Middle class worse off than five years ago

Near record-low unemployment, a strong housing market that belies national declines, and a robust agricultural sector aren't enough to quell pessimism among many Yakima Valley residents.

"I'm probably still making the same amount of money, but I feel much poorer than I did five years ago," said Cathy Hale of Yakima, a 48-year-old social services employee at a long-term care center.

Comments by Hale, who was among 18 people interviewed at random by the Herald-Republic, were in line with a study released Wednesday by the Pew Research Center in Washington, D.C.

The study found that 56 percent of Americans say they either have failed to progress or are in worse financial shape than five years ago. It also found that 79 percent of Americans believe it's more difficult for the middle class to maintain its standard of living than it was five years ago.

Hale, who has a four-year college degree, personifies that trend.

A widow on a single income that hasn't kept pace with increasing expenses, she no longer thinks of herself as part of the middle class. The Pew study reported that 53 percent of adults defined themselves as "middle class," with household incomes ranging from below $40,000 to more than $100,000.

"I used to be, and now I feel like I'm getting to be more in the lower-class bracket," Hale said.

Tasha Gulack of Yakima said she, too, "used to be" middle class. The 34-year-old college student and part-time waitress is divorced with three young children and hopes to one day return to the financial middle. In the meantime, she'll have to pay down about $25,000 in student loans and $4,000 in credit card debt.

She's not alone. Americans reported owing more now than five years ago, according to the Pew survey, which involved telephone interviews with 2,413 adults, conducted from Jan. 24 to Feb. 19. The margin of error was 3 percentage points.

John Lewis, a Sunnyside school custodian, said he's had to work odd jobs this year for the first time to make ends meet for his family. The 39-year-old started a lawn service and referees youth sports for extra money. Launa Pettibone, 66, of Whitstran said she lives off of Social Security and uses her credit card more than she used to. Soaring gas prices have limited her mobility.

"I'm not even taking my mother to the doctor as much as I used to," she said.

As was the case nationally, local residents placed the blame for the lack of financial progress in a variety of places. Sunnyside farmer Phil Kuiken, whose revenue from increasing hay and corn prices has been offset by costs of fertilizer and gas, blames government spending and high oil prices.

Marlo George, a 52-year-old Yakima makeup artist, blames the war and the cost of health care. William and Merry Harding, a retired Yakima couple, blame the broader economy and the Bush administration. Bill Brashear, 65, and his 43-year-old son, Paul, both of Yakima, blame globalization for the drain on family-wage jobs.

And some people, such as 32-year-old Yakima long-term caregiver Nicole Syas, blame themselves.

Though higher prices for gas, insurance and rent have played a part, Syas said the real reason she's worse off than five years ago is her own unchecked spending. Five years ago, she found herself with $40,000 of credit card debt before filing for Chapter 13 bankruptcy.

"I was just paying my bills with the credit card and getting things I couldn't really afford," Syas said, adding that she's wiser now and has slowed her spending.

Like about one-third of respondents to the national survey, several of those interviewed Wednesday said they are worse off than their parents at the same age.

"My mom, she was much better off than I am at the same age," Syas said. "She was middle class."

Martin Cuevas, a 40-year-old Les Schwab employee and Yakima resident, said he's better off than his parents but only because his parents were seasonal laborers.

As a man with a full-time job and a wife with her own full-time job, he is living a lifestyle his parents never could. His response, as a Latino man born in the United States, fits with the results of the national study, which places "native-born Hispanics" among the biggest economic winners over the past five years.

"We got more money to spend, more money to go out and do things," he said. "They made enough money to support us, but that's about it."

* Pat Muir can be reached at 577-7693 or pmuir@yakimaherald.com; Ross Courtney can be reached at 930-8798 or rcourtney@yakimaherald.com.

* On the Net: http://pewsocialtrends.org/pubs/706/middle-class-poll

Among other Pew survey findings

* Nearly eight in 10 of all people, or 79 percent, said they believe it has become more difficult compared with five years ago for the middle class to maintain their standard of living, up from 65 percent in 1986.

* Among the middle class, no consensus existed on who was to blame for their economic problems. Twenty-six percent blamed the government, while 15 percent faulted the price of oil and 11 percent said the people themselves were responsible. Others faulted foreign competition and private corporations for economic woes.

* Some demographic groups have improved their income status between 1970 and 2006, while others saw declines. Among the winners were seniors ages 65 and older, blacks, native-born Hispanics and married adults. Losers included young adults (ages 18 to 29), the unmarried, foreign-born Hispanics and people with a high-school education or less.