Thanksgiving: Being Grateful For What We've Had as Americans

 If we look at the present rate of inflation, it was running about 7.7% as of October. It looks like inflation it will be 8.3% for the year, which is a 40 year high. Your general utilities will be just about 17.9% more than it was last year. Food is up 10.9% over last year.

The cost of gas and diesel fuel has been on the rise as we all know. The average increase has been around 6.3%.  We saw a drop in prices toward the end of the election cycle when President Biden freed up some oil and gas from our national reserves. The point of course was to make voters forget, at least temporarily, all the pain they were paying at the pump.

Interest rates on everything from bank loans to credit cards are on the rise. When interest rates start to rise, so does inflation and visa versa. This is because to there is less money in circulation, so the "price" of money, which is based on its availability, goes up. Interest is the price we pay to "rent" the use of money.  

The control of money (and interest rates) is controlled by the Federal Reserve. In order to slow the economy, the Fed increases interest rate, which slows borrowing in order to reduce inflation. By the same token, if the economy slows too much, the Fed lowers the rate of interest in order to encourage more borrowing and thereby stimulate the economy. In general, the Fed likes to keep the overall inflation rate around 2%.

When it comes to stocks and bonds, they tend to operate inversely. As stock prices rise, bond prices drop. When stock prices drop, bond prices tend to rise.  For instance, the interest rate of "I" Series U.S. Treasury Bond are expected to starting dropping from a current rate of 9.62% to an anticipated 6.47% as inflation rises.

The average American spends about 33% of their net income on mortgage or rent payments. With that in mind, real estate prices have risen approximately 17% over last year. The median price of an average home in the United States was $428,700 in the first quarter of 2022. If we go back to 2020, it was $329,000, which is a 30% increase in price. Availability is one determining factor.

If we compare by state, the average cost of a home in Hawaii was $1,038,544 in July 2022. That same home would cost $164,132 in Mississippi. Like California? Get ready to pony up around $816,804 (some parts of California such as San Francisco are actually considered too expensive for some people to move to). Maybe you'd like a little more open spaces instead.

In Montana and North Dakota the average price of a home will set you back $449,723  and  $282,461 respectively.  Not remote enough? Try Alaska. The average price of a home is $337,373.  Of course, you could consider Kentucky or West Virginia where they say weddings are more like family reunions. An average priced home will cost you around  $197,644  and $137,286. 

Any way you slice it, the home prices are forcing more Americans to consider renting. But even that is becoming beyond some people's reach. A single bedroom apartment nationally  rents for an average of $1,326.00 a month (typically with utilities included). A single family house typically rents for $2,018.00 plus utilities.  Of course, as with homes, location is everything.

As with houses, Hawaii has the highest apartment rental prices, followed by California. The average one room apartment goes for $2,399.00 a month in Hawaii and $1,844.00 in California. Washington DC is high when it comes to either buying or renting. The average apartment rents for $1,770.00. Meanwhile, you can rent a nice single bedroom apartment in Kentucky for roughly $920.00 or $905.00 in Iowa.

But, as with everything else, the price of rent is expected to keep rising. Nationally, the U.S. is short between some 2 and 5 million units meaning there's more demand than supply, which drives up prices. Meanwhile, with inflation increasing along with interest rates, the cost to "rent" money to build more units has gone up too. That makes it more expensive to build more units and those higher cost are passed along to the consumer.

Perhaps the most important component here is wages. The average worker receives a wage increase of approximately 3.5 to 5.5% annually. Social Security and other government income recipients receive a annual cost of living increase (called "Cost of Living Adjustments" or "COLAs") of 8.7% at the beginning of the year.   

However, when confronted with the current inflation rate, most individuals go in the hole by the time you add  in all the increases in utilities, fees, credit card interest rates, gas, food, taxes (particularly property and schools taxes), clothes, and so forth. Perhaps if it was just one or two of these, most people could cope, but it's not. It's the commutative effect.    

Meanwhile, the cost of benefits, on which employees depend, continue to increase. Over the last five years, the cost of basic benefits have risen between 5% and 7%, forcing employers to reduce what they offer or requiring employees to pick up more of the tab.

Some small businesses have had no other choice but to drop benefit packages altogether, which forces some employee to seek employment elsewhere (and we all know finding qualified workers has always been tough, but finding individuals willing to work has been next to impossible since COVID). 

As a result, a lot of smaller "mom and pop" shops have vanished. Bear in mind too that few small businesses receive taxpayer based corporate bailouts. Those seem to be reserved for Wall Street. Let's take a more detailed look at wages since that effects pretty much everything else.

Not surprisingly, wages have failed to keep up with the rate of inflation. In terms of real dollars (dollars adjusted for the rate of inflation), our purchasing power is at a 66 year low. To put it another way, the current minimum wage buys the same as what 75 cents did in 1956.  Individuals on the low level of the pay scale, which includes most entry level jobs, simply can't make it.

A  survey by Bankrate said 55% of those surveyed said their wages weren't keeping up with prices. That includes workers who receive regular salary increases annually and the 39% of employees who do not.

 To add salt to the wound, CEOs and senior executives earn an average of just over $21 million dollars a year. This is more than 400 times the salary of an average employee which is about $51,000 a year. The difference was 20% in 1963. From 1978 to 2020, the salaries of U.S. CEOs increased by over 1,322% while the average employee saw an increase in pay of just 18% for the same period.  

The top three companies with the greatest executive/employee wage inequality are Nike, Walmart, and Amazon. The three companies with the lowest executive/employee wage inequality are Alphabet (the parent of Google), Walt Disney, and Berkshire Hathaway.

To put it another way, an employee at Nike would have to work just under 30 hours to equal one minute of their CEO's salary. It's 20.7 hours at Amazon and 14 hours at JP Morgan Chase Bank. At Starbucks it's 10.7 hours of serving their overpriced coffee to equal one minutes of CEO Kevin Johnson's salary. At Blackrock, which is arguably the world's most influential company, an typical employee has to work 6.2 hours to earn the same amount that their CEO, Larry Fink, earns in 60 seconds.

Income inequality is at its highest level in over 50 years according to the U.S. Census Bureau. The widest pay gaps are in California, Florida, New York, Connecticut, Louisiana. However, Texas, Kansas, Nebraska, New Mexico, New Hampshire, Virginia, and Arkansas aren't far behind.

The Census Bureau also shows (perhaps not surprisingly) that the percentage of poverty in the U.S. was 12.8% in 2021, which is among the highest of any developed nation. That's about 38 million people. In fact, of the top 25 industrial nations in the world, the U.S. ranks dead last.

In 2021, the percentage of child poverty (those under 18 years of age) was 16.9%. For those over age 65, it was 10.3%. In Kentucky, the central South, New Mexico, and Washington DC,  the child poverty rate was over 22%. It was lowest in Utah, North Dakota, Montana, Vermont, and New Hampshire.

For seniors, Washington DC, Louisiana, and Mississippi the poverty rate was 13% or higher. In 12 states, including Kentucky, Nevada, and South Dakota, the poverty rate was between 11% and 12.9%. In the majority of the country it was 8.8% to 9.9% while in four states it was under 8%.  

According to a number of reports, around a half a million Americans are homeless at any given time. About 70% are individuals while the rest are families. 11% of the homeless are military veterans. The rise of inflation and prices in general will likely add to these numbers.

Inflation, increasing home prices, the cost of gas, food, utilities, income inequality, homelessness, and, of course, rising taxes, are symptoms of a failing political and economic system along. There is no questioning our social, economic, and political divide.

 History has shown that radical change tends to come from the bottom up. This is especially true if a middle class supports the bottom tier. In America, our middle class has gone from 61% of the population in 1971 to 50% in 2020 while the percentage of low income has grown from 25% to 29%. Globally the middle class has shrunk by 150 million since 2017. India lost 32% of its middle class while Asia lost 25%.

Along with industrial output, the quality of education and medical care, and other key measurements, the United States is showing all the signs of a irreversible decline. China is now the world's leader in manufacturing. In terms of technology and its innovation, the U.S. ranks number one, but China, Japan, and South Korea are pretty close behind. Germany and Israel are closing in too.

Academically, we rank in the middle of the second tier in science. In reading, we're in the lower half of the second tier, while in mathematics we're just above the third tier.  Overall, we're 17th in the world academically with Asian, Scandinavian, and Europeans dominating the top slots.   

When it comes to healthcare, we spend more money than any other developed nation, and yet, we have among the highest infant mortality rates, the lowest life expectancy, and the fewest number of available beds. Among the top 11 highest income nations, the U.S. healthcare system ranks dead last.

Some predict America will become a second tier economy with a top tier military presence akn to other historic empires like Rome, the Ottomans, and Great Britain.  Others think it will a much harder landing resulting in a broken and fragmented nation.  Certainly the foundations are in place thanks to unchecked illegal immigration and a multiculturalism which discourages integration. Anyway you look at it, you better buckle your seatbelts.  

 

 If you want to know more, please take a look at the links below. If you enjoyed the article, please consider passing it along to others and don't forget to subscribe. It's free! Lastly please be sure to "like" us on whatever platform you use to read AnotherOpinion.com. It helps with the algorithms and keeps our articles in circulation. Thank you!   

 

Inflation Calculator

What Is the Relationship between Inflation and Interest Rates

United States House Prices Growth

How Rising Interest Rates and Inflation Impact Real EstateInvestments

Average House Prices by State in 2022

Bureau of Labor Statistics: Employment CostIndex---September 2022

Average Rent by State 2022

 

CEO vs. Employee Salaries at America's Top Companies

U.S. Poverty Rate Is 12.8% but Varies Significantly by Age Groups

 

U.S. health-care system ranks last among 11high incomecountries, researchers say

Report: Pandemic Shrunk Global Middle Class by 150 Million

America's Poor Are Worse Than Elsewhere

Income Inequality: The State of American Freedom Pt 2 of 3 of Our "Where American Ranks" Series

Last week we took a look at where America stands on the issue of freedom when compared to other nations around the world. As we saw, we actually rank pretty low. In some cases, we come in behind some second tier nations. That certainly doesn't bode well for a country which boasts that it's the "freest nation of earth". As the facts proved, we're not even close. This week we're going to look at the issue of income inequality.

Poverty Levels

Most every nation on the planet has some form of national safety net, be it unemployment, healthcare, or community aid which provides clothes, food or temporary shelter. Of course, as one would expect, the richer the country the better the safety net. However, that's not always the case. In terms of poverty levels, the US has the second highest of any developed country with 17.2% with Israel having the largest at 18.6%. We are just about Spain with 15.9% and Greece with 15.%.

According to a UNICEF report from 2012 (the most recent available), almost 25% of all children in the US live in poverty. Among black children that number reaches 36% and 31% for Hispanic children. In terms of obesity, the US leads the pact among developed industrial nations at 36.4% (the average for all industrial nations is 22.7%. If we look at healthcare, America is a latecomer to having some form of national healthcare program. Most of the world's developed countries have had some type of national healthcare in place for decades. Even some second and third tier nations have had some type of national healthcare. In fact, we are the only developed nation which does not have full care coverage for its citizens. In terms of dollars spent, the US tops the list with an average annual per capita cost of $9,400. Yet, we have the fewest number of doctors, hospital beds, and psychiatric facilities of almost any developed nation; failing to near the bottom of the list.

As an example, the country with the most beds per 1000 people is Japan with 13.2, followed by South Korea with 11.7. Among European countries, Germany has the most with 8.2 followed by Austria with 7.6. Meanwhile, the US has a dismal 2.9 available beds per 1000. The average among all industrially developed nations is 4.7. As an aside, when it comes to the costs of prescription drugs, again America ranks at the very top of the list. Another factor is life expediency. America has one of the lowest life expediency of any industrial nation with an average of 79.8 while Japan has the highest at 83.7. The US is also the only developed country where maternal mortality has actually increased over the last 15 years. It also has one of the highest infant mortality rates of any first tier nation.

Decline of Middle Class

The social-economic engine which has propelled the United States since its founding (and even before it) has been the Middle Class. America's Middle Class has been the envy of practically every nation on earth. It has been the hope and dream of almost every immigrant who came to country. The Middle Class offered the opportunity to own a nice home in a safe neighborhood, to send your kids to the good schools, and to have enough money left for leisure activities, purchase some of the finer things in life, take the occasional vacation, and even sock away a few dollars in savings. For the more ambitious types, it was the spring board into the upper classes.

However, since 1970, income levels for the Middle Class have remained largely stagnant according to a 2018 Brooking Institute report. When inflation is considered, the quality of life for the average Middle Class has actually declined by 8%. Meanwhile, the top 2 1% aka the ruling Oligarchy has seen their overall incomes increase from 7% in 1970 to 22% by 2012, and continuing to increase while the top 20% experienced an increase of 95% over the same period!

Employment levels and wages among the Middle Class have also shown a decrease, which seems to coincide with the political influence of unions collapse. However, while the overall wages of the Middle Class have gone down, especially among men, it has slightly risen for women. An increasing side not to all this is that while income levels have dropped, productivity has actually increased by approximately 20% along with a substantial increase in the US economy. Another interesting facet is that over compensation, which is comprised of salary and benefits. has seen a 43% shift from employees to the owners between 1970 and now which means employees are much worse now than they were in the 1970's or earlier.

It should be noted that illegal immigration also affects the decline in wages. It produces a increase in the demand for a jobs, especially low skill, repetitive, or entry level jobs, which in turn drives down wages and benefits. Secondly, since most of these jobs are low paying, they don't even come close to offsetting the use of taxpayers based services which they use (assuming they pay into the system; most do not). The result is typically higher taxes to pick up the slack which always hits the Middle Class the hardest. Meanwhile, just 13% of employees are provided with any type of benefit coverage (however, 67% of union employees still have at least some coverage although their average income dropped just over 11%). In terms of costs, illegal immigration costs taxpayers an estimated $8.2 billion dollars annually.

Also, between 1998 and 2008, 23% of all manufacturing jobs (mostly unions) were shipped overseas. Household debt increased from 47% of the Gross Domestic Product (GDP) in 1980 to 96% in 1990. While it dropped in 2008, it still remained at a high of 72% . 92% of the 1.6 million bankruptcies filed in 2003 were people in the Middle Class. Lastly, just 1 in 3 workers have any type of savings. In effect, we're seeking the creation of two classes in America, the very wealthy and everyone.

The CEO/Employee Deferential

So, while the average salary of most working class Americans decline and the overall income level of the Middle Class stagnates, income levels for the wealthy continues to increase. In the 1950's and early 1960's, the average CEO/President earned roughly 20 times more than their average employee. However, things have changed since then. Unions, which were on a decline, were still influential and packed a potent political punch. Today, most unions are a pale shadow of their former selves; existing primarily to keep employees off the picket lines and on the production lines. Activist unionism, which had made unions to popular and powerful, especially from the 1930's to the 1960's, are a thing of the past. Politically, unions remain a cash cow for a largely indifferent Democratic Party which is more interested in appeasing its new corporate paymasters. Corporate lobbyists can easily deliver $34 dollars for every $1 dollar unions raise.

Today, the average CEO/President makes 361 times more money than the average employee; 6% in 2017 according to a 2018 Forbes article. Since 1950, as the working class struggles, the salaries of CEOs and Presidents have increased a whopping 1000%. They are given benefit packages that the ordinary employee could only dream of, and "golden parachutes" in case things go south while employees get pink slips. It used to be that employees were viewed as essential members of the business family. Nowadays they are seen as necessary liabilities to be used and terminated with no further thought than a discarded broken tool. Very few even get the gold watch let alone a "thank you" for all their efforts.

Summing It All Up

So what does all this mean? Simply this, the divide between the upper 20% and the rest of us rapidly spreading and has effectively created a two tier economic class. The Middle Class, which has been the chief bastion of America's economic, social, and political success has been virtually wiped out due to taxes, restrictions, loss of jobs, stagnate or declining incomes and even social mobility. America is a defacto Oligarchy; a neo-feudalism complete with its own political class responsible for protecting the interests of the elites. There can be no argument about that point. It operates through its own rules and laws, applying a different standard between us and them.

It can be changed, if we have the will to do so. It means forcing the ruling elite and political class to apply the laws its passes for us equally to themselves. It means instituting term limits in order to force out the entrenched power players who get rich off both the public's tax dollars and the legalized bribery of their corporate masters. It means ending political gerrymandering of districts to ensure that incumbents remain in office by rigging the demographics. It means real campaign finance reform. Political campaigns have become so expensive--intentionally so--to keep out the average American. That has to change. It also means removing corporate ownership of the two main political parties.

Despite the Supreme Court's ruling, corporations aren't "people" and entitled to not just the same rights as you and I, but to greater righter. Corporations are legal fictions. Nothing more. They should not be able to provide unlimited money to politicians and parties. They should not be able to help write legislation let alone influence its outcome. Government should be about creating a level playing field and protecting people.

The average American does not have someone looking out after their interests. Corporations do and on a day-to-day basis. They provide Congress with private jets, beach houses, access to resorts, and a host of other not to subtle bribes. Most members of Congress and their staff aspire to becoming lobbyists, earning upper six figure salaries and lobbying their former colleagues and keeping their taxpayer funded salaries all the while. The salaries should stop when they leave government. Transparency in government would go a long way to stopping that.

Regarding corporate greed, we can shame corporations into reforming by protesting them everywhere they go and on every social platform out there. We can buy shares of their stock and, as shareholders, speak at stockholder meetings against these outrageous salaries. We can stop buying their products. Boycotts work well. Nothing gets a corporation's attention like attacking their bottom line.

We also have to find a solution to the impotence of unions, be it employee associations, employee owned companies, or for union members, electing activist leadership instead of management lap dogs. Of course, this also involves building public support and networking locally, nationally, and even globally, something unions have been weak at doing. Lastly, we need to stop illegal immigration. It hurts the average working class American. It hurts the economy. The only real problem is realizing that we have the power---not Washington, not corporate lobbyists, and not the ruling Oligarchy. Their power is not their wealth or their influence over government. Their real power is in convincing us that we have no control over what's happening to us. We do. We only need to have the will to stand up together and shut them down.

Next week will be our third installment in this series. We'll focus on education and how America stacks up against the rest of the world. Hope you'll join us!


The US has a lot of money, but it doesn't look like a developed country



Seven reasons to worry about the American middle class


CEO Pay Skyrockets To 361 Times That Of The Average Worker

Immigration and Outcomes

Everyone knows that the US has an illegal immigration problem. We've had one since at least the Ronald Reagan Presidency. Estimates range from 12 million all the way up to 20 million individuals living in this country illegally. However, no one in Washington seems to care, We used to get empty promises of a border fence; of more border patrol and ICE presence; of more severe penalties for businesses, churches and the like who willfully broke the law. Now, politicians in Washington don't even have the decency to look into the camera and openly lie to us. They simply don't care what you and I think or want. The simple matter is that their corporate masters want cheaper labor. That means that they need more workers willing to accepting low paying jobs with little or no benefits. The more potential workers, the lower wages (and benefits) go. It's basic economics 101: supply and demand.

Many labor unions support illegal immigration too, not because they necessarily care about the welfare of these individuals but because they hope these largely low or no skill workers will accept the menial low paying jobs which is mostly all the private sector unions have left to offer since many of the good paying jobs have been outsourced overseas where companies can pay employees less...much less. Nevertheless, these low skilled and often poorly educated employees with still have to pay union dues out of their meager salaries, which will bolster the faltering union treasuries. Again, basic economics.

Many low wage service jobs like those found in the fast food industry, have been demanding dramatic pay increase; from current wages just over minimum wage to new $15 dollar an hour wages. That's all well and good. I hope they get them. I really do, however, what most people tend to forget is that these jobs were created to be primarily part-time and never as jobs to solely support households, but with the exporting of the majority of manufacturing jobs overseas, these have become the "go to" jobs for the low skilled and/or low educated individual, especially for single parents.

Corporations have, of course, attempted to justify the exporting of jobs overseas as a means to compete in global markets. Corporations have long maintained that they're unable to compete against other businesses that pay employees a few dollars or even cents on the hour, and usually with no benefits (including vacations). Often employees are required to work in unsafe or unhealthy work conditions over long hours, few if any breaks, and with machinery that's unsafe. Thus it's not uncommon for employees to be injured at work due to the equipment failure and/or exhaustion. However, since many countries lack anything similar to an OSHEA and with few (if any) employee rights, they have little recourse. A few companies have even exported jobs to countries actually employ prison or child labor (which is not uncommon in the garment or shoe industries for instance).

Nevertheless, US corporations are able to ship foreign products goods back into the United States while paying little if any tariffs since they maintain a presence here in the States. As a result, not only are American companies able to reduce employee costs, as well as avoiding expenditures on proper equipment requirements or meeting proper health or safety guidelines, they can also avoid any importation penalties. As a result, many US corporations are reaping a financial windfall. Is it any wonder CEOs making on average up to 400% percent more than their average employee? The result is, as alluded to above, those seeking employment, especially those without a college or technical education, are forced to accept whatever job they can find. In addition, there are the tax breaks and taxpayer based incentives commonly known as "corporate welfare". Frankly, who can blame them for attempting to force employers to pay out more in wages? After all, it's not like you can export service jobs right? Well, perhaps.

What many haven't counted on is that low wage employers do have a few recourses available. They can cut back on the number of employees they hire and require existing employees to pick up the slack, including mandatory work on the holidays, longer hours and fewer benefits (especially healthcare). Another recourse is automation. Some fast food restaurants for instance have begun experimenting with automated ordering devises that eliminates order takers (purchases are made with debit or credit cards, so there's no cash transactions). So, instead of four or five employees working the counter, maybe only one or two will be needed. In addition, owners can and most likely will raise the costs of their products a few cents. Thus while they may pay their employees more, they will be paying fewer of them while the public will have to pay more for the same items.

As a result of all this, there will be an increase in competition for the decreasing availability of jobs, and with more demand than supply, wages and/or benefits will decrease. What happens to those unable to find jobs? Many will fall through the cracks into a economic netherworld. Some will eke out a living somewhere between the murky recesses of part time jobs, the black or gray marketplace of cash only transactions or barter, a loose public safety net or maybe low level crime, while for others, especially the young, they can be sure there will always be a war or conflict somewhere for the control of resources or markets to help eliminate any "excess" population.

So what can be done? Fortunately there are options available if we have enough political will. One solution would be to impose tariffs on any imports, be it foreign or domestic. We could also eliminate any types of "corporate welfare" or taxpayer based assistance available to companies with manufacturing centers overseas who use those to ship back completed products to the US. We could also reform our labor laws to permit employees in foreign nations hired overseas by US based companies to be eligible to join US labor unions. Thus, for instances, employees of Ford in, let's say, Mexico or China, would be allowed to join the UAW. This would put them on the same footing as their domestic counterparts and create a more balanced playing field when it comes time for negotiating labor contracts (wages would, of course, be adjusted based the local economy). In addition, US companies who relocate US facilities overseas would be barred for obtaining government contracts, including their subsidiaries.

There is also the matter of illegal immigration. It's obviously going to be difficult at best to remove 12 million illegal immigrants. Building a wall, while a good (and expensive) symbolic statement will, in fact, dissuade very few individuals from crossing illegally into America. Most will simply bypass the wall and enter through other means, including tunnels or boats or find other entry points. Yes, we need to increase the ICE and border patrols agents along with giving them full authority to stop the flow using whatever means at their disposal up to and including direct confrontation. However, the only real solution will be by eliminating demand and that means strict and severe enforcement of penalties for anyone---individual, business, or religious institution---who aid or hire illegal immigrants without exception. Penalties should not be limited to just significant financial fines but also include suspending business licenses or loss of tax exempt status as well as possible imprisonment of key officers or officials for repeated offenses. Only by eliminating demand will we encourage illegal immigrants to return home. Lastly, we need to refuse the use of taxpayer based services to illegals and make English not just the "official" language of America but the only language used on government forms or other legal documents, as well as taught in US classrooms.

We also need to address our current educational standards. For instance, does every job actually require a college education? Personally, I don't think so. In fact, I would say that only a small percentage of jobs should require an applicant having a four or six year degree. In most cases, a solid high school education would be enough while for other jobs, a one or two year technical or trade school degree is more than adequate, and let's face it, not everyone is college material.

Germany, one of the world's top manufactures and known for their outstanding educational system, has a two tier system based on students academic performance, aptitude, and interests. The first track takes applicants toward "real world" jobs such as manufacturing (which also utilizes a two prong approach of academics and apprenticeship programs), the trades, or business (such as accounting, bookkeeping or sales), while the second track encourages qualified students on to higher education where they may pursue careers in law, medicine, engineering, and so forth. I should also point out that there is absolutely no stigma associated with individuals pursing the first approach since the system recognizes that each student is different, with different skills, talents, and abilities. In addition, no student is "locked in" and may pursue whichever track they're most interested in.

Of course, this type of system requires students who are dedicated and disciplined. Something which are lacking in American schools, but is still within the realm of possibility. US schools did, at one time, produce high quality students, especially in the years before the 1970's when a number of ill conceived "reforms" where introduced. If you have any doubts, feel free to check out any school book used in the 1940's, 1950's or even the 1960's for example (and remember, they didn't have computers or calculators) and see for yourself. Also, the US school system made good use of technical and trade schools which provided students with business ready skills to take them from graduation straight into the workforce without any significance additional training (and certainly with no remedial reading, grammar or math courses).

We must understand and accept that the economy is now global. Not only do companies compete on a global scale, but for a significant number of individuals, they too compete with others for jobs on a global scale. Furthermore, the United States is no longer a democratic republic. It's now a oligarchy, controlled in large part by global corporations who view nations as mere marketplaces to be exploited for their bottom line. Some see employees as necessary liabilities instead of the assets they really are. Capitalism, by its very nature, must consume and expand to survive. That's simply the nature of the beast. It has an insatiable appetite. However, if it continues to reduce wages and benefits in its pursuit of market share, it will reach the point where it's unable to sell its products because there will be too few people able to afford them. Therefore, a balance will have to be reached, and soon, which allows economies and wages to grow and expand while satisfying shareholders and consumers alike. At present, only a tiny percentage controls the overwhelming majority of the wealth, both in the United States and abroad. That leaves an underclass which will grow more restless and more desperate. And that is an dangerous combination.


The Pros and Cons of Raising the Minimum Wage
http://wheniwork.com/blog/the-pros-and-cons-of-raising-the-minimum-wage/


Increasing the Minimum Wage: Pros & Cons
http://www.salary.com/increasing-the-minimum-wage-pros-cons/


These CEOs Make A Lot More Money Than Their Workers
http://www.bloomberg.com/news/articles/2015-08-13/these-ceos-make-the-most-money-compared-with-their-workers


How much more do CEOs make compared to their employees?
http://www.latimes.com/business/la-fi-ceo-pay-preview-20150805-story.html

Labor Day

Labor Day! Whoopee! That wonderful day created to give everyone a three day holiday from that crappie job they secretly (and sometimes not so secretly) hate. For parents everywhere, it's the "official" start of the school year and chance for some peace and quiet, not to mention actually getting something accomplished around the house. Maybe one last cookout and pool party before closing it for the year. For kids, it supposed to mark an end to summer and one last outing to the lake or beach or some overpriced theme park. It also means only 60 more days to CanDay...err...Halloween...and...hey... that means just 120 more days to Debt Day...err...Christmas, followed shortly thereafter by Remorse Eve, also known as New Year's Eve or for some, "Amateur Night", and then we get to start all over again! For many adults, Labor Day also means the end of dieting until next January and no more trying to fit into those ever shrinking swimsuits (also known as "why-bothers"---kinda like lite beer if you think about it) and finally actually getting to eat something and covering it up with sweaters and heavy coats.

Isn't that what Labor Day is supposed to be about? Just simply another date on the calendar marking another day to buy something as part of our capitalistic "cycle of life"? You know, when we're suppose to forget about the petty and trivial meaning of the day, and instead go out and spend money we don't have for...for what exactly? Frankly I'm not sure, but I imagine Hallmark has a card for it whatever it is. But since Labor Day is at hand, let's take a look at it.

Labor Day. Well, it really isn't the last day of Summer. That's actually September 21st according to the Farmer's Almanac. And the first day of school? Well, no. For most kiddos that started about a week or two ago. And is there's really some reason why, when the temperature outside is still in the 90's and most of us are walking around in shorts and sandals, that we need to see faux autumn leaves lining store aisles amid Halloween costumes on one side and Thanksgiving decorations on the other side? I even saw a Christmas ad recently. A Christmas ad! Seriously? Anyway, I digress. Sorry. I was about to start talking about Labor Day (...Christmas...geez).
Aside from sales, Labor Day is supposed to be a day for us...ordinary working men and women. While most of the world celebrates May 1st as the "International Day of Labor", Americans, always a little different, decided that the first Monday of September would be a day celebrating the American labor movement. Labor Day itself was first promoted by the Knights of Labor and the Central Labor Union following the Haymarket Massacre, which had initially begun as a protest for an eight hour work day and in reaction of the killing of several workers the day before by the local police, in Chicago on May 4, 1886. It ended with deaths of approximately 11 individuals and the wounding of around 130 others. Then President Grover Cleveland (D-NY) vetoed the idea of an official labor holiday on May 1st (socialism was very much alive and popular), and decided to go with the day put forth by the Knights of Labor.

This was but one instance when the struggle for worker rights, including the 40 hour work week, safe working conditions, laws protecting child (child labor was especially notorious in Pennsylvania, West Virginia Kentucky, and other parts of Appalachia where kids as young as 9 routinely went to work in the coal mines), worker's compensation, holiday pay, a livable day's wages, equal rights, and so forth was still in its infancy. Labor, at the time, was strongly influenced by the concept of guilds brought over from Europe and was heavily promoted by various socialist groups, as well as political anarchists (especially among recent Irish, German, and Eastern European immigrants), women's rights and child welfare groups, and other similar human rights organizations. The core concept being that those who added value to businesses by the sweat of their brow were just as important as those who added capital; a concept that has not changed despite changes in technology. Remember, this was the era of the Robber Barons; of Carnegie, Mellon, Gould, Vanderbilt, Rockefeller, and later, to Ford and other industrialist. Work could be, and often was, brutal and dangerous.

Today, we have numerous federal and state laws protecting employees, such as paying overtime, limiting hours worked, proper conduct

by employers, safe working conditions, even offshoots like food inspection, processing, and preparation, the Civil Rights Movement, Women's Equal Voting Right, safe highways and roads, pensions, and air safety. And yes, the 40 hour work week and three day holidays like Labor Day! But we're facing other forms of worker disenfranchisement such as off shoring jobs to avoid paying decent wages and/or benefits. Some companies have laid off employees or simply opted to close. Unfair wages, with CEOs making 354% more than the average employee! According to Bloomberg, CEO salaries have increased 1000% over the pay of average workers since 1950. Even burdensome "Obamacare" instead of a single payer form of healthcare like most country's have, with the costs being transferred to individuals in the form of higher premiums or indirectly by picking up the tax.

Today, we have some unions working almost hand-in-glove with companies against the very employees they're supposed to represent; insuring workers toe the company line and keep off the strike line. Union corruption, long a problem since the 1930's, remains a problem today as some union bosses attempt to control elections; making unions virtually their own fiefdoms. Many unions bosses earn just as much as their corporate counterparts, which just isn't right. We have unions pushing for amnesty for illegal immigrants. Why? Because they expect most will join easy entry low paying mostly union jobs and that will boost the revenues in the union coffers. Outside of public sector jobs, unions are virtually non-existent in the private sector; 36.8% vs. 7.6%. In fact, the majority of union members are 45 and older--9% are at least 65--and mostly male (13.4% vs. 11.4%).

Of course with the decline of unions, beginning around 1954, the middle class has declined, which should tell you that companies don't, own their own, pay decent wages. Sill, according to a August 31, 2011 Gallup Poll, 52% of Americans support unions, though a poll taken a week later indicated that 55% believed that unions would continue to become weaker. Interestingly, 48% of Democrats thought unions would become weaker while 58% of Republicans and 57% of Independents did. Not surprisingly, 78% of Democrats supported unions while only 28% of Republicans did. 52% of Independents supported unions as well. 42% of Americans would like to see unions have a lesser role, while 30% wanted a great influence and 25% was happy where it is. 69% of Republicans would like to see unions have less influence compared to 42% of Independents while on the other hand only 45% of Democrats wanted unions to have a stronger influence. Interesting, especially when one considers the overall opinions of the public's opinion of the two main political parties has continued to plummet; the majority of people are now Independents---approximately 45% (the GOP had 23% and the Democrats had 29%. However, 40% leaned Republican while 42% leaned Democrat). In fact, in a October 2013 Gallup Poll, 60% of those surveyed said we needed a third party! Astonishingly, 81% of your fellow Americans rarely or never trust the federal government according to Gallup.

So, what does this all mean? Well, it means we're all grateful for everything organized labor has done for us, but we don't appear to confident that unions can do anything else, and at the same time, we're far less confident in government and in the two political parties can produce positive changes. As a whole, we're basically liberal leaning. Perhaps what's needed is a union based political party like most democratic countries have, or even better, independent pro-labor candidates. Recently, 12 independent unions candidates won local elections in upper state Ohio; something the status quo corporate media didn't widely report. Geez, I wonder why? So, while we munch down on those hotdogs and chips and pondering the extinction of the Middle Class; our declining economic wellbeing; or the latest sale at some discounter, be sure to give a kind word of "thanks" to any union folks you know or come across while you're out shopping. Overall, Labor has proven to be Americas best bargain.


The Labor Movement
http://www.ilwu19.com/history/labor.htm

Labor Unions in the United States
http://en.wikipedia.org/wiki/Labor_unions_in_the_United_States

Share of the Work Force in a Union Falls to a 97 Year Low, 11.3%
http://www.nytimes.com/2013/01/24/business/union-membership-drops-despite-job-growth.html?_r=0

Ohioans Elect Two Dozen City Councilors on Independent Labor Ticket
http://labornotes.org/2013/12/ohioans-elect-two-dozen-city-councilors-independent-labor-ticket

CEO-to-Worker Pay Ratios Around the World
http://www.aflcio.org/Corporate-Watch/Paywatch-Archive/CEO-Pay-and-You/CEO-to-Worker-Pay-Gap-in-the-United-States/Pay-Gaps-in-the-World

CEO-to-Worker Pay Ratio Ballooned 1000 Percent
http://www.huffingtonpost.com/2013/04/30/ceo-to-worker-pay-ratio_n_3184623.html