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Why are wages flat and have been flat for many years????

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mdavies013 Donating Member (292 posts) Send PM | Profile | Ignore Thu Aug-20-09 01:29 PM
Original message
Why are wages flat and have been flat for many years????

Could it be that businesses can't afford to give the working stiffs a raise because that money had to cover the 30% increase year on year for health coverage???
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Pirate Smile Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:30 PM
Response to Original message
1. That is what Pres. Obama said at one of his last town halls.
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ingac70 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:30 PM
Response to Original message
2. Plus we don't actually make anything...
and service sector jobs have shitty pay. Wages go down as manufacturing jobs leave.
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Hannah Bell Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:30 PM
Response to Original message
3. no, it's because the ownership class took all the monetary gains from increased
productivity.

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The Magistrate Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:39 PM
Response to Reply #3
11. Pretty Much, Ma'am
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Johonny Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:21 PM
Response to Reply #3
42. I agree they did
but health care costs are also part of the answer too.
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guitar man Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:31 PM
Response to Original message
4. simple answer
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edhopper Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:41 PM
Response to Reply #4
13. K and fucking R to that!!
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guitar man Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:51 PM
Response to Reply #13
17. thanks
If we can ever get over the hero-worship of Reagan and the disastrous economic policy thinking that carry on right to this day, we may be able to start seeing some semblence of progress again. Until then, we are all slaves to the upper class' pursuit of the almighty dollar :(
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dana_b Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:49 PM
Response to Reply #4
15. oh thanks!
I need a new dartboard.
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Soylent Brice Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:26 PM
Response to Reply #15
23. lmao
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Soylent Brice Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:26 PM
Response to Reply #4
22. congratulations, you just won this thread.
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guitar man Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:46 PM
Response to Reply #22
28. thanks
:hi:
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rrneck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:49 PM
Response to Reply #4
31. Bullseye. nt
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hobbit709 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:31 PM
Response to Original message
5. It had to cover their own exorbitant raises
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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:31 PM
Response to Original message
6. Actually companies just pocketed it.
Productivity has rose 28% in last decade.
The GDP has rose 11%.

Companies simply took the increased labor and kept the gains from it.
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dysfunctional press Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:32 PM
Response to Original message
7. because the company has to answer to investors...
Edited on Thu Aug-20-09 01:32 PM by dysfunctional press
who expect DEMAND at least a 10% INCREASE in profits from year to year EVERY year. or they'll take their money elsewhere, thank-you very much.
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mdavies013 Donating Member (292 posts) Send PM | Profile | Ignore Thu Aug-20-09 01:32 PM
Response to Original message
8. I find myself in a similar position as the last 8 years...

I'm yelling at the TV again...only now in public (at the gym).
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Davis_X_Machina Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:32 PM
Response to Original message
9. That's easy. Productivity has been flat, too...
...oops. Wait a minute....
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DBoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:37 PM
Response to Original message
10. We are losing the class war
in fact it has turned into a rout

The destruction of unions (and other popular economic pressure groups) during the Reagan years was part of it.

The deliberate distraction of large parts of the rural working class with "God, Guns, and Gays" is another part of it.

International trade agreements designed to allow exploitation of the cheapest labor source is a third.

The relative share of national income among various groups is determined by who has political power.

We don't have the power, so we lose income
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stuball111 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:39 PM
Response to Original message
12. Lack of Unions?
Unions have raised the standards for all workers, by setting scales, and lack of union membership has dropped dramatically, the power of the working class is affected.
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TygrBright Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:48 PM
Response to Original message
14. No, it's because Republican greedheads have been in power for ...
Edited on Thu Aug-20-09 01:49 PM by TygrBright
..twenty-six of the last twenty-nine years, and they have been energetically and enthusiastically enabling the corporate greedheads to pursue a strategy of cheap labor as a way of consolidating their joint hold on power.

Very simple, really.

helpfully,
Bright

(ed. to correct amazing math error)
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notadmblnd Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:50 PM
Response to Original message
16. it's one of the tactics used in the systematic and methodical elimination of the middle class
Edited on Thu Aug-20-09 01:53 PM by notadmblnd
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pitohui Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 01:59 PM
Response to Original message
18. doesn't explain the flat wages at small business, where they don't provide benefits
Edited on Thu Aug-20-09 02:00 PM by pitohui
i think at some point we need to accept that capitalists give workers the bare minimum of pay/benefits that they can get away with -- they really don't give a damn about you except for what they themselves can earn off you

even small businesses that don't give benefits still provide shitty wages, sometimes even shittier wages than the large corporations
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FirstAmerican Donating Member (9 posts) Send PM | Profile | Ignore Thu Aug-20-09 02:43 PM
Response to Reply #18
27. unions, wages, politicians
Big business is in bed with the party that has the political to make policy. Dems/Rebubs doesn't matter, they hedge their bets. You don't hear Merrill Lynch, AIG, GMC, Bank of America, CitiGroup, Capital One, etc complaining about Obama being in office.

Why do you complain about small business paying small wages, do you think they can pay you 80k a year for flipping burgers or serving ice cream? What do you think their payroll is? Most of us have had a min wage job at some point but this is usually a means to an end.

Unions of old, good. Unions today, bad. Case in point, NYC 700 teachers paid 65million a year to do nothing because they have to go before 23 arbitrators before getting canned. Union leaders do not care about their members, they do not care about the company their members work for, look at GM. GM's union made it almost impossible to make a profit. 140k severance packages, great insurance for sure, the fact is that union leaders care about there members as much as politicians do about their constituents.

Reagan economic policies? Are you forgetting who came before him?

Vote out all incumbents, career politicians have gotten us to this point.

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divideandconquer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:53 PM
Response to Reply #27
46. What did Dennis Kucinich do to lower wages? Bernie Sanders?
Carter policies would have helped the economy tremendously by making the USA lees dependent on imported energy
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thelordofhell Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:19 PM
Response to Original message
19. The underlying problem is availability of education
After WWII, the G.I. Bill enabled the returning service men to get a good education, therefore making the 50's and 60's a heyday of American ingenuity. Unfortunately the availability of education has sharply declined from that generation, producing a brain drain that has been exploited by the Conservative idealogy of "keep 'em dumb and on the run".

We as a country need free education and healthcare. Other industrialized nations have this and are now above us in innovation and invention. The sum total being the U.S. slowly turning into a 3rd world country.
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:24 PM
Response to Reply #19
21. We have thoroughly educated people out of work.
I can't believe you fell for that crap line.
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thelordofhell Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:11 PM
Response to Reply #21
40. And when this stagnation finally caught up to the educated.....
we start bitching. Where were you 25 years ago when Zombie Reagan marginalized labor and education? A generation that wouldn't let Nixon steamroll over the people were completely absent when the Reagan administration (with alot of the same behind the scene monsters that Nixon had) constantly broke laws and shit on the Constitution. Instead of an impeached and disgraced Reagan/Bush, we get the "hero" Oliver North(**spit**) and a completely conservative lapdog media. The crap line is this, an educated and healthy populace is a Liberal populace. An un-educated and sick populace is a Conservative poplulace.
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left is right Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:36 PM
Response to Reply #19
25. Several years ago an NPR interviewee
claimed that the government got a return of $14 in taxes for every $1 worth of WWII GI benefits. I thought at the time that made GI benefits a pretty good investment and wondered why we didn't do the same thing for every citizen
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:23 PM
Response to Original message
20. No, dear. The CEO needed to increase his bonus.
Knock $20 million off that bonus and everybody down below is covered and has a raise.
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BOG PERSON Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:35 PM
Response to Original message
24. Real individual wages have stagnated but household income has increased at the same time n/t
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cdsilv Donating Member (883 posts) Send PM | Profile | Ignore Thu Aug-20-09 02:40 PM
Response to Reply #24
26. because mom went to work instead of staying home with the kids...n/t
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kaybea Donating Member (129 posts) Send PM | Profile | Ignore Thu Aug-20-09 02:54 PM
Original message
They also make up for the gap with credit cards. Yet we're told that
Americans over-use credit cards because of an addiction to granite counter tops and eating out. No real discussion of the huge inflation of prices for basics like housing, health, and education.
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BOG PERSON Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:07 PM
Response to Original message
39. Jesus Christ, stop feeling sorry for yourself
For a culture that's got a perpetual hard-on for "responsibility" we are certainly very quick to absolve ourselves of it as soon as things go south.
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BOG PERSON Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:58 PM
Response to Reply #26
36. So you think the most important outcome of the women's liberation movement
was regrettable? Do you think a woman's place is in the home?
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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:05 PM
Response to Reply #36
38. Who said it is regrettable but it is sad.
That instead of mom going to work resulting in a better standard of living it barely kept families at the same standard of living.
Now families with 2 full time workers barely have the standard of living that a single family earner made 40 years ago.

Also very few women can even afford the "choice" to stay home full time anymore.
I doubt that was the goal of woman's lib to use the extra labor provided by women to keep wages stagnant over last 30 years.

One could wish that a single income household could have a livable wage ($60K a year) and IF a woman wanted to also work the average income would be $120K ish for 2 income household.

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udbcrzy2 Donating Member (572 posts) Send PM | Profile | Ignore Thu Aug-20-09 02:47 PM
Response to Original message
29. That could be it
When I worked for county government they gave me a piece of paper showing what my 'actual'
pay was. And this was a mandatory health care even though I already had health care under
my spouses plan. Weird.
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HughBeaumont Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:49 PM
Response to Original message
30. Hee hee . . . I wrote something on that this year:
http://journals.democraticunderground.com/HughBeaumont/86

The corporcratic conspirators since Reagan never had any intention of raising our wages. We were the next grand experiment in this glorified larceny known as Friedman Economics. That it was installed permanently in a country of this size proves just how uncaring about the future and welfare of this nation's workers our corporate leaders are. These people think of us as nothing more that oxygen-theiving, barely useful pieces of dogshit.
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Tierra_y_Libertad Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:53 PM
Response to Original message
32. It's the "New" economy. Catch-22 You have no job or you work for lower wages.
Labor is a buyers market and will remain so for a very long time.

As Bruce Springsteen said in a song, "Those jobs are gone, boys, and they ain't comin' back."
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DU GrovelBot  Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:53 PM
Response to Original message
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Jakes Progress Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:54 PM
Response to Original message
34. Oh, but they're not flat.
Not everywhere. I just read that many bankers and wall street brokers have been experiencing unprecedented income escalations.
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EC Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 02:54 PM
Response to Original message
35. Many reasons listed here
plus the employee pool is large...people accept lower wages and bad working conditions when there is high unemployment because there are 100's willing to take the job.
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Gman2 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:00 PM
Response to Original message
37. I will quote that great liberal thinker, Greenspan!
Or at least paraphrase. I thought that the rich would kick in their due, like the gilded ages of old. The neuvo-riche feel NO sense of duty to their society. So, there is no payback. Just more fleecing.

After Reagan, spitting on the weak was a national sport. May he rot in hell.
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upi402 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:13 PM
Response to Original message
41. why YES!
Someone alert the "Democratic" party! Quick!!!
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chicago legal pro Donating Member (169 posts) Send PM | Profile | Ignore Thu Aug-20-09 03:23 PM
Response to Original message
43. Wages are flat or worse because we can't compete globally
And that is not going to change.
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alcibiades_mystery Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:24 PM
Response to Original message
44. It's called the tendency toward a falling rate of profit
It's a structural condition of capitalist social organization. And there's no working around it.
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Romulox Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-20-09 03:25 PM
Response to Original message
45. The only problem with globalization is that *my* wages are affected.
I love being able to buy whatever I want without any conscience. I have a "union yes!" avatar, but my car was made by $10/hour non-union workers in Alabamma. I'm typing this on my Macbook Pro (Made in China!)

Still, it's just not fair that *my* job is subject to competition!
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