Jobs are Back But are Bad. A Citizens’ Dividend, Anyone?
|August 21, 2014||Posted by Staff under Economic Principles|
This 2014 excerpt of the Los Angeles Times, Aug 11, is by Chris Kirkham.
Although the U.S. economy this year recovered all of the jobs lost during the recession, the new jobs are largely in lower-wage industries such as hospitality and healthcare that pay an average of 23% less than the ones lost in the higher-paying manufacturing and construction sectors.
From 2005 to 2012, the bottom 40% of earners saw only 6.6% of all income gains in the country. By contrast, the top 20% were received more than 60% of the increases. More than any other time in the last 60 years, those who receive income through market investments or other assets such as real estate have a much greater income advantage.
Overall, metro areas with the most people earning more than $75,000 were concentrated in coastal California and the Northeast. The largest concentrations of middle-income earners were in the Midwest and the Northwest. And the largest share of households making below $35,000 tended to be located in the South.
Ed. Notes: As jobs wither away and wages fall — thanks to automation and globalization, or progress, which is what we’re supposed to want — people will have to learn to feel the self-esteem that makes them feel entitled to a fair share of society’s surplus. The rich feel no qualms demanding greater than a fair share. Why is it so hard for everyone else to demand only a fair share of the common wealth, of all our spending for land and resources? For assets created by nobody, needed by everybody, and made valuable by the presence of society in general? That’s what’s ours to share — not peoples wages and investments. And once we share it, then the shoe will be on the other foot and workers can negotiate the heck out of wages.