As Ohio Goes: Life in the Post-Recession Nation

By Rana B. Khoury

For some, the Great Recession that began in 2007 was a traumatic setback; for others, it was just another dip in a long descent from comfort and security. America is changing in profound ways, but we rarely hear the voices of regular people living the transformation.

As Ohio Goes is a journey through cities, suburbs, and remote rural towns in this quintessential American state. Sitting together at dining room tables, walking through rows of planted fields, and swinging back beers at pubs, you’ll meet individuals you won’t soon forget. People like Bill, whose handicap did not push him to take disability payments until his layoff, and Rhonda, a working mother embarrassed to feed her son using food stamps. There are the young soldier who shows us his scars from deployment to Iraq but who remains in the Army to make ends meet and the Amish man whose business loss during the downturn induced him to leave his family and the church.

Together their stories personify today’s timeliest issues, which Rana B. Khoury navigates in informative and accessible terms. From student debt and health care costs to female breadwinners and hydraulic fracturing, As Ohio Goes situates each story in a context that relates it to wider trends in Ohio and across the United States. Where economic experts deal in the abstract, Khoury pumps life into otherwise cold facts and figures, putting a human face on economic issues.

If the old adage “as Ohio goes, so goes the nation” is right, then these stories should tell us where the nation is headed. Although Ohio is a swing state, Khoury insists that blue and red do not capture the character of the place she calls home. Another reality demands attention: economic inequality has reached historic levels, and there is no indication that the trend will slow or reverse. The growing income gap threatens democratic representation, equal opportunity, and even the American Dream itself. The people in this book display remarkable adaptability, resilience, and love, despite their predicaments, yet the country’s course is the sum of individual fates. Where are Ohio and the nation going?

• Language: English
• Publisher: The Kent State University Press
• Release date: May 13, 2016
• ISBN: 9781631012129

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Praise for As Ohio Goes

"Every four years, Ohio becomes a political battleground for presidential candidates, who talk a lot and pretend to listen. Rana Khoury’s captivating first book, As Ohio Goes, offers a much-needed corrective. Curious and intrepid, Khoury traveled the state for a year and has returned with stories of working men and women that are at once illuminating, heartbreaking, and inspiring. There are no easy answers found here. But if we listen to the voices that Khoury has captured, we will find plenty of hard-earned wisdom that can point the way forward."—Gabriel Thompson, author of America’s Social Arsonist: Fred Ross and Grassroots Organizing in the Twentieth Century

Rana Khoury spent a year traveling through her native state, talking with ordinary Ohioans about how the Great Recession has ravaged their lives. The result is a devastating indictment of a society in deep economic crisis. It is an unsettling and important read.—Perry Bush, author of Rust Belt Resistance: How a Small Community Took On Big Oil and Won (The Kent State University Press, 2012)

The voices of the people Rana Khoury has included need to be heard. Policy makers deal with statistics. They need to ‘see’ the people behind them. This book takes them to that place.—Dale Maharidge, author of Someplace Like America: Tales from the New Great Depression

"I recommend As Ohio Goes to anyone who wants to understand the hopes, fears, anguish, and heartbreak being experienced by so many of our citizens. Rana B. Khoury writes so beautifully of average people caught up in the maelstrom of an economy in transition. She’s traveled throughout Ohio—listening to the stories of people from diverse backgrounds who are struggling in this post-recession economy to provide a decent life for themselves and their loved ones. What I found most amazing about this book is the way Rana makes it comfortable for people to share the most intimate details of their lives. As you read their stories, it becomes impossible to hide from the reality of life in America today. If you want a deeper understanding of America and the struggles of its people, I urge you to read As Ohio Goes."—Ted Strickland, 68th Governor of Ohio

As

Ohio

Goes

Life in the Post-

Recession Nation

Rana B. Khoury

The Kent State University Press Kent, Ohio

© 2016 by The Kent State University Press, Kent, Ohio 44242

All rights reserved

Library of Congress Catalog Number 2015036102

ISBN 978-1-60635-280-9

Manufactured in the United States of America

LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA

Names: Khoury, Rana B., author.

Title: As Ohio goes : life in the post-recession nation / Rana B. Khoury.

Description: Kent, Ohio : Kent State University Press, [2016] | Includes bibliographical references and index.

Identifiers: LCCN 2015036102 | ISBN 9781606352809 (pbk. : alk. paper) ∞

Subjects: LCSH: Working class--Ohio. | Ohio--Economic conditions--21st century. | Ohio--Social conditions--21st century. | Recessions--Social aspects--United States--History--21st century. | United States--Politics and government--2009-

Classification: LCC HD8083.O3 K46 2016 | DDC 330.9771--dc23

LC record available at http://lccn.loc.gov/2015036102

20 19 18 17 16        5 4 3 2 1

To my parents

Contents

Acknowledgments

1 As Ohio Goes

2 The Company Is Your Family

3 Uh-oh, Now What?

4 Done Everything I Could

5 Sweating through Your Boots

6 Not a Desk Job

7 In America, You Pay for Your Teeth

8 So Goes the Nation

Notes

Bibliography

Index

Acknowledgments

Each time I listen to someone’s life story, I feel part of a precious undertaking. I am a stranger being entrusted with private sentiments. I know my probing exposes weaknesses and fears. Occasionally, the whole process creates a sense of hope, the prospect of making a difference lingering enticingly over the conversation. Carrying the weight of these stories is sometimes overwhelming and at all times humbling. To those Ohioans who shared their stories—thank you. You have made this book possible. You have also made my life more meaningful.

I did not take on this task without assistance. In Ohio I benefited greatly from the guidance and hospitality of people in each corner of the state—Greg Miller, Richey Piiparinen, Beth Swartz, and George Windau. Sherry Linkon and John Russo, founders and longtime directors of the eminent Center for Working-Class Studies at Youngstown State University, advised me as if I were one of their students. Ann Harris and Paul Bellamy helped me understand, and thereby relay, specialized issues.

Although this project was well under way before I arrived at Northwestern University, once there I benefited from the input of Jordan Gans-Morse and Benjamin Iverson, as well as from support from the American Politics program in the Political Science Department. I am especially grateful to Benjamin I. Page. His reading and feedback on particular chapters was of great value; his professorship and scholarship, even more so. Several others have read portions of the project out of no obligation to me but their friendship: Anny Gaul, Scott Kroehle, Thomas Osann, and Jason Paul.

All that input and assistance helped produce a manuscript that Joyce Harrison of Kent State University Press deemed worth publishing. I’m grateful to her for taking a chance on me, to the rest of the staff at KSUP for working toward publication, and to Marian Buda for making the book a more readable final product.

There are a handful of individuals whose reading of my manuscript has been just a small part of their contributions to my life. Dale Maharidge was my teacher before he even met me; since our meeting in New York, he may have sealed his place as my role model for good. Michael C. Hudson is a master of mentoring. From Georgetown to Singapore, he has enlightened me on everything from Arab politics and foreign policy to gin martinis and impressionism. Alex Shakar excites my mind with his writing and intellect; he soothes my heart with his love and equanimity. Alex is my good luck. Finally, I thank my parents, Wael and Sawssan Khoury. They have encouraged my various undertakings generously and persistently. More importantly, they are the ones who implanted in me the unrelenting desire to see, experience, and understand the world around me. They also created a family—which includes my siblings Shaadi, Hala, and Leila—that is a constant source of support and love.

CHAPTER ONE

As Ohio Goes

It doesn’t affect us as much because we don’t have the overhead like you people do, as far as no electric bill, no mortgage. No, just the business.

I sat on a stiff couch across the room from Jacob,* who was swaying on one of three wooden rocking chairs padded with blue quilted cushions. A ceiling-high wooden chest with glass doors stood between two windows that cast bright sunlight onto the living room’s glossy wooden floor. A few other wooden tables filled the spaces in the room, each boasting a distinct design. On one wall hung an Ohio-shaped clock with each county in the state inlaid in a different color of wood; I was east of 3 o’clock, in Carroll County, home to one of the region’s Amish communities. Jacob had built everything I was looking at.

Toward the end of our conversation, Jacob brought into the room a musical contraption he had made: a large steel tub turned open-side down, fitted with a wooden bow and a thick string. Jacob hung a harmonica holder on his shoulders, freeing his hands to pluck the instrument while blowing and sucking a folk tune on the mouth organ for the next ten minutes. It was a researcher’s paradise.

Still, my mind was stuck on that earlier sentence. Here in front of me was someone unaffected by the Great Recession. And all that took was living in the middle of nowhere, forgoing public services in favor of his community’s schools and health care, relying extensively on his neighbors and himself for food, water, and shelter, and believing wholeheartedly in a Dutch-speaking god whose first day of work forever obviated the need for electricity.

Or so it seemed.

Like his father, Jacob’s oldest son was in the sawmill business. Dependent as lumber is on the construction of new property, they had both felt the burst of the housing bubble in 2007. But the son’s livelihood was more severely affected because he also had money in real estate. One thing led to another … things got so bad, Jacob hesitantly recalled of his son’s experience. The son began selling off properties at a great loss while battling problems at home: financial stress was destroying his marriage. After two difficult years, he decided to leave. That is, he left his family and the church; he would no longer be Amish. He went up to Maine without his wife and their children, though they remain married nonetheless. They’re not divorced, Jacob declares: wedding vows are till death. Leaving the community is not uncommon, Jacob admits. But we never expected it to be one of our own children.

I’d call that an effect.

•    •    •

Recessions happen. Indeed, they occur almost every decade. Fortunately, the fluctuations that are a natural part of modern economies are marked by more ups than downs. But the recession that officially began in December 2007 and ended in June 2009 was different for two reasons. First, it was Great. Persisting for eighteen months, it was our longest recession since the Second World War. In October 2008, the Dow Jones experienced its worst weekly loss in history. Two months later, the Federal Reserve lowered interest rates to zero—an institutional first. That year, the federal government bailed out the economy by spending hundreds of billions of dollars more than ever before. By the close of 2008, unemployment had increased in every single state in the union for the first time since such records have been kept. After the official end of the recession, the unemployment rate reached double digits for the first time in a quarter of a century. From 2009 to 2010, Americans experienced their largest single-year decline in income in more than forty years. More Americans were living in poverty than had done so in nearly twenty years. More than four years after the recession’s end, participation in the labor force was at its lowest point in more than four decades. It’s no surprise that Great is widely used as an epithet for this event, but I think Catastrophic Recession and Record-Breaking Recession are equally apt labels.

A second reason this recession was different from the usual economic fluctuations—and the reason the stories in this book are not limited to the crisis itself—is that it was part of a long-term process that was already under way and continues unabated. Escalating inequality and declining standards of living define this process; the rich are gaining while most Americans are stuck, or worse. This book tells the stories of the most—that is, of those Americans who have been living what George Packer has vividly called the unwinding, a metaphorical unraveling of financial security, public infrastructure, personal dreams, and community cohesion.¹ It refers to that uncomfortable sense that a secure life is hard to hold on to these days.

The term unwinding is useful because it alludes to something more than decline; it captures a transformation that is not always directed downward. Life in America is not uniformly marked by descent. But society is changing in profound ways, and we are sometimes slow to adjust. For instance, more women than ever are breadwinners, contributing the primary or sole income to their households. Yet policies for maternal leave have scarcely changed. Another example is the rise in educational attainment; more Americans than ever are receiving college educations, yet unsustainable levels of student debt offset this positive development.

The stories you will encounter in these pages speak to these transformations and others. Not all of them chronicle decline. Indeed, I assure you that at least some of the stories will inspire hope. My objective is to reveal the dynamism of life in America, rather than to paint a uniformly dark picture. To do so would be misleading. Yet clearly, other aspects of the transformation are deeply problematic. One is wage stagnation. After rising steadily since World War II, American wages began to stagnate and even decrease in the 1980s. Wages ticked back up in the 1990s, and by 2002 the median worker in Ohio was making $16.62 per hour (still less than in 1979). Decline followed again, and ten years later a median Ohio worker was making $15.54 an hour (figures adjusted for inflation). In some parts of the country, workers enjoyed more consistent wage increases, so that overall Americans’ median wages increased by about 80 cents between 1979 and 2012.² But a closer look reveals that among men alone median wages declined uniformly and that workers below the median have suffered more severe wage decreases.

Let’s zoom out instead. Total household income usually includes more than one person’s wages; within a family, for example, it includes the earnings of multiple members. In this context, the total income of the median American family increased by 20 percent from 1990 to 2008—yet over the same period, the costs of basic middle class items rose by much more: housing by 56 percent, four-year public college by 60 percent, and health care by a staggering 155 percent (all adjusted for inflation).³ Likewise, although labor productivity—the output of workers—was also increasing,⁴ worker output failed to translate into worker payback.

This kind of statistical context frames all the stories that follow. But this book is more concerned with narratives than with numbers. Many elements of the unwinding cannot be understood except through a reading of human experiences. Faith in the American Dream, for instance, cannot be precisely quantified. Though never perfectly or equally realizable for all, the American Dream has always been at the heart of our national project, bringing generations of immigrants to our shores and allowing native and foreign-born inhabitants alike to forge their own destinies—at least more so than almost anywhere else in the world. Yet the core tenets of the American Dream—that hard work is rewarded and that real opportunities exist for upward mobility—are now strained at best, outmoded myths at worst.

People’s histories can also unearth intimate sentiments. Feelings like disempowerment and frustration, and perceptions of unfairness and inequity are widely felt but often unspoken. Similarly, evidence of perseverance and of attachments to work, family, and faith is most accessible through trustful conversations. Common classifications—including middle class, working poor, and even poverty—are fluctuating and subjective, eluding precise definition. Looking closely into the lives of others allows us a better sense of what it means to inhabit these categories, and whether people defy them or submit to them. Herein is the purpose of this book: to reveal life in the post-recession United States in human terms.

•    •    •

Before traveling to Ohio, let us briefly survey the long-term escalation of inequality in America. The stories of the super rich are not told in this book, but we cannot afford to ignore their existence. Income inequality has tangible effects on everyday lives and on the country as a whole. That was certainly true of the Great Recession, which was catalyzed and exacerbated by the low spending power of average Americans. Prior to it, economic demand was limited except for housing—then that bubble burst. During the recovery, spending remained low, so unemployment remained high.⁵ Inequality also unhinges values we associate with democracy, like fairness, access, and equalities of opportunity and representation. The exceptional gains of some Americans necessarily affect the economic and political lives of all Americans.

So what do those gains look like? The Great Recession, and the Occupy Wall Street movement it provoked, alerted many people to the growing gap in prosperity between the 99 percent and the 1 percent of Americans. The income earners and wealth holders making up the top 1 percent fall along a wide spectrum, but most of their riches are held by a mere fraction of their ranks. For simplicity we will treat them as one. With their income defined to include market income and realized capital gains, they earned $400,000 or more in 2012. On the eve of the recession in 2007, that small group of people enjoyed over one-fifth of the nation’s income. Together with the 9 percent of earners just below them, they commanded nearly half of the total personal income in the United States. It wasn’t always this way. In 2012, Americans in the top 10 percent enjoyed a larger share of the national income than they had in any year since 1917!⁶ The Great Depression that began in 1929 then accentuated the imbalances; the Second World War attenuated them. In the decades that followed, income became more widely distributed as a new middle class emerged and took a big piece of the pie. By the 1960s and ’70s, the top 1 percent and the top 10 percent of Americans held, respectively, a relatively modest 9 percent and 33 percent of total income.⁷ In the 1980s, however, while average Americans’ incomes were stagnating, the fortunes of the rich began to increase dramatically and have continued to enjoy big gains through 2015. By 2030, if this pattern were to continue at its current pace, the top 10 percent of U.S. income earners could command 60 percent of all national income.⁸

Moreover, the rich are not making more money in isolation; their gains often come at the expense of everyone else. From 1993 to 2012, the average (mean) real income of an American family grew by 18 percent. But removing the top 1 percent from the picture brings the percentage of growth down from 18 to 6.6 percent. Put another way, 99 percent of Americans saw their incomes grow by less than 7 percent over two decades, while over the same period, the top 1 percent of Americans enjoyed income growth of an amazing 86 percent.⁹

How have top income earners managed to do so well? We can locate key processes from the global level down to the individual. Economic globalization has opened pools of cheap labor around the world that compete with—and drive down the wages of—workers in advanced countries like the United States. Meanwhile, governments vie with one another to entice investment by reducing their tax rates. Globalizing forces also favor technical and skilled labor at home, raising the value of the work of the highly educated.¹⁰ In Washington, D.C., politicians seem to be aligned with business interests. They preside over policies like the dismantling of financial regulations and the reduction of top tax rates. This might be the result of purposeful policymaking, or it might be (conscious) neglect; either way, the government is allowing business interests to gain in both power and riches.¹¹ Among individuals in the corporate world, lower tax rates have encouraged a transformation in norms related to bargaining practices and individualized pay for supermanagers, who now fill the ranks of the top 1 percent and top 0.1 percent of earners.¹² To secure these gains, the super rich enlist a wealth defense industry of lawyers, accountants, lobbyists, and wealth management firms that generate lower published tax rates, push tax burdens downward on the income scale, and maintain a special, low rate for capital gains.¹³

These processes necessarily overlap, and all seem to be at play. But a fixation on the global level alone often becomes a pretext for acquiescence. National and individual actors do have some power to