LOW
PAYING JOBS REPLACED BY MEAGER PAYING JOBS!
(FRAZER
CHRONICLE)
(All
the News That Nobody Else Will Print)
I’ve
written about this subject several different times…..and each time I discover
something else that I’ve missed. A small nugget of statistical information, a
morsel of a story on how someone else in the work-place has been exploited by
an unscrupulous employer. In this case, with this story, I am amazed by those
people that author statistical information through hours of work on their part
as well as those undergrads who have helped in the research.
Each
time one of these studies reaches the printed media, in this case, an article
by Rick
Romell in the Milwaukee Journal Sentinel using
information gleaned by University of Wisconsin-Milwaukee professor
Marc
Levine in an October 29 edition, I wonder at how they feel about what
the research, and write…..it never says…..and as far as I’m concerned, they
could offer up an opinion…..in fact I would welcome such a commentary.
In
the latest report on wages, jobs, employment, and where, as an all encompassing
issue, the trend is going, the report, although interesting, shed little light
on where (they thought) the trend was heading. Of course, there was reference
to the downturn in 2007-2010 with regards to the nation’s economy, as well as
the world’s.
But
for me, that wasn’t good enough, I wanted the nuts and bolts of why wages have
foundered since 2009 and 2010 when the financial atmosphere and unemployment
begin a slow return to “normalcy”. Of course, I have my own opinion (that won’t
surprise you regular readers) and we’ll get into why I think wages have lagged
since about 2007.
I
am a student of history…..not an expert, and as such, I
take a slower read on why our history seems to repeat itself. I am not mired
in the country’s history, I just think that we, as a people, can learn from it
(history), apply some of it to
our 21st century lives…..and move on. As a people we do not need to
praise or dwell on our history, or use it for some devious extraction, but to
simply use history as a learning tool.
UNDERSTANDING
THE REASONS FOR LOWER PAY IN THE 21ST CENTURY
Workers
have always been in a struggle with their employers and the rate of pay that
they were willing to pay. The rate of pay, and workers dissatisfaction is
nothing new…..except this time it seems as if consumers goods remain higher
than usual. A case in point, the initial cost for breakfast…..a box Cheerio’s
is $3, a gallon of milk is $3, a loaf of bread is $3, oleo is $3, and sugar is
$1.50 a pound for a total initial cost of $13.50. If you’re making $13.50 at
your job…..say goodbye to one hour.
If
you got an old clunker that serves as transportation going to and from work,
and round trip is 10 miles a day, and you work 5 days a week and you get 13
miles per gallon, and gas is $3.50 a gallon, say goodbye to $13.38, or wave
goodbye to another hours work.
I
could go on, but you get the point, by the end of your work week, a person
making $13.50 an hour ain’t got much left…..in fact he’s going to be facing more
week then paycheck. I’m retired, on a fixed income, and have a tough
time making ends meet…..I simply can’t imagine how people with a family are
making it in today’s work world.
Of
course the recession which started in 2007 was nothing compared to the great
world-wide depression was engulfed most of the world’s nations. Although the
cause’s of that world-wide monitory catastrophe are still debated to this day,
several things are crystal clear, (1) there was way too much credit that was
extended to people that had absolutely no business being involved with the buy
now, and pay later practice of doing business.
(2) There was some super faulty decisions and reactions to escalating unemployment
(3% in 1925 to 25% in 1933). Wages of those who still had jobs fell by 42% and
the Gross Domestic Product (GDP) was cut in half, from $103 to $55 billion,
which was partly due to deflation, where prices fell 10% per year. The
Smoot-Hawley Tariff Act was passed into law in 1930 to provide revenue, to
regulate commerce with foreign countries, to encourage industries of the United
States, and to protect among other things, the United States worker.
Actually
what the Smoot-Hawley Act did was to raise U.S. tariffs on more than 20,000
imported goods to record levels. In so doing, the act actually discouraged
incoming consumer and industrial goods and was highly counterproductive and
contributed to the depth and length of the global depression. In short, and to
be totally simple…..which I am, the world tightened their belts and readied
themselves for a long period of serious manufacturing, importing, exporting,
and the financial strength of the buying public…..around the world.
THE
GREAT RECESSION
There
are similar parallels between the 1929, and the 2007 monetary crises, unemployment,
falling wages and again extending credit to people who had little chance to
repay what they had purchased…..on credit that was extended to extremely poor
credit risks.
The
terms are different, like housing bubble,
high-yield investments, innovative securities, and lowered credit standards. But there was the same basic problems
that occurred 78 years earlier…..money got extremely tight, and in fact the
federal government ended up bailing out several corporations.
As
in 1929, today, in 2014, we have a situation where there has been major
unemployment (from 4% in 2005 to over 10% by 2009) and the business community of the
United States pretty much taking advantage of that situation.
It has always been the way the country’s business community has rolled,
it’s the great American way…..to take advantage and milk a situation for all
that its worth.
As
a nation, we’ve been there before, somehow we’ll recover…..we always have,
business and industry are counting on that recovery…..hell, their already
counting the profits that they’ll gather in from the current low wage for more work, and more
responsibility on the job, jobs. It is extremely sad, but in my
estimation, the truth.
Minimum
wage, low wage, intolerable jobs and living conditions, their part and parcel of
America’s economy in 2014, it always has, and always will be. We individually
or collectively are completely incapable of changing the proliferation of low
paying jobs that are hitting the job market today. Business has down-sized
because of the power of the buying public, or have taken their trade overseas,
and import their products back to the U.S. to sell to us at what we feel is
great reduced pricing. Ha, ha, instead of paying workers to make a screw-driver
here in the U.S. $16 an hour, the pay some Bangladesh .50 cent to do the same
job.
There
will never be equal pay for equal work, or an honest living wage, or a raise in
the U.S. minimum wage that people can
live comfortably with until……….?
HAVE
A NICE DAY!