disability, economy, life insurance, protection

Deaths of Despair

 

In March of 2017 a landmark study was released connecting financial security and death rates in the United States. The information is sobering and should be the focus of policy changes at all levels of government.

 

A recent study by Princeton Professors Anne Case and Angus Deaton titled, “Mortality and morbidity in the 21st century,” shows the connection between the rising mortality rates of the middle class in the US and “a measurable deterioration in economic and social wellbeing”.

 

This deterioration has not suddenly developed. Rather, “Case and Deaton document an accumulation of pain, distress, and social dysfunction in the lives of working class whites that took hold as the blue-collar economic heyday of the early 1970s ended, and continued through the 2008 financial crisis and the subsequent slow recovery.”

 

“Case and Deaton find that while midlife mortality rates continue to fall among all education classes in most of the rich world, middle-aged non-Hispanic whites in the U.S. with a high school diploma or less have experienced increasing midlife mortality since the late 1990s. This is due to both rises in the number of “deaths of despair”—death by drugs, alcohol and suicide—and to a slowdown in progress against mortality from heart disease and cancer, the two largest killers in middle age.”

 

To understand the scale of the change that is taking place… “The combined effect means that mortality rates of whites with no more than a high school degree, which were around 30 percent lower than mortality rates of blacks in 1999, grew to be 30 percent higher than blacks by 2015.”

 

As the economic situation continues to deteriorate for the middle class (just as it has for blacks in urban centers) in the United States, issues of alcohol, drug use and suicide worsen. Lack of education to keep up with a changing economy, lack of high paying jobs for physical labor, widening wealth and opportunity gap. And the situation does not improve for the next generation.

 

The authors suggest, “that the increases in “deaths of despair” are accompanied by a measurable deterioration in economic and social wellbeing, which has become more pronounced for each successive birth cohort. Marriage rates and labor force participation rates fall between successive birth cohorts, while reports of physical pain, and poor health and mental health rise.”

 

Declining marriage rates mean less stable households; falling labor force participation means less income and economic peril. Both of these weaken the next generation of children.

 

What is required is an understanding and appreciation for the changes taking place in the economy and the need for schools empower students for this new age, regardless of their background or skills. The educational system of the 20th century will not suffice in an era of rapid technological change.

 

We also need to develop and fund the social services that children and families need in order for them to escape the forces that drag them into despair. PTSD and abuse in families is a widespread problem as recently evidenced by the controversy surrounding #metoo on Facebook. Millions have spoken up about abuse that they have suffered from but were long silent about because of societal pressures.

 

Someone once said, “It takes a village to raise a child.”

 

We all need to be invested in the success, safety and happiness of those around us. Do not leave things to chance. Teach needed skills. Develop multiple ways to bring in income. Leverage what you know and what you can do. Protect your family from economic disaster using Life Insurance and Disability Insurance… they will thank you. Set money aside for the future… your future self will thank you. Develop a plan, and then learn to adjust as life changes things up on you.

 

To learn more please reach out to me.

If you want to discuss these issues or learn more please feel free to contact me.

Retirement Income. Tax Efficient Planning.

Life Insurance. Disability Insurance

Socially Responsible Investing

 

To learn more contact:

James Cox

Cell: 215 768 5883

Email: james_cox@devon-financial.com

Devon Financial Partners 744 W Lancaster Av Suite 235 Wayne, PA 19087

   http://jamesacox.com

 

 

 

Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 954 RIDGEBROOK RD SUITE 300, SPARKS, MD 21152, ph# 410-828-5400. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. DEVON FINANCIAL ASSOCIATES LLC is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. 2017-48476 Exp. 10/19.

 

 

 

https://www.brookings.edu/bpea-articles/mortality-and-morbidity-in-the-21st-century/

 

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