"I have seen people with degrees applying for jobs that pay 12.50 an hour ..."

Heard of one myself--he posted a never-to-be-forgotten comment right on these pages a couple of years ago.  He was a college instructor. He chucked it to become a retail clerk of some kind.  Within a year or two, he was:
1. Earning over $20 an hour.
2. Was contributing to a pension plan.
3. Enjoyed some level of medical/dental coverage. 
4. Was able (after a couple of years) to organize his shift-work around hobbies and personal life choices.
After 5 years, he figured he was way, way ahead of the college grind. 

"still having to choose between owning a house or a car ..."  So?  Don't buy a car or a house. Save for retirement instead.  There is no rule or law that says you HAVE TO HAVE IT ALL.  

Laid-off guy profiled in a G&M story last week. He's a part-time worker; can't replace previous salary. He complained that it was getting tough to maintain his lifestyle, so was depleting savings. WHAT?  Bizarre