Too Big To Fail - Too Small To Save
By Thomas D. Segel
May 29, 2009

We watched and did little as the Washington political elite drained our national treasury and gave billions upon billions of our tax dollars to Wall Street tycoons, gurus who mismanaged the housing market, insurance giants and the auto industry. We shrugged as we heard all about these corporations that were "too big to fail" and grimaced a little as the hard earned money we sent to Washington was squandered on conference luxuries, bonuses and other corporate vanities.

Our anger was expressed in more detail with a number of assorted Tea Parties to protest out-of-control spending, ranging from small groups to thousands of people. But, these were either mocked or ignored by the media and the purse string holders inside our nation's beltway. The Washington politicos just sadly shook their heads at those misguided masses that didn't understand how benevolent our national's leaders were as they reached out to help all those important people in need.

It is true that the Obama Administration may have saved up to 200,000 union jobs in the auto industry. But, wasn't this really done at the expense of another 200,000 jobs to be lost as automobile dealers across the country are put out of business? It saved the fat cats of AIG, but that didn't trickle down to the charitable foundations that lost billions in their investments. The 401 K accounts of our elderly tanked, but the bonus babies prospered.

But, forces beyond any state or local control are still pummeling the country. Major retailers such as Circuit City, Mervyn's, Linens 'n Things, Sharper Image and Steve and Barry's Sportswear have gone out of business of filed for bankruptcy, leaving vacant spaces in malls and huge numbers of unemployed in the wake of closures. People have shied away from buying new automobiles, leaving show rooms void of customers. With advertising dollars becoming scarce, newspapers already in trouble are being hit hard and some of closing their doors. Television stations are cutting back on personnel and even the non-profit organizations are being challenged beyond their capacity to provide services.

As all this turmoil surrounds America, the government keeps telling everyone that the massive bailouts and the billions upon billions of dollars in stimulus funds will put us back on track. To date, all we see is nothing has worked as promised. The fat cats of Washington and New York may have been helped, but the most needy of the country have not seen a single penny of assistance.

Through this raging financial storm, Texas has managed to keep itself solvent. More jobs were created in the Lone Star State last year than in the remaining 49 states combined. It is still weathering the economic storm far better than most of the country and its 6.7 unemployment rate is much lower than the 8.9 national averages, but the state still lost almost 40,000 jobs last month.

No region of Texas was hit harder than the Rio Grande Valley. This four county southern corner of the state has historically been listed among the most economically deprived regions of the country. It is now facing unemployment figures in the 10% range. In reality, this number is even higher because its proximity to the border means there are still many undocumented workers seeking employment in this depressed job market.

While large corporations deemed too big to fail are squandering their way through your tax dollars and still facing bankruptcy, what is happening with the working poor, the jobless and the homeless? A look at this small corner of the United States might tell you. From the political standpoint, they seem to be too small to save. But, there is no economic group more vulnerable during these harsh times...and no group less likely to be protected by the government.

This is only antidotal evidence, but with one out of ten people in Deep South Texas now unemployed, those organizations that historically aid disadvantaged individuals and families are the only hands of assistance being offered. However, they too are in need and are being tested to the fullest.

Food pantries run by churches are being called upon to provide more and more assistance. Though congregations contribute to the food supply on a regular basis, the need still is greater than the supply.

The Salvation Army, serving both Cameron and Willacy Counties was asked to assist 58 families and 298 individuals during the past month. Aid requests covered a wide variety of services from rent assistance, help with utilities, food, clothing and spiritual needs.

Five months into the year the local Army's expenditures have already exceeded its contributions by almost $23,000. Its total contributions, compared to the same date last year are down $143,000. The only bright spot for those who provide the Army's services is its Thrift Store operation, which in a down economy has increased to more than $1,000 a day in sales.

A more telling picture of how disadvantaged people are reaching out for help can be seen when viewing the operation of Loaves and Fishes, the Harlingen service center operated by the city's Ministerial Alliance.

During the past four months 35,850 meals were served. So many were in line to be fed that periodically some would need to wait outside until table space became available.

In its Training Center 225 people sought computer, money management and GED

Classes. This was an increase of 17.4% over the same month in 2008. There has been a 35.2% increase in new clients seeking job placement. A total of 1,710 people have requested work related assistance during 2009, with a total of 58 jobs found.

There have been 3299 bed nights provided in the homeless shelter this year. The number of men seeking shelter increased by 7.5%. Women needing shelter increased by 44.4% and children being sheltered saw an increase of 269.8%.

Those needing help with rent grew by 21%, utilities 160.9%, and food bags by 354%. The disabled veterans program saw a jump from 201 people in all of 2008 to 913 veterans to date in 2009, a 354% increase.

In all services there has been an increase in demand of mammoth proportions when compared to previous years. Though the figures are large, they still do not tell the entire story, for on a total income budget of just under $907,000, Loaves and Fishes ends each year with only about $35,000 left in its bank account. This means that when any of the services provided reaches its budgetary limit, nothing else can be provided, even though many people may still be seeking assistance.

One of the most telling areas of an economy in trouble is health care. When finances tighten, people start cutting back on everything from visiting the doctor to buying their prescription medications. In the Rio Grande Valley of Texas, those in need of medical assistance overwhelm hospital emergency rooms, even though they have no money to pay for services. Local hospitals have charged off millions of dollars in unpaid services in recent months.

The one place where working poor and indigent people can receive care in the region is the state operated Rio Grande State Center. This tax funded facility combines the services of a mental health hospital, a long-term care unit for adults with mental retardation and an extensive out patient clinic that provides medical services for those in need. Charges are based on the individual's ability to pay, thus large numbers of patients are given pro bono treatment.

This year the patients being treated in the mental health hospital are at 93% of bed capacity, up from 91% capacity in 2008. The average length of stay has increased this year to 16 days, compared with 14 days of hospitalization just one year ago. This figure does not give a true picture; however, for there are now many patients who are now requiring stays of 100 days and longer.

One area where community needs can be seen in a true light is in requests for medical treatment. During the period January through April of 2008 there were 628 people registering for health care in the out patient clinic. During the same months of 2009 the registered patients numbered 961 people. There were a total of 57,678 visits to the clinic in 2008. This year's numbers are on track to far exceed the patients treated only last year.

These examples only provide a tiny window when looking at a huge nationwide concern. But, one can only ask, if those who are too small to save are being ignored by the federal government in a state that has lived within its means, what is happening in those economic basket cases such as Michigan and California?

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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA.