Higher gas prices at the pumps and rising utility costs at home are quickly becoming widespread symptoms of the growing economic crisis, taking a heavy toll on working families.
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Nonetheless, insufficient investment in public transportation keeps many workers dependent on their cars and vulnerable to rising gas prices—now nearing $5 a gallon. In response, many communities are beginning to organize local carpools and low-cost busing programs.
An Associated Press/Yahoo News survey conducted by Knowledge Networks shows that nine out 10 people polled expect gas prices to financially squeeze them in the next six months. Seven in 10 indicated they are cutting back on driving. (Star Tribune, June 30)
Gas prices are also having an impact on job choices for commuters. Steve Scher, owner of San Francisco’s Acrobat Staffing, says temporary workers in the food service industry are now asking for paid travel time before accepting a job. Kerry Kiley, a manager for staffing firm Adecco, says that job offers made by her company are being declined because of high gas prices.
“It’s happening daily, for positions that pay up to $50,000 or $60,000,” Kiley said. “People are looking for jobs closer to home.” (San Francisco Chronicle, June 29)
Rising utility costs are driving the largest increase in service shutoffs in years. Thousands of households are in debt to a handful of energy companies, unable to pay their monthly utility bills. The Boston-based National Consumer Law Center recently reported that over 125,000 households in Massachusetts are facing electric and natural gas shutoffs this summer due to over $100 million in unpaid bills.
Assuming a family of four per household, these shutoffs could potentially afflict a half a million people in Massachusetts alone. States across the country are reporting similar increases in shutoffs, ranging from 15 percent to 40 percent.
While millions of renters and homeowners struggle to keep their lights on, the energy industry profits hand over fist. The United States is the richest country in the world, yet there are millions who cannot afford to pay for electricity or heat for their homes. In Massachusetts, fuel assistance is maxed out at $600 a year while it costs the average family $3,500 to $7,000 a year to heat their home.
Those who still have service but are struggling to make payments also have little recourse. The Community Action Partnership in St. Joseph, Mo., offers energy assistance through the federal Low Income Home Energy Assistance Program. “Unfortunately, our program cannot help until you have a disconnect notice,” says Delphia Shanks, CAP community development director. Shanks says some cannot even afford to drive down to their office to file a claim. (St. Joseph News-Press, June 30)
Poor and working people are the most severely affected by difficult economic times. At the beginning of this year, Michael Bloomberg, billionaire businessman and New York City mayor, warned, “Everyone is going to have to tighten their belts.”
By everyone, Bloomberg was not referring to those with fine leather belts in corporate boardrooms or high-level government offices. Instead, he spoke to the millions of New Yorkers who, like many across the country, work for a living. They are the ones facing devastating foreclosures, utility shutoffs, food insecurity and unemployment.
Bloomberg’s sentiments are not unique; they echo the widespread indifference of the capitalist class toward the predicaments faced by workers and the poor. Periods of crisis heap tremendous hardship upon the working class, but can also usher in periods of intense struggle. It is the independent struggle of workers, not the empty statements of politicians, that stands to bring workers any relief from the current crisis.
