If you tread on dirt enough, It turns to dust!
I should know, I am as old as dirt. I’m old enough to remember when a dollar would buy 5 geallon of gas at 20 cents a gallon or even less. The time was in the late 50’s and
In the 1950’s, the minimum wage was a dollar an hour. At that time, one could buy 4, sometime even 5 gallons of gas for a dollar. Today, with the minimum wage at $7.25 per hour, a hour of work will only buy a little over 2 gallons of gas. Today an hour of labor will buy half as much gasoline as what an hour of labor would buy 60 years ago.
Today we would have to make $10.04 to have the purchasing power of minimum wages in 1968.
Think what would happen if all workers making minimum wages were to have a raise of $2.79 to make their wage equal to their purchasing power of 1968. Think what an additional 111 dollars per week would do for the minimum wage earners.
These workers, 80% of which are over 20, are struggling to put food on the table, to clothe them selves, to care for their children, to pay for heat and other utilities, to even house them selves. It they received extra money, it would be spent, each week.
Don’t forget that there are a lot of workers making more than the minimum wage, but below the 10 dollars. They’re making 8, 9 dollars an hour. They would receive the increase to bring them up to this minimum wage standard.
There are about a million minimum wage earners at 7.25 a hour, over the age of 20. That would be some 400 million dollars of additional spending power each month.
The 10 year period between Sept, 1997 and July, 2007 was the longest period with no increase in the minimum wage. During those 10 years, we went from one of the most prosperous times of the 20th century to the depths of the GREAT RECESSION.
The minimum wage was started by the Roosevelt administration in 1938, during the GREAT DEPRESSION, as a way to pull us out of that depression. Unemployment at that time was 19%., almost the same as our real unemployment today.
President Roosevelt said of a minimum wage and I quote,
“It would alleviate the hardship of inadequate wage, …stimulate the economy and job creation by increasing consumer purchasing power. …would promote economic development…”. He went on to say, ”millions of workers receive pay so low that they have little buying power. Aside from the undoubted fact that they thereby suffer great human hardship, they are unable to buy adequate food and shelter, to maintain health or to buy their share of manufactured goods.” I can still remember in years past when the minimum wage was to be increased, how business predicted they would have to lay off workers and/or go broke. On the contrary, history shows that there has been an increase in economic activity when we increase the minimum wage. During periods when the federal government did not raise the minimum wage, but some states did, those states had greater economic activity and better small business success.
Consumer speeding is 70% of the economy. I have read that every dollar spent goes through the hands of 7 people. Compare that with the super rich who invest in off shore and overseas investments that don’t even pay taxes to our government.
I would think that successful businesses and corporations would want the poor to made more money. The less a person makes means the more chance he will qualify for food stamps, subsidizes health care, subsidized housing, education that is not paid for from local taxes, subsidized school lunches and on and on! Not only do the poor require more help from the government, but they pay less and in many cases no taxes. And most important, there is no money left to buy luxury items even as mundane as shoes, etc.
If Congress were to raise the minimum wage tomorrow with the raise to be implemented with the first full pay period, immediately we would see a tremendous amount of money injected into our economy.
Factories that now are running at half speed could immediately begin running at higher capacities to replace the extra goods bought just in the first week. Jobs would be created almost immediately to sell, supply and service the new demands. Less money for government services would be needed to support the poor.
Sales taxes would be collected, some additional 20 million per week, and some of the poor would have income tax liability for the first time in their life.
The increase in minimum wages could be passed quickly by the Congress. Congressmen would not have to worry about cutting or applying for extra programs for their states to insure their own re-election. All Congress members would see a benefit immediately, equally, across the board to the voting citizens.
As Roosevelt said, “The increase of national purchasing power [is] an underlying necessity of the day”.
There would be no cost, only benefits to the government!!
Don’t forget that millions make more than the minimum wage, but are still under the $10.00 amount of wages which would give them the purchasing power of 1986.
The minimum wage story is not the only part of our society that has seen a reduction in real wages. I have doubts the US would have even have had a minimum wage with out the efforts of Unions early in the 1900’s. Efforts by abused workers through out much of the 1900’s resulted in Unions which bargained for vacations, 40 hour work week, holiday pay, vacation time as well as increased wages.
When Union workers achieved better wages, those who were not union felt the benefits of the union strikes and bargaining positions. In order for non-union employers to attract help, they had to give a wage that approached the Union wage. Other wise, they would continually lose workers to Union companies. This helped keep wages at a higher level.
In 1986, the number of workers that were union was about 21 percent of the total work force. Since that time, the percentage has dropped to about 7 percent. Of those still union, many of them are in the public service area. During this time, we have seen the real income, the purchasing power of our wage drop.
One of the reasons that union membership has dropped is because of the number of manufacturing jobs that have moved overseas. Manufacturing jobs were a large percent of the private sector union membership.
In the last couple of years, a major effort has been started to reduce the number of public sector jobs that are union. There are currently 23 states that have heads of government attempting to limit or discourage union membership. Rules have been enacted limiting how dues are collected as well as requiring continuing re-certification procedures. Out right bans have been attempted.
The result is that not only has the minimum wage not kept up with inflation, the wages of the middle class has also slipped.
Again, certain political views believe that unions are harmful to a free economy. If you look at the charts that show competitiveness among nations, of the top 50, most have a high % of union membership. In fact, most have a larger % than the US. Of the top 5, Sweden and Denmark have 80% union membership. Yet they share the top 5 on the chart with the US. In fact, the top 50 average 29% union membership.
If you look at our own nation, we have 3 automobile companies that are union and leaders in the world with General Motors having the most sales of any car company. UPS trucking, one of the largest and most successful trucking companies in the world is a union company. INC, a magazine for small business, some years back featured an article noting the advantages of union help.
With the decline in unions and related wages, with the decline of minimum wages, our nation has seen a huge increase in poverty levels as well as a huge decrease in the number of middle income wage earners. This has resulted in a large number of our nation with less money to spend.
Some years back, I read that for every dollar spent, that dollar would pass through the hands of 7 people. I don’t know the source or the accuracy of the statement, but let us look at what does happen when a dollar is spent.
For example, if I buy a bag of potato chips, how many people does that purchase affect. The grocery receives a profit from the sale, the clerk that rang up the purchase receives a small amount of wage as well as the stocker, floor sweeper, dock hand and supervisors of the store.
We can’t forget that a trucker brought the bag to the store, that some one loaded the truck, that some one manufactured the truck as sell as serviced, sold and all the other costs associated with transportation. Before the potato chips arrived at the warehouse, some one planted, fertilized, harvested and shipped the potato to a processing plant.
There the potato was unloaded, washed, peeled, cooked and inserted into a bag. Then the potato chips were shipped to the grocery store central shipping point.
We can’t forget that their were those who sold the product, developed and manufactured the bag, furnished insurance, built buildings and equipment and yes, even furnished financing for every aspect of the operation.
If I don’t have a dollar, then I don’t contribute to any of the above operations.
Let us summarize what we have covered. Minimum wage has not kept up with inflation and those who receive minimum wage have almost 30 % less buying power than in 1986. By transferring manufacturing companies to other countries, many of our union jobs have disappeared. This leadership for wages from union activities has been drawn down by the multitude of non union jobs. In addition, a concentrated effort has and is being made to eliminate even more union contracts. 23 state governments are attempting to eliminate or limit the power of public contracts. In addition, many companies now use part time help allowing them to not furnish benefits including vacations, sick leave, and insurance. What jobs that are available many times pay less than the job that was lost during the Great Recession. Because of a loss of tax income, efforts are being made to reduce help for those who have loss of income and benefits.
But things are getting better… right??
In the last quarter of 2011, the end of last year, our nation experienced a 3% growth rate. This amounted to some additional 13 trillion income.
Did you get any. On the contrary, look at what has happened to the bottom 90%.
Since 2000, our average income, when adjusted for inflation, has dropped $4,843.In the last three years, health insurance provided by employers has dropped from 4 ½ %.In the same period, retirement plans paid for by private sector employers has dropped 3%.Home prices are down a third from 2006 and still dropping. From a year ago, they have dropped 6.2%.Many completely lost their homes and to survive, had to turn in their IRA’s and other retirement plans.
Most of the bottom 90% of the public holds their wealth in what I have just mentioned, home ownership and private retirement plans.
So, where did this 3% growth go, where did this 13 trillion dollars go? Most of this increase showed up as profits for large corporations and gains in stock prices. Most of this increase went to the top 10%. Most went to the top 1 %. More than a third of this increase in wealth of our nation went to the 15,600 super rich households in the top one tenth of one percent!!!! Only 3% went to the bottom 90%, the other 97% of our growth in the last 3 years has went to the top 90%. We can say that the top 10% of the people in the US own the US.While this is happeningDuring ‘05 to ‘09White families got poorer by 16%Black families got poorer by 53%Hispanic families got poorer by 65%In addition, the average White person has 15 times the wealth of the Latino and Black.
Walmart heirs, (6) have greater wealth than the bottom 30% combined! Since these figures, the wealth has grown another 20% to 97 billion.
While the bottom 90 % are losing the race, in the last 30 years, the top 10% has seen their wealth grow by 275%
Most amazing of all, the top 0.1% -- that's one-tenth of one percent -- had more combined pre-tax income than the poorest 120 million people (Johnston, 2006).
HOW DID THE RICH GET SO RICH? How do they stay so rich?
They make the rules. Lobbyists from corporations (mostly owned by the very rich) and individuals not only argue their cases, but many times write the rules and regulations they want for their favorite congressperson.
They lobby against taxes and especially inheritance taxes. They set up financial rules that even the congress doesn’t understand. I’m sure you are familiar with compex mortgage derivatives. The do CDS credit swaps. They have pushed for lax regulation, cheap Fed money, use compromised raging agencies, use of complex mortgage derivates, pushed for the end of Glass-Steagall Act so they would have less oversight and the banks worked with insufficient capital.
The banks and financial institutions lied to investors, took unnecessary risks with money and then bought insurance to cover bad loans which they knew about. In the end, they almost brought down not only our nation, but European countries as well. Then after the bailout, of the people in the government who worked on the bailout, 8 went to work for the banks they saved taking knowledge and influence with them.
Then the very CEO’s that broke all the rules and cost millions their homes and retirements, paid their selves huge amounts. For example, the CFO of GOLD MAN SACKS received $71 million, JP Morgan CFO received $8 million, Citi Group received 19 million. Instead of jail time for literal stealing the lives of millions, they were paid well.
Then we look at the speculators who deal with oil futures and it is estimated that they contribute to 30% of the cost of oil. Who pays that? We do every time we fill with gas.
We could go on and on about the super rich talking about all the things we will never know about like off shore accounts and Swiss bank accounts..
The rich are not only getting richer in the US, but this is a world wide event with a larger amount of the money controlled by fewer and fewer people. There are conspiracy theories about groups of men who are responsible for this happening. I don’t know if it is a conspiracy, but it is happening..
Citizens of the world are rebelling. Look at the Middle East where dictators have ruled for centuries. Egypt and Libya have both overthrown leaders and it continues.
I have always wondered why we have not had an uprising before. The Black man has been treated in ways that I find repulsive and almost beyond my belief. We had riots in LA 20 years ago and I still remember KC shut down at night because of unrest. That was years ago.Then I read about our public housing program and I begin to understand. We just took 19 billion from our public housing program to build additional prisons. The US with 4 % of the world’s population has 25 % of the worlds prison population. Think about who would be the most likely to uprise against the super rich. It would be unemployed young males. And we have a lot of them in our inter-cities. So we put them in jail for little reason, keep them there and then release them tainted for life. Any misstep and back in jail they go.
Give everyone else enough to barely get by and jail the rest.
To understand the situation, we need to become familiar with an old term. The term ‘robber barons’ was used in the late 1800’s and at various other times. The title originated around 1000 AD when German lords charged ships to pass certain points on the Rhine river. Because no service was provided to the ships, the money collected was considered robbery. We used the same term in the late 1800’s for men who became billionaires from investments in railroads, steel, lumber and other industries. This term was used again for those involved in the Great Depression. Investors were using borrowed money to invest in the stock market. Many were becoming super rich and they earned the ’robber baron’ title because they added no value to anything. When the market crashed, so did the ’robber barons’ and the banks along with them. This has a familiar ring.
If we look back some 200 million years ago, the earth was going through a cooling stage. As the climate cooled, snow that fell at the poles, did not melt. As the centuries went by, more and more of the moisture on the earth ended up frozen at the poles. So much of the water became trapped at the poles, that the mid section of the earth became very dry with seldom a rain.
If, at that time, I had been standing at this location in Kansas City, I would have been able to look at a glacier which stretched down from the North Pole to here. I would have had to look up because that glacier was a mile high. We still live with the results of this glacier because when it began to melt, the Missouri river was formed.
The soil bculcame so dry that dust swirled around the world making drifts along the edges of the glacier. Gradually the dust accumulated on the glacier, the heat of the sun melted the ice and the water formed the Mo River.
We have been treated like dirt and as the tread on us, we become smaller and smaller. Just remember that a glacier was destroyed because of dust and all of us together can make a difference.
If congress would raise the minimum wage, 400 million dollars a month would be inserted into our economy. If rules were made that prevented money from influencing our Congress, influence from the rich would be restricted. If our prison population were trained for jobs, then helped when they were released, crime and unrest could be halted. If the rich paid their share of taxes, relief could be felt by the masses.
There would be little cost, only benefits to the government!!
To do nothing is the same as approving.
Support the ‘Occupy’ groups. Education your church. Write your congress person. Speak up! Forward a copy of this speech to your Facebook.www.lingeringimpressions.net
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