Seth wrote:
Several friends who are middle class tell me different.
And 40 years ago we had the same situation that the TaxCuts® have engendered today, which is an employees' market. This occurs when there are more job openings than there are applicants, and employers are compelled to offer more competitive compensation.
That works much better, incidentally, than intrusive government artificially raising the minimum wage instead of allowing the marketplace to do what it does best.
It is good that you have several friends.. also that they are making a good living.. but we must consider all Americans not only the exceptions..
every thing you have been told to embrace helps other become rich.. if you are part of the wage earning middle class..
Wages in the US have been flat for a lot longer than 20 years. Closer to 40 years if you want to trace the trend to its origin. That origin of course was the promotion of the economic nonsense of the Reagan administration. That was the turning point at which the once prosperous US Middle Class came under withering fire from the wealthy corporate sector, and has been losing ground ever since. It is not a mystery…no magical “market” leprechauns have anything to do with it, and it is really the pinnacle of simplicity to understand, once you sweep all of the economic voodoo and fairy tales away.
Reagan, the corporate handlers who told him what to do actually, convinced the nation that cutting taxes for the rich would create jobs. As preposterous as this is, there are still, obviously, many who believe it to this day, even after 40 years of straight economic decline of the US Working Class. As mountains of wealth were transferred to those who were already rich via “tax breaks” the wealth that the Working Class took for granted began to slip away. Workers lost tax deductions that they used to enjoy, so that the wealthy could keep their tax breaks. Healthcare costs began their climb to the stratosphere, and more and more Working Class folks had to pay more of their wages to healthcare, or they had to do without it altogether. Almost every benefit that once was enjoyed by our Working Class, has been dispensed with. Workers no longer have healthcare coverage, sick leave pay, paid vacations, or pensions. And while the cost of living steadily rises, wages for decent hard working Americans have not even kept pace.
Over time, the right of Workers to bargain collectively with their employers for decent wages have been stripped from our Working Class, along with every other benefit that used to be considered a “right” for our Workers. Before Reagan, approximately 35% of US workers were covered by collective bargaining agreements. Now fewer than 9% are.
So, wages in the US have remained “flat” over almost four decades, primarily because US workers have lost the ability to negotiate fair wages via collective bargaining. Wages have also remained flat because increases in the cost of living have erased any gains made in wages, and because all of the benefits that used to be associated with employment, such as healthcare coverage, on the job benefits, and pensions, have all been taken away from the US worker.
There is nothing difficult to understand about this at all. The wealthy class has become richer by magnitudes since the election of Ronald Reagan, and the US Working Class has been in steady decline for the same amount of time.
This is not a coincidence.