New Low Paying Jobs Will Lead to High Debt

[Donnachaidh]

http://www.newdeal20.org/2011/06/08/new-low-paying-jobs-will-lead-to-high-debt-47281/

If workers can’t cover the basics with their income, they have to turn to credit cards.

This week’s credit check: Median real income fell $5,261 over the last decade. Our total revolving debt comes to $796.1 billion.

Last week’s jobs report was pretty bleak, and talk of a double dip recession looms. But for all the doom and gloom, there has been a slight uptick in jobs numbers in recent months. Some people are starting to get back to work, even if it’s a very, very slow trickle. So now a further question needs to be asked: if and when jobs come back, what kind of jobs will they be? What will they pay? And what will that mean for our swollen levels of consumer debt?

After all, wages have not fared well in recent decades. The 2000s saw them actually fall for the first time in recent history. Before that, they had stagnated for 30 years. And it seems that the jobs many people must now turn to are offering lower pay. As the LA Times reports: “In April, average hourly earnings for production and non-supervisory employees was $8.76 an hour when adjusted for inflation, down from $8.93 two years ago.” In particular, post-2008 income has seen a “significant drop.”

More at the link --

[BeyondGeography]

1. Real incomes have been falling for a long time

Few noticed when they could borrow without restraint against the rising paper value of their homes, or just meet a minimum payment on a 0% credit card, but now they're noticing.

The government has shot its wad, sometimes in the wrong direction, often with not enough firepower, and now we're overfocused on the national debt and Republican sideshows. Scary times.

[Romulox]

2. Low wage exploiters like Wall Mart rely on public services like Medicaid, food stamps to subsidize

their workforce.

Wall Mart and the like should be required to pay a living wage.

[xchrom]

3. Recommend

[Doctor_J]

4. Ted Rall weighed in on this today

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1254269

[truebrit71]

5. This is precisely the plan....permanent wage slavery...

...no-one will be able to afford to retire so no need for the 'safety-net' of social security..

[NNN0LHI]

6. Lot of Americans didn't want their own wages and benefits patterned after union workers

They couldn't understand why buying a non-union made car over a union made one would make any difference to them. So they find themselves having their own pay and benefits patterned after those non-union workers. And now they are finding out the difference the hard way. And it isn't very pretty.

Don

[bvar22]

7. Of course it will.

ALL according to plan.
It is the NeoLiberal Final Solution for those in the Lower 98% who have to Work for a Living.

Lets have some MORE "Free Trade"!!!!