How do we combat stagnant wages?

[TCJ70]

I think this is one of the things we could focus on that would also help solve a few issues that tend to come up around here (the cost of insurance/poverty). Of course, not everyones wages are stagnant. Those at the top are doing just fine. As one of Goldman-Sachs executives prepares to possibly receive a $100,000,000.00 bonus, do we dare ponder how much of that could have been used to increase the average employees wage? What did this one person do to honestly deserve that kind of crazy bonus. Keep in mind that this isn't too unusual compared to this persons other bonuses (which in 2007 was about $68,000,000.00). It's important to type out all the zeroes in these numbers to get a real grip on the amounts.

I have my own ideas on how this can be combated, primarily through taxes. Closing the income gap in this country is something that can hardly be called a bad thing. Perhaps a few more tax brackets might compel those in leadership of these companies to take better care of their employees. At this point we can't count of big business to police itself and regulation is the only thing that will work to restore balance. So, any ideas we can use to write to our congresspeople about this issue?

Discussion begin...NOW!

[slackmaster]

1. I quit my job of 5 years because of 3 years of stagnant wages

I recommend it.

[Egalitariat]

2. The best and most effective way is to just wait. When consumption gets going again

then production must follow. After we've exhausted any short term production gains from higher productivity, then demand for labor will go up. After that, wages will rise.

Anything else you try will be a waste of effort.

[ddeclue]

20. that's catch-22 without jobs how do you expect consumption to magically start again?

it can't. Jobs have to come first and they have to come from the government using tax dollars.

[Egalitariat]

23. It always has.

[babylonsister]

3. Begs the question, how do you combat no wages? Jobs are few and

far between, depending on your qualifications.

[TCJ70]

4. Job creation may be a by-product of bringing wages under control...

...how can a company create jobs if all the money is paid out to people at the top?

[Commie Pinko Dirtbag]

5. Unions. You know, those evil entities that are as bad as Monsanto according to some. -nt

[galileoreloaded]

6. You combat stagnant wages by keeping them flat, and compared to your friends, your rich!!

That was easy, whats next??

Seriously though, China-cheap labor is where we are headed, and the traditional institutions can't do a damn thing about it.

1950's thinking in a 2006 world. 2006, because that is when the plutocracy really got into full swing and the guidelines were set.

You really wanna fix it?? You gotta break it first.

[Brickbat]

7. You organize.

But, you know, that's hard.

[guitar man]

14. Exactly

If my grandfather and his fellow union members could do it in the '30s we could do it again now. All it takes is the guts and determination. :thumbsup:

[applegrove]

8. Don't renegotiate any contracts now. Unions should go w/out contracts

for now. By 2014 all the baby boomers will have started to retire and it will be an employees market. Renegotiate contracts then. IMHO.

[customerserviceguy]

11. You've got quite a wait coming for those baby boomer retirements

The peak of the boom was 1957. Those folks are turning only 53 this year, and since they'll have to get to 67 for full Social Security (if it's even there when then arrive) you got about a dozen more years or so before significant jobs become available from retirements alone.

[applegrove]

12. Still the job market will be improving by 2014. Smart to go with what you

got right now and don't negotiate to pay or benefits in this current situation. Lots of big business types love the idea of getting concessions out of unions in this current environment.

[customerserviceguy]

22. I agree that it will probably be better by 2014

but not because baby boomers who either haven't saved adequately for retirement (that's me) or have been wiped out by investment losses will somehow get the notion to kick back at 60 years old, and leave jobs for the younger workers.

I think that going without a contract, or with a very short term contract is a good idea right now, frankly, I expect that inflation will kick in by 2014, making the anemic raises of today look really lousy, especially if they're locked in.

[many a good man]

9. Nuke China

You want a serious answer? Listen to Brickbat.

I do believe you have a good point about the tax code and income inequality. Drastically increasing tax rates in the top income brackets will squish income inequality. Paying more for front line workers would greatly improve the product or service of a business and spur economic growth. Improving the education and abilities of these workers would also help (it's hard to find good help).

I also think strengthening the safety net and providing free higher education would help. People would be willing to take more risks in order to excel at something.

[TCJ70]

10. Promoting reinvestment of profit...

...in business is a good first step in my opinion and that's really the purpose of a tax solution. Rebalancing wage differences would also help reduce the need for a social safety net, which isn't really a bad thing either.

[bemildred]

13. Take the money from the idle rich and give it to people who work for a living.

Lots of money there, it's easy. That's how the rich people got it in the first place, they didn't get it digging ditches.

[Kievan Rus]

15. Tax the rich

[Lorien]

16. Maybe we should follow the Japanese, who have a far smaller gap between rich and poor:

No Outcry About CEO Pay in Japan
For one thing, Japanese executives don't earn nearly as much as Westerners—and the implications are far-reaching

By Kenji Hall

In recent weeks, the news from Japan Inc. has been a steady drumbeat of layoffs, plant shutdowns, and gloomy earnings forecasts. Yet few CEOs have been shown the door. And there are scant signs that the public and political outcry against CEOs' fat pay packages in the U.S. will be echoed in Japan.

That's because most Japanese chief executives don't earn anywhere near the big paychecks of their Western counterparts. CEOs at Japan's top 100 companies by market capitalization earned an average of around $1.5 million, compared with $13.3 million for American CEOs and $6.6 million for European chief execs at companies with revenues of higher than $10 billion, according to an analysis of 2004-06 data by Towers Perrin, a Stamford (Conn.) human resources firm.

It shows, too. Japan's corporate bigwigs might travel around in chauffeured cars and play golf on the company's dime, but they don't trot around in designer suits, shuttle between cities in private jets, or order up multimillion-dollar houses. And the moment the company's profits plunge, they often take one for the team. Last month, Sony (SNE) announced plans to halve the pay packages for Chairman and CEO Howard Stringer and his top lieutenants, while Honda (HMC) has said its board members will take a 20% pay cut.

http://www.businessweek.com/globalbiz/content/feb2009/gb20090210_949408.htm

[anonymous171]

17. Create tons of Government jobs with a living wage by waging a new War on Poverty

[dysfunctional press]

18. give people increasing tax credits for every year that their wage doesn't rise by a certain percent.

and...tax the rich.

[leftstreet]

19. Tax the rich, feed the poor / Till there are no rich no more

http://www.youtube.com/watch?v=jzrUqAtUcpU

[bridgit]

21. The greatest fallacy since 24 Martinizing was that a tax wind-fall to the rich...

would translate into them running out the next day and building factories all over the land. Some did...way too many didn't way too many packed it all up and moved to China or elsewhere while they told us that prices for products *would go down* as a result...anybody ever really believe that one? Either way/whether we did or did not they then bought their special little princess' a new blood diamond tennis bracelet, the old ball & chain a new Jag or Hummer or endangered species jacket of some kind, a new yacht, box of Cubans a case of Petron & Middleton and a swanky mistress

For the global corporatist/rich guy duplicity alone: repeal the bush tax windfall giveaways to the rich retroactively - they need to pay the piper

I can see a time when Americans become proactive in turns of their consumerism. If they keep telling Americans that we are the ones that need to tighten our belts and prioritize from a realistic point of view; then rolling boycotts of their high priced are able to send messages back around too