Archive of "Minimum Wage" Category

I Know Why Can’t We Fix Homelessness

November 29, 2022 // 3 Comments »

“What stands out for visitors?” I asked our guide during a Honolulu Chinatown tour with my out-of-town guests. “Always the same, the homeless. Even Mainlanders from big cities like San Francisco and New York are surprised how many we have here. I’m waiting to see how the Japanese and Korean guests respond when they start traveling again.”

You can’t miss his point. During our brief walk through Chinatown’s markets we saw a disturbed man dressed only in his underwear touching himself, several seriously street-worn people begging, and watched the fire department respond to a prone homeless man who was dead or simply drugged into paralysis. When someone in our party needed the toilet, the shopkeeper apologized for having to keep it locked to prevent misuse by vagrants. Many places simply had signs saying “no public toilet.” Despite some great tasting food, it was hard to keep up a holiday spirit. Same for when we passed the tent cities and parks overtaken by homeless along a drive on the Windward side.

The numbers only begin to tell the story. Pre-COVID, there were an estimated 6,458 homeless in Hawaii. The Big Island saw the biggest jump in homelessness from 2019-2020, a 16 percent increase. On Oahu the homeless population is up 12 percent. San Francisco before COVID counted over 8,000 homeless persons, and while COVID-era numbers are hard to pin down, one measure is overdose deaths among the homeless, which have tripled. New York has the highest homeless population of any American metropolis, close to 80,000 and growing. The number of homeless there today is 142 percent higher than it was 10 years ago, and currently at the highest level since the Great Depression. Some 3,000 human beings make their full-time home in the subway.

Estimates for the United States as a whole run well over half a million people living homeless. The number shoots up dramatically if one includes people living in their cars, people on their way to exhausting the good will of friends who offered a couch, and those who slide in and out of motels as money ebbs and flows. Some 21 percent of American children live in poverty, homeless or not. In the end nobody actually knows how many people are living without adequate shelter except that it is a large number and it is a growing number and there is nothing in line to lower it, only to find new ways to tolerate it.

We have in many places already surrendered our public parks and libraries. The hostile architecture of protrusions and spikes which make it impossible to sleep on a park bench are pretty much sculpted into the architecture of the city, markers of the struggle for public space. The idea even has its own Instagram account. A security firm offers tips: restrict access to sidewalk overhangs protected from inclement weather, remove handles from water spigots, and keep trash dumpsters locked. If things get too bad, the company, for a price, will deploy “remote cameras with military-grade algorithms capable of detecting people in areas they shouldn’t be in.”

Keep in mind that all of these homeless people coexist in a United States whose wealthiest citizens have their own spaceships. NYC alone is home to 70 billionaires, more than any other American city. New York is also home to nearly one million millionaires, more than any other city in the world. How is it that the nation’s wealthiest city and poorest city are the same place?

All the solutions seem to fail. There are not enough shelters we are told but even when more shelters are built the homeless are too paranoid to move in,or the shelters become too dirty, too dangerous, chaos compacted, so the transition from an encampment to supportive housing isn’t easy. In ravaged San Francisco, one out of 10 of the city’s already existing supportive housing units are empty, with the director of the Department of Homelessness (!) placing the blame on individuals. So the homeless problem becomes a mental health problem which becomes a drug and alcohol problem which becomes a public health problem. Our society will not force people into care, and it will not deport the homeless against their will to desert camps. Instead we simply do nothing absent throwing a few bucks into food programs as an expedient over stepping around too many bodies in the street. Meanwhile nobody asks why nothing seems to work.

Because the American economic system requires homelessness. That’s why we can’t solve homelessness; no matter how much solving you do the system just makes more.

The Democratic arguments over raising the minimum wage are a smokescreen. As long there is a minimum wage and businesses do not have to compete for workers, there have to be homeless people. Think of the homeless as run-off, the unfortunate but necessary waste product of an economic system designed to exploit workers for the benefit of space-traveling overlords. The homeless — no wagers — are the endpoint of an economic spectrum dominated by the minimum wagers, people whose salary and hours, and thus whose chance at lifetime wealth status, are capped by agreement between the government and industry.

Until slavery ended, human beings were considered capital, just like stock today. Now we’re “human resources” so everything’s better. Bringing up race hides the real story of how long this has been going on and how deep a part of our way of life it is. The line between controlling someone with a whip and controlling someone through ever-lower wages gets finer and finer over time.

This is what “systematic” means: a system of public-private sector agreements codified as laws which push workers into a cesspool as grab-and-go disposable labor. Those who sink end up homeless. Those who tread water are guaranteed a life of maybe just enough, their place in society fixed for others’ goals, never their own. It also assures the sales of drugs, alcohol, and lottery tickets as the working poor try to convince themselves all this can’t be true. Can it?

The next step is clear. The working poor are allowed to exist at survival levels only because they are in jobs too expensive or difficult to automate. You think there are a lot of homeless now? Wait until self-driving vehicles click in and another job category simply disappears, leaving drivers and delivery people nowhere to go (there are more than 3.5 million truck drivers in the U.S., making driving one of the most popular occupations.) Same for fast food and other service jobs. Soon enough AI and/or remote online learning will make live teachers an expensive luxury for the children of the wealthy.

If you wanted a clever term about why we have and ignore and can’t address the homeless problem, you could call it systemic inequality in tune with the times’ nomenclature. A system designed to exploit will always exploit too much at its edges. It is supposed to, in order to keep driving the center downward, from 1950s middle class to 2022’s working poor.

But in the near term the issue isn’t confronting the reality of inequality, it is navigating the society it has created, much as my tour guide directed us around the homeless nests in Chinatown so we could sample the dim sum at leisure. “Don’t make eye contact” was some of his best advice.

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

Posted in Democracy, Economy, Minimum Wage

COVID and the Minimum Wage: It Hurts

September 20, 2021 // 11 Comments »

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.

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

Posted in Democracy, Economy, Minimum Wage

Democrats and the Economy: The New Slaves of Hawaii

June 19, 2021 // 13 Comments »

Those “unfillable” jobs pay about $10-12 an hour, and so the employer can stay exempt from paying into Obamacare, limit workers to under 20 hours a week. That’s $240 a week, before it being fully taxed and with social security deducted, plus the costs of going to work, such as transportation, chipping away at the edges.

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

Posted in Democracy, Economy, Minimum Wage

Navigating the Homeless and Mentally Ill

February 24, 2020 // 12 Comments »

New York, America’s richest city and Ground Zero in how economic inequality is reshaping every day of our lives.
 
NYC is home to 70 billionaires, more than any other American city. One apartment building alone, 740 Park Avenue, is home to the highest concentration of billionaires in the United States. Yet living among those billionaires (NYC is also home to nearly one million millionaires, more than any other city in the world) the city also has the highest homeless population of any American metropolis, close to 80,000 and growing. The homeless numbered 24,000 during Rudy Giuliani’s mayoral administration some twenty years ago. Three years after that the homeless population swelled to almost 38,000 under Michael Bloomberg. The number of homeless single adults today is 142 percent higher than it was ten years ago, the highest level since the Great Depression.
 
The city shelters about 64,000 on any given night. Another 3,000 people make their full-time home in the subway system. Their belongings and their defecation crowd out morning commuters on the platforms. In the winter many never emerge above ground. A visitor from outer space would be forgiven for thinking they weren’t even human, recognizable as just a head emerging from a urine-soaked bundle of clothing, not living really, just waiting. The ones who prefer to ride the trains 20 hours a day or more are like one-celled amoebas that react to heat or light by moving out of the way, in the specific case a transit employee whose inquiry causes some physical shift but no sign of sentient action.

Don’t be offended — what did you think runaway economic inequality was gonna end up doing to us? Macroeconomics isn’t a morality play. But for most New Yorkers the issue isn’t confronting the reality of inequality, it is navigating the society it has created.

Navigating income inequality is not a problem for the rich. Public transportation, once the great melting pot, is less so as Uber plays a bigger role. The new super apartments, with their city-required handful of “affordable” units, have separate entrances based on wealth. A someone goes and gets the coffee, does the shopping, delivers the food. Armored cars for personal use are seeing a boom in sales. NYC’s newest mega-development, Hudson Yards, (Jeff Bezos is a fan) has been dubbed the Forbidden City, a mean snub as it is self-contained, literally walled off from the environment around it (there are “service” entrances for workers, and the stores have their primary doors opening into the gated courtyard, not on to Tenth Avenue.) NYC helps its wealthy pay for all this with a generous 40 percent incentive tax break. The city also built Hudson Yards its own subway line and park network for a total expenditure of six billion (the city spends only half that total on the homeless.) Elsewhere private restaurants, private clubs, private entrances, members only-everythings and VIP sections at public events keep the homeless beyond arm’s reach.
 
For the rest, stuck between middle class and the abyss, navigating the world of economic inequality is more of a contact sport.

Public libraries are in various degrees off limits, at best shared, with the well-behaved homeless. They are among the tens of thousands who live in the gulag archipelago of NYC’s vast shelter system. Most of the shelters (there some exceptions for women with small children) are only open at night, leaving the residents to find somewhere to physically exist between 7am and 11pm, after which the city cares about them again. There is no daytime plan for this population, so in bad weather they take over the libraries. Regular patrons are on their own if the staff don’t manage it well; the signature main library with the stone lions has guards to send the homeless across the street to a branch, where the homeless are more or less curated like the oversize books on to one particular floor. At the 96th street branch, the library serves no other purpose than homeless daycare, except for a brief period after school when bodies are moved around for an hour or two to accommodate story time.

How do the non-homeless navigate this? They buy books on Amazon. They buy quiet workspace and WiFi at coffee shops. They buy their way around the homeless same as others buy their way around via ride sharing services.

Economic inequality is part of life for many New Yorkers. Not homeless but damn poor, 400,000 reside in taxpayer-paid permanent (permanent as in multi-generational, grandmas passing squatter’s rights to grandkids) public housing. Conditions are literally toxic in these “projects,” as well as crime-ridden and just plain Third World crumbling. And yes, New York’s public housing authority is the world’s largest. There are probably fewer no-go zones than in the dark times of the 1970s, but maybe more “why would you want to go there anyway” places.

Housing prices for who can pay their own way are such that 40 percent of adult renters live with a roommate. The city even has a program to help elderly renters share their homes. Hanging on to the middle in times of economic inequality means shared or public housing, juggling multiple jobs which often pay less than minimum wage (Taskrabbit, Fiverr, who background check their employees and then send them into anonymous homes), living with life-crippling debt, skating on the edges of no healthcare, and snubbing your nose at people who aren’t living that Big Apple dream.

In a society constantly creating more poor people and depleting its middle class, spending more money on shelters won’t work. Look to Honolulu. It has been overwhelmed with some 7,000 people who became newly homeless in 2019. That number erased the 616 homeless people per month, on average, who were placed into “permanent housing.” They’ll really not ever stop building until, in theory, shelters house about 99 percent of everyone.

To lighten things up, New York loves irony. Many of the cheaper apartments for young Millenials are in the same parts of town which once housed new immigrants in the early 20th century, that now golden-hued era of open borders celebrated as a democratic ideal when a more accurate vision would realize it was just a massive labor pool for the wealthy to exploit. That’s also a reminder that modern immigrants, particularly from Central America, form the exploitable, discardable labor pool that undergirds New York’s food service and day labor industries, and staffs car repair shops, butcher and delivery businesses.

Hey, businesses, too, still have to navigate, especially around the homeless. I used to work at a Barnes and Noble near the bus stop out to the main homeless shelters on Randall’s Island. The B&N was open late and in bad weather the homeless came in to wait for their ride. There was actually a store policy created, and the regulars were trained: don’t interfere with commerce, no bathing in the restrooms, no sleeping, use the electrical outlets in the back to charge phones, don’t panhandle in the coffee shop and you can stay. A kind of Darwinian process kept some warm inside while security moved others out into the weather.

An ecosystem in balance, same as at most Starbucks. People here sometimes refer to the place as a public toilet which also happens to sell coffee because, following charges of discrimination, the chain now claims its space and toilets are open to all, not just customers. Of course in some marginal parts of town those toilets are forever closed to all “under repair,” but in most places the homeless are trained to navigate us, staying out of the way, taking a cup out of the trash to set on the table and pretend they are buying something. Being seen as being nice is important to Starbucks’ customers as they mentally navigate their own place being able to afford expensive coffee alongside those who have less. Awkward!

As a woke company catering to woke customers who want nice things without guilt, Starbucks has a whole corporate page up about how kind they are to the homeless. Something similar at the new food court at Essex Market (called the “anti-Hudson Yards”), which has full-time staff assigned to monitor the public toilets, allowing the homeless in and nudging them into the boundaries the Market deems acceptable. Essex market, like Starbucks, seems to see faux-humanitarian gestures towards the homeless as part of its marketing plan to Millenials who don’t want to see bag ladies dragged into the street whilst sipping artisanal Tibetan tea. It’s pretty much all just undergrad-level socialist theatre. Different rules and rougher play at Macy’s and Bloomingdale’s, where the more delicate suburban ladies and fragile tourists still shop pretending like it is 1968. At the end of the day, however, the homeless are still homeless at each place and night comes the same for all.
 
The urban stories above are only about one part of the homeless population. There are two overlapping populations: those outside capacity of existing systems who depend on businesses and us to navigate, and those so far whacked and gone nothing exists to help them.

It’s inevitable in a society that is constantly adding to its homeless population while simultaneously lacking any comprehensive way to provide medical treatment, all the while smoothing over the bumps on the street with plentiful supplies of alcohol and opioids (I was in line behind a homeless guy in liquor store paying with sock full of coins. He was 67 cents short for a bottle of no-name gin. What’s the right thing to do? I probably drink as much as he does most nights but it’s OK because I work for my money instead of begging? There are moral hurdles to navigate as well) are the severely mentally ill. These people exist outside the vast shelter system. They live outside, discarded, driven out of the overnights and the daytime Starbucks by violent or paranoid delusions. Even the recent killing of four homeless men by a fifth mentally ill homeless man failed to shock anyone into action.

Navigating these people requires something more than a benign balancing of company profits and makeshift humanitarian gestures. At the Fulton Center subway station, problems with the mentally ill homeless reached a point where wire rope was installed alongside a made-up “no sitting” law to eliminate places to rest. A team of angry rent-a-cops make the homeless stand, wandering through the space waking up those who tumble, and chase away the worst. The sole working men’s room remains a kind of demilitarized zone, and it is not uncommon to see one man washing his clothes in the sink while another talks to himself as a third vocally struggles with his defecation. Most of the city’s such privately owned public spaces employ guards not against crime per se, but to enforce rules about how much baggage the homeless can bring in, whether they can sit, sleep, or have to pretend to buy something, and act as not gentle referees when a tourist snaps an unwanted photo and angers someone, or a homeless person otherwise becomes too aggressive with himself or another homeless person.

There are of course other, more profitable, ways to navigate. San Diego created a “toolkit” to help businesses benignly wrangle the homeless without needing to involve the cops. NYC stores are told to invest in barbed grates that homeless can’t lay on comfortably (the hostile architecture of bars, protrusions and spikes that make it impossible to lie down on a park bench or wall are pretty much sculpted into the architecture of the city, markers of the struggle for public space. The idea even has its own Instagram account.) A private security firm offers more comprehensive solutions: advice about restricting access to sidewalk overhangs, alcoves, or other areas protected from inclement weather, remove handles from water spigots, and keep trash dumpsters locked when not being filled or emptied. If things get too bad, the company, for a price, will deploy “remote cameras integrated with military-grade algorithms capable of detecting people in areas they shouldn’t be in.” There are other ways to make money off the homeless, of course. Many of the shelters in NYC are contracted through private companies (fraud criss-crosses the system) , who charge the city about $80 per adult per night for an SRO room without its own indoor plumbing. Food stamps are distributed via Electronic Benefits Transfer or EBT (some recipients claim the acronym really means “Eat Better Tonight.”) JPMorgan Chase holds the contracts in half the United States to handle the transactions. In New York that’s worth more than $112 million. But hey, Amazon now accepts EBT online in New York and you don’t even need Prime!

A concise fable of what economic inequality has done to this city lies in canning, a nice term invented to describe the underground economy of returning aluminum cans for the five cents deposit. What was started in 1982 in hope the deposit would encourage consumer recycling alongside kids picking up cans to supplement their allowances, has become way to make a sort of living for an estimated 8,000 human beings. As the value of a nickel to many faded over the years, the need for a few bucks among the city’s growing homeless population grew. They started picking up cans for the money wealthier people set out as trash. The recycling centers in most food stores, however, hoping for return shoppers, did not want the homeless in their stores. Most set $12 daily redemption limits, often broken up in per can lots that forced the homeless to return two or three times. Streetside automated drop off points devolved into social centers for the homeless, including the infamous Pathway site at 125th Street that was renown as a drug market and dumping spot for the near-dead until it was closed down.
 
Unable to redeem their cans, the homeless moved on, replaced by highly exploitive canning crews which buy cans in bulk from elderly pickers (many are retired or on disability) for about a $30 nightly haul per person, and who then deal directly with the bulk metal recyclers uptown. A five cent can might be worth only three cents on the street; competition among the people living off my garbage is sharp, where on a late night dog walk just before the bulk trucks arrive can crews run by Chinese organized crime (rumor is those who can’t work off human smuggling fees otherwise work the can routes) tussle with individuals for turf. The cops are uninterested and some local doormen try and intervene but often tire of the guff. It’s not a proud thing to witness.

We’re a society built around economic inequality. We’ll all just have to learn to navigate our way through.
  

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

Posted in Democracy, Economy, Minimum Wage

Democrats Need to Stop Dry Humping the American Dream

May 13, 2019 // 2 Comments »

Economic inequality could be the signature issue for Democrats, one that speaks to purple voters, progressives, and maybe even some current Trump supporters. But the Dems do not seem to understand this. They need to decide if they are running as a party of governance, or just one of protest.

The Democrats are simultaneously throwing away an issue that resonates with progressives: economic inequality drives the search for scapegoats, the handmaiden of racism and hate. It has to be someone else’s fault I’m not doing well, because “they” get free food from the government or because of immigration policies which take my job away to give to “them.” Reduce economic inequality and you will reduce its societal ills is a very powerful anti-Trump message.

Using government money to reduce economic inequality goes against the ethos of many. But we have underestimated the societal disruption economic inequality created in America even as we mark a surge in deaths of despair from alcohol, suicide, and opioids, Robert Merry, writing in The American Conservative, calls our time “definitional” and wonders if the polity will hold. While we wait for everyone to lift themselves up by their bootstraps, we are missing what a volatile people we are, and have ceded our darkest tendencies to those who manipulate them for their own gain. We have become too violent and too well-armed and too goaded by social media to let the market sort this out.

Yet according to a CNN poll, 71% of Americans still rate the nation’s economic conditions favorably. Democrats must explain to Americans while things are not visibly bad on the surface, they are fundamentally not good for about 90% of us. Silliness like “Trump might still crash the market” or “Obama deserves the credit” simply encourage the short-term thinking that drives that CNN poll. Democrats need to explain the long term — the top 0.1% of households now hold about the same amount of wealth as the bottom 90%, and it is only getting worse. The share earned by the top 0.01% rose from 0.5% in 1973 to 3.3% in 2010. Something that threatens the financial life of 90% of us is a majority, not minority, problem.

Economic anxiety, more than what the left imagines as racial or cultural uneasiness, lies deep in the Heartland. Trump spoke to it in 2016 in the guise of promises to bring back coal mining’s glory days, raise tariffs, and slow immigration. Democrats should speak sense to that anxiety. The answer should be infrastructure.

Bernie Sanders loves infrastructure. Elizabeth Warren wants to rebuild the middle class. Biden’s liked it since he was VP. Infrastructure underlies other candidates’ plans for guaranteed incomes and assured jobs. It’s hard to find anyone against infrastructure. But no one has presented something sweeping, linear, and encompassing enough to reach at economic inequality. This isn’t about jobs per se – unemployment is at a near-50 year low – but about how we live. Earnings for non-management, private-sector workers reached their peak in 1973, the high water mark of the middle class out there in Youngstown and South Bend, left today dry heaving about what’s still called the American Dream.

The response comes from the last time economic inequality was this bad. America needs a new version of the 1935 Works Progress Administration (WPA) to build roads, bridges, and rail lines. A new WPA to create jobs people can do without significant training (not everyone can learn to code) and which pay living wages with real healthcare. Get echelons of people too used to chronic under-employment used to working for a living again. People working multiple jobs should not need food aid as many do today.

Almost every community in the United States got a new park, bridge, or school under the WPA, never mind airports, train stations, over 600,000 miles of roads, the Golden Gate Bridge, and Hoover Dam. Upgrading all that after 80 years to improve lives is a powerful message. Fight growing racism and hate with the self-respect work gives. You don’t need to create an enemy if you don’t see yourself as a victim.

The Democrats flirted with something like this recently, after Chuck Schumer and Nancy Pelosi met with Trump to “agree” on a $2 trillion infrastructure initiative. But peek behind the curtain and it’s just rhetoric. Despite knowing the House controls the budget, Pelosi almost immediately crossed her arms and declared it is Trump’s job, not hers, to figure out how to pay for it. The whole thing appears to be a cynical ploy to claim “Because Trump” we can’t have nice things.

Let how to pay for it become part of the Democratic platform. But the message better be more sophisticated than “were gonna tax the rich” because voters have been burned too many times, when “the rich” ended up being themselves paying higher taxes while the benefits fell to those below. The real rich, the 0.01%, seem to always have a loophole. This simplistic message is particularly dangerous in 2020 when many purple voters fear what progressives might do unfettered (Free medical care! No more college loans! A pony for everyone, just look under your seats!)

The thing is the money is already there, or at least has been when we wanted it to be. The WPA over eight years used about 6.7% of the era’s GDP to pull the nation out of a full-blown depression with some 20% unemployment. Currently the U.S. spends about 3.3% of its GDP on military.

But we don’t need that much. The U.S. spends $70 billion a year on food aid for 40 million Americans; repurpose some of that into living wages so people can earn their supper. During the last few wars, reconstruction and the building of infrastructure for Iraqis ate up $60.45 billion. The total for the same failures is more than $154 billion in Afghanistan, with the counter still running at about $9 billion a year on such projects. Only the most inane pundit could call such re-appropriation “anti-military” instead of pro-American; no much-needed bridge for you, Middleton, Ohio, we’re gonna build it in Helmand Province instead. The Obama-era American Recovery and Reinvestment Act, with its more modest goal of a short-term stimulus not intended to address inequality, spent $105.3 billion on infrastructure. Unemployment is obviously much lower today, and the goal – better jobs to nudge economic inequality – is different. Those numbers would make an accessible start.

Some 64% of Americans agreed with an earlier Trump proposal to improve U.S. infrastructure (75% support spending federal money to improve infrastructure when the idea was polled without Trump’s name.) Infrastructure spending also has bipartisan support: 78% of Republicans and 54% of Democrats agree with the need for more.

Democrats must tell voters what they’ll do, instead of just saying one day it may be Not Trump in the White House. Infrastructure has bipartisan support, will reach purple voters and progressives, and address fundamental problems. The impact of the WPA is long, a bright moment in our history when government raised people out of depression. Imagine the power of owning that legacy.

 
 
BONUS:

The Gini coefficient is a measurement of the income distribution within a country which shows the gap between the rich and the poor. Zero represents perfect equality (everyone has the same income) and one representing perfect inequality (one person earns the entire country’s income and everyone else has nothing.) A higher Gini coefficient number means greater inequality. America overall (GDP) earns money in the same range as most European nations, but has a Gini number more in line with Russia, China, and chunks of the third world. That is an unique situation globally. Here are some more hard numbers.

 
This article by Paul Krugman in the NYT goes to great lengths to create the spurious argument it is Republicans who despise the slack jawed yokels even more than the Democrats do.
 
Matt Bennett of the center-left group Third Way put it clearly “There are things about this economy that are very popular — low unemployment, a lot of jobs, there’s been some real wage increase. We attribute zero of that to good Trump policy. But he will claim credit. What that means is that [Democrats] need a very clear economic narrative that resonates deeply with the voters that we have to win, and we better not be caught up in our own blue bubble world.”

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

Posted in Democracy, Economy, Minimum Wage

An Entire Generation is Likely to See Its Standard of Living Regress

April 14, 2017 // 24 Comments »

It is modern feudalism, happening in a slow motion crash as we watch, aware of what is coming down, but at first unwilling and likely now unable to stop it.
Welcome to the Third World

We are living in so-called first world societies where economic disparity is trending toward developing world levels. Some numbers you can argue about individually if you like (and how does your head feel buried in the sand?), but the aggregate situation is beyond debate:

— The one percent holds 35.6 percent of all private wealth, more than the bottom 95 percent combined.

— The 400 wealthiest individuals globally have more wealth than the bottom 150 million Americans.

— Between 1983 and 2009, over 40 percent of all wealth gains flowed to the one percent and 82 percent of wealth gains went to the top five percent. The bottom 60 percent lost wealth over this same period.

— A significant amount of the redistribution of wealth, redistributed upward, took place following the 2008 market collapses in the United States as bailouts, shorts, repossession of home and land, and new laws helped the top end of the economy at cost to the bottom. More and more of government is controlled directly by corporations.

— The world’s one percent own $42.7 trillion dollars, more than the bottom three billion residents of earth.

— A rising tide lifts all yachts, as historian Morris Berman observed. Less than half of Americans do not own any stock at all. The wealthiest of Americans own over 80 percent of all stock, and 40 percent of America’s land.

It’s Getting Worse

Now add to that grim tally new information that shows the problem of gross income and wealth inequality is getting worse.

A report from McKinsey finds that in developed economies such as the United States two-thirds of all households experienced “flat or falling” incomes over the past decade, from 2005-2014. In the U.S., the portion was even worse: 81 percent.

“While the recession and slow recovery after the 2008 global financial crisis were a significant contributor to this lack of income advancement, other long-run factors played a role — and will continue to do so,” McKinsey notes. “They include demographic trends of aging and shrinking household sizes as well as labor-market shifts such as the falling wage share of GDP.”
Capital Beats Labor Every Time

As predicted by economists from Karl Marx to Thomas Piketty, this is the natural progression of capital (making money by owning things) over labor (making money by working.) It represents the same basic economic world of the Middle Ages, land-owning kings and serfs who have no option but to work the fields.

It is statistically likely that you won’t live a better life than your parents did. The economic world of your parents and grandparents was an aberration, a one time exception that was called the American Dream. And even that was largely limited the white people.

Do enjoy that gig economy youngsters, and hope Uber doesn’t put you out of an income by flooding the market with more drivers.

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

Posted in Democracy, Economy, Minimum Wage

So Yeah, Here’s America, 2017

April 9, 2017 // 71 Comments »

As America’s new economy starts to look more like the old economy of the Great Depression, the divide between rich and poor, those who have made it and those who never will, seems to grow ever starker. I know. I’ve seen it firsthand.

Once upon a time, I worked as a State Department officer, helping to carry out the occupation of Iraq, where Washington’s goal was regime change. It was there that, in a way, I had my first taste of the life of the 1%. Unlike most Iraqis, I had more food and amenities than I could squander, nearly unlimited funds to spend as I wished (as long as the spending supported us one-percenters), and plenty of U.S. Army muscle around to keep the other 99% at bay. However, my subsequent whistleblowing about State Department waste and mismanagement in Iraq ended my 24-year career abroad and, after a two-decade absence, deposited me back in “the homeland.”

I returned to America to find another sort of regime change underway, only I wasn’t among the 1% for this one. Instead, I ended up working in the new minimum-wage economy and saw firsthand what a life of lousy pay and barely adequate food benefits adds up to. For the version of regime change that found me working in a big box store, no cruise missiles had been deployed and there had been no shock-and-awe demonstrations. Nonetheless, the cumulative effects of years of deindustrialization, declining salaries, absent benefits, and weakened unions, along with a rise in meth and alcohol abuse, a broad-based loss of good jobs, and soaring inequality seemed similar enough to me. The destruction of a way of life in the service of the goals of the 1%, whether in Iraq or at home, was hard to miss. Still, I had the urge to see more. Unlike in Iraq, where my movements were limited, here at home I could hit the road, so I set off for a look at some of America’s iconic places as part of the research for my book, Ghosts of Tom Joad.

Here, then, are snapshots of four of the spots I visited in an empire in decline, places you might pass through if you wanted to know where we’ve been, where we are now, and (heaven help us) where we’re going.

On the Boardwalk: Atlantic City, New Jersey

Drive in to Atlantic City on the old roads, and you’re sure to pass Lucy the Elephant. She’s not a real elephant, of course, but a wood and tin six-story hollow statue. First built in 1881 to add value to some Jersey swampland, Lucy has been reincarnated several times after suffering fire, neglect, and storm damage. Along the way, she was a tavern, a hotel, and — for most of her life — simply an “attraction.” As owning a car and family driving vacations became egalitarian rights in the booming postwar economy of the 1950s and 1960s, all manner of tacky attractions popped up along America’s roads: cement dinosaurs, teepee-shaped motels, museums of oddities, and spectacles like the world’s largest ball of twine. Their growth paralleled 20 to 30 years of the greatest boom times any consumer society has ever known.

Between 1947 and 1973, actual incomes in the United States rose remarkably evenly across society. Certainly, there was always inequality, but never as sharp and predatory as it is today. As Scott Martelle’s Detroit: A Biography chronicles, in 1932, Detroit produced 1.4 million cars; in 1950, that number was eight million; in 1973, it peaked at 12 million. America was still a developing nation — in the best sense of that word.

Yet as the U.S. economy changed, money began to flow out of the working class pockets that fed Lucy and her roadside attraction pals. By one count, from 1979 to 2007, the top 1% of Americans saw their income grow by 281%. They came to control 43% of U.S. wealth.

You could see it all in Atlantic City, New Jersey. For most of its early life, it had been a workingman’s playground and vacation spot, centered around its famous boardwalk. Remember Monopoly? The street names are all from Atlantic City. However, in the economic hard times of the 1970s, as money was sucked upward from working people, Boardwalk and Park Place became a crime scene, too dangerous for most visitors. Illegal drug sales all but overtook tourism as the city’s most profitable business.

Yet the first time I visited Atlantic City in the mid-1980s, it looked like the place was starting to rebound in the midst of a national economy going into overdrive. With gambling legalized, money poured in. The Boardwalk sprouted casinos and restaurants. Local business owners scrambled to find workers. Everyone and everything felt alive. Billboards boasted of “rebirth.”

Visit Atlantic City in 2017 and it’s again a hollowed-out place. The once swanky mall built on one of the old amusement piers has more stores shuttered than open. Meanwhile, the “We Buy Gold” stores and pawnshops have multiplied and are open 24/7 to rip off the easy marks who need cash bad enough to be out at 4 A.M. pulling off their wedding rings. On a 20-story hotel tower, you can still read the word “Hilton” in dirt shadow where its name had once been, before the place was shuttered.

Along the Boardwalk, there are still the famous rolling chairs. They are comfortable, bound in wicker, and have been a fixture of Atlantic City for decades. They were once pushed by strong young men, maybe college students earning a few bucks over summer break. You can still ride the chairs to see and be seen, but now they’re pushed by recent immigrants and not-so-clean older denizens of the city. Lots of tourists still take rides, but there’s something cheap and sad about paying workers close to my own age to wheel you around, just a step above pushing dollars into the G-strings of the strippers in clubs just off the Boardwalk.

One of the things I did while in Atlantic City was look for the family restaurant I had worked in 30 years earlier. It’s now a dollar store run by an angry man. “You buy or you leave,” he said. Those were the last words I heard in Atlantic City. I left.

Dark Side of the Moon: Weirton, West Virginia

The drive into Weirton from the east takes you through some of the prettiest countryside in Maryland and Western Pennsylvania. You cross rivers and pass through the Cumberland Gap along the way and it’s easy going into the town, because the roads are mostly empty during typical business hours. There’s nothing much going on. The surrounding beauty just makes the scarred remains of Weirton that much more shocking when you first come upon them. Take the last turn and suddenly the abandoned steel mills appear like a vision of an industrial apocalypse, nestled by the Ohio River.

In 1909, Ernest T. Weir built his first steel mill next to that river and founded what later became the Weirton Steel Corporation. In the decades to come, the town around it and the mill itself were basically synonymous, both fueled by the industrial needs of two world wars and the consumer economy created following the defeat of Germany and Japan. The Weirton mill directly contributed to wartime triumphs, producing artillery shells and raw steel to support the effort, while Weirton’s sons died on battlefields using the company’s products. (A war memorial across the street from the mill sanctifies the dead, the newest names being from the battlefields of Iraq and Afghanistan.)

At its peak, the Weirton Steel Corporation employed more than 12,000 people, and was the largest single private employer and taxpayer in West Virginia. The owners of the mill paid for and built the Weirton Community Center, the Weirton General Hospital, and the Mary H. Weir Library in those glory days. For years the mill also paid directly for the city’s sewers, water service, and even curbside garbage pickup. Taxes were low and life was good.

In the 1970s and early 1980s, however, costs rose, Asian steel gained traction and American manufacturing started to move offshore. For the first time since the nineteenth century, the country became a net importer of goods. Some scholars consider the mid-1970s a tipping point, when Congress changed the bankruptcy laws to allow troubled companies an easier path to dumping existing union contracts and employee agreements. It was then that Congress also invented individual retirement accounts, or IRAs, which were supposed to allow workers to save money tax-free to supplement their retirements. Most corporations saw instead an opportunity to get rid of expensive pensions. It was around then that some unknown steelworker was first laid off in Weirton, a candidate for Patient Zero of the new economy.

The mill, which had once employed nearly one out of every two people in town, was sold to its employees in 1984 in a final, failed attempt at resuscitation. In the end, the factory closed, but the people remained. Today, the carcass of the huge steel complex sits at one end of Main Street, rusting and overgrown with weeds because it wasn’t even cost-effective to tear it down. Dinosaur-sized pieces of machinery litter the grounds, not worth selling off, too heavy to move, too bulky to bury, like so many artifacts from a lost civilization. A few people do still work nearby, making a small amount of some specialty metal, but the place seems more like a living museum than a business.

Most of the retail shops on Main Street are now abandoned, though I counted seven bars and two strip clubs. There’s the Mountaineer Food Bank that looks like it used to be a hardware store or maybe a dress shop. The only still-thriving industry is, it seems, gambling. West Virginia legalized “gaming” in 1992 and it’s now big business statewide. (Nationally, legal gambling revenues now top $92.27 billion a year.)

Gambling in Weirton is, however, a far cry even from the decaying Trump Hotel in Atlantic City. There are no Vegas-style casinos in town, just what are called “cafes” strung along Main Street. None were built to be gambling havens. In fact, their prior history is apparent in their architecture: this one a former Pizza Hut, that one an old retail store with now-blacked out windows, another visibly a former diner.

One sunny Tuesday, I rolled into a cafe at 7 A.M., mostly because I couldn’t believe it was open. It took my eyes a minute to adjust to the darkness before I could make out three older women feeding nickels into slot machines, while another stood behind a cheap padded bar, a cigarette tucked behind her ear, another stuck to her dry lips. She offered me a drink, gesturing to rows of Everclear pure grain, nearly 99% pure alcohol, and no-name vodka behind her. I declined, and she said, “Well, if you can’t drink all day, best anyway that you not start so early.”

Liquor is everywhere in Weirton. I talked to a group of men drinking out of paper bags on a street corner at 8 A.M. They hadn’t, in fact, been there all night. They were just starting early like the cafe lady said. Even the gas stations were stocked with the ubiquitous Everclear, all octane with no taste or flavor added because someone knew that you didn’t care anymore. And as the state collects tax on it, everyone but you wins.

Booze is an older person’s formula for destruction. For the younger set, it’s meth that’s really destroying Weirton and towns like it across the Midwest. Ten minutes in a bar, a nod at the guy over there, and you find yourself holding a night’s worth of the drug. Small sizes, low cost, adapted to the market. In Weirton, no need even to go shopping, the meth comes to you.

Meth and the Rust Belt were just waiting for each other. After all, it’s a drug designed for unemployed people with poor self-images and no confidence. Unlike booze or weed, it makes you feel smart, sexy, confident, self-assured — before the later stages of addiction set in. For a while, it seems like the antidote to everything real life in the New Economy won’t ever provide. The meth crisis, in the words of author Nick Reding in Methland: The Death and Life of an American Small Town, is “as much about the death of a way of life as the birth of a drug.”

The effects of a lifetime working in the mill — or for the young, of a lifetime not working in the mill — were easy enough to spot around town. The library advertised free diabetes screening and the one grocery store had signs explaining what you could and could not buy with SNAP (food stamps, which have been called the Supplemental Nutrition Assistance Program since 2008). The local TV channels were chock-a-block full of lawyers’ ads urging you to call in if you have an asbestos-related illness. A lot of health was left behind in those mills.

There are some nice people in Weirton (and Cleveland, Detroit, or any of the other industrial ghost towns once inhabited by what Bruce Springsteen calls “steel and stories”). I’m sure there were even nicer parts of Weirton further away from the Main Street area where I was hanging out, but if you’re a stranger, it’s sure damn hard to find them. Not too far from the old mill, land was being cleared to make way for a new Walmart, a company which already holds the distinction of being West Virginia’s largest private employer.

In 1982 at the Weirton mill, a union journeyman might have earned $25 an hour, or so people told me. Walmart pays seven bucks for the same hour and fights like a junkyard dog against either an increase in the minimum wage or unionization.

The Most Exclusive Gated Community: U.S. Marine Corps Base, Camp Lejeune, North Carolina

I grew up in a fairly small Ohio town that, in the 1970s, was just crossing the sociological divide between a traditional kind of place and a proper bedroom suburb. Not everyone knew each other, but certain principles were agreed upon. A steak should be one inch thick or more. A good potluck solved most problems. Vegetables were boiled, faith rewarded. Things looked better in the morning. Kids drank chocolate milk instead of Coke. We had parades every Memorial Day and every Fourth of July, but Labor Day was just for barbecues because school began the next day and dad had to get up for work. In fact, that line — “I’ve got to get up for work” — was the way most social events broke up. This isn’t nostalgia, it’s history.

In 2014, you could travel significant parts of the decaying Midwest and not imagine that such a place had ever existed. But turn south on Interstate 95 and look for the signs that say “Welcome to U.S. Marine Corps Base Camp Lejeune,” in Jacksonville, North Carolina. Actually, welcome to almost any U.S. military base outside of actual war zones, where a homogeneous military population and generous government spending (re)creates the America of the glory days as accurately as a Hollywood movie. For a first-time visitor, a military base can feel like its own living museum, the modern equivalent of Colonial Williamsburg.

Streets are well maintained, shaded by tall trees planted there (and regularly pruned) for just that purpose. Road, water, and sewer crews are always working. There are no potholes. There is a single school with a prominent football field, and a single shopping area. The restaurants are long-time Department of Defense franchise partners and there’s always a pizza place with a fake-sounding Italian name. Those creature comforts on such bases in the U.S. and around the world come at a cost to taxpayers of billions of dollars a year.

Some of the places employ locals, some military spouses, some high school kids earning pocket money after school. The kids bag groceries. Everybody tips them; they’re neighbors.

The centerpieces of any base like Camp Lejeune are the Base Exchange and the Commissary. The former is a mini-Walmart; the latter, a large grocery store. Both are required by law not to make a profit and so sell products at near wholesale prices. Because everyone operates on federal property, no sales tax is charged. When a member of a Pentagon advisory board proposed shutting down some of the commissaries across the U.S., a step that would have saved taxpayers about $1.4 billion a year, World War III erupted in Congress and halted the idea.

Over in officers’ housing areas, everyone cuts their lawns, has a garage full of sports equipment and a backyard with a grill. Don’t keep up your assigned housing unit and you’ll hear from a senior officer. People get along — they’re ordered to do so.

The base is the whole point of Jacksonville, the town that surrounds it. The usual bars and strip clubs service the Marines, and Camp Lejeune is close to being the town’s sole employer like that old steel mill in Weirton or the gambling palaces in Atlantic City. The base shares another connection to places like Weirton: as men lost their health in the mills thanks to asbestos and other poisons, so Camp Lejeune’s drinking water was contaminated with trichloroethylene, a known carcinogen, between 1953 and 1987.

There, however, the similarities end.

Unlike the archipelago of American towns and cities abandoned to shrivel and die, the “city” inside Camp Lejeune continues to thrive, since its good times are fully covered by taxpayer money. The 23% of the national budget spent on defense assures places like Camp Lejeune of their prosperity.

The Department of Defense, with 3.2 million employees (albeit not all in uniform) is the world’s largest employer. It makes up more than two percent of the American labor force.

And the military pays well; no scrambling for a minimum wage at Camp LeJeune. With combat pay more or less standard since 9/11 (the whole world being a battlefield, of course), the Congressional Budget Office estimates that the average active duty service member receives a benefits and pay compensation package worth $99,000. This includes a livable pension after 20 years of service, free medical and dental care, free housing, a clothing allowance, and more. In most cases, dependents of service members continue to live on a base in the United States while their husbands or wives, fathers or mothers serve abroad. Unlike in the minimum-wage jobs many other Americans now depend on, service members can expect regular training and skills enhancement and a clear path to promotion. Nearly every year, Congress votes for pay increases. The arguments for military benefits may be clear — many service members lead difficult and dangerous lives. The point is, however, that the benefits exist, unlike in so many corporate workplaces today. The government pays for all of them, while Atlantic City and Weirton struggle to stay above water.

Small Town America in the Big Apple: Spanish Harlem

The number of Americans who have visited Harlem, even for a quick stop at a now-trendy restaurant or music club, is unknown but has to be relatively small. Even many lifetime New Yorkers riding the uptown subway under the wealthy upper east side are careful to hop off before reaching the 116th Street stop. Still, get off there, walk a few blocks, and you find yourself in a micro-economy that, in its own way, has more in common with America of the 1950s than 2014.

There are, of course, no shaded areas along the block I was visiting in what has traditionally been known as Spanish Harlem, no boyish Little League games. But what you do find are locally owned stores with hardly a franchised or corporately owned place in sight. The stores are stocked with a wondrous hodge-podge of what people in the area need, including South American root vegetables, pay-as-you-go cell phones, and cheap school supplies.

These stores could not exist in many other places. They are perfectly adapted to the neighborhood they are in. While the quality of goods varies, prices are wondrously below what similar things cost a half-dozen subway stops away in midtown Manhattan. In the stores, the employees of these family businesses speak the same languages as their mostly Dominican immigrant customers, and those who work there are eager to make suggestions and help you find things.

People actually chat with each other. Customer loyalty is important, so prices are often negotiable. When he discovered that his customer was also his neighbor, one shop owner helped carry purchases upstairs. Another store informally accepted and held package deliveries for neighbors.

The guy selling frozen ices on the sidewalk nearby did not work for a conglomerate and doled out healthy-sized servings to his regulars. He told me that he bought his raw materials in the very grocery store we were camped in front of.

Even at night, the sidewalks here are full of people. I never felt unsafe, even though I obviously wasn’t from the neighborhood. People seemed eternally ready to give me directions or suggest a local eatery I shouldn’t miss. The one established mega-corporate store in the area, a Rent-a-Center charging usurious prices for junk, had no customers inside on the day I visited. The shop next to it, with an impressive array of used TVs and small appliances from unknown Chinese manufacturers, seemed to be doing gangbuster business. The owner shifted among English, Spanish, and some sort of Dominican creole based on the needs of his customers.

Few things here are shiny or new. There are vacant lots, an uncomfortable sight at night. Homeless people, some near naked despite the weather and muttering to themselves, are more prevalent than in Midtown. The streets have more trash. I saw drug deals going on against graffiti-scarred walls. There is a busy methadone clinic on a busy street. Not everyone is the salt of the earth, but local businesses do cater to the community and keep prices in line with what people could pay. Money spent in the neighborhood mostly seems to stay there and, if not, is likely sent home to the Dominican Republic to pay for the next family member’s arrival in town — what economist John Maynard Keynes called the “local multiplier effect.” One
study found that each $100 spent at local independents generated $45 of secondary local spending, compared to $14 at a big-box chain. Business decisions — whether to open or close, staff up or lay off — were made by people in the area face-to-face with those they affected. The businesses were accountable, the owners at the cash registers.

The stretch of Spanish Harlem I passed through is a galaxy away from perfect, but unlike Weirton, which had long ago given up, Atlantic City, which was in the process of doing so, or Camp Lejeune, which had opted out of the system entirely, people are still trying. It shows that an accountable micro-economy with ties to the community can still work in this country — at least in the short run. But don’t hold your breath. Target recently opened its first superstore not far away and may ultimately do to this neighborhood what cheap foreign steel imports did to Weirton.

Looking Ahead

I grew up in the Midwest at a time when the country still prided itself on having something of a conscience, when it was a place still built on hope and a widespread belief that a better future was anybody’s potential birthright. Inequity was always there, and there were always rich people and poor people, but not in the ratios we see now in America. What I found in my travels was place after place being hollowed out as wealth went elsewhere and people came to realize that, odds on, life was likely to get worse, not better. For most people, what passed for hope for the future meant clinging to the same flat-lined life they now had.

What’s happening is both easy enough for a traveler to see and for an economist to measure. Median household income in 2012 was no higher than it had been a quarter-century earlier. Meanwhile, expenses had outpaced inflation. U.S. Census Bureau figures show that the income gap between rich and poor had widened to a more than four-decade record since the 1970s. The 46.2 million people in poverty remained the highest number since the Census Bureau began collecting that data 53 years ago. The gap between how much total wealth America’s 1% of earners control and what the rest of us have is even wider than even in the years preceding the Great Depression of 1929. Argue over numbers, debate which statistics are most accurate, or just drive around America: The trend lines and broad patterns, the shadows of our world of regime change, are sharply, sadly clear.

After John Steinbeck wrote The Grapes of Wrath, he said he was filled with “certain angers at people who were doing injustices to other people.” I, too, felt anger, though it’s an emotion that I’m unsure how to turn against the problems we face.

As I drove away from Atlantic City, I passed Lucy the Elephant still at her post, unblinking and silent. She looks out over the Boardwalk, maybe America itself, and if she could, she undoubtedly would wonder where the road ahead will take us.

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

Posted in Democracy, Economy, Minimum Wage

Poor People, Don’t You Know You Have Jobs?

January 6, 2017 // 59 Comments »

It’s not Trump you have to worry about. You’re thinking short-term.

As people struggle to find third-parties to blame for Hillary Clinton’s defeat (pick one or more: Putin, Bernie Bros, Comey, The Media, Electoral Collegians, the Racist/Misogynist Hordes), an amorphous group has emerged as a popular domestic target: stupid poor white people who do not understand how much better they have had it over the last eight years.

These slack-jawed yokels just can’t seem to grasp that they have great jobs in a growing economy. The numbers prove it: the U.S stock market is at record highs and unemployment at its lowest level since the Great Recession.

“Anyone claiming America’s economy is in decline is peddling fiction,” Obama said in his 2016 State of the Union address. He said his team has created a “more durable, growing economy” with “15 million new private-sector jobs since early 2010.” Tim Kaine also used the 15 million jobs talking point in the vice presidential debate.

But the problem isn’t jobs per se, it is income inequality.

This is the basis of the sense of economic disenfranchisement that drove many voters to seek change this past election, even if after seeing Sanders pushed out of the race that change meant overlooking Candidate Trump’s many shortcomings.

A big part of this inequality is while more Americans are working, more are working part time without benefits. Since 2007, the number of Americans involuntarily working part time has increased by nearly 45 percent.

Coupled with that is what many of those workers see as the failure of the Affordable Care Act (ACA; Obamacare) to live up to its promises. ACA was supposed to be the government supplying a key benefit employers refused to offer to part-timers. People may indeed now have access to insurance, but with high deductibles, they may not have access to healthcare. These are not people with ideological problems with Obamacare. They need help for their families and want the ACA changed.

In addition, because larger employers have to start paying into the ACA fund for each employee who works more than 29 hours a week, employers who offer the most jobs, retail, hospitality, and fast food, have cut most part-timers to 29 hours a week, down from the once-standard 39 hours a week that kept them outside of overtime.

Wages saw their biggest jump this year since 2008 — 2.9%. However, most of that increase came only in states that chose to raise their minimum wages independent of the stagnant federal minimum wage. And with inflation running about 2%, most of any increase was washed away. And what is .9% of minimum wage anyway? Pretty close to not a helluva lot.

Higher costs and less money. And of course for part-timers, vacation days, sick leave, pensions, child care, and other benefits remain elusive at best. The result is a workforce making up the gaps with multiple jobs, food benefits, and opioids. And they voted against the candidate that made a talking point out of saying she would maintain the status quo that was killing them.

Trump, of course, is unlikely to change much, but he represents change and that apparently was enough for a very large number of voters who still believe government may yet help them.

Their inevitable disappointment is likely to lead one of two ways: a complete giving up, a sad resignation they should be happy they get anything at all, or a rage that will seek out a true demagogue.

For despite all of the apocalyptic prose spewing out of cranky Clinton supporters and all the newly-minted, New York-based, Midwestern blue collar experts, Trump is not the antiChrist of American politics. He is a minor celebrity who stumbled into a stream of history, a classic case of being in the right place at the right time.

But keep an eye out in eight years for the next guy. That’s the one to fear.

BONUS: Here’s another opinion on all this, titled “It was the racism, stupid: White working-class ‘economic anxiety’ is a zombie idea that needs to die.”

And if Dems, progressives, liberals, whoever, keeps insisting poor whites are racist-sexists who voted for Trump primarily because he encourages their hate vibe, then the next Democratic candidate will lose their votes again. Given the drift of the economy, there will be more of them next time, too. This election was a pay-attention-notice to the Democratic party, and it is so far not just ignoring it, it is saying the whole notion is wrong.

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

Posted in Democracy, Economy, Minimum Wage

How Trump May Win Ohio and Pennsylvania

September 18, 2016 // 52 Comments »

The every-four-years parade of east coast journalists trooping out into the Rust Belt of Ohio, Pennsylvania, Indiana, West Virginia and their neighbors has begun.

Both the New York Times and the Wall Street Journal have run their stories. You can Google them (fine, here’s one), and the articles from smaller outlets that will follow, but I can save you some reading time, because they are all basically the same:

Oh my God, the Midwest is a freaking mess. Nobody has jobs, middle-aged white people are doing heroin and meth, and everyone is on food stamps. These people are angry as hell at, well, they say the government.

Trump and Hillary have been through (name the one small town you stopped in) and promised to bring back the old industrial jobs (Trump) or some hi-tech something (Hillary.) I stopped by a (diner, bar, waffle house, VFW hall) and talked to (name of the one guy you talked to.) He told me times are tough, but these people are tough. They built the mills, they pulled America up by its bootstraps. They’ll make it. Quote some Bruce Springsteen song you heard that afternoon driving east as fast as you could. Done.

The reporter then rushes back to New York to bathe in Purell and drown his/her disgust in warm PBRs and Starbucks spiced lattes. Next story is about a new start-up in Brooklyn that is creating a social media platform for dogs or something.

Understanding the Heartland

Most reporters act shocked to find people “out there” so angry. They can’t understand why the “folks” take food stamps but think handouts are for lazy people. They can’t understand why someone without health insurance, coughing up chunks of the asbestos they breathed in every day at the factory, opposes Obamacare.

The people the reporters speak with feel they got cheated. They worked hard, they paid taxes, they sent kids off to war (every small Midwest town has a memorial stone, if not three, to the local people who died in WWII, Korea, Vietnam, Iraq…) Then they got screwed by, well, someone. The lucky ones now work for minimum wage at a local Walmart full of junk made overseas. The rest visit the charity pantries and spend their food stamps not because they are lazy like “those people” (a code word for urban African-Americans; the few people of color in these towns tend to feel the same way), but because they are hungry. They wait like a cargo cult for the boom years to return, someday, somehow.

Trump gets this at a visceral level. He tells them it is not their fault, or his, though both share blame. It was the Japanese, or the Chinese, or some mythical Big Government, or regulations, or even the unions that gave the same workers higher pay and good benefits. It doesn’t have to make sense, it just has to play to a crowd angry and confused looking every four years for some answer, and some hope.

I Saw Them, The Ghosts of Tom Joad

I grew up in Ohio during the 1970s and 80s, and watched the industrial heartland fall apart in front of my eyes. Our town had a huge Ford plant. It was sold to Toyota, who cut jobs by half before closing it all down because they got better tax incentives in Kentucky. I don’t know what happened in Kentucky, but I can guess.

I wrote a book about all this, the last fifty years of the Midwest. When you look at it as a historical event, today’s state of things is as inevitable as sunset.

The book is Ghosts of Tom Joad: A Story of the 99 Percent. Close to four years ago I tried to sell it to a couple of the larger publishers in New York. No literary agent wanted it, no publisher was interested. As one put it, declining me, “You’re saying there’s poor people in Ohio?” Another was clearer: “Who wants to read a book about unemployed whites?”

The first publisher outside of New York I approached, one located in Indiana, immediately took the book.

How Trump May Win the Swing States

I fully doubt Donald Trump has read my book, or many books at all for that matter. Someone on Trump’s team, however, is very aware of the unfocused anger in the Midwest I wrote about, and is working hard to use that to get some votes. If Trump takes the swing states of Ohio and Pennsylvania, it will be because of that staffer’s insight. Maybe s/he’ll write a book about it.

Until then, here’s more about my book, Ghosts of Tom Joad: A Story of the 99 Percent:

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

Posted in Democracy, Economy, Minimum Wage

Let’s Understand Why We’re So Finished Economically

August 3, 2016 // 26 Comments »

How ya’ doing? I mean money-wise. Too much? Maybe not enough?


So let’s listen to economist Paul Krugman explain why we are so screwed. Not we will be screwed, or maybe things will go that way, or we will in the future. Nope, it already happened, though most of us haven’t yet figured it out.

Krugman, and the economist he discusses, Thomas Piketty, paid attention in math class, and the other classes, too. That’s why they understand this stuff and I’m still trying to suss out why no matter how many hours I stay on the job and how much I save, it is never enough.

In case you’re reading this on your 15 minute break at Target, I’ll try to summarize.

The American Dream (Patrimonial Capitalism)

The myth of the American Dream is the dominating factor in keeping people mostly complacent in the United States. You know it — work hard, and your life will improve. Well, maybe not your life, but your kids’, or at least your grandkids’. If that doesn’t work, it is the fault of the Irish immigrants, or the darn Chinese, or those welfare freeloaders. Ask Donald Trump how it all works.

The thing that makes the myth so powerful is that the tiny percent that is true sounds better than the 99 percent which is a lie. As long as near-constant growth could be assured, enough pieces would fall to the the lower and middle classes to make the Dream seem real. It helped that a kindly media would promote the heck out of every exception, whether it was the shoeshine boy in the late 19th century who went to college, or the plucky guys who invented some new tech in their garage and became billionaires. See, you can do it too, just like if we run hard enough, everyone can be in the Olympics. It’s just a matter of wanting it, believing in yourself, having passion and grit, right?

The Undeniable Reality of the Now

The bulk of the industrial jobs are gone and never coming back; ask Detroit, or the people in Youngstown and Weirton. People have been talked out of most union jobs, convinced somehow that organizing was not in their own interest, and now they find themselves accepting whatever minimum of a wage they can get. Food stamps and other need-based programs are finding more and more middle class users, as suburban people who once donated to charities are now lining up out front of them. Health care paid for by our own taxes is seen as a give away to lazy people. This is the stuff Bernie Sanders talked about.

Like with gravity, the universe doesn’t care if you “believe” it or not; it is just true, independent of what you “think.” That you have been taught this all is something you can choose to believe or not is the weight that holds us all down.

Drilling Down Into Our Miserable Lives

In case you have a few more minutes on your break, or if you’ve been laid off since starting this article, here are some more things happening out there whether you believe in them or not. You can read more about all of this in Thomas Piketty’s book, Capital in the Twentieth Century.

— Our income inequality rate is higher than it ever has been in our own history, is growing, and is higher than in countries in Western Europe and Canada.

— The inequality is driven by two complementary forces. By owning more and more of everything (capital) rich people have a mechanism to keep getting richer, because the rate of return on investment is a higher percentage than the rate of economic growth. This is expressed in Piketty’s now-famous equation R > G. The author claims wealth is growing at six-to-seven percent a year, more than three times faster than the size of the economy.

— Wages are largely stagnant, or sinking, driven by factors in control of the wealthy, such as automation that eliminates human jobs and the not-adjusted-for-inflation minimum wage more and more Americans now depend on for their survival.

— All of this is exacerbated by America’s lower tax rate on capital gains (how the rich make their money) versus wages (how the 99 percent make their money.)

— Because rich people pass on their wealth to their relatives, the children of rich people are born rich and unless they get really into fast women and cocaine, will inevitably get richer. They can’t help it. The gap between the one percent and the 99 percent must grow.

— Social reforms, such as increased education opportunities and low-cost health care, are incapable without tax changes significantly affecting income equality. The only people who can change society are those who profit from it not changing. That’s the big reveal on why we are in so much trouble.

FUN FACT: Until slavery was ended in the United States, human beings were also considered capital, just like owning stocks and bonds today.

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

Posted in Democracy, Economy, Minimum Wage

Capitalism Without the Das Capital: Welcome to Uber’s Gig Economy

April 28, 2016 // 8 Comments »

One of the defining aspects of traditional capitalism is that the Capitalist, that one percent guy from the Monopoly game with the top hat, spats and monocle, invests capital. That investment, in land, a factory, an oil well, creates value (the monies) for him, and jobs for the rest of us.

Capitalism 101

The idea is that because the Capitalist risks his money/capital, he is assuming the greater risk and thus deserves the greater gain. This has been the way things have worked since feudal lords controlled land and allowed sharecroppers to keep pennies on the dollar they earned for him, on through to when people built factories and opened stores.

Traditional capitalism is that stuff you slept through in Econ 101. Risk gain, employment, jobs, whatevers unless you live off an allowance from Daddy.

Until the arrival of the gig economy.

The Gig Economy

For those who are living off an allowance from Daddy, or are one of the eleven Americans who still hold a traditional “job” where you do stuff, get paid a regular salary not tied to how many sneakers you sew each day, and receive those “benefits” you once heard grandpa speak of, the gig economy is where you work piecemeal, get paid a few table scraps and have no benefits or job security because you really don’t work for anyone.

These “gigs” are almost always performing low-level services, such as delivering food to or driving around people much wealthier than you. Those people cannot be bothered to walk to a restaurant or pilot a motor vehicle or clean up their kids’/doggies’ poo, so you do it because you don’t have many other options in hope of earning something more than minimum wage.

The gig economy is sometimes also known as the 1099 economy, after the IRS form used to report non-employee earnings, or the on-demand economy based on the way people get or don’t get opportunities to work. No one knows how big this shadow economy is, given the shifting nature of the work and the cash payments sometimes involved. But it is big and it is growing.

The less-discussed game changer of the gig economy is that traditional capitalists no longer need to put much money at risk at all. In fact the companies behind the gig economy, the people who run Uber and the others, are economically viable because they offload their cost of capital — the investment and depreciation on cars and the cost of keeping a driver fed and healthy — onto the drivers, who are only willing to accept such a bad deal because the labor market sucks. See how that works?

And if that’s not problem enough, the cheaper wages paid (for example, by Uber) to drivers, and thus the cheaper rides, also drive business with capital structures which make social sense out of business. They can’t compete with “drive your car into the ground, make whatever you might get along the way while we cash in.”

And when you talk about driving these days, you’re talking about Uber.

Uber Costs

Uber has succeeded in almost completely pushing its operating costs (absent the relatively small investment needed to run the app and backoffice) down to people who often can’t afford it but are lured into trying because the alternatives seem even lower paying.

To drive for Uber, you need a late model car, in great shape, with four doors. It doesn’t have to be a black sedan, but if it isn’t Uber will exclude you from a number of ride requests.

So where does someone without a lot of money get a late model black sedan? If they can afford it, they buy one, but that means laying out a lot of money and taking on some heavy credit up front. More than likely, however, what a budding Uber driver does is lease his black sedan from an Uber-suggested third party contractor. You’ll find them right on the Uber website. They’ll take an average $500 deposit to sign you into a three year lease running $300 a month. So that all adds up to a capital investment by the driver of $11,300 over three years.

Next capital cost to the driver is insurance, expensive insurance, because the cheap minimum stuff you buy off the TV ads is not going to cover you driving passengers around. Don’t worry, though, as Uber will sell you just what you need, albeit at $4,600 a year. That works out to $13,800 for three years.

And, hey, driver, you need to pay for licensing, gas, maintenance, fines, regular car washes, depreciation of your vehicle and all the other stuff. Over three years, let’s call it $5,000.

So overall, the cost for you to get a job with Uber is about $30,100 over three years. If you don’t have the cash on hand, and need to borrow it, add on 13% interest or more if using a credit card, maybe more for second-level sources for people who don’t qualify for good credit.

But wait — many jurisdictions are now demanding additional licenses from Uber drivers, claiming they are operating a business. One of the more extreme plans under consideration is in Newark, New Jersey. The city is looking at a $500 annual fee to operate in the city, $1,000 additional license to pick up and drop off passengers at the airport and Newark Penn Station, and a $1.5 million insurance coverage requirement.

If the driver fails to make any of those payments, s/he instantly becomes unemployed, unable to pay enough to have a job to earn enough to pay for that job. This is, in economic terms, an extractive process — a third party takes profit, leaves the true costs of capital to the workers, and when they fail, to society who will need to step in and provide food benefits as a last resort.

Uber Risks

In addition to having to raise their own capital to essentially buy themselves a job driving for Uber, drivers face risks far above the simple “risk” associated with any “investment.”

In addition to the obvious risks of accidents, bad reviews, and good/bad weather that cuts the number of people seeking rides, perhaps the biggest financial risk to any driver is Uber itself.

Imagine a situation where there are 10 riders in a city, and ten Uber drivers. For argument’s sake, let’s say each driver gets one fare a night. Uber makes money on its 27% share of 10 rides. Now, increase the number of Uber drivers to 100 (which makes getting a ride easier and faster for quicker profit for Uber and protects Uber when drivers quit) while the number of rides stays at 10. That means 90 drivers make nothing each night. Independent of the number of drivers, Uber still makes the same money on its share of 10 rides.

In 2015, Uber doubled the number of drivers in the U.S. As of October 2015, the company had 327,000 active drivers, more than doubling the 160,000 that gave rides in 2014. Some of the new drivers are absorbed by growth in ridership, some are not.

The other risk is that Uber sets prices, which vary even though the driver’s costs do not. For example, in order to theoretically boast ridership, Uber lowered prices in New York City such that individual drivers saw an average decline in payouts of 15%. The company also experimented with rate cuts in 99 other North American cities.

Uber Pool

UberPool is a new service where multiple customers headed the same way can “share” a car.

Imagine two Uber drivers each carrying a single passenger along the same route which results in a fare of $11. After Uber takes its brokerage cut as well as its “safety fee” (even though the company still has the poorest driver background checks in the taxi industry), each driver ends up with $8 each in pocket, while Uber ends up with $6, a 27% commission for Uber.

Now along comes UberPool, and these same two serial riders get picked up by a single driver. Since UberPool offers passengers a substantial discount for sharing a ride, that means each passenger now pays $6 (in this example). After Uber takes its commission, including the safety fee, the payout to the driver is $4 for each passenger, or a total of $8. So the driver makes the same amount, but Uber’s take of the overall $12 for this ride is also $4 – a 33% overall commission. So Uber makes a higher percent on UberPool rides, yet the driver makes about the same amount.

Money

The other side of financial risk is financial return, what you get after investing capital. For Uber drivers, there is no realistic average. Take a look at one of the many online driver forums and you’ll see a range of claimed payouts so wide (from sub-minimum wage to thousands a week) that it is of no real value. Here is at least one reasonable breakdown of costs and payouts.

Leaving aside the forum posters who are just lying for whatever reason, the variables of driving for Uber are such that averages are not really possible. One of the few variables under the driver’s control is number of hours worked, and many of those who claim high weekly payouts also claim to drive 12 or more hours a day. Leaving aside the not inconsequential question of whether you feel it’s safe to catch those guys 11.5 hours into their shift, it leaves the economic question of how many hours a week it takes in the gig economy to earn a decent living.

The New World Order

Unlike conventional labor, where one starts at zero on day one and begins earning money, or traditional self-employment where in return for capital investment one keeps 100% of the profits, the gig economy’s main point is that people working for places like Uber start behind, maybe $10,000 in the hole after they secure a car, insurance and all the rest. Uber, however, begins profiting from the driver’s labor immediately, and loses nothing when the driver is pushed aside.

All of the gain, none of the risk, in the New Economy where people pay for their own jobs.

What other business is there where the Capitalist takes almost no risk, invests no capital, and pushes all that down on his workers alone, while raking in money? Oh, rights, pimps. Welcome to the gig economy.

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

Posted in Democracy, Economy, Minimum Wage

Won’t Paying for Bernie’s Healthcare Make Us Pay Higher Taxes Like in Europe?

April 22, 2016 // 8 Comments »

Won’t paying for Bernie’s healthcare make us pay higher taxes like in Europe?

Not likely. Here’s what Hillary doesn’t want to tell you.


Free or very low-cost universal health care is available to citizens of all the countries marked in green, below, as well as China, North Korea, Thailand and Vietnam, left off for some reason:

You’ll see the U.S. stands alone. Somehow our nation, alone among industrialized nations and some not so industrialized, has yet to figure out how to find a why to provide affordable healthcare for all of its citizens.

One of the arguments posited is that the U.S. is too big for some poncy European system to work, but of course China and Russia are bigger. Another is that quality of care suffers, but people in Japan have some of the longest life spans in the world, and things are pretty good across Europe.

But the argument that seems to stick best in America is that such “utopian” healthcare schemes are simply too expensive, that taxes over there are so much higher than in America.

So keeping in mind that most of the places that offer free or very low-cost universal health care also offer free or very low-cost college (how’s it feel that a degree at Podunk State U costs more than Oxford University — about $12,000 a year for UK and EU students?),

And, most of those other countries have dollar-adjusted higher minimum wages. And they save extraordinary amounts of money that in the U.S. end up being spent on social welfare and public health for people who are unhealthy because they can’t afford to see a doctor.

But let’s look at some tax figures:

Oops. The average U.S. income tax rate is actually higher than some of those places.


And of course in the U.S., in addition to federal income tax, we also pay state and sometimes city tax. And Social Security/Medicare tax of 7.65% And property tax, sales tax and taxes/surcharges on cell phones, airports, hotels, restaurant meals and on and on. And of course other countries also have other taxes; the point is Americans are already paying a lot of taxes and getting damn little in return.

And on top of that, we also pay (those who can afford it…) for health insurance. For 2012, the annual premiums for employer-sponsored family health coverage averaged $15,745, up 4% from 2010, with workers on average paying $4,316 toward the cost of their coverage. And of course those premiums paid do not include deductibles and co-pays.

And prescription medicine costs. Americans pay more for drugs than anyone in the world. Drug prices in the United States are often up to 10 times more expensive than in almost all other developed countries.


And that is how Bernie Sanders comes to the conclusion that even if taxes rise, the single-payer health care system he proposes would save an average American family of four almost $6,000 per year.

Think about it. Doctor’s orders!

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

Posted in Democracy, Economy, Minimum Wage

Thousands of Americans Are Hungry Because of Post-Prison Release Laws

April 21, 2016 // 6 Comments »

Food stamps are for hungry people, which we should not have in America. There are of course cheaters, just like there are wealthy people who cheat on their taxes. The tax cheats won’t starve to death, or see their children go hungry, but released drug felons in many states will.

It used to be that when you served your time for a crime, your “debt to society” was considered paid, and you were ready to re-enter society. But for many released drug felons, the punishment continues long after they leave jail.


The felony drug ban is a Congressional-mandated lifetime restriction on Temporary Assistance for Needy Families (TANF; note the word family there) and food stamps (SNAP) for anyone convicted of a state or federal drug felony, unless states opt out. In states where the ban applies, a person released from a prison sentence are denied basic assistance at a time of extreme vulnerability.

A study by The Sentencing Project found that in the 12 states that impose the lifetime ban, an estimated 180,000 women alone are impacted. If you include the other 24 states that impose a partial ban, the number of people affected is significantly higher. And since law enforcement is happily conducted with racial bias, people of color are disproportionately denied assistance.


The felony drug ban can be traced back to the 1990s, when politicians of both parties sought political gain by getting “tough on crime.” Senator Phil Gramm , the sponsor of the ban, argued that “we ought not to give people welfare benefits who are violating the nation’s drug laws.” After just two minutes of floor debate, the measure was adopted by unanimous consent as part of the 1996 welfare “reform” legislation.

Of course there are other post-prison punishments on felons. The most significant is that few employers will hire an ex-felon, and more employers than ever now run mandatory background checks even for lousy minimum wage jobs.  Pell grants are not available for felons, and most schools will deny them financial aid, ensuring most can’t receive the education they need to get back on their feet. Men and women with prior drug convictions are also typically denied public housing and other benefits. A lot of banks won’t deal with a felon.


Now, let’s see a show of hands out there.

Who thinks making a man or woman unemployed, hungry, potentially homeless and without a chance at education is going to reduce the chances s/he won’t recommit a crime? Nope, it’s just damn mean and stupid.

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

Posted in Democracy, Economy, Minimum Wage

‘Please do not feed the animals’: Oklahoma GOP Compares Food Stamp Recipients to Park Animals

April 8, 2016 // 7 Comments »

In America, we have a very crude understanding of social welfare programs. For most Americans, anything the government gives to its people (i.e., us) to keep us healthy, fed and educated, is a “handout” to lazy people who don’t deserve it.

Helping each other, using our tax money for us, as does most of the civilized world, is somehow wrong. In America, we’d prefer you starve to death, quietly if possible, as the rest of us are binge watching Netflix whilst eating Doritos.

Doritos we worked for, dammit. Albeit at our minimum wage jobs at Walmart, but whatever.

And with that, welcome to that rotting greenish boil head otherwise known as Oklahoma, where the Republican Party compared Americans receiving food stamp benefits to park animals fed by the public.

In the since-deleted Facebook post, the Oklahoma GOP offered a “lesson” by comparing the distribution of food stamps to 46 million Americans to a policy of the National Park Service to discourage the public from feeding animals “because the animals will grow dependent on handouts and will not learn to take care of themselves.”

Party Chairman Randy Brogdon offered a faux-apology in another Facebook post: “I offer my apologies for those who were offended – that was not my intention.”

Which is hilarious and clear proof he was dropped on his head as a child by his alcoholic mother, because of course it is obvious that comparing needy people to animals is offensive to absolutely everyone. Even a park animal could see that.

This also isn’t the first time the GOP has compared Americans to animals. In 2014, South Dakota Senate candidate Dr. Annette Bosworth’s posted a nearly identical post to her Facebook campaign page:





FUN FACT: A very large percentage of food stamp recipients are children (“cubs”), the elderly, and disabled people. Maybe it’s time to thin the herd.

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

Posted in Democracy, Economy, Minimum Wage

Job Totals Trail Pre-Recession Levels in 10 U.S. States

April 7, 2016 // 5 Comments »

Every candidate shouts about job creation, and some talk about the recovery from the last recession. Every month the Department of Labor releases new statistics about how many jobs have been created, improvements in the unemployment rate, and on and on.


There are parts of the society and the country where some of that is even partly true. But for about 20% of our states, it is not even partly close. An awful lot of the good news is just a numbers game.

Data compiled by the Associated Press shows ten U.S. states still have not regained all the jobs they lost in the Great Recession, even after six and a half years of “recovery,” while many more have seen only modest gains.

The figures are one more sign of the economic inequality, the one field America remains the undisputed global leader. The on-the-ground reality of negative job growth is why many Americans feel the economy has passed them by, and fuels support for angry candidates Donald Trump and Bernie Sanders.

Who Lost

Wyoming has three percent fewer jobs it did when the recession began. Alabama’s job total post-recession is -2.7 percent, followed by New Mexico at -2.6. New Jersey (Chris Christie!) has one percent fewer jobs than it did at the end of 2007, and Missouri is just below its pre-recession level. The other five losers are Mississippi, Nevada, Maine, Connecticut, and West Virginia.

Among the other states, several show only small gains past pre-recession job totals. Illinois, statewide with a population of over 12 million, has only 8,600 more jobs than it did in December 2007. Arizona’s job count is up just 9,200 with a population of six million (not counting illegal aliens.) And Ohio (Kasich!!!) has added just 58,100 jobs with its population of almost 12 million. Those gains are more or less (it’s less) statistically insignificant.

Who Won

The states that saw the highest rates of job growth tell the story of the last few years. Some of the biggest gainers include:

Washington DC is a big, big winner, with significant growth from America’s largest employer, the federal government, all fueled significantly by the very profitable War of Terror.

The oil and gas drilling boom lifted North Dakota’s job count by more than 20 percent, though falling energy prices have caused significant layoffs in the past year. Need to check back with North Dakota in a year or two.

Texas has also benefited from the energy boom, as well as greater high-tech hiring in cities like Austin.

Utah and Colorado have also benefited from fast-growing information technology companies. Colorado especially has a large aerospace (read: defense) industry, so good for them.

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

Posted in Democracy, Economy, Minimum Wage

Are Trade Deals Like NAFTA and TPP Good, or Bad, for America?

April 5, 2016 // 3 Comments »

Are international trade deals, such as NAFTA and the TPP, good for America, or bad for America?

The answer is yes, depending on who you ask.

What Are NAFTA and TPP?

The North American Free Trade Agreement (NAFTA), which went into force in 1994, and the Trans-Pacific Partnership (TPP), which is still pending ratification in the U.S. and elsewhere, are examples of the type of broad-based, large-scale international trade agreements now discussed by American presidential candidates with the same tone of voice used to speak of that wet soup in street gutters. Indeed, even discussing the subject of whether they are good or bad for America may be little more than an academic argument at this point; Trump has sworn to make no new trade agreements and says he will not support the TPP. Hillary is a little cagier in her response, but, for the record, for now, says she too will not support TPP.

But let’s slow things down a bit, and look into that key question, of how things like NAFTA and the TPP might affect Americans. After all, candidates do occasionally say one thing during the campaign, and another when actually in office, right?

The Basics

International trade deals are agreements between countries, often groups of countries, that are designed to promote more trade, more goods and services, and sometimes more workers, moving across borders. The deals typically reduce taxes and tariffs, change visa rules, and sometimes soften regulations that keep foreign products out. The phrase used most often is “lower the barriers.”

So, if widgets made expensively in the U.S. can be made more cheaply in Vietnam and then imported into the U.S., something like TPP can facilitate that by lowering American tariffs on widgets. Meanwhile, Vietnam might be required to change its agricultural import system to allow American genetically modified fruit to flow into Hanoi’s supermarkets.

NAFTA

NAFTA is a good place to start in learning more, as it involves three countries — the U.S., Canada, and Mexico — that generally get along, play reasonably fair, and already had a robust cross-border trade. Lots of non-variables there. Plus, since NAFTA’s been around for over 20 years, there should be a decent consensus on how it worked. That will provide a real world example to weigh against a newcomer like the TPP.

You wish.

There are numbers. For example, the U.S. Chamber of Commerce says increased trade from NAFTA supports about five million U.S. jobs. Unemployment was 7.1% in the decade before NAFTA, and 5.1% from 1994 to 2007. But then again unemployment from 2008 to 2012 has been significantly higher.

You can find similar ups and downs on imports and exports, value of goods, and the like. Some are clearer than others; since 1993, U.S. exports to Canada and Mexico have climbed 201 percent and 370 percent. The problem is trying to attribute them. Global economics is a complex business, and pointing to a singularity of cause and effect is tough.

Want to see for yourself? Here, and here, and here, and here are articles from smart people who can’t figure out if NAFTA has been a good thing or a bad thing. It is not that simple. And NAFTA, remember, was just three countries. The TPP would draw in 12 nations.

Cui Bono?

The Latin phrase cui bono means “who benefits?,” and is used by detectives to imply that whoever appears to have the most to gain from a crime is probably the culprit. More generally, it’s used in English to question the advantage of carrying something out. In the case of things like NAFTA and TPP, the criminal context might be more applicable.

Most everyone can agree that NAFTA made certain products cheaper for American consumers, as manufacturing costs are lower in Mexico than Idaho. American companies who found new export markets abroad also saw a rising tide of new money. The problem is that for many Americans, in the words of historian Morris Berman, that rising tide lifted all yachts, and not all boats.

Allowing American firms to make things abroad and import them into the U.S. free or at low tariff cost moves manufacturing jobs out of the United States. No argument there among economists. The current celebrity case, cited by several candidates, is that of Carrier. Carrier just sent 1,400 jobs making furnaces and heating equipment to Mexico. Workers there typically earn about $19 a day, less than what many on Carrier’s Indiana assembly line used to make in an hour.

Carrier will see higher profits due to lower costs. They may or may not pass on some portion of those savings to American consumers. They have put Americans out of work.

The Losers

Economists will often claim that such job losses are part of the invisible hand, how capitalism works, duh. The laid off workers need to learn to code and build web pages, migrate to employment hot spots such as California like modern day Tom Joads. But pay a visit to nearly anywhere in what we now blithely call America’s Rust Belt, and see how that’s working out.

Retraining industrial workers just does not happen overnight, even if there was free, quality education (there’s not.) Indeed, since the beginnings of the hollowing out of America, it has not happened at all. The risk is also that retraining takes unemployed, unskilled people and turns them into unemployed, skilled people. Training is only of value when it is connected to a job. Remember, as all those unemployed Carrier people somehow learn to build web pages, America’s colleges are churning out new workers, digital natives, who already have the skills. Even Silicon Valley’s needs are finite.

Patterns do emerge, and the American people know they’ve been had at the expense of corporations that do indeed benefit from international trade agreements. Many Americans see that average workers and thousands of communities have been screwed by trade agreements which put them in direct competition with low wage workers around the world.

Everybody Wins, Except for Most of Us

Economist Robert Scott says he knows. He claims over the last 20 years, trade and investment deals have increased U.S. trade deficits and cost Americans their jobs. For example, the agreement allowing China into the World Trade Organization led to trade deficits that eliminated 3.2 million jobs between 2001 and 2013. Meanwhile, the United States already faces a trade deficit with countries in the proposed Trans-Pacific Partnership that cost two million U.S. jobs in 2015.

In his 2008 book, Everybody Wins, Except for Most of Us, Josh Bivens shows that while the most privileged Americans have benefited from cost-savings due to trade, increased global integration harms working Americans. Bivens estimated that the growth of trade with low-wage countries reduced the median wage for full-time workers without a college degree by about $1,800 per year in 2011.

A Broader View

Of course there are dissenting opinions; another economist cautions “to understand how dismantling trade barriers helps the country, we also need to take a broader view of the American economy, and not focus solely on disruptions and lost jobs in particular sectors.”

And that makes sense, if you believe economics is about money.

But if one is asking whether or not international trade agreements are good, or bad, for America, one needs to think bigger. On a whole-of-society level, economics is about people. We all want American companies to make money. It’s also great that Walmart is full of low-cost consumer electronics from Asia, or Carrier air conditioners fresh from Mexico, but you need money — a job — to buy them.

Think broader, and you’ll see economics is about people. Let that answer the question for you about whether international trade agreements are good or bad for your part of America.

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

Posted in Democracy, Economy, Minimum Wage

Calling Bull on Fast Food CEO Who Says Higher Min Wage Forcing Him to Automation

March 22, 2016 // 7 Comments »

The CEO of Carl’s Jr. and Hardee’s visited a fully automated restaurant, and it’s given him some evil ideas on how to deal with rising minimum wages.

CEO Andy Puzder (above) said “We could have a restaurant… where you order on a kiosk, you pay with a credit or debit card, your order pops up, and you never see a person.”

Puzder’s interest in an employee-free restaurant has been sparked by rising minimum wages. “With government driving up the cost of labor, it’s driving down the number of jobs,” he says. “You’re going to see automation not just in airports and grocery stores, but in restaurants.”

The CEO has been an outspoken advocate against raising the minimum wage, writing op-eds on how a higher minimum wage would lead to reduced employment opportunities. “This is the problem with Bernie Sanders, and Hillary Clinton, and progressives who push very hard to raise the minimum wage,” says Puzder. “Does it really help if Sally makes $3 more an hour if Suzie has no job?”

So let’s unpack Puzder’s remarks, and call bullsh*t on him.

The federal minimum wage hit its high point in 1968 at $8.54 in today’s dollars and while this country has been a paradise in the ensuing decades for what we now call the “One Percent,” it’s been downhill for low-wage workers ever since. In fact, since it was last raised in 2009 at the federal level to $7.25 per hour, the minimum has lost about 8.1% of its purchasing power to inflation. In other words, minimum-wage workers actually make less now than they did in 1968.

So if Puzder cannot make money by paying circa-1968 wages with 2016 prices in force, he needs some business lessons.

But are wages really what this is all about? Let’s see what else Puzder had to say.

“They’re always polite, they always upsell, they never take a vacation, they never show up late, there’s never a slip-and-fall, or an age, sex, or race discrimination case,” says Puzder of swapping employees for machines.

Ah, yes, there we have it.

Puzder doesn’t want cheaper labor per se, he wants to quit trying to figure out how to make his people work like machines, and just have machines work like he wishes people would do. Stupid people, with their need for time off and desire not to be discriminated against.

BONUS: Guess what? One of the nation’s highest minimum wages, in Seattle, has not led to mass unemployment at all.

DOUBLE BONUS: In addition, while we all grieve for poor CEOs forced to pay out a living wage, think bigger. Higher wages mean fewer people needing food assistance, which means lower taxes. Higher wages also puts more money into the economy, usually the very local economy. Unlike wealthy people like CEOs, who tend to save their money or invest it, lower income people spend their wages. An extra dollar to a Carl’s, Jr. worker moves quickly into the hands of a local food store, which uses the dollar to purchase goods, which boosts the whole blessed mess.

SUPER SIZE BONUS: Bloomberg reported Puzder’s salary and other compensation as $4.485 million, so he is doing well. His restaurant chain is doing well, too, as profits rose more than 30 percent last year.

DESSERT: Puzder also lobbied against a Department of Labor rule change that currently allows him to deny his restaurant assistant managers overtime by claiming they are executives.

A SECOND DESSERT:  Puzder argues that social welfare “programs have the unintended consequence of discouraging work rather than encouraging independence, self-reliance, and pride, and that, because of government assistance, low-wage employees across the United States are refusing promotions and additional hours for fear of losing public assistance.”


So I’ll have fries with that bullsh*t please!

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

Posted in Democracy, Economy, Minimum Wage

Restaurants Demand State Freeze Servers’ Wage

February 25, 2016 // 12 Comments »

More Americans work for less than minimum wage than work for minimum wage. They are the people who occupy tipped positions, mostly working as servers in restaurants.


They fall outside the minimum wage, and thus do not have even the weak assurances of an income the minimum provides. And those tips — they are great at some swanky joints, weak at lesser ones. Tips ebb and flow, depending on the weather (rain and snow can keep customers home), cheapo patrons and which shift one pulls; daytime Tuesday is not as good as Saturday night. Or a four top who orders wine with each course, or that family on vacation who “just wants ice water.” Your income depends as much on luck as anything you do with your time and labor.

Or here’s one strategy that does not depend on luck: encourage your waitresses to dress sexy, such as at Hooter’s, to pull in more tips, mixing sexual exploitation with exploitation of wages.

And save the speech about how all these folks should go out and get a different job if they don’t like the system. Almost two million Americans work below minimum, and they do not have access to two million currently available, better paying, jobs.

But from the restaurant owner’s side, the deal is sweeeeeeeeeet. They get to pay subminimum wage, and leave it up to the customers to make up their payroll. And if the customer stiffs the waiter, that’s no skin off the owner’s nose. And of course some owner’s skim the tips, and/or require servers to share their tips with the back of the house kitchen staff, diluting a small amount of money further.

The owners have no interest in having the government mess with that solid gold system if it can be helped.

As an example, New York state’s hourly minimum wage for tipped workers rose from $5.00 to $7.50 on January 1 (standard, non-tipped, minimum wage is $9.00 an hour in the state), much to the dismay of the New York State Restaurant Association. The restaurant owners lobbying group sent a letter to NY Governor Andrew Cuomo demanding that he freeze the tipped wage for five years. This letter comes just weeks after the National Restaurant Association filed an appeal with the state Supreme Court, claiming that Cuomo’s plan to raise the minimum wage further by 2018 is part of a longstanding pattern of discrimination “against the hard working men and women that own New York’s restaurants.”

Implied is a hearty “up yours to the working men and women that work in New York’s restaurants.”


Oh, and by the way, want to know if your favorite restaurant owner supports the freeze? You can’t. The Restaurant Association’s letter had more then 100 restaurant owners included as signatories. However, the Association will not release the names of the signatories because restaurateurs who have taken “political stances” in the past “have received death threats.” So it’s a safety issue. Right.

Employers should be responsible for paying their own employees, not relying on customers to hand over cash just to keep serfs servers on the job.

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

Posted in Democracy, Economy, Minimum Wage

You Can’t Earn a Living on the Minimum Wage

February 20, 2016 // 17 Comments »

When presidential candidate Bernie Sanders talks about income inequality, and when other candidates speak about the minimum wage and food stamps, what are they really talking about?

Whether they know it or not, it’s something like this.

My Working Life Then

A few years ago, I wrote about my experience enmeshed in the minimum-wage economy, chronicling the collapse of good people who could not earn enough money, often working 60-plus hours a week at multiple jobs, to feed their families. I saw that, in this country, people trying to make ends meet in such a fashion still had to resort to food benefit programs and charity. I saw an employee fired for stealing lunches from the break room refrigerator to feed himself. I watched as a co-worker secretly brought her two kids into the store and left them to wander alone for hours because she couldn’t afford childcare. (As it happens, 29% of low-wage employees are single parents.)

At that point, having worked at the State Department for 24 years, I had been booted out for being a whistleblower. I wasn’t sure what would happen to me next and so took a series of minimum wage jobs. Finding myself plunged into the low-wage economy was a sobering, even frightening, experience that made me realize just how ignorant I had been about the lives of the people who rang me up at stores or served me food in restaurants. Though millions of adults work for minimum wage, until I did it myself I knew nothing about what that involved, which meant I knew next to nothing about twenty-first-century America.

I was lucky. I didn’t become one of those millions of people trapped as the “working poor.” I made it out. But with all the election talk about the economy, I decided it was time to go back and take another look at where I had been, and where too many others still are.

My Working Life Now

I found things were pretty much the same in 2016 as they were in 2012, which meant — because there was no real improvement — that things were actually worse.

This time around, I worked for a month and a half at a national retail chain in New York City. While mine was hardly a scientific experiment, I’d be willing to bet an hour of my minimum-wage salary ($9 before taxes) that what follows is pretty typical of the New Economy.

Just getting hired wasn’t easy for this 56-year-old guy. To become a sales clerk, peddling items that were generally well under $50 a pop, I needed two previous employment references and I had to pass a credit check. Unlike some low-wage jobs, a mandatory drug test wasn’t part of the process, but there was a criminal background check and I was told drug offenses would disqualify me. I was given an exam twice, by two different managers, designed to see how I’d respond to various customer situations. In other words, anyone without some education, good English, a decent work history, and a clean record wouldn’t even qualify for minimum-wage money at this chain.

And believe me, I earned that money. Any shift under six hours involved only a 15-minute break (which cost the company just $2.25). Trust me, at my age, after hours standing, I needed that break and I wasn’t even the oldest or least fit employee. After six hours, you did get a 45-minute break, but were only paid for 15 minutes of it.

The hardest part of the job remained dealing with… well, some of you. Customers felt entitled to raise their voices, use profanity, and commit Trumpian acts of rudeness toward my fellow employees and me. Most of our “valued guests” would never act that way in other public situations or with their own coworkers, no less friends. But inside that store, shoppers seemed to interpret “the customer is always right” to mean that they could do any damn thing they wished. It often felt as if we were penned animals who could be poked with a stick for sport, and without penalty. No matter what was said or done, store management tolerated no response from us other than a smile and a “Yes, sir” (or ma’am).

The store showed no more mercy in its treatment of workers than did the customers. My schedule, for instance, changed constantly. There was simply no way to plan things more than a week in advance. (Forget accepting a party invitation. I’m talking about childcare and medical appointments.) If you were on the closing shift, you stayed until the manager agreed that the store was clean enough for you to go home. You never quite knew when work was going to be over and no cell phone calls were allowed to alert babysitters of any delay.

And keep in mind that I was lucky. I was holding down only one job in one store. Most of my fellow workers were trying to juggle two or three jobs, each with constantly changing schedules, in order to stitch together something like a half-decent paycheck.

In New York City, that store was required to give us sick leave only after we’d worked there for a full year — and that was generous compared to practices in many other locales. Until then, you either went to work sick or stayed home unpaid. Unlike New York, most states do not require such a store to offer any sick leave, ever, to employees who work less than 40 hours a week. Think about that the next time your waitress coughs.

Minimum Wages and Minimum Hours

Much is said these days about raising the minimum wage (and it should be raised), and indeed, on January 1, 2016, 13 states did raise theirs. But what sounds like good news is unlikely to have much effect on the working poor.

In New York, for instance, the minimum went from $8.75 an hour to the $9.00 I was making. New York is relatively generous. The current federal minimum wage is $7.25 and 21 states require only that federal standard. Presumably to prove some grim point or other, Georgia and Wyoming officially mandate an even lower minimum wage and then unofficially require the payment of $7.25 to avoid Department of Labor penalties. Some Southern states set no basement figure, presumably for similar reasons.

Don’t forget: any minimum wage figure mentioned is before taxes. Brackets vary, but let’s knock an even 10% off that hourly wage just as a reasonable guess about what is taken out of a minimum-wage worker’s salary. And there are expenses to consider, too. My round-trip bus fare every day, for instance, was $5.50. That meant I worked most of my first hour for bus fare and taxes. Keep in mind that some workers have to pay for childcare as well, which means that it’s not impossible to imagine a scenario in which someone could actually come close to losing money by going to work for short shifts at minimum wage.

In addition to the fundamental problem of simply not paying people enough, there’s the additional problem of not giving them enough hours to work. The two unfortunately go together, which means that raising the minimum rate is only part of any solution to improving life in the low-wage world.

At the store where I worked for minimum wage a few years ago, for instance, hours were capped at 39 a week. The company did that as a way to avoid providing the benefits that would kick in once one became a “full time” employee. Things have changed since 2012 — and not for the better.

Four years later, the hours of most minimum-wage workers are capped at 29. That’s the threshold after which most companies with 50 or more employees are required to pay into the Affordable Care Act (Obamacare) fund on behalf of their workers. Of course, some minimum wage workers get fewer than 29 hours for reasons specific to the businesses they work for.

It’s Math Time

While a lot of numbers follow, remember that they all add up to a picture of how people around us are living every day.

In New York, under the old minimum wage system, $8.75 multiplied by 39 hours equaled $341.25 a week before taxes. Under the new minimum wage, $9.00 times 29 hours equals $261 a week. At a cap of 29 hours, the minimum wage would have to be raised to $11.77 just to get many workers back to the same level of take-home pay that I got in 2012, given the drop in hours due to the Affordable Care Act. Health insurance is important, but so is food.

In other words, a rise in the minimum wage is only half the battle; employees need enough hours of work to make a living.

About food: if a minimum wage worker in New York manages to work two jobs (to reach 40 hours a week) without missing any days due to illness, his or her yearly salary would be $18,720. In other words, it would fall well below the Federal Poverty Line of $21,775. That’s food stamp territory. To get above the poverty line with a 40-hour week, the minimum wage would need to go above $10. At 29 hours a week, it would need to make it to $15 an hour. Right now, the highest minimum wage at a state level is in the District of Columbia at $11.50. As of now, no state is slated to go higher than that before 2018. (Some cities do set their own higher minimum wages.)

So add it up: The idea of raising the minimum wage (“the fight for $15”) is great, but even with that $15 in such hours-restrictive circumstances, you can’t make a loaf of bread out of a small handful of crumbs. In short, no matter how you do the math, it’s nearly impossible to feed yourself, never mind a family, on the minimum wage. It’s like being trapped on an M.C. Escher staircase.

The federal minimum wage hit its high point in 1968 at $8.54 in today’s dollars and while this country has been a paradise in the ensuing decades for what we now call the “One Percent,” it’s been downhill for low-wage workers ever since. In fact, since it was last raised in 2009 at the federal level to $7.25 per hour, the minimum has lost about 8.1% of its purchasing power to inflation. In other words, minimum-wage workers actually make less now than they did in 1968, when most of them were probably kids earning pocket money and not adults feeding their own children.

In adjusted dollars, the minimum wage peaked when the Beatles were still together and the Vietnam War raged.

Who Pays?

Many of the arguments against raising the minimum wage focus on the possibility that doing so would put small businesses in the red. This is disingenuous indeed, since 20 mega-companies dominate the minimum-wage world. Walmart alone employs 1.4 million minimum-wage workers; Yum Brands (Taco Bell, Pizza Hut, KFC) is in second place; and McDonald’s takes third. Overall, 60% of minimum-wage workers are employed by businesses not officially considered “small” by government standards, and of course carve-outs for really small businesses are possible, as was done with Obamacare.

Keep in mind that not raising wages costs you money.

Those minimum wage workers who can’t make enough and need to go on food assistance? Well, Walmart isn’t paying for those food stamps (now called SNAP), you are. The annual bill that states and the federal government foot for working families making poverty-level wages is $153 billion. A single Walmart Supercenter costs taxpayers between $904,542 and $1.75 million per year in public assistance money, and Walmart employees account for 18% of all food stamps issued. In other words, those everyday low prices at the chain are, in part, subsidized by your tax money.

If the minimum wage goes up, will spending on food benefits programs go down? Almost certainly. But won’t stores raise prices to compensate for the extra money they will be shelling out for wages? Possibly. But don’t worry — raising the minimum wage to $15 an hour would mean a Big Mac would cost all of 17 cents more.

Time Theft

My retail job ended a little earlier than I had planned, because I committed time theft.

You probably don’t even know what time theft is. It may sound like something from a sci-fi novel, but minimum-wage employers take time theft seriously. The basic idea is simple enough: if they’re paying you, you’d better be working. While the concept is not invalid per se, the way it’s used by the mega-companies reveals much about how the lowest wage workers are seen by their employers in 2016.

The problem at my chain store was that its in-store cafe was a lot closer to my work area than the time clock where I had to punch out whenever I was going on a scheduled break. One day, when break time on my shift came around, I only had 15 minutes. So I decided to walk over to that cafe, order a cup of coffee, and then head for the place where I could punch out and sit down (on a different floor at the other end of the store).

We’re talking an extra minute or two, no more, but in such operations every minute is tabulated and accounted for. As it happened, a manager saw me and stepped in to tell the cafe clerk to cancel my order. Then, in front of whoever happened to be around, she accused me of committing time theft — that is, of ordering on the clock. We’re talking about the time it takes to say, “Grande, milk, no sugar, please.” But no matter, and getting chastised on company time was considered part of the job, so the five minutes we stood there counted as paid work.

At $9 an hour, my per-minute pay rate was 15 cents, which meant that I had time-stolen perhaps 30 cents. I was, that is, being nickel and dimed to death.

Economics Is About People

It seems wrong in a society as wealthy as ours that a person working full-time can’t get above the poverty line. It seems no less wrong that someone who is willing to work for the lowest wage legally payable must also give up so much of his or her self-respect and dignity as a kind of tariff. Holding a job should not be a test of how to manage life as one of the working poor.

I didn’t actually get fired for my time theft. Instead, I quit on the spot. Whatever the price is for my sense of self-worth, it isn’t 30 cents. Unlike most of this country’s working poor, I could afford to make such a decision. My life didn’t depend on it. When the manager told a handful of my coworkers watching the scene to get back to work, they did. They couldn’t afford not to.

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

Posted in Democracy, Economy, Minimum Wage

Do the Math: American Economy and Society

February 16, 2016 // 34 Comments »

When most people talk about economics there are lots of statistics, as if economics is about math. Economics is really about people. It shows who we are as a nation and tells us what we will become. In 21st century America, our hope now is that we’ll someday better people than we have become. But do the math; it’ll be a hard road.

In its most individual definition, jobs and work earn people money. They can feed themselves and their families, live inside and all the rest.

But at a more societal level, a broader, more fundamental level, work is more. Work can define a person, work can give purpose, make someone feel useful, engage the resources of a society, create goals. You could almost call it a soul, knowing that work saved more lives than any preacher.

The absence of work does just the opposite. People may be saved from starving by public assistance or charity (a vital part of society, caring for one another), but without purpose, they become cynical. They turn to drugs, legal like alcohol or illegal like meth, to replace the purpose and to fill the time. Without work, people give up. Rock bottom is a poor foundation for a nation to build on.


So here’s what is happening in our America. See if you can figure out where this all leads to.


Manufacturing was until the late 1970s the source of unprecedented wealth, spread proportionally across the economic spectrum in America. There were super rich people, and there were poor people, but there was also a thriving middle class that accounted for a huge section of our society. Without those jobs, economic apartheid, the one percent and the 99 percent, are inevitable.

As just one example, since the 2009 taxpayer-paid bailout, General Motors has cut high-paid workers for cheaper labor, hiring. The automaker hired around 18,000 hourly production workers, allowing the company to remove skilled trade jobs. The Center for Automotive Research says General Motors Company saves approximately $57,000 a year per worker when it replaces a skilled $32 per hour union worker with a $15 per hour less-skilled, temp or non-unionized employee. These were once the “good jobs” that sustained a growing economy. They are gone. They have been replaced with…

Service jobs. Service jobs do not create anything. They simply move some money from one hand to another, with a larger company taking a cut and sending the cash off to another city, another state, or another country. In 2014 America, manufacturing employs 1/10 of Americans. Services accounts for nearly 90%. America’s largest single employer in 1960 was General Motors. In 2014, it is Walmart. The “occupations” that account for the most jobs now are retail salespersons, cashiers, and restaurant workers. Those jobs pay minimum wage or less (for restaurant workers who can get tips), rarely offer any benefits and are rarely full-time.

Working for subsistence wages, supplemented with public benefits, does not create value for humans. It is a modern-day form of feudalism, or perhaps more similar to raising livestock than growing a society.

My book, Ghosts of Tom Joad: A Story of the #99 Percentconfronts these issues head on. The book is fiction, in that it wraps the economics and societal changes of the last fifty years into the story of one family. The book is all true in that what happens to that family, and in particular the main everyman character Earl, happened to millions of American families that believed the myths of growth, hard work and a sustainable middle class even as the super wealthy were pulling the money right out of their hands in front of their eyes. Ignore the rising waters, until you feel them up to your Katrina-like lips.

Choosing to not believe something doesn’t make it go away.

My book is set in Ohio, but the stories in it can be taking place today anywhere in the United States outside a few pockets of affluence centered on a few major cities, or a handful of growth industries such as government and defense.

If you want to know where the 99 percent came from, this is part of the answer. Think of it as a good story, with a conscience.

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

Posted in Democracy, Economy, Minimum Wage

Christmas Spirit

December 25, 2015 // 12 Comments »

I was eating in the food court below Grand Central Station in New York. There was a cold rain outside, and a good portion of the people around me appeared to be homeless.


Many were making the rounds of the trash cans and tables, eating the food they found. There were cops nearby, as well as National Guardsmen on terror watch duty. There seemed to be a sort of understanding at work, such that the cops left the homeless alone as long as the homeless left the paying customers alone.


I wasn’t going to finish my meal. There wasn’t much left, but some. What was the right thing to do?

A) Leave the meal. A mouthful for someone hungry is better than nothing;

B) Throw it away. It would have been embarrassing to offer a small amount available only because I’d already gorged myself;

C) Go buy another full meal (I could afford it) and give it to one of the hungry people;

D) Demand my government stop spending 54% of my taxes on war (actually more, if you consider black budgets, paramilitary forces, and intelligence costs) and start taking care of its own people. I have the resources to feed one person, but we have the resources to feed all Americans. If only we were willing. I don’t always know what’s right, but I know what is wrong.

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

Posted in Democracy, Economy, Minimum Wage

Goodnight American Dream: The Middle Class Is Now a Minority

December 14, 2015 // 7 Comments »

The middle class, which for 40 years has represented a majority of the country in practice, and formed the foundational belief in what has been known as the “American Dream,” is now just half the United States, according to a new report.

Over at least the last four decades, productivity gains have gone largely to the top of the economic pyramid, increasing both their income and wealth. Real income growth has been flat for most Americans, even as the cost of living has increased.


Need it in numbers?

The share of America’s income going to the middle class has fallen from 62 percent in 1970 to 43 percent now. Today, the majority of our national income goes to the upper class, which reaps a 49 percent share. (by comparison, the share of income going to the upper class in 1970 was just 29 percent). The median wealth of middle class households has fallen by more than one-fourth since the beginning of this century.


Need it in simple terms?

The rich are getting very much richer, seeing their wealth grow exponentially. The middle class is shrinking. Meanwhile, the poor are still poor and their numbers are growing. We are indeed heading toward a society within a society within the world’s wealthiest nation — one percent of “us” now own half of everything.


The implications of this path are dark.

At the point where a handful of people control most of the wealth, and the other money in our nation is so diffuse as to make those individuals in the bottom 99 percent of our society irrelevant except as cheap labor, we live in a modern day version of feudalism. Money is power, and a select handful now can control elections with “donations,” can have laws written and rewritten to match their needs, can keep a lid on the minimum wage more and more of us depend on now to get by, manipulate college loan and mortgage rates to keep people in debt, and secure ownership of the land we live on and the places we live. Hyper-wealthy people through their charitable foundations are free to social-engineer our world, paying to say grow one form of educational system while leaving another to wither on limited funding.


How did the wealthy pull off the greatest peaceful takeover of a nation in human history? Very easily. Their master stroke, however, was not to take predatory capitalism to its extreme, but to do so without sparking more than a whisper of disagreement from the very people they trod upon.

Here is the linchpin of how the rich have taken us: they have convinced average Americans to act and vote against their own interests, in part by manipulating them into opposing any program that has a chance of benefiting black and brown equally or more than themselves. Decent health care and nutrition for everyone? That’s socialism!

Our entire culture is fear-based, from our religion to our media to Wall Street. It drives everything, and fear is the most powerful tool that rulers can use to manipulate people. It is this constant state of fear that really makes us exceptional compared to every other advanced nation.

People, we have been bought. Someone else now, in every effective and meaningful way, owns us. Suckers.

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

Posted in Democracy, Economy, Minimum Wage

How Much Money Do You Need to be Rich?

November 10, 2015 // 5 Comments »

We hear a lot about the “one percent” and the “99 percent” but what kind of net worth scores you a top slot in the real-life Hunger Games here in America? How much money do you need to be just average? The answers tell you just about everything you need to know about modern day America.

Short answer: Oh, we’re so screwed.


The Federal Reserve’s 2013 Survey of Consumer Finances released in September of 2014 is among the most recent data. The nice folks who compiled all of this waded through massive amounts of data. They caution they did not include 11 ultra high net worth individuals due to identity issues whatever that means, so the very top of this accounting could actually be even worse in reality. And don’t forget, the super-rich have had two whole years to accumulate even more money since this all was tabulated.

Let’s start at the top. The term “one percent” is now semi-meaningless, though you will need about $8 million to join them anyway. What really matters now is the top .1 percent. To crack that level you need to have well over $30 million in net worth.

But I get it, no one here is packing those kind of bucks. We’re all sort of average Americans, right? Maybe. To count yourself in at the 50 percent mark you need to possess some $82,000. How are we doing, students and young marrieds? Keep in mind net worth is what you own minus what you owe, not necessarily how much money you earn. So those students loans and that VISA card debt count against your ranking here, sorry.

The good news is that if you own nothing, have no savings or investments but also have no debt — you are precisely at zero — you are in the 11.8th percentile of net worths. Yep, that means about 11 percent of us have negative net worths. About a third of us have a net worth of only $15,000, not exactly a significant bumper against some bad luck, like losing your job or getting sick.

It’s a pretty bleak picture, but here it is:

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

Posted in Democracy, Economy, Minimum Wage

Wealth Therapists Now Exist to Help Super Rich Cope with Hardships

October 24, 2015 // 5 Comments »

Sure, 99 percent of us have problems: Can we feed our kids? Will we lose our home to predatory lending? How can we access decent healthcare? That sort of thing.

But rich people have problems, too. Luckily, a group of brave psychiatric professionals, dubbed “wealth therapists,” have emerged to come to their aid.

The UK Guardian (America’s best newspaper) profiled Clay Cockrell, a former Wall Street worker turned therapist, who spends his days helping New York’s wealthiest people.

So what issues are America’s One Percent struggling with? Cockrell tells us there is guilt over being rich in the first place, which makes the rich feel that they have to hide the fact that they are rich. And then there is the isolation – being in the One Percent, it turns out, can be lonely.

And the problem is growing. According to Oxfam, the richest One Percent have seen their share of global wealth increase from only 44 percent in 2009 to 48 percent in 2014. It will break 51 percent by next year.

The wealth therapists also say things have only gotten worse for their clients since the debate over income inequality that has been spurred on by movements like Occupy Wall Street.

“The Occupy Wall Street movement singled out the One Percent and painted them globally as something negative,” said Jamie Traeger-Muney, another wealth psychologist. “I am not necessarily comparing it to what people of color have to go through, but it really is making value judgments about a particular group of people as a whole.”

Traeger-Muney specializes in the unique issues inheritors face. “You can come up with lot of words and sayings about inheritors, and not one of them is positive: spoiled brat, born with a silver spoon in their mouth, trust fund babies, all these things,” she said, adding “I am shocked by things that people say. If you substitute in the word Jewish or black, you would never say something like that.”

Hyper-wealthy, we all feel your pain. Thus, today, we are all part of the One Percent. #WealthyLivesMatter (say the wealthy.)

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

Posted in Democracy, Economy, Minimum Wage

Maine Outlaws Jet Skis for Welfare Recipients

October 10, 2015 // 4 Comments »

In another step in the long political tradition of imposing bombastic, faux populist, hate-mongering solutions to problems that don’t really exist, Maine Governor Paul LePage announced he is tired of able-bodied food stamp recipients zipping around on jet skis instead of looking for jobs that do not exist.


His state thus proudly announced it will disallow Supplemental Nutrition Assistance Program (SNAP, the official term for food stamps) benefits for childless households with certain assets worth more than $5,000. A home equity and a person’s primary vehicle (but what if that vehicle is a $1.5 million Ferrari?) won’t count against the limit, but the state has issued a list of things that could: “bank accounts, snowmobiles, boats, motorcycles, jet skis, all-terrain vehicles, recreational vehicles, campers” and other valuables.

“Hard-working Mainers should not come home to see snowmobiles, four wheelers or jet skis in the yards of those who are getting welfare,” LePage said in a statement. Left out of course is how those “hard-working Mainers” know exactly how is getting welfare among jet ski owners, but, whatever, when you are inciting hatred you don’t sweat the details.


OK. So if you are poor, you need to become poorer to get food assistance, because, sure if you have more than $5,000 bucks worth of whatever you are rich enough. The, after those one-time sell offs of your assets for pennies on the dollar to richer folks, you are then poor enough for welfare. Circle of life kinda stuff.

Of course all this righteousness begs the question of how many SNAP recipients in Maine have jet skis in their yards. Exactly how many?

“We hear examples and concerns from clients and constituents quite frequently,” a spokesperson for the governor replied. He declined to give a number, or an estimate, or to cite even one specific case.

He also declined to answer the “So what?” question; so what if someone who needs food assistance has minimal assets. Is the idea that one needs to sell off everything one owns, down to the walls, and only then ask for something to eat? How the f*ck mean of a society are we?

Federal law imposes resource limits for SNAP eligibility, but states generally waive the limit for applicants if they already qualify for even modest assistance from another means-tested safety net program. It’s a policy called broad-based categorical eligibility, and most states offer it.

In the aftermath of the Great Recession, almost all states also waived time limits on food stamp benefits for able-bodied adults without dependents, and those limits are coming back now that the unemployment rates are falling. LePage’s administration imposed the time limit — billed as a “work requirement” — ahead of schedule, ending benefits for 9,000 Mainers this year.


Oh, and about those jobs. Minimum wage in Maine is $7.50 an hour. Most minimum wage jobs offer 29 or fewer hours a week. So, even before taxes, that works out to $217 a week. Assuming a full 52 weeks of employment, that adds up to $11,310. So hah hah, the poverty line in Maine for one person is $11,945.

“What’s next? Grandma can’t buy groceries until she sells her engagement ring?” said Representative Drew Gattine, a Democrat who co-chairs the state legislature’s Health and Human Services Committee. (Answer: No. For no apparent reason, jewelry will not count toward the asset limit in Maine.)


Now, one more question.

How much in free food benefits are those lazy ass jet skiers in Maine sucking up? In other words, how much money will the new system in Maine save those angry tax payers, especially given the bureaucratic infrastructure needed to discover who has assets such as jet skis, and then to process them out of the SNAP system, lousy free-loaders?

The average person in Maine receives all of $122.79 a month in food benefits.

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

Posted in Democracy, Economy, Minimum Wage

What the Pope Almost Said

September 28, 2015 // 1 Comment »

In my last book, Ghosts of Tom Joad: A Story of the #99 Percent two characters are talking, Earl, the main guy, and his friend, Preacher Casey.

What Casey said is pretty close to a lot of the things the Pope tried to say while he was in the U.S. last week, so I thought it might be worth reading here while the American media focuses ever-so-briefly on the plight of our poor, and the economy that made them that way.

We understood that getting along meant you could only be so selfish, that only watching out for yourself just would not work in a place where we had to live together. Sermon on the Mount said all that Casey told me, but we did it on our own in a practical way. I guess you can make a life outta not getting along if you only read one book, hating on certain people because one page of the Bible says to, while ignoring the rest of what it says, which is pretty goddamn clear about love.

Casey was still laughing on the bus when I remembered telling him that.

Casey and me ended up talking a lot as we became friends. Casey read a lot of books. He seemed to understand things that had happened around me and my life in a way that made it clear that Reeve was not an island like we thought it was. In fact, what had happened to us here had happened to a lot of places. A “hollowing out,” Casey said, in a kind of sermon of his own:

“Earl, money isn’t spread around like it used to be. After the war, until about the time you were in junior high school, incomes rose at the same level for everyone. But then things changed—you saw it, your mom and dad for sure. The top one percent of Americans watched their income grow dozens of times more than the rest of us, until that same small group of people held forty percent of all the
wealth in the U.S.”

“Look at Detroit,” Casey went on, “my old hometown. The U.S. emerged from the Second World War with Heaven’s only functioning army, with more than half of the industrial capacity in the world and as banker and creditor to allies and enemies. That was the highest hill our country climbed, and Detroit sat at the summit. Detroit was looking into a future where the rising prosperity was going to fuel a demand for cars unlike any consumer demand in human history. There was so much money and growth and potential that everyone ate well.

“When it rains like that, people can’t help but get wet. My own father started as a toolmaker’s apprentice right after high school and ended up making $35 an hour, with a pension, health care, employee discounts on the cars he helped build and a union picnic every Fourth of July.”

“Detroit rode that all up until about 1973, when everything went over the hill, not just in Detroit, but most everywhere — wages fell, benefits fell, production fell, population fell, home values fell. You can buy a house in Detroit for $6,000 today. Greatest generation and all, no, they were the greatest exception. It all happened quickly, in only the course of a few decades, two or three generations. My dad got out okay, but my older brother didn’t. He told me he felt thrown away, that he never thought this was so fragile. I hate to say it so crudely — God forgive me — but America lost its balls.”

“C’mon Casey,” I said, “that’s what business does, even I know that. It’s their job to make as much money as they can for them, not for us. A dog can’t help being a dog, so you don’t kick at him for peeing on a tree, right?”

“Earl, I’m not talking about anything radical here. I’m talking about a little bit of a balance. Those fights between your mom and dad over money you told me about, they were real. They were talking to each other about what was happening in America, all around them, without even knowing it. A very few people were choosing for them. Business became all appetite.

Now we are reaching for a zero-sum point where wealthy people believe that to gain anything requires them to take it from someone else. Wal-Mart already makes billions, but it fights even tiny increases to the minimum wage. If McDonald’s doubled its employees’ salaries to $14.50 an hour, a Big Mac would cost only 68 cents more.

“Actually, even all this talk about minimum wage is missing a big point: more Americans work for sub-minimum than for minimum wage. People who might get tips only have to be paid $2.13 an hour in some places. And that $2.13 has not changed by law in twenty-two years due to lobbying by the restaurant business. Owners are doing okay, as restaurant prices have gone up in the last twenty-two years. Just like in Roman times, the lion’s share beats the Christians’ share any day.”

“This is where my religious and political views meet up, Earl. Most wealthy folks say they’re religious people, but when the churches are rich and the regular people poor, you gotta wonder who is serving who. Most of those wealthy ignore one of the highest ideals from the Sermon — caring. Those words aren’t just some more poetry of hopefulness that passes for Christianity. He said quite clearly, ‘they who hunger and thirst for righteousness, they should be satisfied.’ But it ain’t just about handing over a few crumbs, saying it’s better than no bread at all.

“Getting into Heaven isn’t about earning merit badges, here’s one for those canned goods you didn’t want anyway at Christmas or another for tossing change into a cup. It’s about how you live a life in total, what you do 99 percent of the time, what you make of the world you live in. It isn’t religion that’s wrong, same as it isn’t business that’s wrong. It’s greed and selfishness that’s wrong, no matter what channel you’re watching.”

I always thought the Bible was like the dictionary, all the words was inside and you could scramble them around to mean anything you like, but Casey made sense.

“Look Earl, even though the original Owner was barefooted, what happens upstairs in my church is that as soon as some expensive shoes hit that floor it seems like the place loses its purpose. Me, I preached for the Lord a long time, but some days I think God’s the laziest man on earth. What I want is to be able to look out over my congregation and say to them forget most of what I’ve said but go out and be kind to each other, help each other and walk humbly when you have something others still need. When they hear someone cry in America because they’re hungry, I want that to be louder in their ears than any sermon.”

“So okay, Preacher, when’s it going to get better? When are we going to be able to live like our grandparents did?”

“Earl, nostalgia isn’t history. This is a story about change, and it’s important for you to know how that happened. Here we are forty years on still talking about recovery like it was as real as an election year promise. Prosperity is not something that will follow if we simply wait long enough. Like my friend says, cut through all the lies and there it is, right in front of you: America used to be a developing nation, in the best sense of that word.

“Almost in spite of themselves, the robber barons built prosperity through jobs. We had to get past the horrors of enslaving other human beings, past making children work in factories, past killing men in mines and machines. There were dark times, criminal times, but people had a sense of ‘we’ll get past this.’ Then we crossed a line. Manufacturing in America became expensive. Businesses sought lower costs and higher profits. String
that out as far as it goes and it means paying workers as close to zero—or zero if you somehow could like with slavery — and pulling in as much profit — as close to one hundred percent — as you somehow could. The question seemed to have become, ‘How many miles can you drive on a gallon of our blood?’

“We watched a reversal of two hundred years. American workers never earned as much again as they did in 1973. It was soon after that someone laid off a steelworker who became Patient Zero of the new economy.”

“The numbers are too consistent, the lines too straight. This was no accident, no invisible hand. Earl, we changed from a place that made things —radiators, cash registers, gaskets, ball bearings, TVs — into a place that just makes deals. Making things creates jobs, and jobs create prosperity. Making deals just creates wealth for the dealers. It’s math. The money that went up had to come from somewhere. That was right out of your father’s pocket.

“The deal makers don’t care because they don’t live here, hell, they don’t live anywhere. We live here.”

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

Posted in Democracy, Economy, Minimum Wage

Arizona Spent Over $1.7 Million Drug Testing Welfare Recipients to Catch 1 Person in 3 years

August 12, 2015 // 3 Comments »

Somehow in America if you are poor and in need of food, you better not take drugs, or no public assistance for you! You deserve to die of hunger because you spend your money on ‘da dope.

Just don’t die in the street where we have to step over your body on the way to the nail salon.

Oh, and by the way, this is a wholly made up problem created by frightened politicians. According to a study by the National Institute of Alcohol Abuse and Alcoholism, differences between the proportion of welfare and non-welfare recipients using illegal drugs are statistically insignificant.


But that did not stop Arizona.

Arizona proudly claims it spent $1.7 million dollars to test 87,000 people on public assistance for drug use. The total number of drug cheats caught in the first three years of the program, 2009-2012, was exactly one — a single positive result, which saved the state precisely $560, minus the $42 cost of the drug test itself. But oh my, since 2012, they got two more of the danged varmints.

Luckily, the Arizona drug testing is being done in a scientific way. The state asks new welfare recipients whether they’ve used drugs in the past 30 days, and only those who answer yes are tested.

Now the goody-goodest news of all is that Arizona apparently has got them some cheap drug testing. The ACLU estimates that an average drug test costs $42, bringing the total cost as high as $3.65 million if all of the Arizona welfare recipients were subjected to the full-price tests. But who knows,maybe there was GroupOn.

And luckily the money being spent on these drug tests is not going to feed hungry people, so it’s not being wasted on American who are wasted.


It is not just Arizona who wastes taxpayer money to solve a non-problem. Have a look:


Missouri
Applicants for benefits that required drug screening, March 2013–September 2014: 69,587
Total required to take follow-up drug test at additional cost: 1,646
Disqualified due to a positive drug test: 69

Utah
Applicants for benefits that required drug screening, August 2012–July 2014: 9,253
Total required to take follow-up drug test at additional cost: 1,878
Disqualified due to a positive drug test: 29

Tennessee
Applicants for benefits that required drug screening, July 2014–December 2014: 11,300
Total required to take follow-up drug test at additional cost: 273
Disqualified due to a positive drug test: 24

Florida
Applicants for benefits that required drug screening, July 2014–December 2014: 4,044
Total required to take follow-up drug test: Unknown
Disqualified due to a positive drug test: 108

The neat thing is that Florida used to (they were stopped by court order) requires welfare applicants, who have little money hence the application, to pay for their own drug tests up front. If they passed the test, they eventually had their money refunded.

Note that if you can afford your own food, take all the drugs you want. Smoke up, Arizonians, and order that pizza delivered when you get the munchies. Damn hippies.

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

Posted in Democracy, Economy, Minimum Wage

Casinos Fail Old Industrial Towns

July 14, 2015 // 5 Comments »

It wasn’t just a business, it was a way of life– what residents of Bethlehem, Pennsylvania referred to simply as “The Steel”– a mill once America’s second largest steel producer with 31,500 souls working in a single facility.


The Mill

The mill made the steel for the Empire State building and the Golden Gate Bridge, and for WWII warships. After cheap imports flooded the United States in the 1980s, the Bethlehem Steel facility closed, leaving behind a mile-long scar of rusted out buildings people call the brownfields, along the Lehigh River. Allentown, Billy Joel’s bitter saga of industrial decline, name-checked the town.


The Promise of Legalized Gambling

So as soon as Pennsylvania legalized casinos in 2004, Bethlehem scrambled for one of the first, and won. Symbolically, Las Vegas’ Sands corporation would build right on top of the old mill. Everyone hoped the casino would replace a decent portion of the jobs lost when The Steel left. But by 2014, there were only 2,200 positions at the casino, plus 700 at leased businesses inside. Was a casino really the answer?

Even those new jobs didn’t come for free. Roads, some $10 million worth, had to be built or repaired to make it easier for out-of-towners (New York is only 75 miles away) to reach the casino. The city added to its police force. Since the casino was located outside the downtown business district, the city paid for a shuttle bus to try and draw players to their shops. But the casino had its own retail mall competing with anything local. No one should “plan on a casino to bring about urban renewal,” said a Wynn Casinos property manager in nearby Philadelphia, “because that’s not what casinos do.”


The House Always Wins

Still, there was money to be made in Bethlehem. Casino profits, of course, were repatriated to the owners in Las Vegas. Pennsylvania requires casinos to pay a 55 percent tax on revenues, but only four percent of that goes to the host community. For Bethlehem in 2013, that totaled $9.5 million, not game-changing money for an area so economically devastated for so long. Baltimore, an early adopter of casino gambling as an economic resurrection strategy, has seen similar results. In Atlantic City, the first major destination outside Las Vegas to feature legalized gambling, four major casinos closed in the past year.

Bringing in a casino is about jobs and money. Jobs created statewide in Pennsylvania via gaming do not even equal the number lost in Bethlehem alone. As of 2013, Pennsylvania casinos directly employed only 17,768 people, leaving significant questions about the role of gaming in lifting America’s devastated rust belt towns out of unemployment-driven malaise.

As for money, a report notes that after some initial successes, revenues in Pennsylvania from gaming declined by 2013. Statewide, casinos did contribute about $81 million in taxes last year. However, it is unclear how much of the revenue behind those taxes came from local residents, what might be called churning rather than creation, a back-door tax on those ill-prepared to lose money at the slots (affluent people visit casinos less often than poorer people do.) One group of frequent visitors who have found a way to beat the house come from New York’s Korean community; they sell the promotional meal vouchers from the casino on the black market.

Competition is a serious problem, as new casinos open in surrounding states. For example, New Jersey is considering a casino at the Meadowlands, only 30 minutes outside New York City, which will pull many away from Bethlehem’s new bright lights. Pennsylvania is also among the states with the highest casino tax rate in the nation, raising further the question of market cannibalization should gaming corporations seek out lower rates in adjoining states. Casino revenues nationwide have not recovered their 2007 peaks, and Moody’s projects a drop through 2015, cutting industry earnings by as much as 7.5 percent.


Don’t Gamble if You Can’t Afford to Lose

Only a generation ago, Bethlehem, Pennsylvania had a steel mill employing tens of thousands of people at good wages. Including benefits, an average union steelworker made $26.12 per hour then, the equivalent of $40.66 today. It was enough to create one of the most powerful economies on earth, supported by a robust middle class driving demand for housing, cars, everything. They could afford to gamble a bit on yearly vacations, too.

The typical casino worker today in Bethlehem makes $10-12 an hour. Many are part-time. They labor in the shadow of the mill that helped build the Empire State building and the Golden Gate Bridge, a new way of life that may flounder on a bad roll of the dice.

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

Posted in Democracy, Economy, Minimum Wage

Does Income Inequality Matter to the Richest Americans?

June 24, 2015 // 8 Comments »

Does income inequality matter to the richest Americans? Not very much. Here’s why. And it’s more than just greed-is-good; the rich will just get richer.

A study by economists at Washington University in St. Louis tells us stagnant income for the bottom 95 percent of wage earners makes it impossible for them to consume as they did in the years before the downturn. Consumer spending, some say, drives the U.S. economy, and is likely to continue to continue to dominate, as the decomposition of America’s industrial base dilutes old economy sales of appliances, cars, steel and the like. That should be bad news for the super-wealthy, us buying less stuff?

But that same study shows that while rising inequality reduced income growth for the bottom 95 percent of beginning around 1980, the group’s consumption growth did not fall proportionally at first. Instead, lower savings and hyper-available credit (remember Countrywide mortgages and usurous re-fi’s?) put the middle and bottom portions of our society on an unsustainable financial path which increased spending until it triggered the Great Recession. So, without surprise, consumption fell sharply in the recession, consistent with tighter borrowing constraints. Meanwhile, America’s the top earners’ wealth grew. The recession represented the largest redistribution of wealth in this century.

The gap between most Americans and those few who sit atop our economy continues to grow. For two decades after 1960, real incomes of the top five percent and the remaining 95 percent increased at almost the same rate, about four percent a year. But incomes diverged between 1980 and 2007, with those at the bottom seeing annual increases only half of that of those at the top.

This leaves the very real issue for the rich of who will buy all the stuff their big corporations make? But don’t worry. They’ve got it handled.

Taxpayer Subsidies to Big Corporations

Don’t worry about the big guys; they have figured out how to profit off poverty. Wal-Mart, Target and Kroger have made profits of $75.2 billion off food stamp purchases, even setting a new record in 2012.

And never mind how food stamps and other benefits are used by those same retailers to subsidize the low wages they pay their workers. Meanwhile, the same bill in Congress that would cut food stamps pays out farm subsidies to America’s billionaires, including Microsoft co-founder Paul Allen, Charles Schwab and S. Truett Cathy of Chick-fil-A.

The American Beverage Association, a lobby group that includes Coca-Cola, strongly opposes restricting soda purchases by food stamp recipients. Why? Recipients spend from $1.7 to $2.1 billion annually for sugar-sweetened beverages. While alcohol and other unhealthy items are restricted for purchase with stamps, soda stands available.

Government Defense Spending

About the only manufacturing-industrial sector of the American economy left prevailing over all foreign competition is defense. America buys its military hardware almost exclusively from domestic corporations (with a few crumbs tossed to allies like the UK and Israel) and fills the job ranks of the industry, contractors, and military with Americans.

In 2011, the U.S. government spent about $718 billion on defense, including arms sales and transfers to foreign governments. Hardware alone accounted for $128 billion. The total figure does not veterans benefits of $127 billion in 2011, or about 3.5 percent of the federal budget. America’s newest aircraft carrier cost $13 billion, not including development costs.

The Stock Market

The stock market (which set record highs in 2013) is a significant source of wealth in America. Indeed, what could be easier than placing money into an investment and, with no sweat or effort of one’s own, seeing it grow. A rising market lifts the national economy, and a rising tide lifts all boats.

The truth is closer to a rising tide lifts all yachts, as historian Morris Berman observed. Less than half of Americans own any stock at all. The wealthiest five percent of Americans meanwhile hold some 70 percent of all stock.

Bump the “top” group to the wealthiest ten percent of Americans and they own over 80 percent of all stock. At the same time, the lowest 90 percent own the leftover 20 percent.

So Don’t Worry about the Rich

These examples– and there are more– see tax write-offs, use of trusts to limit inheritance tax, offshore banking, large scale real estate (the top ten percent own about 40 percent of America’s land) show that income inequality is not a problem for the rich, and it is not a problem for America’s “economy” per se. The huge concentration of wealth in a small number of hands, and the methods by which those few acquire and maintain their wealth, means that the 99 percent of us edge closer and closer to playing no significant role in the economy anyway. We are becoming merely the collateral damage of income inequality.

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

Posted in Democracy, Economy, Minimum Wage

Life in the New American Minimum-Wage Economy with the Ghosts of Tom Joad

June 20, 2015 // 3 Comments »

There are many sides to whistleblowing. The one that most people don’t know about is the very personal cost, prison aside, including the high cost of lawyers and the strain on family relations, that follows the decision to risk it all in an act of conscience. Here’s a part of my own story I’ve not talked about much before.

At age 53, everything changed. Following my whistleblowing first book, We Meant Well: How I Helped Lose the Battle for the Hearts and Minds of the Iraqi People, I was run out of the good job I had held for more than 20 years with the U.S. Department of State. As one of its threats, State also took aim at the pension and benefits I’d earned, even as it forced me into retirement. Would my family and I lose everything I’d worked for as part of the retaliation campaign State was waging? I was worried. That pension was the thing I’d counted on to provide for us and it remained in jeopardy for many months. I was scared.

My skill set was pretty specific to my old job. The market was tough in the Washington, D.C. area for someone with a suspended security clearance. Nobody with a salaried job to offer seemed interested in an old guy, and I needed some money. All the signs pointed one way — toward the retail economy and a minimum-wage job.

And soon enough, I did indeed find myself working in exactly that economy and, worse yet, trying to live on the money I made. But it wasn’t just the money. There’s this American thing in which jobs define us, and those definitions tell us what our individual futures and the future of our society is likely to be. And believe me, rock bottom is a miserable base for any future.

Old World/New World

The last time I worked for minimum wage was in a small store in my hometown in northern Ohio. It was almost a rite of passage during high school, when I pulled in about four bucks an hour stocking shelves alongside my friends. Our girlfriends ran the cash registers and our moms and dads shopped in the store. A good story about a possible date could get you a night off from the sympathetic manager, who was probably the only adult in those days we called by his first name. When you graduated from high school, he would hire one of your friends and the cycle would continue.

At age 53, I expected to be quizzed about why I was looking for minimum-wage work in a big box retail store we’ll call “Bullseye.” I had prepared a story about wanting some fun part-time work and a new experience, but no one asked or cared. It felt like joining the French Foreign Legion, where you leave your past behind, assume a new name, and disappear anonymously into the organization in some distant land. The manager who hired me seemed focused only on whether I’d show up on time and not steal. My biggest marketable skill seemed to be speaking English better than some of his Hispanic employees. I was, that is, “well qualified.”

Before I could start, however, I had to pass a background and credit check, along with a drug test. Any of the anonymous agencies processing the checks could have vetoed my employment and I would never have known why. You don’t have any idea what might be in the reports the store receives, or what to feel about the fact that some stranger at a local store now knows your financial and criminal history, all for the chance to earn seven bucks an hour.

You also don’t know whether the drug tests were conducted properly or, as an older guy, if your high blood pressure medicine could trigger a positive response. As I learned from my co-workers later, everybody always worries about “pissing hot.” Most places that don’t pay much seem especially concerned that their workers are drug-free. I’m not sure why this is, since you can trade bonds and get through the day higher than a bird on a cloud. Nonetheless, I did what I had to in front of another person, handing him the cup. He gave me one of those universal signs of the underemployed I now recognize, a we’re-all-in-it, what’re-ya-gonna-do look, just a little upward flick of his eyes.

Now a valued member of the Bullseye team, I was told to follow another employee who had been on the job for a few weeks, do what he did, and then start doing it by myself by the end of my first shift. The work was dull but not pointless: put stuff on shelves; tell customers where stuff was; sweep up spilled stuff; repeat.

Basic Training

It turned out that doing the work was easy compared to dealing with the job. I still had to be trained for that.

You had to pay attention, but not too much. Believe it or not, that turns out to be an acquired skill, even for a former pasty government bureaucrat like me. Spend enough time in the retail minimum-wage economy and it’ll be trained into you for life, but for a newcomer, it proved a remarkably slow process. Take the initiative, get slapped down. Break a rule, be told you’re paid to follow the rules. Don’t forget who’s the boss. (It’s never you.) It all becomes who you are.

Diving straight from a salaried career back into the kiddie pool was tough. I still wanted to do a good job today, and maybe be a little better tomorrow. At first, I tried to think about how to do the simple tasks more efficiently, maybe just in a different order to save some walking back and forth. I knew I wasn’t going to be paid more, but that work ethic was still inside of me. The problem was that none of us were supposed to be trying to be good, just good enough. If you didn’t know that, you learned it fast. In the process, you felt yourself getting more and more tired each day.

Patient Zero in the New Economy

One co-worker got fired for stealing employee lunches out of the break room fridge. He apologized to us as security marched him out, saying he was just hungry and couldn’t always afford three meals. I heard that when he missed his rent payments he’d been sleeping in his car in the store parking lot. He didn’t shower much and now I knew why. Another guy, whose only task was to rodeo up stray carts in the parking lot, would entertain us after work by putting his cigarette out on his naked heel. The guys who came in to clean up the toilets got up each morning knowing that was what they would do with another of the days in their lives.

Other workers were amazingly educated. One painted in oils. One was a recent college grad who couldn’t find work and liked to argue with me about the deeper meanings in the modern fiction we’d both read.

At age 53, I was the third-oldest minimum-wage worker in the store. A number of the others were single moms. (Sixty-four percent of minimum-wage employees are women. About half of all single-parent families live in poverty.) There was at least one veteran. (“The Army taught me to drive a Humvee, which turns out not to be a marketable skill.”) There were a couple of students who were alternating semesters at work with semesters at community college, and a small handful of recent immigrants. One guy said that because another big box store had driven his small shop out of business, he had to take a minimum-wage job. He was Patient Zero in our New Economy.

State law only required a company to give you a break if you worked six hours or more under certain conditions. Even then, it was only 30 minutes — and unpaid. You won’t be surprised to discover that, at Bullseye, most non-holiday shifts were five-and-a-half hours or less. Somebody said it might be illegal not to give us more breaks, but what can you do? Call 911 like it was a real crime?

Some good news, though. It turned out that I had another marketable skill in addition to speaking decent English: being old. One day as a customer was bawling out a younger worker over some imagined slight, I happened to wander by. The customer assumed I was the manager, given my age, and began directing her complaints at me. I played along, even steepling my fingers to show my sincere concern just as I had seen actual managers do. The younger worker didn’t get in trouble, and for a while I was quite popular among the kids whenever I pulled the manager routine to cover them.

Hours were our currency. You could trade them with other employees if they needed a day off to visit their kid’s school. You could grab a few extra on holidays. If you could afford it, you could swap five bad-shift hours for three good-shift hours. The store really didn’t care who showed up as long as someone showed up. Most minimum-wage places cap workers at under 40 hours a week to avoid letting them become “full time” and so possibly qualify for any kind of benefits. In my case, as work expanded and contracted, I was scheduled for as few as seven hours a week and I never got notice until the last moment if my hours were going to be cut.

Living on a small paycheck was hard enough. Trying to budget around wildly varying hours, and so paychecks, from week to week was next to impossible. Seven hours a week at minimum wage was less than 50 bucks. A good week around the Christmas rush was 39 hours, or more than $270. At the end of 2013, after I had stopped working at Bullseye, the minimum wage did go up from a little more than $7 to $8 an hour, which was next to no improvement at all. Doesn’t every little bit help? Maybe, but what are a few more crumbs of bread worth when you need a whole loaf not to be hungry?

Working to Be Poor

So how do you live on $50 a week, or for that matter, $270 a week? Cut back? Recycle cans?

One answer is: You don’t live on those wages alone. You can’t. Luckily I had some savings, no kids left in the house to feed, and my wife was still at her “good” job.  Many of my co-workers, however, dealt with the situation by holding down two or three minimum-wage jobs. Six hours on your feet is tough, but what about 12 or 14? And remember, there are no weekends or holidays in most minimum-wage jobs. Bullseye had even begun opening on Thanksgiving and Christmas afternoons.

The smart workers found their other jobs in the same strip mall as our Bullseye, so they could run from one to the next, cram in as many hours as they could, and save the bus fare. It mattered: At seven bucks an hour, that round trip fare meant you worked your first 45 minutes not for Bullseye but for the bus company. (The next 45 minutes you worked to pay taxes.)

Poverty as a Profit Center

Many low-wage workers have to take some form of public assistance. Food stamps — now called the Supplemental Nutrition Assistance Program, or SNAP — were a regular topic of conversation among my colleagues. Despite holding two or three jobs, there were still never enough hours to earn enough to eat enough. SNAP was on a lot of other American’s minds as well — the number of people using food stamps increased by 13 percent a year from 2008 to 2012. About 1 in 7 Americans get some of their food through SNAP. About 45 percent of food stamp benefits go to children.

Enjoying that Big Mac? Here’s one reason it’s pretty cheap and that the junk sold at “Bullseye” and the other big box stores is, too: Those businesses get away with paying below a living wage and instead you, the taxpayer, help subsidize those lousy wages with SNAP. (And of course since minimum-wage workers have taxes deducted, too, they are — imagine the irony — essentially forced to subsidize themselves.)

That subsidy does not come cheap, either. The cost of public assistance to families of workers in the fast-food industry alone is nearly $7 billion per year. McDonald’s workers alone account for $1.2 billion in federal assistance annually.

All that SNAP money is needed to bridge the gap between what the majority of employed people earn through the minimum wage, and what they need to live a minimum life. Nearly three-quarters of enrollments in America’s major public benefits programs involve working families stuck in jobs like I had. There are a lot of those jobs, too. The positions that account for the most workers in the U.S. right now are retail salespeople, cashiers, restaurant workers, and janitors. All of those positions pay minimum wage or nearly so. Employers are actually allowed to pay below minimum wage to food workers who might receive tips.

And by the way, if somehow at this point you’re feeling bad for Walmart, don’t. In addition to having it’s workforce partially paid for by the government, Walmart also makes a significant portion of its profits by selling to people receiving federal food assistance. Though the Walton family is a little too shy to release absolute numbers, a researcher found that in one year, nine Walmart Supercenters in Massachusetts together received more than $33 million in SNAP dollars. One Walmart Supercenter in Tulsa, Oklahoma, received $15.2 million, while another (also in Tulsa) took in close to $9 million in SNAP spending.

You could say that taxpayers are basically moneylenders to a government that is far more interested in subsidizing business than in caring for their workers, but would anyone believe you?

Back in the Crosshairs

Some employees at Bullseye had been yelled at too many times or were too afraid of losing their jobs. They were not only broke, but broken. People — like dogs — don’t get that way quickly, only by a process of erosion eating away at whatever self-esteem they may still possess. Then one day, if a supervisor tells them by mistake to hang a sign upside down, they’ll be too afraid of contradicting the boss not to do it.

I’d see employees rushing in early, terrified, to stand by the time clock so as not to be late. One of my fellow workers broke down in tears when she accidentally dropped something, afraid she’d be fired on the spot. And what a lousy way to live that is, your only incentive for doing good work being the desperate need to hang onto a job guaranteed to make you hate yourself for another day. Nobody cared about the work, only keeping the job. That was how management set things up.

About 30 million Americans work this way, live this way, at McJobs. These situations are not unique to any one place or region. After all, Walmart has more than 2 million employees. If that company were an army, it would be the second largest military on the planet, just behind China. It is, in fact, the largest overall employer in the country and the biggest employer in 25 states. When Walmart won’t pay more than minimum, it hurts. When it rains like that, we all get wet. This is who we are now.

I Was Minimum

It’s time to forget the up-by-the-bootstraps fantasies of conservative economists bleating on Fox. If any of it was ever true, it’s certainly not true anymore. There is no ladder up, no promotion path in the minimum-wage world. You can’t work “harder” because your hours are capped, and all the jobs are broken into little pieces anyone could do anyway. Minimum wage is what you get; there are no real raises. I don’t know where all the assistant managers came from, but not from among us.

I worked in retail for minimum wage at age 16 and again at 53. In that span, the minimum wage itself rose only by a few bucks. What changed, however, is the cast of characters. Once upon a time, minimum-wage jobs were filled with high school kids earning pocket money. In 2014, it’s mainly adults struggling to get by. Something is obviously wrong.

In his State of the Union Address, President Obama urged that the federal minimum wage be raised to $9 an hour. He also said that a person holding down a full-time job should not have to live in poverty in a country like America.

To the president I say, yes, please, do raise the minimum wage. But how far is nine bucks an hour going to go? Are so many of us destined to do five hours of labor for the cell phone bill, another 12 for the groceries each week, and 20 or 30 for a car payment? How many hours are we going to work? How many can we work?

Nobody can make a real living doing these jobs. You can’t raise a family on minimum wage, not in the way Americans once defined raising a family when our country emerged from World War II so fat and happy. And you can’t build a nation on vast armies of working poor with nowhere to go. The president is right that it’s time for a change, but what’s needed is far more than a minimalist nudge to the minimum wage. Maybe what we need is to spend more on education and less on war, even out the tax laws and rules just a bit, require a standard living wage instead of a minimum one. Some sort of rebalancing. Those aren’t answers to everything, but they might be a start.

People who work deserve to be paid, but McDonald’s CEO Donald Thompson last year took home $13.7 million in salary, with perks to go. If one of his fry cooks put in 30 hours a week, she’d take in a bit more than $10,000 a year — before taxes, of course. There is indeed a redistribution of wealth taking place in America, and it’s all moving upstream.

I got lucky. I won my pension fight with my “career” employer, the State Department, and was able to crawl out of the minimum-wage economy after less than a year and properly retire. I quit Bullseye because I could, one gray day when a customer about half my age cursed me out for something unimportant she didn’t like, ending with “I guess there’s a reason why people like you work at places like this.” I agreed with her: There is a reason. We just wouldn’t agree on what it was.

I’m different now for the experience. I think more about where I shop, and try to avoid big places that pay low wages if I can. I treat minimum-wage workers a little better, too. If I have to complain about something in a store, I keep the worker out of it and focus on solving the problem. I take a bit more care in the restroom not to leave a mess. I don’t get angry anymore when a worker says to me, “I really can’t do anything about it.” Now I know from personal experience that, in most cases, they really can’t.

Above all, I carry with me the knowledge that economics isn’t about numbers, it’s about people. I know now that it’s up to us to decide whether the way we pay people, the work we offer them, and how we treat them on the job is just about money or if it’s about society, about how we live, who we are, the nature of America. The real target now should be to look deeply into the apartheid of dollars our country has created and decide it needs to change. We — the 99 percent, anyway — can’t afford not to.

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

Posted in Democracy, Economy, Minimum Wage