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Today is Monday, September 5, 2011. Since it is the first Monday of September, it is the national holiday known as Labor Day. Supposedly, it is the day when our politicians and pundits proclaim their unrelenting love for all things worker related – even as they spend the other 364 days a year doing all in their power to destroy the lives of workers by cutting salaries, limiting benefits. Just today, the Washington Post’s Robert Samuelson had a column decrying the state of labor in the US:
On this Labor Day, there is little good news about labor. We have entered a long period of crushing unemployment and downward pressure on wages that may well transform the nation’s economic and political landscape. There was no job growth in August, and the overall numbers are stupefying: 14 million unemployed; nearly 9 million part-time workers wanting full-time jobs; 6.5 million who want jobs but have given up looking and are, therefore, not counted in the official labor force. People are only gradually recognizing the magnitude of the problem.…snip…
It’s not only the jobless who will be affected. No one has yet repealed the law of supply and demand. At last count, there were 4.5 unemployed workers for every job opening. Bargaining power has shifted from labor to capital. Sure, some workers will get promotions and seniority raises. Otherwise, gains will be slim. Since September 2008, annual wage and salary increases have averaged 1.6 percent, the slowest pace in 30 years, reports EPI’s Lawrence Mishel.
…snip…
Still, the harshest effects of joblessness fall on the jobless. “We’re creating a bifurcated society,” worries Harvard economist Lawrence Katz. “We’re talking about a lost generation of younger workers and displaced workers.” Younger workers have a harder time starting careers. Because many skills are developed on the job, long unemployment spells can lower lifetime earnings. The same is true of older workers. Even when those who lose stable jobs get new work, they often suffer a 20 percent earnings loss for 15 years or more, reports economist Till von Wachter of Columbia University.
I find it somewhat interesting that Samuelson felt the need to write his column given how many times over the years he has extolled the death of unions, called for cuts to Social Security and Medicare, and called for leaving the minimum wage age at $5.15 per hour. As I noted here, trying to do much more than survive on minimum wage for one person is not really possible and that’s when it is at today’s $7.25 an hour.
Some folks in Wisconsin and Pennsylvania did actually tell anti-worker/anti-union politicians that they were not welcome at some local Labor Day parades and celebrations (although the folks in Wisconsin may have backed down from their initial non-invitation – I hope the folks in Wausau do have plenty of rotten tomatoes available for their oh so poor US Representative who cant make ends meet on $174K per year.)
Now I realize that to some folks there is no equating the attack on Unions as an attack on individual workers. Yet all those benefits that are available to individual workers are there precisely because of the unions. Whether it is the eight hour day/forty hour work week or paid sick time or worker safety, it is the action of unions that led to these worker benefits available to all. While recognizing that “correlation does not equal causation,” the flatness of wages in the US since the ’70s has at least been a companion to the attacks on unions. CEO and senior executive salaries have exploded while the wages for workers have gone down.
On this Labor Day 2011, we have millions of long term un and underemployed. In an economy that has to create roughly 90K jobs per month to stay even, August 2011 had zero jobs in total. Businesses are profitable so the economy appears to be growing even as the underside of the economy gets larger. Self-employed individuals are not counted among the unemployed nor are new graduates. State and local governments are cutting jobs while those folks with jobs worry that their jobs will be gone tomorrow.
This Thursday evening, President Obama is scheduled to give a speech to Congress on jobs. Yet for all the vaunted interest in creating jobs that has supposedly captured the attention of the Beltway Village Idiots Politicians, Pundits, and Courtiers (finally), all the proposals likely to receive attention are warmed over re-hashes of previously failed policies. Massive tax cuts in place since 2001 have not created jobs so why would further tax cuts create jobs? Regulations and taxes do not stifle small businesses yet we continue to hear how all regulations must be done away with in order for small businesses to thrive.
Short sighted actions by politicians and global businesses will eventually be their downfall (and ours). It would almost be fun to watch it happen if it weren’t causing so much pain and suffering for all the world.
And because I can:
Cross posted from Just A Small Town Country Boy



27 Comments

No kidding. With or without walking shoes.
Why is it that when I see people like Samuelson express sympathy for labor I think of guillotines?
“Once a yr speeches does not man support for workers”
BINGO!
Who in there right mind will still believe anything Obama says folks ?
Hey Dakine,
Here’s a good link to Business Insider today, a compilation of 7 charts showing how bad things are re: unemployment.
http://www.businessinsider.com/august-employment-charts-2011-9?utm_source=Triggermail&utm_medium=email&utm_term=Business%20Insider%20Select&utm_campaign=BI_Select_090511
T’anx
Well, it’s not just Obama – it’s a lot of politicians across the entire political spectrum – like the Rs in WI and PA who thought they could show up at Labor Day parades after spending the past year trying to destroy unions.
Is Labor Day still a Holiday? That won’t last long.
A bifurcated society, indeed. My wife and I consider ourselves very well off, and we are surely in the top 2 percent if not the top 1.5 percent of the income and wealth distribution, which on any sensible valuation does not make us ‘middle class.’ But there are differences. My sister and brother-in-law have been visiting with us this week. Today they drove down to northern Vermont to visit with a friend they knew in London when he was working at Reuters. This evening my sister-in-law showed us photos of their friends house, which is a 10 million dollar mansion near Jay Peak, in a small community of similarly valued mansions. They live in Hong Kong and commute to Vermont for the summer to get away from the heat.
This is wealth like we can’t even imagine. The couple in question also have a house in London and bought another for their children who are studying there. It’s a world we can’t even imagine. But it’s real.
love the AB Band danke!
hey RAD
this is my fave
http://www.youtube.com/watch?v=N8RsFwsODzE&feature=player_embedded
The world you describe is very much a real one but it is not a sustainable one.
sorry this was for you…
http://www.youtube.com/watch?v=N8RsFwsODzE&feature=player_embedded
my husband was architect to John Kluge…at one time richest man in the world
Obviously because you have a humane streak. Dr. Guillotine intended his instrument to reduce pain and suffering.
Me, too. This Live at the Fillmore was probably one of the first “double” albums I bought as a young adult with my new Fischer Stereo and Speakers with Sansui turntable. Oh, those were the daze.
work till ya drop
http://www.michaelmoore.com/words/mike-friends-blog/wor…
I apologize if I have said this before, but when (if ever?) will politicians and, yes, economists admit that in the last few decades corporations have exported, out-sourced, off-shored, and automated so much good wage economic value added employment that the United States no longer appears to have the industrial or manufacturing infrastructure to support the good wage employment, decent incomes or high standard of living that we grew accustomed to after World War II.
Heartbreaking that, in a time of horrendous economic depression, “we” can not even honor our heroes with something made in the United States. The Martin Luther King Monument in Washington DC was sculpted in China by a Chinese sculptor using Chinese granite!!! SAD!!!!
Obama ought to fire his “advisors” and bring in some real intellectual heavy weights.
Outsourcing, automation, the fact that if you miss your critical window of education in your youth, you won’t be competing for “jobs of the future”; and many 30 somethings have missed that window already.
He’s going down like Carter, at least he can tell the truth like Carter.
Millions of unemployed. Millions of part time workers.
Millions living pay check to paycheck, until BOOM, disaster hits, and then no more paycheck to paycheck.
Dawg loves the infantry.
http://www.michaelmoore.com/words/mike-friends-blog/workers-ode-to-labor-day-2011
Absolutely in agreement! Which ever political candidate embraces these ideas (with a real plan) will win the next election.
Knut. I am hearing of a burgeoning class struggle for those to whom wealth and privilege at the top is an issue. The really really rich are now feeling the pain of not being able to keep up with the (what word can I use?) Super Duper Rich. eg Celebrity news is reporting this is the cause of the Annie Liebowitz bankruptcy Trying to keep up.
She should know that no matter the degree and uniqueness of talent, one cannot get more than a little rich from performing services. It takes being able to extract the wealth earned by the work of others.
And he looks more like Mao than the man I knew.
HuffPo has a headline that says Obama gave “an impassioned speech” on behalf of labor today.
Here’s my question, Mr. O’Hooverbama: Where the fuck where you when ERIC’s anti-union legislation was blasting its way through the midwest??
Most of his speeches are impassioned. He didn’t win the Nobel prize in acting for nuthin’
Excellent points. I have seen Samuelson play both sides of the middle.
tooo too funny!
. . . but Tuesday’s just as bad . . .