The article below was posted on Mountain Sage Blog on November 14, 2009. I believe now as I believed then, there has been a conspiracy to reduce the wages and the living standard of the American people. The recession we are still slogging through didn’t just fall out of the sky….it was a result of efforts by the rich to get richer and to have an excuse to quit hiring and to lower American wages.
The middle class had the audacity to get uppity and think its wages should raise every year, just like the CEO’s wages.
Let’s look at a few other quotes from the article starting with: The global wage gap has been narrowing, but recent labor market statistics in the United States suggest the adjustment has not gone far enough.
Think about that. The “adjustment” has not gone far enough. How about now? Has the adjustment gone far enough to suit the greedy companies?
Here’s another unbelievable quote:
The 7.3 million jobs lost are more than triple the 2 million during the 1980-82 recession. Some of that huge increase reflects the sharp decline in gross domestic product, but there could be another factor: the recession shows that many workers are paid more than they’re worth.
Really, unemployment is high because we just aren’t worth what we are being paid? How does that compute? It has nothing to do with huge CEO wages and bonuses and record profits for corporations that refuse to hire because, according to Mitt Romney, the rich are on strike? Or because, as according to Sununu:
“I guarantee you that what we are seeing in the private sector is a hoarding of capital. They are waiting to see the results of the presidential election… If President Obama is elected, that capital goes offshore. If Mitt Romney is elected, they buy equipment and they start hiring here.”
We have it straight from the Republican horses mouth – Americans (except for stockholders and CEOs) make too much money and we aren’t worth what we are paid. The private sector is holding us hostage so that we support the candidate that will get rid of regulations, reduce their taxes and give them tax breaks for outsourcing American jobs.
And yet, somehow, the high unemployment rate is President Obama’s fault. Yeah, sure.
Please do not be taken in.
American Workers are Overpaid
American workers are overpaid, relative to equally productive employees elsewhere doing the same work. If the global economy is to get into balance, that gap must close.
Of course, workers in the United States should earn more than their peers in China, Moldova or Vietnam. Americans take advantage of the higher productivity that makes their country rich: better education and infrastructure, abundant capital and a strong work ethic. But how much higher should American wages be?
The answer depends in large part on two measures: the difference in productivity in making goods that can be traded across borders, and the quantity of such goods. Both measures point to a narrowing wage gap.
Many factors are raising productivity in poor countries. Fast development, cheap capital and more efficient shipping all help. Cheap communication via the Internet reduces costs and makes it easy to trade many more goods and especially services.