feels. He suspects that potential employers are turned off by his age and by the fact that he has been out of work for so long. But he is moving near the top of the hiring list for his union. And in the meantime, he has been buying mail-order children's quartz watches from China and selling them on consignment at local convenience stores. He clears close to $3 per watch.

"I'm a union construction worker, but I think I can be a hell of a salesman," Frazee said. "A lot of the stores around here are owned by Indian Americans, and they like me. They're taking my watches. Maybe India and China are going to help me out of this jam if my country won't."