U.S. Workers Face Paycheck Pinch

[Bronco_Beerslug]

Our freefall to a service economy is what the Bush adminstration calls a "strong economy".

------------------------------------------------------------
from the November 07, 2005 edition

Workers face paycheck pinch
After inflation, American workers earned 2.3 percent less than they did a year ago.
By Mark Trumbull | Staff writer of The Christian Science Monitor
For all its strength, the current economic expansion is not boosting the American worker's paycheck.

Wages have been rising nominally: Average pay rose 8 cents last month to $16.27 an hour, according to a government report Friday. That's not fast enough to counter inflation.

By one common measure, average pay for an hour's work has less purchasing power than it had four years ago - when the current growth cycle began.

It's a pattern of weak wage growth that's now several years old, but the trend has worsened in recent months. Wages for the most recent quarter were 2.3 percent lower, after inflation, than workers received a year before.

While energy costs are the most obvious culprit, other forces may be playing a role, from globalization and illegal immigration to the weakening of labor unions. Politicians, too, could share in the blame.

Experts differ on just how wide and deep the problem runs. But the disturbing implications are clear enough. America's proud heritage as a land where the standard of living rises like late-summer corn seems, to many, to be at risk.

Even the fact that budgets have grown tighter for many debt-laden families is a volatile issue for the nation politically and financially. And economists say that while the pay pinch affects a wide swath of occupations, the impact is hardest on those without college degrees.
(CONTINUED)
http://tinyurl.com/8dxtn

[RaiderH8r]

This "freefall" has been ongoing for some time. We certainly aren't the production economy that made this nation the strong economic superpower it once was. But windmills will fix all of that. ROFL!

[alkemical]

This is just another example of the slow removal of the middle class -

Everything from increased taxation (which according to raiderhater) would just be the gov't not coddling the citizens - to hidden taxation (such as inflation) - to the rising costs of healthcare/energy/etc - we are all going to be poor sooner than later.

[RaiderH8r]

This is just another example of the slow removal of the middle class -

Everything from increased taxation (which according to raiderhater) would just be the gov't not coddling the citizens - to hidden taxation (such as inflation) - to the rising costs of healthcare/energy/etc - we are all going to be poor sooner than later.
Cut taxes, raise production, begin producing a refined product instead of importing them. Create instead of consume and you'll find prosperity within.

[alkemical]

Cut taxes, raise production, begin producing a refined product instead of importing them. Create instead of consume and you'll find prosperity within.


Well american culture has to shift from being consumption based -

[L.A. BRONCOS FAN]

Our freefall to a service economy is what the Bush adminstration calls a "strong economy".


Hey, the economy couldn't possibly be better - if you're an oil company, a Pioneer, or a Ranger.

;)

I can understand why these people support the blow monkey's reverse Robin Hood policies, but regular working and middle-class Americans? ???

It defies logic.

[RaiderH8r]

Well american culture has to shift from being consumption based -
I couldn't agree more. We may never make a net move from consumer to producer, but moving more toward a production economy will spur economic growth. However, the debate is over what and how we produce. And that's where the rubber meets the road, as has been debated here and numerous other places around the nation.

[alkemical]

I couldn't agree more. We may never make a net move from consumer to producer, but moving more toward a production economy will spur economic growth. However, the debate is over what and how we produce. And that's where the rubber meets the road, as has been debated here and numerous other places around the nation.


I still don't nec. see how it's cheaper to open production somewhere and pay people less if your product is going to be worse -

I mean I know of places that have outsourced tech support and their business has suffered long-term with people not getting good tech support and people that they cannot understand.

It's funny - because everyone wants to buy american - yet toyota, honda are more american than GM/Ford in terms of product and workers.

[bendog]

I don't see how production/consumption has a great effect on wages. It could ultimately sink our ability to expand the economy via capital investment, but in that case wages are a result of an event.

Rather, imo, what we are seeing is a political vacuum. The gop embraced the notion of lessening taxes on capital (rich guys) and pushing the burden to the middle class. And, they embraced the notion of lessening defined benefit and employer sponsored healthcare and pushing 401K type retirement and "allowing" employees to buy insurance with pre-tax dollars.

However, there's been no upward push on wages. Productivity increases, and gnp increases, faster than wages.

The dems have been unsure of whether they are free trade centrists or populists.

[alkemical]

Well the way i see it, if we are more service oriented, then when the econ tanks and the populous can't afford services, then there are even few jobs - by having a strong production system - we can really balance the way it setup -

I do agree on your other points though dog.

[Garcia Bronco]

"By one common measure, average pay for an hour's work has less purchasing power than it had four years ago - when the current growth cycle began.
"

Ain't that the truth.

[bendog]

Well the way i see it, if we are more service oriented, then when the econ tanks and the populous can't afford services, then there are even few jobs - by having a strong production system - we can really balance the way it setup -

I do agree on your other points though dog.

I chatted with a union organizer, who had an economics background, several years ago. We agreed that there wasn't anything "inherent" that made a production jog more economically beneficial, and thereby deserving a better wage, than service. However, with outsourcing there are just some jobs that cannot be outsourced. A physician looking at scoping a knee or a clerk in a convenience store, for example.

When we hit a recession, people cut back on service and on buying capital goods.

As a society, we do have the power to set the minimum wage. The EITC. It may have an inflationary aspect, but not that much compared to other factors. I just don't want to buy my coffee or gas from someone who cannot afford a safe place and decent food.

But, once all the manftring jobs are outsorced, I have no real idea what the effect will be.

[RaiderH8r]

I chatted with a union organizer, who had an economics background, several years ago. We agreed that there wasn't anything "inherent" that made a production jog more economically beneficial, and thereby deserving a better wage, than service. However, with outsourcing there are just some jobs that cannot be outsourced. A physician looking at scoping a knee or a clerk in a convenience store, for example.

When we hit a recession, people cut back on service and on buying capital goods.

As a society, we do have the power to set the minimum wage. The EITC. It may have an inflationary aspect, but not that much compared to other factors. I just don't want to buy my coffee or gas from someone who cannot afford a safe place and decent food.

But, once all the manftring jobs are outsorced, I have no real idea what the effect will be.
Resource production and refinement can not be outsourced. You have to go to where the resource is. We have resources, manufacturing will be needed to refine the product. Where the manufacturing is located is a matter of debate. But whether or not the refining is done domestically or the resource is exported for refinement a product has been created rather than consumed. It is produced for consumption and can be sold for a profit bringing in new capital. The more it is refined the more capital it can produce. The more it is refined domestically and the end product exported creates an infusion of foreign capital.

[bendog]

I'm not quite sure where you are headed. IF you're talking petroleum, no we don't have the resources, and obviously "production" can be outsourced. We should have been mandating conservation for 25 years, but politically the gop didn't want to do it, nor did the issue resonate with voters.

What's happening is that despite our workers being more productive, and getting paid less in real wages, prices continue to generally decline (absent energy in a carbon econ) because we are trading with countries that have no labour laws. So, it's a constant battle for US manftring to improve quality and cut costs. Meanwhile, the promise of globalization where consumer markets were supposed to blossom to buy our stuff, is not happening because the multinationals locate there and pay the peasants ****e.

[Rock Chalk]

Our freefall to a service economy is what the Bush adminstration calls a "strong economy".

------------------------------------------------------------
from the November 07, 2005 edition

Workers face paycheck pinch
After inflation, American workers earned 2.3 percent less than they did a year ago.
By Mark Trumbull | Staff writer of The Christian Science Monitor
For all its strength, the current economic expansion is not boosting the American worker's paycheck.

Wages have been rising nominally: Average pay rose 8 cents last month to $16.27 an hour, according to a government report Friday. That's not fast enough to counter inflation.

By one common measure, average pay for an hour's work has less purchasing power than it had four years ago - when the current growth cycle began.

It's a pattern of weak wage growth that's now several years old, but the trend has worsened in recent months. Wages for the most recent quarter were 2.3 percent lower, after inflation, than workers received a year before.

While energy costs are the most obvious culprit, other forces may be playing a role, from globalization and illegal immigration to the weakening of labor unions. Politicians, too, could share in the blame.

Experts differ on just how wide and deep the problem runs. But the disturbing implications are clear enough. America's proud heritage as a land where the standard of living rises like late-summer corn seems, to many, to be at risk.

Even the fact that budgets have grown tighter for many debt-laden families is a volatile issue for the nation politically and financially. And economists say that while the pay pinch affects a wide swath of occupations, the impact is hardest on those without college degrees.
(CONTINUED)
http://tinyurl.com/8dxtn

You know, this whole service economy argument is rather weak. I didnt think so at first either, but then I went and looked at all the major industrial nations in the world, and ALL of them are primarily a service economy. Its only the third world countries that are industry economies anymore, because they have no services, just factories.

Japan, the entire EU, South Korea, Japan, Australia, New Zealand, and the shift is occurring hugely in China and India both towards a more service based economy.

I do not think it is necessarily a bad thing, this service economy. I went and did research on Rome's economy and at its height, it had been service economy. Trade and services, much the same as ours. American's just have to adjust their way of thinking and understand that the jobs of old are gone.