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The Retired Investor: How Much Are Your Children Worth?

By Bill Schmick
iBerkshires columnist
Rachael Plaine and daughter, Lyla. Photo by Barbara Schmick
In the weeks ahead, the U.S. Centers for Disease Control (CDC) wants your children to go back to school. They say it is necessary because children need schooling from a social, emotional, and behavioral health perspective. No one disputes that, so why are American parents balking at the idea?
 
The short answer is that they are afraid for their kids. It doesn't take a rocket scientist to understand that kids in a classroom are "super spreaders" of virus. Just think of what happens during the Flu season each fall and winter 
 
Despite assurances from the CDC that death rates among school-age children are much lower than adults, they don't claim that no children will die if they go back in the classrooms. As such, parents are asked to play a percentage game. "What are the chances that my child will be the unlucky one and die because I decided to send them back to school to school?"
 
To make matters worse, the majority of Americans suspect they are not getting the true story when it comes to accurate statistics in regard to COVID-19. Between various reporting procedures among the various states, hospitals, and the federal government everything from double counting to underreporting is occurring.
 
School representatives across the nation also argue that they are ill-prepared, and do not have the funds to make their classrooms safe for students in a few short weeks. Thanks to the nation's less than robust response to the crisis, neither the funds nor the time to spend them is available for this school year.
 
The question to ask is, "why is the government, along with the business community, demanding schools reopen now, despite the accelerating rate of virus cases nationwide?" 
 
The elephant in the room no one wants to address concerns the labor force and the economy.
 
As it stands, millions of working parents with children cannot both go back to work. One or another of the parents must stay home and mind the kids, since there is no child care (and probably won't be) until a vaccine is developed and administered nationwide. That means the economy, with roughly half the labor force stuck at home, won't be able to recover anytime soon.
 
In addition, an on-going, struggling economy will mean many companies will face bankruptcy and those who survive will be forced to "right-size," which means cutting their labor force permanently. Some already are. That would further compound the economic situation and potentially push out any recovery to sometime next year, if then.
 
Schools, however, provide huge positive benefits for both children and parents. Few families today can get by on one income, so without re-opening classrooms, the economic well-being of many families could be dire. Keeping schools closed would also unduly harm low-income and minority children and those living with disabilities. These students are less likely to have access to private instruction and care. In many cases, they are more likely to rely on school-supported resources like food programs, special education and after-school programs as well.
 
Today, there are no good options for these struggling parents. They must weigh in their own minds and hearts and the risk and rewards for keeping their kids at home, or sending them back to school under these most trying of circumstances.  It is a terrible tragedy, and one with no solution. My heart goes out to all of you who must make this decision. 
 

Bill Schmick is now the 'Retired Investor.' After working in the financial services business for more than 40 years, Bill is paring back and focusing exclusively on writing about the financial markets, the needs of retired investors like himself, and how to make your last 30 years of your life your absolute best. You can reach him at billiams1948@gmail.com or leave a message at 413-347-2401.

 

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