It seems to me...The story of Average Joe

It seems to me…the average Joe in this great US of A is getting more of a shock treatment than a stimulus. For example, take the case of my friend who, for the sake of privacy, we will call “the average Joe” or “the average Jane” to make it clear that this applies to men and women equally. But since I know Joe, I can tell you his story.

In a way, Joe was fortunate. He wasn’t fired or in the politically correct language, let go. Joe’s work week was cut in half as was his salary. Unfortunately, his expenses weren’t cut in half and so he needed more income to maintain his mortgage payments and children’s tuition in college. He and his family knew they could cut back on everyday expenses like food, cleaning, gas for their two cars, entertainment. Joe’s needs were not extravagant. His home was modest as was his mortgage. He had always been a good citizen — moneywise. For about 20 years Joe paid his taxes on time, as well as his mortgage, insurance, credit card and car payments. He always made sure there was something for charity. His budget was always balanced. Throughout his life, even when his salary wasn’t what it came to be, he never asked his government for anything. The freedoms he had and the ability to earn a living was good enough for Joe.

But now he was in a bit of financial trouble and could use a little help. His family and friends were hurting too. His parents had retired and their 401K was cut to the bone. His friends were in the same leaky boat as he. And Joe wasn’t alone. The unemployment rate continued to increase and in February 2009 when it had risen to 7.7 million, Joe joined those millions of average Joes who lost some or all of their income.

As much as it pained him, he turned to his government for help. Now he didn’t ask for a handout. All he wanted was the protection he had paid for all during his working life in the form of unemployment insurance. So he asked some questions and learned you don’t have to be fully unemployed to receive unemployment compensation, even those reduced to part-time qualify.

Knowing that he had paid into the program with every paycheck, Joe filled out the necessary forms online. Now, like all government agencies, the Virginia Employment Commission has its own government language. After reading it several times along with his wife and a guy from China who writes instructions for the assembly of Chinese products, they all agreed Joe was entitled to get paid for the difference between what he was making and what he was now being paid for working half-time. So he clicked on the computer send button and off went his application to the VEC. Sure enough, in about at week, in the mail was the reply from the VEC, Joe was entitled to $378 per week for 26 weeks. “Wow,” thought Joe “this is wonderful and it will help a great deal. Investing part of my salary each paycheck will now pay off.” Reading on, Joe learned that his employer had to fill out a form covering every two weeks to verify that Joe didn’t make more or less than what he reported. That sounded fair and his employer did just that. Next, Joe had to file electronically or go to the VEC office to report weekly that his situation hadn’t changed and that he had looked for work.

Feeling somewhat relieved, Joe trotted down to the VEC office to talk to a human and to make certain he was complying with the law so he could get a hold of some of the money he had paid in all his working life. The nice man behind the counter was cheerful and pulled Joe’s records up on his computer. Smiling he immediately explained that Joe was not eligible for any of the money he had paid in all his working life. It seems all that VEC governmentese online isn’t really clear, explained the nice man behind the counter. “It happens a lot; the instructions are not really clear,” he explained. He then proceeded to provide, as good old Paul Harvey would say, “The Rest of the Story.” In about one minute he told Joe the maximum he could collect was $378 but he had to earn less than $378 to collect it. It didn’t supplement his income; he only could receive it if his weekly income fell below $378. And, if his income fell below $378, there was a $50 deduction that came out of that and then, what he made was deducted from the $378.

But since our Average Joe made more than $378 he wasn’t eligible for any of the money he had paid in all his working life. Perplexed and in need of an explanation, he turned to an economist friend who explained it all in simple terms. “You see Joe, if you had bought a house for more than you could afford and now was in peril of your mortgage going into foreclosure, you’d get help. Or, if you had a few bucks and wanted to buy a house already in foreclosure, you’d get help. And, if you owned an investment or insurance company or you manufactured cars and your company had not managed well and was going into bankruptcy, you’d be eligible for a bailout. But you see Joe, you’re just an average guy and you played by the rules and you’re not eligible for anything, including some of the money you paid in all of your working life.” Joe and his wife were dazed and confused. But the guy from China, who writes instructions for the assembly of Chinese products, laughed and said, “This is all Greek to me.”

Harvey Gold is a contributing writer at the Stafford County Sun. Reach him at info@staffordcountysun.com.