From Riches To Rags – A Story Of Jewish Joblessness And Impending Homelessness

He was wealthy and successful. And then the economy crashed. He lost more than $1,000,000 and then used up his remaining savings while he spent more than two years job hunting. He's at the end of his rope. He's on the edge of homelessness. Here is his story.

From Riches To Rags: A Story Of Jewish Joblessness And Impending Homelessness

By Shmarya Rosenberg • FailedMessiah.com

I exchanged emails yesterday with a former executive. Now in his mid-50s, he had held a number of high profile jobs, ending in a decade-long stint as the founder and president of his own company.

Unfortunately, that company was part of an industry that was, in the west coast area he lives in, nearly wiped out by the economy’s meltdown. He personally lost more than one million dollars, and he was forced to close his company and look for work.

More than two years have passed. He hasn’t found a job although he continues to look. Age works against him and his former industry is still very depressed.

He lived off his savings and retirement fund. But that option no longer exists, he told me, because it’s all gone. He can make it for a short time more, a few weeks, and then he’ll be homeless.

I asked if he contacted his local Jewish Federation or Jewish Family and Children’s Service for financial help. He told me he was offered a small amount of food assistance but no more. He also told me he is not the only local Jew in his position, and the Federation and JFCS can’t afford to help everyone.

I checked his local Federation’s website and the website of the JFCS. On screen, it looks good. The Jewish Family and Children’s Service has a free loan fund that seems better than most and lists a number of other programs that would benefit someone in the former executive’s position.

But the JFCS and the local Federation do not have housing assistance for people who are not elderly. It has no job retraining programs or transitional housing for people who need it. And neither does the government.

The needs the JFCS and Federation meet are needs common in a good economy – not the needs of today’s deep recession, and not the needs of people in their mid-50s trying desperately to find work in an economy that heavily favors the young.

This man is depressed. He’s also suicidal.

The JFCS can help him with counseling. It even has a consulting psychiatrist who can prescribe medicine if need be.

But the Jewish community can do little to alleviate the source of this man’s depression and terror – his impending homelessness caused by long term joblessness.

As I’ve noted before, the Jewish community in the United States often chooses the projects it backs based on available government funds.

There are government funds available for senior citizen housing, so the community builds such housing. No government funds are available for housing for non-senior citizens who are not disabled or mentally challenged, so the Jewish community has no housing for them.

In other words, instead of filling the hole created by years of bad government, the Jewish community stands by and watches people trip and fall in it.

For at least 50 years, the Federations seriously underfunded Jewish education. Then, about 15 years ago, the Federations saw the fruits of their neglect come to full bloom: declining Jewish identity became no Jewish identity at all and affiliation rates plummeted. Older donors died and younger ones did not step up to take their places.

The Federations did not respond by putting the needed funds into Jewish education. Instead, it seated commissions, studied the attrition problem and then funded a series of programs meant to make the Federations appear more hip. By and large, they failed.

I think the Federations are on the cusp of another event that, in hindsight, will impact the Jewish community as negatively as its mistake with Jewish education. It may even prove to be the Jewish community’s downfall.

It is not business as usual in America. Individual Jews seem to know this, but the Jewish community apparently does not.

Ten years from now, we’ll look back and see another great attrition from the community, one that started in 2007 and continued unabated.

Some of these missing Jews will have left because, in the time of their great need, the Jewish community did not help them. As they faced homelessness and life on the streets, the Jewish community offered them a few boxes of mac and cheese and its deepest sympathies.

Others will have left because they no longer want to affiliate with a community whose normal response to Jews in need is to refer them to city, county and state agencies for help and then shrugs its Armani-clad shoulders when the government can’t help.

And still others, mostly the young, will find meaning outside the Jewish community. They will support the organizations seen as making change, from food shelves to innovative educational programs to other spiritualities and religions that put helping people before plaques on buildings and $3,000 yearly synagogue memberships.

And some, hopefully very few, will be gone because they could not get the medical care they needed or because being poor and homeless in a community of plenty was too shameful for them to bear.

The Federations will certainly take notice of all this.

They’ll seat commissions – which they will amply fund – to study the problem and propose solutions. They may come to admit they were wrong.

But it will be too late, especially for those Jews who solved their homelessness, poverty and shame with graves.

The Jewish community needs to immediately address the very real and growing problem of Jewish poverty and homelessness. We also need to strongly lobby the government to implement solutions that will help all those in need, regardless of religious affiliation.

If it helps you care about the problem and implement solutions, view it as a problem of Jewish continuity.

But by all means act now. There are many former executives and laid off workers who desperately need your help.

Related Posts: 1, 2, 3.

Comments

[harold]

Nu so where is the

Only You
Click Here
Can Support
Jewish Homeless

Put your money where your “mouse” is.

Do any other groups have a successful program that works that we can emulate? Christians, Asians, Hispanics, Italians, Buddhists, Muslims. Is this a Jewish only problem? Why doesn’t out wonderful government do more. I a sure they when this person was making the big bucks they had their tentacles firmly planted in his pocket. Now they are in hiding.

What programs are available in Israel outside of attending a Kollel? At least there, unlike here, you will get free medical care and rent subsidies. Here in the US the safety net (Medicaid) comes into play only when you are literally penniless. Israel is economically in better shape than here in the US. From my read here at FailedMessiah, they are awash with jobs just waiting for the haredim to come and get it. I would advise that person to attend Aliyah events and see just what opportunities are available for someone with his experience and leave this sinking ship where all that one hears is cuts, cuts and more cuts.

Have him check out http://www.aliyahjobcenter.org/

Gateway to Israel's Job Market
If your concern is employment there has never been a better time to consider Aliyah.

Israel's economy is experiencing continuous growth - and unemployment is at a record low.

For most "soon to be" immigrants the prospect of finding suitable employment in Israel is one of the major factors leading to the final decision to make Aliyah.

[jay]

Our government doesn't do more because the Republicans block every attempt to implement programs to help. Just yesterday they blocked bills that would have removed tax incentives for companies to outsource jobs overseas.

Perhaps it's time for our Federations to stop sending so much money to Israel and start taking care of Jews in the USA, as well.

[Gladys]

Jay, do you really want foreign tax incentives reduced? What would Israel do if Intel/Israel tax incentives were eliminated and Intel relocated?

[Shmarya]

Perhaps it's time for our Federations to stop sending so much money to Israel and start taking care of Jews in the USA, as well.

That time is long overdue.

Israel doesn't really need our charity anymore.

Most poverty in the Jewish sector is self-imposed on haredim by haredim.

If the government would grow balls and stop rewarding haredi self-imposed unemployment, and would redirect the money it wastes on haredi self-indulgence and use it to help Israel's truly needy, American Jews' charity dollars would not be needed.

We need to fund our own poor and drastically reducing the money we send to Israel, and we need to do it now.

[harold]

We need to fund our own poor

Maybe you can send this post to "Challah For Hunger" and see if they can send more money to help "our own poor" and not send 50% of their money to the poor over the globe. We have a need now, let the Christian funds take up the slack of global hunger. As you said of our poor "We need to fund our own poor and we need to do it now!

[Alter Kocker]

Our community is it's own worst enemy. Years ago when my children were small, and we were struggling financially, we attempted to ask for subsidy from the Jewish school system in our city in order for our children to attend a local hebrew day school.

We presented our tax records and financial statements. I was self employed at the time and my company was struggling to survive. We were asked to meet with the subsidy committee, all well known and wealthy businessmen and professionals. I was told point-blank at that meeting that they would deny me subsidy as "Our people have a way of deflating income and inflating expenses in our financial statements"

I stood briefly and said that we have nothing to fear from anti-semites. We are doing a fine job of destroying Judaism by ourselves.

My children did attend that day-school, through loans, extra jobs on weekends. When my daughter was made valedictorian and was asked to continue in the Hebrew High-school, I sent them the original letters I received denying the subsidy along with her letter declining their offer of admission.

[Isa]

I lost my job at age 53...
Got another, almost one year later...
However, I was just finishing up a two year degree and I was hopeful...

Then I realized about age discrimination...

80 to 90% of all companies age discriminate as applied to a job that gives benefits.

What is it like, well I hate to use this example, but I will

hitler's Germany 1938: A Jew needs a job. He doesn't look Jewish and the last name does not suggest any thing Jewish. Gets an interview and all things go well EXCEPT when he is asked for his national identity card, then they politely say "so sorry job is filled"

At some point a 'Background Form' needs to be filled in. Name, Drivers License # AND birthdate AND IT IS ALL LEGAL!

Why age discrimination?
It has to do with the rate of health insurance premiums that a company pays...
All young workers >low rate
All old workers >very high rate

I have counciled when I run into jobless high tech people. One got a job because of me and the other has not implemented what I have suggested, and is still looking Oh well!

For those that have a job...
What will you do if you lose it tomorrow?
Any plans?

[Isa]

I just read one of the above posters about coming to Israel

Age discrimination in Israel starts at age 40.
Better make sure a job is waiting for you when you DO come.

Same crap when a foreign volunteer wants to serve in the Zahal TOO OLD!

[harold]

Why age discrimination?
It has to do with the rate of health insurance premiums that a company pays...
All young workers >low rate
All old workers >very high rate

Excellent argument (among many) for government health care. One of the strong points of Israel (and come to think about it the rest of the planet). As I always have said, if our system is so good, why are there no other countries that have it and more telling, why are no other countries people clamoring for it.

[harold]

We presented our tax records and financial statements

All nonsense. I believe that the easiest way to do the right thing is to meet with the family IN THEIR OWN HOME. Except for extenuating circumstances, this simple observation will weed out the people in need from the people in greed.

I try to tell this to my wife when people that she tutors begin to cry poverty to go to their house and while sitting in their lovely ornate living room with breakfronts bristling with silver to look them in the eye and discuss their “poverty”.

[randomthought]

"But the Jewish community can do little to alleviate the source of this man’s depression and terror – his impending homelessness caused by long term joblessness."

Obviously a sad story. I wonder though if it is too much to at least acknowledge how far faith could go...... which would actually be what our community offers, regardless of socioeconomic situations.

[Menachem Mendel lll]

Based on my own personal observations to date, I find this article fair, even handed true & accurate and if anything somewhat understated.

For the naysayers among you who did not agree with money donated by Christian ministries to help support poor Holocaust survivors I hope that is becasue you guys were the one who donated 10% of your income (net) for tzedakah in order to provide food and shelter for them.

Like hell you did.

MOSCHIACH UBER ALLES!

[jay]

Yes, Gladys, I do want to see the US stop giving tax deductions when US companies build plants in foreign countries and move jobs there. Why should the US taxpayer subsidize corporate outsourcing?

[ruthie]

shmarya, i agree with you...but if possible, i think it's nice to send some money to israel. i send very little every month to an orphan with four children. he's in israel and it makes me feel good. because i wish i had the courage to live there.
otherwise, everything you wrote re: federation etc. helping people who are having a bit of a hard time or children going to summer camp etc. is good.

[Jewish Cynic]

I don't know this guy and every individual's situation is well, individual.
So I'll address a theoretical "wealthy, successful businessman in his mid-fifties"

Is my "theoretical businessman" an example of someone living beyond their means/not planning for the future?
A wealthy person with a long successful career, 10 years from retirement has only 2 years worth of savings? Did he reduce his expenses when his income stopped? Does he have a large fancy house that can be sold?

There are middle income families who have a wage earner suffer from an injury, cancer or other disease etc. that not only loose income but are saddled with medical bills.
They should be ahead on the charity line.

Yes chazal teaches that true charity would maintain a person in the lifestyle he's accustomed to but in reality resources are limited. (Perhaps chazal would recommend that the wealthy give more when they have money so more would be available when charity is needed...)

[PishPosh]

I was walkin with my wife some years back when a car crossed our path at the corner of the street and came to a halt.

Apparently the elderly husband who was driving had suffered a heart attack and died at the wheel and the car glided to a stop. People came out of nowhere and were calling the ambulance and getting angry when the hospital which was three blocks away took forever to get there, people tried CPR all to no avail.

Well while the ambulance finally arrived to take the husband, the frum woman from the corner house came out and took the elderly wife put her arm around her and I her say to come in to her house and sit and she would help her contact who she needed and no doubt try and calm her till a family member could come to her assistance.

I didn't know if the people in the car were Jewish or not, nor did this frum woman care or ask. Gemilut Chasadim close up. We use to see more people like this frum stranger. What happened to us.? As a people we aren't better then any other people on this earth but we tried to be on our own. Now it seems so many amongst us don't care if we are the worst of the worst.

[chabib]

About 20 years ago I was in the same
situation this chap was in. However,
I was in my early 20's and had family
to help me. Yet the local Associated
Jewish charties did nothing to help me
find work. A temporary job agency helped
me find a needed job. My mom received no
help what so ever at that time.
Thank G-d things are much better. Yet,
I will not donate to the local Jewish
Federation in my hometown.

[assist]

It is not only wealthy Jews who have been impacted by the economy or the older individuals. It took both the Democrats and Republicans to get us to this point. Greed and self-interest were the drivers for both political parties. I have determined to campaign against all incumbent in every election. All of the poor both new and old deserve what aid we can provide.

[Alter Kocker]

We presented our tax records and financial statements

All nonsense. I believe that the easiest way to do the right thing is to meet with the family IN THEIR OWN HOME. Except for extenuating circumstances, this simple observation will weed out the people in need from the people in greed.

Idiotic to say the least. How do you know what anyone's situation is from their house? You live in an apartment-yet there are tons of people out there who, in better times, bought a house, then for reasons beyond their control, lost their livelihood-a job is lost, a formerly prosperous business inexplicably begins to bleed cash and folds, divorce, illness, destitution. All the while living in the house that was purchased when all was good.

When you ask for subsidy or charity, most often the first question is about your living arrangements. In my case, we were living in a cheap apartment in a less than affluent part of town, but there are plenty of people living in big houses and are not only "House poor" but closer to being "House destitute", especially in this economy. There are any number of people living in homes that are under foreclosure due to unpaid mortgages.

By your reckoning-the people needing charity would be denied because of a cursory inspection of where they lived without any concern for the underlying problems. Once again, Harold, this is ignorance.

[Shmarya]

Is my "theoretical businessman" an example of someone living beyond their means/not planning for the future?
A wealthy person with a long successful career, 10 years from retirement has only 2 years worth of savings? Did he reduce his expenses when his income stopped? Does he have a large fancy house that can be sold?

The man lost more than $1 million dollars and his business, and then used what savings he had left to support himself for 2 1/2 years.

[Alter Ego of usual FM poster]

Offering solutions to this crisis would require acknowledging it exists. That is resisted by anyone still employed as it would imply it could happen to them, which is terrifying. Tens of thousands (more?) of jobs in the technical sector have disappeared and will most likely never return - certainly not while the government allows tens of thousands of H1B "guest workers" to take IT jobs at half to two thirds the cost of an American worker, or continues to facilitate overseas outsourcing.

When we experienced a similar financial crisis years ago people acted as if looking at you when they spoke would cause tamei 'ayin. Besides, they convince themselves that you aren't really looking hard enough for new work, or some other excuse. It was sad, but strangely gratifying when several of the people that treated us that way experienced it themselves over the past few years - not that I would wish it on anyone.

I also agree with the point about not trusting appearances. A classic story heard during the first big "dip" about a decade ago was that of people in fancy homes sneaking out at night to mow their own lawns rather than using the expensive landscaping service they could no longer afford - to "keep up appearances".

One might be stuck in a large house with no way to unload it if area sales are down below the loan balance on the mortgage. Selling other items is not as easy as one might think as well; we were lucky to finally get about $6,000 for a grand piano which had cost around $18,000, because they had become "a dime a dozen" from others desperate for cash selling and new, cheap foreign imports. If you visited our big house and saw that fancy piano, you might not understand that we hadn't paid the mortgage in a year and we were getting food assistance from a local private Jewish group and would soon be evicted from our former house after the pending foreclosure.

BTW, that private food assistance came from a Chabad rabbi and it was the Orthodox schools that educated our kids for minimal payment. The fancy Conservative school suggested we could write a series of letters begging for assistance to get a discount (from retail?), but we were already beaten down enough to not want to deal with that bullshit from people that were still doing just fine.

[The Yid]

It doesn't matter how much he lost even if it was his business. At that age in life, being that heavily invested in business or other things is irresponsible. He should have had at least 10 years worth of savings to live off of. If not, then that 1 million was lost way before this moment.

[Jim]

Jewish Federations are basically clubs for the rich run by the rich to suck every last penny from the poor. I have tons of friends on Shlichus and not one has ever told me that the federation helped anyone recommended to them for help.

Quite the contrary everyone of them has told me how people come begging for help and the most these huge federations can help is with some cans of traife food and counseling.

all their agencies and whatever, is a huge scam and I wish one day someone would expose them

[pierre]

I think funds should go to building new federations staffed and run by these, what I'll sincerely call 'Masters Division' former-executives and longtime career employees who've spent a good amount of time on the tracks - and now have been on both sides of it and KNOW the life trade, the money trade AND suffering - with family. They know whats needed, they know the value of a listening ear and a real helping hand, and they know from experience what's at stake.

[Isa]

Its me again

OK
When I was laid off, I received a guidance counselor from the State Of Minnesota that I got to see for one hour every two weeks. She saved my life.

OK
My advice:
You get laid off. Go to school! [University, College Vocational school whatever] Don't sit home and be a couch slug. This is the time to retool yourself.
I know where the jobs are for screwdriver mechanics they are not glamorous but they will keep you alive.

For the example given in the main story. The fellow needed to go back to school and learn Microsoft Project, Access, Excel, Word and other stuff.
There is such a thing as a 'Project Management Professional' that is in demand.

I had more than one interview where i was asked "What was I doing during my unemployment" I answered "went to college full time"
What if I answered 'became a couch slug'
How would that sound?

[justayid]

Most communities have a Jewish Vocational Service, which will help with job search issues. Many have a Hebrew Free Loan. Most synagogues the rabbi will have a discretionary fund, for emergencies, mainly for congregation members.

There is a range of things different communities try to do, but its true, they werent prepared for a recession unprecedented in 60 years.

And no they dont change on a dime either.

[harold]

By your reckoning-the people needing charity would be denied because of a cursory inspection of where they lived without any concern for the underlying problems. Once again, Harold, this is ignorance

If you would read what I wrote you would have seen a very important point "Except for extenuating circumstances". In the course of the interview process these points would obviously be brought up. I am no fool. However I know so many people with spectacular homes that are able to hide the taxable income so it looks like on paper that they are in need.

My point was that do not ignore the obvious wealth, home and cars (Navigator, Lexus, BMW). I would also schedule follow-up meetings on the first day of chol hamoed succos (for the people that scoot off to Israel) and pesach (for the Miami crowd). Like I said this is from personal experience that I see all the time.

[Adam Neira]

Prayers for all people in economic distress. It is important in these turbulent times to be healthy, versatile and adaptable. People should not have snobbery to certain jobs. Status anxiety and peer group pressure often creates immense psychological pressure in some people. It is not a shame to fail and fall over in stormy times and you have acted well. Finding one's centre again in quiet moments, adjusting to prevailing realities, re-orienting one's self and prayer can help one get back on track. It is the role of good government to further the general welfare. Revolutions occur when good people cannot get work.

[isha chazaka]

Aliyah is the answer, even with the age discrimination here, because the foundations of Israel's economy (hard work, solidarity, and production of useful goods) are much stronger than the U.S. And for those who come here and are jobless, there is bituach leumi. You won't starve and you won't become homeless. You may have to eat noodles every day and live in public housing in a development town in the south, but so what? So do hundreds of thousands of other immigrants here, and they live and they are well, and they are among Jews, including many who really care. The safety nets here are really stronger than those in the U.S. For anyone reading this who is facing poverty in the U.S., even in their fifties, I tell you strongly, aliyah is not a bed of roses but aliyah is the answer.

[david]

Israel has already sucked the cultural life out of our community (although young Jews are coming to realize there's more to being Jewish than Falafel, Zahal anoraks and praying with a phony Israeli accent).

We shouldn't let it continue to syphon out our financial resources too. The idea that Israel (which has done better than the US in the current financial crisis) doesn't have enough money to plant trees or adequately fund education or an ambulance service is a joke!

[Bklyn11230]

I do not give any money to federation. I am odds with federation's priorities, sucking up to people with questionable business practices (e.g.false tax returns) and outrageous overhead. I support a jewish food pantry, my synagogue. My children went to day school until the tuition was more than 20% of my take home pay (and I earn decent living).

I also think as a community we've spent more on Shoah monuments. Mention the word Shoah and the checkbook flies open. Mention supporting day school or adult education, and the checkbook is closed.

Too many studies, not enough action.

[kathiego]

What if the person bought a big house because he has a big, huge family and they simply wouldn't fit in a 2 room shack? Ever thought of that? Why should people live in hovels all their life? Isn't life to be enjoyed? The quip about looking around at the person's expensive house in order to determine if they need help is bunk. Sorry to say that, but there it is. In good times, if you are a responsible person, you get married and buy a big house in anticipation of taking care of your family - well don't you? I worked for 9 years at a fairly good job. It didn't pay a huge salary, but it was good for the small town I lived in in California, but through no fault of my own I became disabled. It was hell trying to ask for help from ANY AGENCY! It's extremely humiliating and it took a lawyer and 5 years of fighting before the powers that be would finally acknowledge that yes I am disabled. I had to leave the state where I was born and all my family and move to a state where I knew absolutely no one! It's just not easy to even take "hat in hand" so to speak and walk into the doors of some of these agencies - even the Jewish Family and Children's Services ones. The whole process needs to be made easier for the applicants not harder. More money needs to be spent at home or in your own backyard. When your house is in order, figuratively speaking, then you will be able to help people in other countries who are in need so help people here first.

[Dovy]

>For at least 50 years, the Federations seriously underfunded Jewish education. Then, about 15 years ago, the Federations saw the fruits of their neglect come to full bloom: declining Jewish identity became no Jewish identity at all and affiliation rates plummeted. Older donors died and younger ones did not step up to take their places.

The Federations did not respond by putting the needed funds into Jewish education. Instead, it seated commissions, studied the attrition problem and then funded a series of programs meant to make the Federations appear more hip. By and large, they failed.<

Rabbi Meir Kahane used to say the same exact thing 30 years ago.