The Gap in Wages Is Growing Again For U.S. Workers - Wall St. Journal

[question everything]

http://online.wsj.com/article/0,,SB107481156629709372,00.html?mod=home%5Fpage%5Fone%5Fus

Inequality Is Seen as Result Of the Jobless Recovery; Potential Election Theme

By GREG IP
Staff Reporter of THE WALL STREET JOURNAL

(snip)

New data from the Labor Department show that after adjustment for inflation, salaries of the country's lowest-paid workers -- those who fall just inside the bottom 10% of the pay range -- fell 0.3% last year, from 2002. Meanwhile, the salaries of the highest paid workers -- those who are just inside the top 10% -- were unchanged. The divergence appeared to grow in the fourth quarter as higher-paid workers gained ground and lower-paid workers slipped further, based on comparisons with original year-earlier data that are subject to revision.

The numbers continue a movement to greater wage inequality that began around the time President Bush succeeded President Clinton and the economy slid into recession three years ago. The trend represents a reversal from the late 1990s, when the lowest unemployment rates in a generation had enabled the lowest-paid workers to keep pace with those at the top.

(snip)


The latest data cover full-time salaried workers, representing about 100 million workers, or about two-thirds of the labor force.

(snip)

Other scholars emphasize other factors, including a federal minimum wage that hasn't risen since 1997, and the declining power of unions, which traditionally bargained to raise the wages of all workers, regardless of their skill or experience.

(snip)

On the campaign trail, Democratic Sen. John Edwards of North Carolina has hammered most on the theme of income disparity. Under President Bush, "there are two Americas, not one," he said last month. "One America does the work, while another America reaps the reward."

(snip)

[Tyler Durden]

1. This is a precursor to REVOLUTION

Check your history. Every time the Wage Gap exceeds 20% for any extended period, the regieme is doomed.

[brokensymmetry]

4. More information, please!

You mention the wage gap being at 20%+, but I didn't notice many specifics in the article...of course, if we compare the bottom 10% and the top 10%, the difference is something like 400% ($15,000 versus $75,000). Is that what you're referring to?

Could you please expand on your theme?

[Democat]

9. There will be no revolution - people have TV instead!

You are thinking of the days before Reality TV and Fox.

People don't need revolution, they just need the media to tell them everything is alright.

[question everything]

11. This is what I was thinking in 1980, when Reagan first came to power

when people set up tents in Washington.

But not in this country. Here, when people see someone filthy rich they do not want to narrow the wage gap; they want to be this person. This, after all, is the "American Dream."

When Henry Ford started his plant he declared that he wanted his employees to be able to purchase the products they were making.

If you have ever read Barbara Ehrenreich (sp?) Nickled and Dimed you will know that even Wal-Mart "associates" cannot afford to shop in wal-Mart.

[aquart]

2. Is WSJ terribly pleased with the news?

Are they planning parties? Bonuses?

Do they feel their work is done?

[ClintonTyree]

3. Cheap labor Conservatives..................

that's what it's all about my friends. How will the rich ever get so much richer if they're expected to pay a decent living wage to thier employees.
"Are there no prisons? And the work houses, are they not full? If they're going to die, then they should do it now and decrease the surplus population." <E. Scrooge>

[gate of the sun]

5. It appears that this is the desired agenda

of the neo-cons. I haven't been able to figure it out entirely because if people are too poor to buy things then the poor corporations are going to hurt too. It's seems though they are out to get us....and they are doing so.

[rman]

8. the nature of this beast is to devour itself

just look at all the small-time capitalists (small investors) who became victim of big player Enron. Look at all the poor RW voters who are still waiting for their slice of the pie.
Would one thief rob another thief? You bet.

[leesa]

6. Oh boy, these guys are really on top of things

No kidding?

[teryang]

7. Haven't they heard?

A plethora of new high paying jobs is just around the corner (in Asia).

[Mountainman]

10. I just started my new job this week.

I am the controller for the largest labor contractor in the San Joaquin Valley. At times we have up to 9500 workers and all make minimum wage.

My boss is very wealthy and from what I gather, he isn't too concerned that there is a huge wage disparity there. I am part of the top 10% as of this week, but I don't know if I will ever have any influence on the wages of the workers who work in the fields and in packinghouses but I will do what ever I can to help them make more money.

There was talk of giving them a monetary reword for a good safety record like $100 at years end but my boss said that would not have the effect on the safety record that a few cheaper prizes at the end of each month would have. The big problem facing labor contractors here is that the workers comp rate went up 2% because the state's workers comp funds were drying up. That 2% increase did put a lot of labor contractors who operated on the margin out of business. We expect to pick up their contracts.

The one thing Dems can do is to work to get into jobs where they can influence business from the inside like I will try to do. I guess what I am thinging here is that legislation is just a part of the answer.



I may be flamed here but we must not only expect government to help out but we ourselves must put our energies behind the social issues too.
I can only help the workers after I first do what I can to make my boss successful. A failing business will never be able to do anything about social issues. There is a bigger picture here than many of us realize I think. We have to make ourselves successful and then help out whereever we can.