Who likes math? The federal minimum Wage has been $7.25 per hour since July 2009. Basic math tells us 7.25 X 40 (week) = 290, 290 X 4 (month) = 1,160 and 1,160 X 12 = 13,920 (year) and 290 (week) X 52 weeks = 15,080. I don't know of any minimum wage jobs that are going to work a full forty week every week. Do you? Those are some god-awful depressing numbers here in 2021 (especially given rising inflation). Wages higher than minimum have been flatlined from the 1970's. The economy has grown quite a lot but not so for wages. So where's all that money going? It is going to those at the top of course. We would be wise to remember corporations are legally bound to do everything possible to maximize profits for shareholders. It is their job to keep wages as low as possible. By doing so, they just pass the bills onto the taxpayers.
People not making a living wage turn to Uncle Sam (and the state) for essentials like food, housing help and healthcare. That's great for retail giants, large fast food outlets and other so-called low skill employers.In addition to low pay, many of these jobs are part time with no benefits, seasonal (Christmas season?) and or unstable. Once again, we can clearly see where some of capitalism''s blind spots are; cars, housing and healthcare.
Cars are almost a necessity here in the US. Far too many cities have inadequate public transportation and most rural area have none at all. You got to get to work somehow. Average new car prices have skyrocketed. Fewer and fewer people can afford that nice new F-150, Mustang GT or spacious SUV. Now, cars costing in the mid twenty thousand dollar range are considered cheap! Banks are doing their part by offering longer and longer term auto loans. Low wages coupled with job insecurity means this to sooner or later will blow up (along with student loans). More debit, just what Americans need! Even sad beater cars are expensive. Need a place to stay?
Housing? Getting further and further out of reach by the day. As of this writing in late 2021, we find ourselves in an expanding housing bubble (or the cost rising forever and ever). That leaves renting which is also getting more expensive by the day. What happens when too many people cannot afford a place to live? Gated communities will sit in vast swaths of urban or rural wasteland. Food deserts will swallow entire states. And what becomes of the millions and millions of guns laying around? You do not have to be professional sociologist to know this (if left unchecked) ends in a really big violent mess. Might need some healthcare.
Healthcare? Leaving wage earners behind choking on bad air, low quality food and addicted to opioids (dying in the thousands). Making money is the main purpose of US healthcare and if someone gets better, that's nice. Our sad response to Covid-19 exposed the weaknesses within our "for profit" system. The anti-science is a whole other problem someone could base an entire blog on. Health insurance is mostly through employment and good luck with that if you are low wage and or part time. Gig worker, better get on healthcare.gov. Healthcare CEO pay is not a problem! These people are NOT worth tens of millions of dollars but they get it.
These are just three areas where our economy is on a suicidal path and I'm sure you can rattle off three or four more. Our economy is not on a path for long term sustainability or even growth, rather it is braking down. Creative destruction can be good (just how much destruction will it take?). It is never too late to start moving in a different direction. What can that look like? That's for next time.
