The chairman of the South Carolina Board of Economic Advisers says there is a new type of “poor” person. John Rainey says the recession has forced many middle income people and financially successful retirees to live on half of the income or less they were accustomed to only a couple of years ago.
Rainey is the spokesman for the board, which provides economic predictions and advice to state policymakers. Rainey says for the past year he has heard of many sad stories around the state, where people who were previously successful financially have come closer to financial ruin.
Rainey says the recession has pretty much bottomed out. But he says the severity of the current financial situation should not be underestimated, and on paper, it has long been similar to the Great Depression. Rainey says many of those who had a lot to lose have lost it. And he says many senior citizens have been particularly susceptible and their lives have been changed.
(Rainey on a new class of poor MP3 2:01)
Rainey on the new class of poor