Slog
News & ArtsThursday, January 5, 2012
Economy Our Economy in a Nutshell
Posted by Goldy on Thu, Jan 5, 2012 at 8:30 AM
For decades 'upward wage pressure' has been considered to be a bad thing.
Steadily rising wages and living standards for workers was what made the US economy exceptional for about 150 years, from approximately 1820 to 1970. It's what built the world's largest and most prosperous middle class, and is much of what defined the "American Dream": If you worked hard and followed the rules, each generation could reasonably expect to do better than the last.
But not only have real incomes for most Americans been flat at best for the past 40 years, it's now become fashionable to rail against overpaid union workers and "outrageous" mandatory COLAs (cost of living adjustments).
Quite simply, our economic priorities are fucked.
1
I worked hard and followed the rules, and I got my ass handed to me.
I hope the 2010s will treat us better.
2
Rising wages only lead to rising living standards if there is more stuff for people to buy. Upward wage pressure without economic growth causes inflation. Remember back in the '70s when we had to much money chasing to few products?
3
@1 I don't think America was made great by people who work hard and play by the rules. If Steve Jobs had finished college, gone to work for IBM, and done exactly what the boss told him the wonders of the age of information would have developed much more slowly.
4
@3 "I don't think America was made great by people who work hard and play by the rules." Who do you think earns the money to buy those "wonders"?
5
america was "made great" because we had an entire continent of resources to pillage and despoil, vast tracts of land to parcel and sell, hordes of cheap immgrant labor to exploit, and were the only industrial power standing after ww2.
we do not have an innate character that is superior or more industrious than the other human beings on this finite planet. not even the hubris of american conservatives is exceptional.
for 40 years, the rising tide has lifted only the boats of the wealthy. we're back in the gilded age, but the propaganda is vastly improved.
we do not have an innate character that is superior or more industrious than the other human beings on this finite planet. not even the hubris of american conservatives is exceptional.
for 40 years, the rising tide has lifted only the boats of the wealthy. we're back in the gilded age, but the propaganda is vastly improved.
6
Globalization. Enough said. We were the only game in town after WWII and eventually other countries caught up (or are catching up). Not only does globalization depress wages for americans who must compete against cheaper labor, but it also increases the rewards for those who own the products that compete globally. the net affect is lower real wages for most and greater rewards for the few....In this environment of declining real private sector wages, does it make sense to have COLAs for public sector workers far in excess of private sector growth? Of course not.
7
@2 - Actually Ken, inflation is caused by printing more money than is supported by the GDP. The money supply is supposed to equally match the amount of goods and services available, so when the government over-prints money -- usually in a clandestine attempt to allow it to spend more than it would otherwise be able -- the value of the currency weakens, and shopkeepers charge more to cover their costs with money that is losing value.
I think iviola @6 is basically right. The globalization of commerce and investment banking has allowed those with large sums of capital to move money around the world with relative ease, essentially "mining" other people's and nations for cheap resources (lower wages, actual mineral resources, fluctuations in currencies). Instead of 'investing' locally as was once the case for national companies, commercial enterprises and individually rich people just move their money to wherever will make them the most profit.
All assisted by relaxed trading laws and a currency that trickles money upwards.
I think iviola @6 is basically right. The globalization of commerce and investment banking has allowed those with large sums of capital to move money around the world with relative ease, essentially "mining" other people's and nations for cheap resources (lower wages, actual mineral resources, fluctuations in currencies). Instead of 'investing' locally as was once the case for national companies, commercial enterprises and individually rich people just move their money to wherever will make them the most profit.
All assisted by relaxed trading laws and a currency that trickles money upwards.
Advertisement
Most Commented on Slog
-
Hating People Doesn't Make Them Thinner by Jen Graves
-
Los Angeles Gay Bar Bans Bachelorette Parties Until Marriage Equality Is Attained by David Schmader
-
Fill in the Blank by Grant Brissey
-
This Reminds Me of the Great Calculator Scare of the Late '70s/Early '80s by David Schmader
-
Idiot Tries to Defend Bigoted Anti-Gay-Marriage Preacher on Anderson Cooper by Paul Constant
-
Six Moms with Too Much Time on Their Hands and a Shitty Website Decide to Fight Gay Superheroes by Paul Constant
-
What the Hell Is Wrong With Seattle's Pride Parade? by Dominic Holden
-
The Saturday Morning News by Unpaid Intern
-
Why Mayor McGinn's Wife Canceled Her Family's Seattle Times Subscription by Eli Sanders
-
The Sunday Morning News by Unpaid Intern
RSS
Facebook
Twitter
Comments (7) RSS