Team Staff Salary Cuts & Layoffs (MOD: and local city impacts from lockout)
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08-28-2012, 01:19 PM
Join Date: Dec 2009
Location: New York, NY
Originally Posted by
None of the things you have mentioned so far, which might account for $10-30 a pop, have the slightest bit of relation to saving the $10,000+ a person needs to survive extended unemployment. You're talking about nickels and dimes here.
Do the math. Say a person is making $40k a year. Chances are they literally cannot
to put away more than about $3k per year
assuming they have no major life crisis during that year
. $3k is roughly their pre-tax income per month. Being out of work for 4 months will cost them, pre-tax, about $12k.
Meaning they would have needed to put away money for the past 4 years non-stop
with no major crisis causing them to tap into that reserve
in order to survive a 4-month work stoppage. If it's more like 6 months, we're talking about saving non-stop since the last CBA was signed.
Get real. How many people can afford to save that much money for that long? And even if they did, they're facing the prospect of having that entire safety net consumed in one fell swoop, through no fault of their own. Meaning their next major life crisis is going to have no safety net.
Any way you look at it, unless they can pull from resources outside of personal savings, they're screwed.
I would say almost anyone has $100+ / week worth of expenses they could potentially cut.
A work stoppage for 4 months would cost them 6.66K pre-tax, because unemployment benefits are half of your salary. And if you're out of work your expenses should be going down as well. If you're smart you're not going to be spending money you don't have on things like eating out.
The majority of people don't save ANYTHING though, and a lot even go beyond that by piling up credit card debt and what not in order to live above their means.
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