News Item: economists are concerned that income from American wages and salaries fell by $21.8 billion in July of 2013, about -0.3%. The decline was led by $7.7 billion lost because of forced furloughs for federal employees. However, dividend income increased by 2.2 percent and rental income by 1.3 percent, so the category “income from assets” went up by 0.7%. Consumer spending, boosted by increases in spending by upper income groups, rose 0.1 percent.
News Item: To the delight of many consumers, Twinkies and other Hostess products are back on the shelves. When the company went bankrupt in the fall of 2012, 15,000 union workers lost their jobs. The new company emerged from bankruptcy with no union workers and a whittled down wage and benefits package – for example, former employee pensions have been reduced from $1,800 per month to $500 per month.
Since the 1970s, fierce competition from foreign imports has pushed many companies to reduce wages to maintain profit rates that will keep their Wall Street investors happy. Since then, there have been a series of campaigns led by Republicans, think tanks, and right-wing talk shows to reduce the wages of “undeserving” groups of workers. Democrats have responded to these campaigns by gradually increasing funding for federal job training programs.
One by one, groups that had middle class wages and benefits have been targeted and subdued. So, on Labor Day, 2013, with real salaries and wages at approximately the same level as they were in 1973, I publish this lament, with acknowledgements to Pastor Martin Niemoller:
In the 1970s they said regulated industries were fueling inflation, and the process of de-regulation led to slashed wages in the airline and trucking industries,
But I did not speak out because I didn’t work in transportation;
Then, in the 1980s they said the wages and pensions of blue-collar manufacturing workers were making America uncompetitive in world markets, and crushed the Air Traffic Controllers union and many other unions,
But I did not speak out because I didn’t work in manufacturing;
Then they said that middle managers were useless bureaucrats who were making American companies uncompetitive, and those workers were forced into early retirement,
But I did not speak out because I didn’t work in middle management;
Then they said in the 1990s that retail workers were unproductive and inefficient, and they computerized stores and gave people part-time shifts without benefits,
But I did not speak out because I didn’t work in the retail trade;
Then they said that teachers were lazy and inefficient and laid the blame for poor children’s lack of educational attainment on teachers unions, companies like Apple got better at avoiding local taxes and hard-pressed tax-payers supported laws that restricted teacher salaries and benefits,
But I did not speak out because I wasn’t a teacher;
Then they said in the 2000s that technical assistance people were inefficient and spent too much time helping people over the telephone, and they replaced them with telephone systems with recorded voices and endless choices or with technical workers from other countries,
But I did not speak out because I did not provide services over the phone;
Then they said that the post office was out-dated and postal delivery people were inefficient, and they passed laws forcing the post office to forward fund its pensions so it began losing money and had to close post offices and lay off employees,
But I did not speak out because I didn’t work at the post office;
Then they said that I was inefficient, my health care benefits were too generous, and I was not competitive in the world economy,
And everyone else was scrambling to get by on their low wages and had no time to speak for me.