Workers of America, rejoice!
Two things. First, the economists’ claim about wage growth is a sham, covering up the shame that top corporate executives and major shareholders are grabbing nearly all of the economic gains produced by America’s entire workforce. The so-called nominal wage (i.e. the sum that workers see on their paychecks) has risen only 2.7 percent in the past year, a very mediocre result for the 82 percent of the labor force that is non-managerial worker bees.
Second, that nominal wage is not the worker’s real wage, for it doesn’t take into account the fact that consumer-price increases eat up the buying power of people’s paychecks. Indeed, while nominal wages are up 2.7 percent in recent months, the price of everything from gasoline to groceries is up by 2.9 percent, effectively slapping working families with a wage cut. Sure, the economy is whizzing – those at the top of it are whizzing on the working class.
So all the rejoicing this Labor Day is coming from the gated ZIP codes of the rich. For example, in the same year that workers took a pay cut, the CEOs of America’s 350 largest corporations had an 18 percent jump in their pay, hauling in an average of $18.9 million each. In a lifetime of labor, the typical American worker would not be paid as much as those honchos took in one year. Those few are getting rich enough to air-condition hell – and I think they’d better be pooling their money for that project.
Nine out of 10 establishment economists agree that America’s job machine is going gangbusters! So why, they wonder aloud, is the state of labor today so morose?
Well, let’s start with all those jobs. Quantity is on one thing; quality is what really matters. As Jesse Jackson pointed out years ago, even slaves had jobs. While not in slavery, millions of Americans today – from Walmart employees to school teachers – are paid so little that each of them have to patch together two or three jobs to eke out a bare-bones living. In fact, major corporations have made poverty pay central to their profit strategy, with giants like Amazon, McDonald’s and Walmart issuing such puny paychecks that their workers have to rely on food stamps and other public programs to make ends meet. That’s a corporate subsidy that adds up to roughly $150 billion a year taken right out of the pockets of us taxpayers.
It’s not just labor that’s under attack; it’s the very existence of the middle class. More than a Labor Day, America needs an all-out labor rebellion.