• COVID and the Minimum Wage: It Hurts

    September 20, 2021

    Tags: , , , ,
    Posted in: #99Percent, Economy, Minimum Wage, Post-Constitution America

     

    Covid caused a very odd thing: the working poor got a raise.

    Via stimulus checks, federally-funded jumps in unemployment payments, and looser state-based unemployment qualifications (specifically including gig workers and independent contractors who weren’t before eligible for regular unemployment benefits) they all of a sudden had money that may still not have been much but which was closer to enough. People were not forced to work lousy jobs for lousy wages to enrich lousy people already wealthy enough to own spaceships.

    Then another odd thing. As people were allowed to return to work, many didn’t. They were making more not working, math simple enough that in 25 states the federal supplement to unemployment was dropped so that unemployment again paid less than minimum wage. State governments forced people at economic gunpoint to accept souless jobs. Meanwhile, in 21 states, the minimum wage is unchanged from ten years ago.

    There were briefly two completely different systems in America until the federal money ended in September, one which provided available funds and one which withheld them to force Americans into low-paying jobs. Forcing people to work for less money than what feeds them is akin to slavery but economists may have a more modern term today.

    Some misty years ago jobs that used to put minimum wage spending money into the hands of teenagers became a primary income source for adults. The sleight of hand was that it was impossible to actually earn a living that way, with the federal minimum wage at $7.25. Keeping Americans in a state of semi-poverty (the “working poor”) became a business model.

    In 2011 as a forcibly-retired older man I worked a number of minimum wage jobs, sweeping and stocking and silently accepting your abuse. I can assure you the famous “Karens” of 2021 demanding to speak to the manager were already well-established then in the wild. I was the victim of their economically entitled wrath nearly daily, with my Caucasianess no shield.

    I rolled those experiences under our apartheid of dollars into a book called The Ghosts of Tom Joad nobody read because Bernie had not yet told us it was okay to feel bad for the working white poor. Now, ten years later with our dual layered under-economy, it was time for me to take another look.

    In Hawaii where I live, restaurants and small businesses complained about a labor shortage even as the state, with the nation’s strictest lockdown, had the nation’s highest unemployment rate at 22 percent. Almost all of my applications were ghosted, meaning I never heard anything back. For the ones where I did learn more, here’s what I found.

    You need a hard shell against any notions of equality. One of the most expensive restaurants in town, where tabs run hundreds of dollars, offered $12 a hour for hosts to maintain their high standards for service and politeness while also maintaining the guest restrooms throughout the evening. Working there would not have been much different than looking out my window, where I can see a park that became a homeless encampment with a small harbor in the distance filled with superyachts the size of WWII destroyers.

    No one cares too much about equal opportunity. I was told tourists expect to see a “local boy” in a role, not a white guy. I fielded lots of probably illegal questions related to my age, as well as a large scoop of techno-aggressions about things like whether I had a smartphone. Some ads openly asked for a woman server, or an attractive female assistant. One offered a job called “Beach Babe.”

    Another ad said “We are looking for reliable, friendly, and customer service oriented hostesses to provide entertainment on our Adult Fun Boat . Individuals must be allowed of Fun (sic) and open minded nature. Compensation is commensurate of services provided.” Good to see, as in most third world nations, sex work is still an option. Your employer is also your pimp, just like OnlyFans!

    Some jobs were borderline criminal. One, selling timeshares, had a hyper-complex commission system such that I could actual close a sale and make no money. It was hard to tell if I’d be an employee, or just another mark. A doggy day care claimed I would get tips and so would be paid sub-minimum.

    Another required my first hour’s wages daily for parking. A customer service job required me to first buy a logoed T-shirt for $15 and a $20 battery-powered old-timey lantern to fit their theming. Having to pay to work was a new thing since 2011. I felt like I was thirsty and all that was offered was a spit cup from the dentist.

    One place said if I was a full-time student I would be paid only 85 percent of the minimum wage. A job at a tourist shooting range wanted two Asian languages, had eight hour shifts with no scheduled break, and required me to pick up lead. Another offer was minimum wage, but only half paid monthly. The other half was withheld for three months pending a manager’s decision it was deserved as a “bonus.” Unclear how much of this was legal, but what are you going to do, call 911?

    While I was asked to prove my vaccination status, not a single employer asked me to prove any claimed skills. The most common question if sometimes the only question was can you work Saturdays? And why not; the only real qualification was that I could do the job cheaper than a robot (three in 10 small businesses automated job tasks during the pandemic.)

    Some of the least attractive places to work were small owner-run restaurants. The expectation was that for low wages I would work like the entrepreneur himself, putting in the sweat equity. One owner complained about employees who whined over not being paid when closing ran late. He wanted me to subsidize his business with my free labor.

    To him hard work represented unlimited potential, without realizing he structured my job to specifically not include any chance for a raise. There was no reason to do a good job today, and less to be better tomorrow. You can’t work “harder” because your salary is capped. The goal was to work just enough not to get fired. The reward was not having to apply for a new job at the burger hut across the street.

    There were also some nice people seeking to hire, polite, with a whattya ya gonna do attitude. But the difference between the overseer who beat his charges with pleasure and the one who was just doing his job is slight.

    What Covid exposed is a terrible thing. The minimum wage allows employers of the under-economy to conspire to pay the same wage. If they fixed prices this way it would be illegal. Employers seem to have taken the bit, understanding how little choice workers have and seem determined to make their job offering more terrible than the other guy’s. They certainly showed no interest in how employees might affect their bottom line, attitude spilling over to customers. The sign on the door says “I’ll only pay for cheap labor, so deal with it, consumers. What choice do you have anyway?”

    It is hard to put into words how worthless you feel in this process. Your potential employer seems to hold you in contempt, if not see you as simply a john to be ripped off under the guise of hiring you. They understand and expect to be allowed to exploit labor, backed by the government holding down wages. Half the states embraced this a step further, cutting off supplements to assist in impoverishing their own citizens. That’s why the government controls the minimum wage, to force you back in now that the Covid fat times are over.

    Minimum wage” has become maximum wage for a whole layer of our society. Businesses have little pressure to raise salaries because they hold all the aces – the government has their back with designated wages to ensure they don’t have to get into bidding wars for talent, and the labor market is rigged so that a large number of Americans have no choice but to take these jobs.

    Want to know what happens next? The Supplemental Poverty Measure (SPM) which takes into account all government aid, fell to 9.1 percent in 2020, the lowest it has been since record keeping of the SPM began. Without taking government pandemic aid, now history, into account, poverty would have risen 11.4 percent.

    Imagine the fun when you visit our paradise here in Hawaii knowing the person serving at your all-you-can-eat luau is hungry. And don’t forget to tip your waitress, she needs it.

     

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    Copyright © 2020. All rights reserved. The views expressed here are solely those of the author(s) in their private capacity.

  • Recent Comments

    • Rich Bauer said...

      1

      You did know this BEFORE you moved, right?

      People vote with their feet. Hawaii has been in a negative migration trend since 2015. The last year was the greatest loss of population due to migration to the mainland. Most moved for better paying jobs and lower cost of living.

      You knew moving to the sunny island you would get burned.

      09/20/21 2:49 PM | Comment Link

    • John Poole said...

      2

      Bauer- you might be admonishing the next governor of Hawaii who will put the state back on track. That stint in Japan was part of his long range plan. He has the Asian creds now.

      09/21/21 1:49 PM | Comment Link

    • Rich Bauer said...

      3

      Assuming the working poor in Hawaii (48%) are living paycheck to paycheck, one wonders why there isn’t a bigger mass migration to the mainland like the Haitians. What point has to be crossed before it reaches critical mass? Perhaps the state government is doing just enough to keep them content with bread and circuses, similar to the federal government giving just enough to the poor to keep the pitchforks in the shed. Just enough. That could explain, according to recent polling the vast majority of Republicans (78 percent) say that Trump won, why they did not join the paltry 500 on Jan 6. I ask my Florida Trump neighbors what this lack of patriotism signified. The answer I get is they mostly live in fear that as bad as things are, they could be much worse. Like potential migrants from Hawaii figure things are just as bad in California with its high cost of living, Repugs, if they are telling pollsters the truth they really believe Trump won, fear resisting will cost them their standard of living. Covid may kill a million Americans, but for 70 million their spirit is already dead.

      09/22/21 9:23 AM | Comment Link

    • Rich Bauer said...

      4

      Correction: there is no Republican Party. Trump defeated the establishment Republican Party. The majority of Trump voters rejected the Republican and Democratic ruling class as not working for them. Trump ran as a chaos president and that was better than what either party could offer.

      09/22/21 9:37 AM | Comment Link

    • John Poole said...

      5

      Bauer- I live in Republican territory-the Main Line of Philadelphia. There are ten private golf clubs within a radius of 3 miles of my modest twin house. Playing piano for dinner at their clubs gives me a little insight into their preferences and not only musically. They are very conservative but not necessarily Trump guys. I have seen maybe one black member of the service staff of those country clubs going back to 1986. I think we might be in for an incomprehensible election in 2024. Chaos indeed!

      09/22/21 4:45 PM | Comment Link

    • Rich Bauer said...

      6

      Both political parties are in it for themselves, as they are paid by the one percent to keep the status quo. Just enough vote against tax reform. Just enough vote against pharm reform. Just enough vote for the MIC endless grift. But keep the sheeple distracted just enough. Bread and circuses: Some blonde goes missing in the desert and all the networks give just enough coverage during that period to ignore the 50 people shot to death in a Chicago ghetto. There may never come a time when the sheeple have just enough of their whores in government and the bread and circuses don’t keep them distracted, because these Americans are the common clay of the West…you know, morons.

      09/23/21 7:50 AM | Comment Link

    • Joe said...

      7

      @PVB – Don’t fret, I’m sure all the problems you mentioned in your post will be sorted out soon enough by the Democrats who now control Hawaii’s Statehouse and/or the Federal Capital – that’s why they’re so popular with all the Dumbocrats out in the electorate. With the Dems at the helm I’m sure we can all count on speedy passage of legislation calling for a livable Minimum Wage, Medicare for All, election finance reform and term limits for Congress, because it’s only Republican politicians who are controlled by their corporate donor class masters, right? But if all *that* doesn’t pan out, maybe you can get a job cleaning the toilets of the eight new nuclear subs we’ll be building for the Aussies when they dock at Pearl – yessiree, you can always count on the Democrats for putting the interests of America’s working class first!

      09/23/21 5:39 PM | Comment Link

    • John Poole said...

      8

      Bauer- don’t short your Raytheon stock yet . Right now the US is most likely secretly funding ISIS-K to get back at the Taliban for humiliating us.
      Wars will go on and on and on. There is just too much money to be made in that line of work.

      09/24/21 4:27 PM | Comment Link

    • Rich Bauer said...

      9

      Deep end of the Poole,

      If you followed US history, you would know we never go back to failed ventures. If the 2024 election results in a neoconartist in the White House, don’t be surprised if the false flag is thrown on the Putin people. Already blaming Russia for the sonic Havana Syndrome.

      09/24/21 6:43 PM | Comment Link

    • Rich Bauer said...

      10

      One job sector that has been doing great in the age of covid: security guards. With BLM, the Trumpistas and other angry cases raging at the gates their pay scale has gone from minimum wage to $20 hour.

      Speaking of angry cases, a federal judge said Monday that John Hinckley Jr., who tried to assassinate President Ronald Reagan four decades ago, can be freed from all remaining restrictions next year if he continues to follow those rules and remains mentally stable. The judge was moved by Hinkley’s dream to attend a Trump rally. And now his dream may come true. Way to go, Judge.

      09/27/21 5:14 PM | Comment Link

    • Rich Bauer said...

      11

      Covid and the antivaxxers: it kills Trump’s chances too.

      In counties where Trump, the great CV19 vaccine creator, received at least 70 percent of the vote, the virus has killed about 47 out of every 100,000 people since the end of June.

      In counties where Trump won less than 32 percent of the vote, the number is about 10 out of 100,000. And 99 percent of those were unvaxxed Trump voters. So Trump will have less voters in the next election in areas that he lost and much less voters in the areas that he won.

      09/28/21 5:53 PM | Comment Link

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