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Posts Tagged ‘minimum wage’

Republicans Try to Convert America into Pottersville

In the iconic Christmas film, “It’s a Wonderful Life,” an angel offers the beleaguered main character, George Bailey, the stark choice between a hometown named for a cruel banker or one created by and for the middle class.

The banker’s town, Pottersville, is filled with bars, gambling dens and despair.  The people’s town of Bedford Falls is made of hope, hard working middle class families, and their homes financed by the Bailey Brothers Building & Loan.

The film’s happy ending is the people of Bedford Falls banding together to rescue George Bailey and the Bailey Brothers Building & Loan that had given so many of them a leg up over the years. Republicans seek a different conclusion.  They find middle class cooperation and community intolerable. They want the banker, Henry Potter, with his “every man for himself” philosophy to triumph. In the spirit of their self-centered mentor Ayn Rand, Republicans are trying to disfigure America so she resembles Pottersville.

A building and loan association, like the Bailey Brothers’, uses the savings of its members to provide mortgages to the depositors. Members essentially pool their money to give each other the opportunity to buy cars and homes. At one point in the film, George Bailey explains this concept to frightened depositors who are trying to withdraw their savings during the panic that led to bank runs in 1929.

Bailey urges the townspeople who had crowded into the building and loan office to withdraw only what they need, not empty their accounts. “We have got to stick together,” he tells them, “We have to do this together.” A building and loan doesn’t function without trust and cooperation.

It works well for Bedford Falls. The mortgages it provides help working people move out of the Potters Field slums and into Bailey Park, where homes well kept by their owners increase in value.  Despite the success, Potter condemned this practice, saying it was based on “high ideals without common sense.” He criticized the Bailey Brothers Building & Loan for granting a taxi driver a mortgage after Potter’s bank had rejected his application. Potter scoffed at such practices, asking if the building and loan was a “business or a charity ward.”

This is exactly what Republicans do. They describe beloved American programs like Medicare and Social Security as charities – using the euphemism “entitlements.” Like mortgages from the Bailey Building & Loan, Medicare and Social Security are not charities. They’re the American people depositing and pooling their money for the benefit of the American community.

The GOP tries to destroy programs like these that aid the middle class, the vast majority of Americans – the 99 percent – while Republicans protect tax breaks and special perks for the rich – the one percent, the Henry Potters. (more…)

How Rick Perry Has Been on the Public Dole His Whole Life

By Jim Hightower
Author, Commentator, America’s Number One Populist

When this taxpayer-supported lifer flits into your town to declare that he will slash public benefits, he means in your life, not his.

Presidential wannabe Rick Perry is flitting all around the country — hither, thither and yon — spreading little “Perry Tales” about himself and the many wonders he has worked as governor of Texas.

His top Perry Tale is a creationist story about what he has modestly branded “The Texas Miracle.” While the rest of the country is mired in joblessness, says the miracle worker, his state has added 1.2 million jobs during his 10-year tenure.

I’ve built “a job-creating machine,” the governor gushed during one of his recent flits across Iowa, and a Perry PR aide smugly added, “The governor’s job creation record speaks for itself.”

Actually, it doesn’t. Far from having the best unemployment rate in the nation, the Lone Star State ranks a middling 26th, behind New York, Massachusetts and other states whose “liberal” governments he routinely mocks. (more…)

Minimum-Wage Earners Falling Further Behind

By Christine Owens
Director, National Employment Law Project

Two years ago, 4.5 million of America’s workers enjoyed a modest pay increase, as the federal minimum wage rose from $6.55 to $7.25 an hour. The increase was the final of a three-step boost enacted in 2007.

Of those getting a bump in pay, more than three-quarters were adults, nearly two-thirds were women, and nearly half a million were single parents with children under 18.

Yet during the past two years, these working families have seen the real value of their wages fall. Minimum-wage earners working full-time make roughly $15,000 a year. Had the minimum wage rate kept up with inflation, their paychecks would have increased by $800 this year.

Instead, our nation’s lowest-paid workers have had an even harder time providing basic needs for their families. (more…)

Rep. Kucinich Exposes Industry Shills Over Min. Wage

It’s a very simple question. What do you think minimum wage should be? (more…)

The Real Story of Our Economy: Why Our Standard of Living Has Stalled Out

For more than a quarter century after WWII the fruits of America’s productivity were shared with average working people, year in and year out. Not anymore.

Les Leopold

By Les Leopold
Author, “The Looting of America”

Do public sector workers earn more than private sector workers? Who cares? This boneheaded question has us fighting over the crumbs. (And the answer is no — all credible studies show that when you account for educational levels, the total compensation packages are about the same.)

The real question is: Why have most workers seen their standard of living stall over the last generation?

The answer is both obvious and appalling. More and more of our nation’s wealth is going to the few, while the many have seen their real wages actually decline. It’s a disgrace.

It wasn’t always so. For more than a quarter century after WWII the fruits of America’s productivity were shared with average working people, year in and year out. But what exactly was being shared?

What’s productivity and who gets its benefits?

Productivity is a crucial economic measure of the total output of goods and services in our economy per hours worked. It’s not based on pay levels, only on hours worked in the economy as a whole. In effect, it measures how much human labor power it takes to produce everything we have. It makes a real difference to our standard of living if it takes 10,000 hours rather than 1,000 to build a house.

Output per working hour, although imprecise, is the best way we have to measure our level of technique, organization, skill, effort and intellectual firepower. Sure, this measure has significant flaws because it doesn’t really measure our health or environmental quality. But it does indeed measure the material side of our standard of living. When productivity grows, a society has the means to solve many problems and the means to enhance working and living conditions…but only if the fruits of productivity are shared somewhat fairly. (more…)

Let Them Starve? Where Did That Value Come From?

Carl Davidson

Carl Davidson

By Carl Davidson
Author and writer for Beaver County Blue Blog

At a time when all of us are learning the ongoing value of “an injury to one is an injury to all,” I’ve had a little tussle this week in the Beaver County Times Online with some Tea Party sympathizers who would drive a wedge between the workers and the poor. One went so far as to urge simply letting people starve or rot in jail; another suggested that the unemployed start wandering the highways begging for work. Both thought a “living wage” a ridiculous idea, but queried me about what I thought it was.

So I checked Penn State’s center for calculating such things. A living wage for one person in Beaver County is $8.28 an hour; for one parent and one kid, it’s $16.48 an hour, and the poverty wage for the two is about $13 an hour. The minimum wage, as we know, is $7.25.

As for answering my Tea Partiers, there’s really no where else for the unemployed to go, because the one opening for five applicants is a national figure, and with slight variations—from one to 4 to one to six—it applies everywhere.

So it really doesn’t matter if the unemployed, as a group, are lazy, workaholics or somewhere in between. No matter how you slice it, capitalism by its lonesome doesn’t supply enough jobs for all. In fact, it’s been official policy for decades, once unemployment gets to 4 percent, that the Fed and others call that ‘full employment’ and move to keep it from going lower, since they consider true full employment “inflationary.” Thus they prove Marx’s point about how capital needs an “industrial reserve army of the jobless to serve as a club to use against the employed and unionized workers to keep their wage demands down.” (more…)

FDR: The Second Bill of Rights

Robert Borosage

By Robert L. Borosage
Co-Director Campaign for America’s Future

How does America dig out of the hole we are in? Surely the focus must be on first principles, how do we recreate an economy that works for working people? With the right talking about a return to the principles of the Constitution, it is worth remembering how Americans thought about first principles coming out of the last great economic calamity.

Today is the 67th anniversary of Franklin Delano Roosevelt’s historic 1944 State of the Union address that put forth an Economic Bill of Rights for all Americans. (Michael Moore presented to modern audiences in his Capitalism: A Love Story)

Roosevelt spoke as the Great War was drawing to a close. Attention was turning to the transition to peace, with widespread fears about whether the economy would revert to the depression that only the mobilization for war brought to an end. An entire nation had mobilized and sacrificed for war, what would peacetime bring?

Roosevelt argued that the sacrifices made in war demanded a strategy not only for “a lasting peace,” but for “an American standard of living higher than ever before known” — and one that was as widely shared as the wartime sacrifices were:

We cannot be content, no matter how high that general standard of living may be, if some fraction of our people — whether it be one-third or one-fifth or one-tenth — is ill-fed, ill-clothed, ill-housed, and insecure. (more…)

Beck Shills for Chamber

Mike Hall

By Mike Hall
AFL-CIO
Senior Writer

Right-wing radio zealot Glenn Beck apparently has decided that all that foreign money coming into the Chamber of Commerce’s kitty just isn’t enough to buy an election.

Last week, he announced he was donating $10,000 to the Chamber and urged his listeners to chip in, too.

Beck is the same guy who called the long-term unemployed un-American, anti-capitalist, socialist losers and who verbally attacked an 80-year-old union activist for speaking at a high school, among other just as outrageous and reactionary rants.

The Chamber, for its part, doesn’t have much respect or use for workers, either. It’s spending $75 million to promote candidates who oppose new rules to discourage U.S. firms from shipping jobs overseas, want to repeal the minimum wage and weaken workplace safety and collective bargaining laws rules. That’s just the short list.

Maybe Beck’s disclosure of his contribution will spur the Chamber to step out from behind the shield of a weak election law and reveal just who else is funding its political attack machine….Nah.

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Re-Posted from the AFL-CIO Now Blog

How to Fight Tea Party’s Faux Populism

Sherrod Brown

By Sherrod Brown
U.S. Senator, D-Ohio

Progressives are an impatient bunch. We fight for people who have waited too long already — for health care, for educational opportunity, for jobs to keep them in the middle class.

But for generations, conservatives have appealed to fear to protect the privileged and preserve the status quo — fear of immigrants, fear of diversity, fear of big government. For conservatives in 2010, it’s easy:

“Stop.”

“No.”

“Repeal.”

Meanwhile, for more than a century — in churches and temples, in union halls and neighborhood centers, in the streets and at the ballot box — progressives have moved the country forward. Progressives brought us minimum wage and Social Security in the 1930s, civil rights and Medicare in the 1960s, and health care and Wall Street reform in 2010.

Opponents of these accomplishments — some of society’s most privileged and well-entrenched interest groups — have not changed much. The John Birch Society of 1965 has bequeathed its fervor and extremism to the Tea Party of 2010.

History tells us that rage on the right should not be confused with populism. The far right attacks government regulation as it feeds Wall Street and the insurance companies. It rails against government spending for the least privileged as it lavishes tax cuts favoring the most privileged.

No one should be surprised over what has happened in the last 18 months:

•We passed health care reform, so the insurance companies are coming after us at election time. (more…)

America’s Low-Wage Future

Jack Metzgar

Jack Metzgar

By Jack Metzgar
Emeritus Professor of Humanities at Roosevelt University in Chicago

British historian E.H. Carr once said something to the effect that while no serious scholar makes up the facts, they all choose which facts “to put on stage.”  The problem of cultural bias is that there are way too many facts to give them all their proper due, and in choosing what we think is most significant among them, we are guided by our own focus and general sense of significance – that is, by our values, our hopes and fears, and our everyday sense of how the world works.

Every two years the Bureau of Labor Statistics (BLS) makes detailed projections of how many jobs there will be in which occupations ten years from now.  The latest one came out late last year, and among a dizzying array of facts and figures, here’s what they headlined in italics at the top of their report:

Professional and related occupations and service occupations are expected to create more new jobs than all other occupational groups from 2008 to 2018; in addition, growth will be faster among occupations for which postsecondary education is the most significant form of education or training. . . . .

This was duly reported by The New York Times under the headline “Where the Jobs Will Be,” with the same emphasis on “professional and related occupations” and “postsecondary education.”   The message is that our society is going to need many more college graduates than it has now, which is true.  The impression most often left, however, is that we are rapidly becoming a society of “professionals” and “knowledge workers,” and that the key to our future is making sure that almost everybody gets a college education.  This impression is not only false, but spectacularly so.

Disguised in the text, but present in the BLS tables is another set of facts: Only 21% of jobs now require a bachelor’s degree, and despite faster growth among these credentialed occupations, that isn’t going to change much.  By 2018, according to the BLS, only 22% of jobs will require a bachelor’s degree or more.  Of the 51 million “job openings due to [both] growth and replacement needs” in the next ten years, fewer than 12 million will require a bachelor’s degree.

At the heart of what the BLS and The New York Times choose to put on stage is confusion between the fastest growing jobs and the jobs with the largest job growth.  Though the BLS tables report both the fast and the large in detail, the headline and the text emphasizes speed over size.  For example, the fastest growing occupation in the next ten years will be biomedical engineers; these jobs will increase by a whopping 72% from 16,000 to nearly 28,000, a net increase of 12,000 jobs.  Meanwhile, retail salespersons will see job growth of a meager 8.4%, but since there are now more than 4 million of them, that’s an increase of 375,000 jobs.

A second confusion involves the word “service,” which in other contexts is used to indicate all work that does not involve making or building things, as in “service economy.”  This usage conjures images of doctors, lawyers, teachers, and management consultants – all of them growing occupations and highly paid.  But that’s not what the BLS means by “service occupations.”  The BLS service jobs with the largest projected growth are home health and personal aides; food service workers (including fast food); nursing aides; landscaping and groundskeeping workers; medical assistants; security guards, and child care workers – all of them already very large and all of them paying “low” or “very low” wages.

Of the 30 fastest growing occupations, 14 require at least a bachelor’s degree and another five will require an associate’s degree; all 19 of these fast-growing jobs pay “very high” or “high” wages by BLS standards.  That is good news.  But among the 30 with the largest growth, only seven require a bachelor’s and one more requires an associate’s.  And, unlike the fast, of the top 30 for size, the majority of new jobs are either “low wage” or “very low wage.”   Here’s my tabulation of the largest 30 by how well they pay:

Top 30 occupations with largest projected job growth, 2008-2018

2008 Median Annual Earnings by Quartiles (Number of Occupations)

Number of New Jobs Projected

Percent of Top 30 Jobs

Very High: $51,540 & above  (7)  1,771,100 24%
High: $32,390 to $51,530  (8)  1,523,100 21%
Low: $21,590 to $32,380  (9)  2,131,400 29%
Very Low: Less than $21,590 (6)  1,899,400 26%

These top 30 occupations account for about one half of the net new jobs the BLS projects, and other data show that the wage composition of these 30 is not unrepresentative of the job structure as a whole, now and in 2018.  If these were the facts the BLS chose to put on stage, the headline might be: Majority of American workers projected to remain poorly paid and in need of a living wage.

We might then realize that we cannot close the widening gap between the earnings of high school graduates and college graduates simply by producing more college graduates.  There simply are not and will not be enough jobs requiring a college education. With a different set of facts on stage, we would understand that we need to do something to increase the majority’s wages and incomes directly.

What’s more, as a nation we know how to do this because we’ve done it before, in the three decades after World War II.  Though each has its limits, we need some combination of greater unionization, steadily improving minimum wage laws, and enhancements in the social wage, now called “work supports.”  Democrats, for all their other faults, have committed to advancing on all three of these fronts, and in the last three years have advanced a little on each of them.  College professors (called “post secondary teachers” and #10 on the BLS largest list) could lend a hand simply by putting some of these “other” facts on our stages.  The BLS largest list is a richly complex document that reveals contradictory tendencies in what some 150 million of us do and will do to earn a living.   My arrangement of that list by educational requirements and pay simplifies it some by separating out those countertendencies.  No facts are made up, but by reorganizing the stage, the same facts make a decidedly different impression.

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Jack Metzgar is the author of a book about the 1959 steel strike called Striking Steel: Solidarity Remembered