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"The War Against Wages" (Krugman)

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swag Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-06-06 07:28 AM
Original message
"The War Against Wages" (Krugman)
Times Select (sub. req.)

more generously excerpted here


Should we be cheering over the fact that the Dow Jones Industrial Average has finally set a new record? No. The Dow is doing well largely because American employers are waging a successful war against wages. ...

Consider the latest news from Wal-Mart. Wal-Mart already has a well-deserved reputation for paying low wages and offering few benefits...; last year, an internal Wal-Mart memo conceded that 46 percent of its workers’ children were either on Medicaid or lacked health insurance. Nonetheless, the memo expressed concern that wages and benefits were rising, in part “because we pay an associate more in salary and benefits as his or her tenure increases.”

. . .

The Republican majority on the National Labor Relations Board ... has just declared that millions of workers who thought they had the right to join unions don’t. You see, the act grants that right only to workers who aren’t supervisors. And the board, ruling on a case involving nurses, has declared that millions of workers who occasionally give other workers instructions can now be considered supervisors.

As the dissent from the Democrats on the board makes clear, the majority bent over backward, violating the spirit of the law, to reduce workers’ bargaining power.

So what’s keeping paychecks down? Major employers like Wal-Mart have decided that their interests are best served by treating workers as a disposable commodity, paid as little as possible and encouraged to leave after a year or two. And these employers don’t worry that angry workers will respond to their war on wages by forming unions, because they know that government officials, who are supposed to protect workers’ rights, will do everything they can to come down on the side of the wage-cutters.
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acmejack Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-06-06 08:25 AM
Response to Original message
1. But I HAVE to shop at Walmart...
Edited on Fri Oct-06-06 08:26 AM by acmejack
Walmart can kiss my rosy red ass!

edit, if you can't tell this is sarcastic, I pity you!
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swag Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Oct-06-06 09:21 AM
Response to Reply #1
2. I gotcha.
I have never set foot in a Wal*Mart, my own self.

If my good fortune holds out, I never will.
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bhikkhu Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Oct-07-06 12:25 AM
Response to Original message
3. I shopped at Walmart today
looking for a video game my daughter suddenly had to have (parents should understand, and she hasn't had a frivolous treat for four months). At Walmart the game was 39.95. We could buy it online for 30 new, 15 used, or at a regional chain for 20. We walked out of Walmart happy - "you know what's nice - leaving without buying a single thing". Bought it at our regional (union-staffed) market, and let them know they beat Walmart's price by half. A good day.
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