• 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.

     

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

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

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

    April 7, 2016 // 5 Comments »

    depression-photo-jobless-library-of-congress


    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.




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

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

    State Department to Create Jobs for Women (Not in America Dumbass)

    May 23, 2012 // 1 Comment »

    Attention unemployed American masses! Good news to announce!

    Your Department of State is spending some of your last tax dollars on creating jobs for women– in Afghanistan. Those of you who can’t find work are encouraged to pack up and move to Afghanistan, where apparently the US government is interested in helping you find employment.





    All about the priorities baby.



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

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