By Michael Snyder, on August 4th, 2013
Are
American workers paid enough? That is a topic that is endlessly
debated all across this great land of ours. Unfortunately, what pretty
much everyone can agree on is that American workers are not making as
much as they used to after you account for inflation. Back in 1968, the
minimum wage in the United States was $1.60 an hour. That sounds very
small, but after you account for inflation a very different picture
emerges. Using the inflation calculator
that the Bureau of Labor Statistics provides, $1.60 in 1968 is equivalent to $10.74 today. And of course the official government inflation numbers
have been heavily manipulated
to make inflation look much lower than it actually is, so the number
for today should actually be substantially higher than $10.74, but for
purposes of this article we will use $10.74. If you were to work a
full-time job at $10.74 an hour for a full year (with two weeks off for
vacation), you would make about $21,480 for the year. That isn't a lot
of money, but according to the Social Security Administration,
40.28%
of all workers make less than $20,000 a year in America today. So that
means that more than 40 percent of all U.S. workers actually make less
than what a full-time minimum wage worker made back in 1968. That is
how far we have fallen.
The other day I wrote
an article
which discussed the transition that we are witnessing in our economy
right now. Good paying full-time jobs are disappearing, and they are
being replaced by low paying part-time jobs. So far this year,
76.7 percent of the jobs that have been "created" in the U.S. economy have been part-time jobs.
That would be depressing enough, but what makes it worse is that wages for many of these low paying jobs have actually been
declining over the past decade even as the cost of living keeps going up. The following is from a recent
USA Today article...
In
the years between 2002 and 2012, real median wages dropped by at least
5% in five of the top 10 low-wage jobs, including food preparers and
housekeepers.
So where have the good jobs gone?
Well, there are three long-term trends that are absolutely crushing American workers right now.
First of all, thanks to our
very foolish politicians
American workers have been merged into a global labor pool where they
must directly compete for jobs with workers on the other side of the
planet that live in countries where it is legal to pay slave labor
wages. This has resulted in millions upon millions of good jobs leaving
this country. Big corporations can pad their profits by taking a job
from an American worker making $15 an hour with benefits and giving it
to a worker on the other side of the globe that is willing to work for
less than a dollar an hour with no benefits. Our politicians could do
something about this, but they refuse to do so. Most of them are
absolutely married to the idea of a one world economic system that will
unite the globe. Unfortunately, the U.S. economy is going to continue
to lose tens of thousands of businesses and millions upon millions of
jobs to this one world economic system.
Secondly, big corporations are replacing as many expensive workers with machines, computers and robots
as they possibly can.
As technology continues to advance at a blistering pace, the need for
workers (especially low-skilled workers) will continue to decrease.
Unfortunately, the jobs that are being lost to technology are not coming
back any time soon.
Thirdly, the overall U.S. economy has been steadily declining for more than a decade. If you doubt this, just read
this article. As our economy continues to get weaker, the lack of jobs is going to become a bigger and bigger problem.
And as our economy systematically loses good jobs, more Americans are forced to become dependent on the government.
Back in 1979, there was about one American on food stamps for every manufacturing job. Today, there are
about four Americans on food stamps for every manufacturing job.
When
I first found that statistic I was absolutely stunned. How in the
world can anyone out there deny that the U.S. economy is collapsing?
Read More Here
The Economic Collapse
