Posts Tagged ‘American Wages’

The financialized U.S. economy

May 6, 2016

WallStIncomeVsRest-1x-1

Wall Street is still doing much better than Main Street.  And while salaries for financial sector workers are leveling off, the salaries and bonuses of Wall Street CEOs are still rising.

A Fortune magazine writer reported that average Wall Street CEO compensation rose nearly 10 percent last year, while the wages of average American workers rose only 1.6 percent.

Healthy and honest financial markets are necessary for a free enterprise capitalist economy, but I don’t see any justifiable reason why Wall Street should prosper while the rest of the country doesn’t.

LINKS

Wall Street Wages Double in 25 Years as Everyone Else’s Languish by Jennifer Surane for Bloomberg News.

The Only Thing Up on Wall Street is CEO Pay by Stephen Gandel for Fortune.

‘Do you think that we have reached the end?’

March 22, 2016

I can hardly wait to read Thomas Frank’s new book.

Here’s another excerpt.

A while ago I spoke at a firefighters convention in the Pacific Northwest, talking as I always do about the ways we have rationalized these changes to ourselves.

Firefighters are the sort of people we honor for their bravery, but they also happen to be blue-collar workers, and they have watched with increasing alarm what has been happening to folks like them for the last few decades . . . watched as the people formerly known as the heart and soul of this country had their lives taken apart bone by bone.

listen,liberal.9781627795395They themselves still make a decent living, I was told—they are some of the last unionized blue-collar workers who do—but they can see the inferno coming their way now, as their colleagues in other parts of the country get their contracts voided and their pensions reduced.

After I spoke, a firefighter from the Seattle area picked up the microphone. Workers had been watching their standard of living get whittled away for decades, he said, and up till now they had always been able to come up with ways to get by.

The first adjustment they made, he recalled, was when women entered the workforce.  Families “added that income, you got to keep your boat, or your second car, or your vacation, and everything was OK.”  Next, people ran up debt on their credit cards.  Then, in the last decade, people began “pulling home equity out,” borrowing against their houses.

“All three of those things have kept the middle class from having to sink down into abject poverty,” he said. But now all three coping mechanisms were at an end.  There were no more family members to send to work, the expiration date had passed for the home-equity MasterCard, and still wages sank. His question was this: “Is there a fourth economic savior out there, or do you think that maybe we have reached the end?”

I had no good answer for him.  Nobody does.

Source: Listen, Liberal

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How to drive down American wages

February 5, 2016

Americans used to say that service jobs were safe from the impact of globalization because there was no way for companies to ship them overseas.

But employers can achieve the same goal by employing unauthorized immigrants, who, like the workers in Asian sweatshops, are outside the protection of American labor law.

A recent example of this was contracting the delivery of the Boston Globe to a company that employed unauthorized immigrants.  The public was upset by the huge number of delivery problems.  It should also have been upset by the loss of jobs of American workers who formerly provided reliable service.

The problem is not the unauthorized immigrants, who are hardworking people who are trying to get by the best they can.  The problem is those American employers who are trying to drive down American wages by any means necessary.

LINK

All the News That’s Fit to Print: How the Media Hide Undocumented Workers by Aviva Chomsky.