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Thursday, October 27, 2011

Gleanings from a conversation with Holly Sklar by Bill Moyer


Henry Ford had the great idea of paying his workers a good wage so that they could become consumers of the product he was making, cars. And it worked. Today we seem to have lost that common piece of sense.

Today a couple with 3 fulltime minimum wage jobs cannot make ends meet. That is a sad commentary on our economic system. Today many two income families do not have the buying power of a single income family before. Minimum wage buying power is now less than it was in the 50’s. The inequality of wealth is like that of the 20’s before the Great Depression. All of this taking place while our economy has grown. Working hard to improve your life just doesn’t do it anymore.

Sixty per cent of the workforce make their living by hourly wages and 80% in production or nonsupervisory work. These are the one that have suffered the most. Our infrastructure is crumbling, we have the biggest debt and were are not fixing the problems. We spend less on research and development and our educational system is not competitive with other developed countries.

During the Reagan administration was our longest time without an increase in minimum wage. He was also the union busting president; remember the air traffic controllers fired. And this has continued. Studies show than when union wages increase there is an overall benefit to the economy. But today people are too worried about losing their job to bargain for higher wages; they will just send your job abroad. The middle class is shrinking and more are working at poverty level jobs.

When FDR instituted the minimum wage he talked about a fair day’s pay for a fair day’s work. Now we complain it will hurt small businesses. If that is the case there are a lot of small business that just are competitive if they keep their workers in poverty.

So where does the money go? It goes to the rich folk. Executives in corporations have pretty much doubled their share of company revenue in the last decade. The rich are getting richer while the rest are getting poorer unlike Reagan’s promised that the tide would lift all boats. What we have is a type of greed at the top that is not tolerated in other industrialized nations. We have the great inequality of these nations and the highest rates of poverty.

Other nations have invested in going green and thus developed their economies. We are also the only industrialized country that does not have universal health care. As a result we have higher child mortality rates and a lower living standard.

All of this has contributed to being extreme high levels of personal debt. Thus the mortgage crisis, huge college debts, and retirement losses.

We need to invest in green technology, provide universal health care (taking a great burden off small businesses) and quit pouring money into the pharmaceutical companies protected from competition by the government as well as insurance companies.

If we do not up the wages for common people this country will continue to have greater and greater problems. But for now the rich seem to own the government to the detriment of the nation.

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