On Fiscal Conservatism

Losing a job is a lived experience, written on the nerves. Three and a half years ago, when I was fired by a hotel where I used to be a front desk associate, I had felt like a solitary reject in a nation of comfortable successes. I was terribly ashamed of myself because the unemployment statistics were not on my side. But now that my current employer has significantly reduced my hours, I just shrug. I am accustomed to recognize myself among those who are unemployed or their hours are reduced or are on the verge of being laid off.

By Krishna Sharma

If you go to your parent’s bedroom and search around, I am sure you would find some money kept under the mattress. The custom of saving money under the mattress is so common in our country that even a burglar would not miss to check the bed if he breaks into the house. Although saving is one click away via the internet and that there are banks in the walking distance now, I follow the footsteps of my parents when it comes to keeping my changes.

Saving has been one of Asian heritages. Watching me carrying my lunch from home ever since I joined the company where I am still employed, my colleagues have secretly nicknamed me as ‘fiscally conservative Asian’. I have no choice. I have to earn bread and butter for a family of four while at the same time bear the cost of living in one of the most expensive counties in the USA. Apart from that I have also inherited my parent’s habit of saving some money under the mattress as well.

I always wondered at the way my friend Matthew would spend his money. With him there is no going-together-paying-separate. He cares for fashion and friends equally well. Until October last year when the global economic crisis had not fully hit the main street, he was among those Americans whose saving rates were near zero.

Now, he does not criticize me nicknaming in my absence as ‘Fiscally Conservative Asian”. He is trying to fit in my shoes when it comes to saving money for the tough days ahead. He has started bringing his lunch bag from home and hopping restaurants around is now occasional adventure for him. Lately, he told me that he would wait for some more time before enrolling with AT&T for generation-3 I-phone.  

Research shows that the US savings rate has soared from nearly zero to about 5 percent of income in 2009 and could go higher. Economists and the Obama administration are alarmed at the change of saving habit of the Americans. They desperately want the Americans to spend money since consumption comprises of 70 percent of the US economy. According to experts, saving is a good thing only when financial markets are working efficiently. At this point, however, with major US industries at the risk of bankruptcy, Americans need to blow their money away to keep the world of market moving.

Sadly, that is not happening. How can one, no matter how much he earns, spend carelessly when industries are melting down every other day and unemployment rate is rising frighteningly?

Losing a job is a lived experience, written on the nerves. Three and a half years ago, when I was fired by a hotel where I used to be a front desk associate, I had felt like a solitary reject in a nation of comfortable successes. I was terribly ashamed of myself because the unemployment statistics were not on my side. But now that my current employer has significantly reduced my hours, I just shrug. I am accustomed to recognize myself among those who are unemployed or their hours are reduced or are on the verge of being laid off. Ever since the crisis started, more than 6 million skilled people have already lost their jobs in the USA alone.

Hit hard the most by this crisis are the Americans. A research showed that the immigrant population was less likely to lose its house in foreclosure than the Americans because the former has been accustomed to saving habits and has some money under the mattress in its bedroom.

Identifying oneself with the unfortunates in hard times is a universal practice we the humans do to keep ourselves in track with the situation. If we don’t do that we are absolutely uncommon, abnormal and unyielding, according to economists. Still, the long –established cohesion between unemployment and psychiatric distress – depression, insomnia, panic disorders – doesn’t suggest that there is any safety with this practice of identifying oneself with others who are also in the same situation. This could be the reason, why some blame Wall Street, some blame themselves and some explode violently and commit suicide.

Fearful of all these, people are in a totally defensive mode. Although Chris, my neighbor, has a federal job that pays him in six figures and that his wife is a certified nurse, he has disconnected the cable in his bid to minimize the cost of living. “I have realized now that 49 bucks for cable was a waste while we are not home most of the time and that local channels are transmitting as compelling news and arresting soap operas as the paid ones,” he tells me.

There are separate stories in each household that the on-going economic meltdown has created. No matter how I may mask my agony before my family for losing significant hours at work, I would have private time of my own to breakdown later in my car when I am alone. While for the rich there may be many options for emergency preparedness, for the poor there are a few emotional moments apart from a few money kept under the mattress.

(Sharma, a former reporter at The Rising Nepal, is associated with The Washington Post, based in Washington, USA. His email: kpsharma1971@yahoo.com)

(Editor’s Note: Nepalis, wherever they live, as well as friends of Nepal around the globe are requested to contribute their views/opinions/recollections etc. on issues concerning present day Nepal to the Guest Column of Nepalnews. Length of the article should not be more than 1,000 words and may be edited for the purpose of clarity and space. Relevant photos as well as photo of the author may also be sent along with the article. Please send your write-ups to editors@mos.com.np)

Have your say ! (Registration required)