Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts

Saturday, February 27, 2016

Maybe You Have Two Cows

There are some descriptions of various political systems running around the net that are expressed in terms of you having two cows and how each political system affects you.

Here’s one about Democratic Socialism that a friend quoted on Facebook:

Democratic Socialism
You have 2 cows.
You pay your taxes.
You now have free healthcare and free college
 and a government that isn’t owned by billionaires.

I don’t find this to be as useful as it could be. Its tone hints that Democratic Socialism isn’t carefully thought through. Or, at least, that’s how the opposition spins it, unquestioned by media.

I would prefer something more plain and to-the-point. Then again, I don’t know if this describes Democratic Socialism. It just describes what I want. Yet somehow I doubt that Bernie would disagree with a lot of this:

Common Sense Politics
 (as interpreted by Kent Pitman)
Maybe you have 2 cows, maybe not.
Many have far less. Can we stop pretending everyone has it good? People are getting left behind.
People making enough to have a surplus
 pay tax on surplus.
Why are we taxing people who have less than they need to get by? So we can give it back to them later and call ourselves heroes? Leave them alone and get the money we need from the people who can afford it.
Forget this “skin in the game” crap
 about why everyone should pay tax.
Being poor IS having skin in the game. No additional reminder is necessary. The poor are not parasites, they are people society has failed.
And anyway, if you want fewer people, fund birth control.
Rich people pay their fair share
 and stop calling it pain.
Less luxury is not pain. Of course the money for a society is going to come from those who have a surplus. To do otherwise is irresponsible or inhumane.
Corporations pay tax on surplus, too.
Profitable corporations don’t need or ask for subsidies.
And it should go without saying, but...
Corporations are not People.
Corporations pay a living wage.
So employees don’t have to ask for government subsidy. Duh.
The military doesn’t get to waste money either.
No more buying stuff we don’t need just to supply pork to someone’s district.
A healthy and educated society benefits us all.
We pay for these collectively out of society’s surpluses, not by making people choose between these things and basic needs. And we stop calling the money that society pays for these things “expenses.” They are “investments.” It’s not “should we spend on healthcare or education?” but “should we invest in healthcare or education?”
To decide our future, we count citizens, not dollars.
Everyone should participate. Yet another reason education matters: We need well-informed voters. But it’s citizens, not dollars, that need a voice. Money always speaks loudly. Government is supposed to counterbalance that. Any suggestion that money needs a voice in politics misses the point of the Constitution, which assigns no special privilege to wealth, but rather takes it as given that we are all equal.
End Citizens United.
End gerrymandering.
Make voter registration easy and fair.
Fix Climate.
Now.
Or none of the rest of this will matter.

But, either way... Go Bernie!


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Monday, November 18, 2013

My Christian Sensibilities

As a kid, I went to church and Sunday school and even attended an Episcopal grade school for 3 years, which meant chapel 5 days a week in addition to normal Sunday school, so no shortage of religious guidance. We moved a lot, so I experienced quite a number of churches, and several denominations (Baptist, Methodist, Presbyterian, even generic Protestant—an Army accommodation to multiculturalism). At some point I asked my mom if I really had to keep going, and she said I didn't. I think she just wanted me to get to a place where I could decide such things for myself.

I spent a number of years after that getting used to not being religious. If you're curious, you can read a pretty good summary of how I think about religion in my article Hawking God.

But like so many things in life, religion comes bundled with many things that seem only accidentally associated, like how you might have to go to a ball game to have someone walk around selling hot dogs and peanuts. Nothing about hot dogs and peanuts that requires that they be sold at a baseball game. They could do it at bowling alleys or in churches for that matter. Sometimes they do it in movie theaters or on beaches. But the point is that often an activity comes bundled with an unrelated or only quasi-related item, like hot dogs and baseball.

It surprises me, for example, that there's no religion-free version of a church. A lot of people just like showing up and seeing friends and hearing an inspirational message. It doesn't have to come from the Bible. It could come from anywhere. It's always at this point that people tell me the Unitarian church is kind of like that. But really, my point is that I don't want a church, and other non-religious people don't either. And yet, I'm not against socializing.

And the same with morality. Members of religions often pick up a great deal of morality from their church. That's where I got a lot of mine, as it happens. I think sometimes that Christians worry excessively that people who don't have religion will therefore not have morality, since the place they would have learned it doesn't exist for people outside of religion. It turns out it can be learned in other ways, though, so they can rest easy.

Still, when I left religion, I didn't discard my sense of morality. It seemed useful enough, and I'm happy to learn things wherever they come up up. I was in JROTC (a military training program) in high school, too, and although I eventually decided I didn't want to go into the Army, I was glad I had been in that program. I like to think I learned important things about discipline and respect and leadership that I could carry with me even after I “retired.”

[A line drawing image of a male person who looks pensive.
             A thought bubble shows an image of a Bible, as if he is pondering religion.]

It's perhaps also fortunate that even in Sunday school when I asked hard questions of my teachers, they didn't get all dogmatic with me, but instead tried sincerely to answer the questions on the terms I was asking them. I was quite skeptical about the story of Jesus feeding a large group with just a few loaves of bread and a couple of fish. But the response I got was that probably people were hoarding food and that once someone shared, others did, too. The question I was asked back was, “Is that any less a miracle?” Hard to know how to answer that last question, but it was certainly my kind of miracle.

Even being no longer religious, I'm still OK with believing in that kind of miracle. I don't find myself troubled by reclaiming some of the terminology of religion. It's fully of valuable words that one cannot afford to be expressionally without. Even words like “evil,” which for many years I had no place for. Over time I've come to believe the word is necessary not because I imagine there somehow to be some supernatural Satan sneaking around, tempting and outright sabotaging the affairs of the world, but simply because there exist great wrongs in the world for which it would be too gross an understatement to call them merely “bad” or “wrong.” Such words are too small, too pedestrian. When I speak of Evil, often capitalizing it for effect, I don't mean anything supernatural, but I do find it conversationally useful to have a word to express a systematically corrosive problem that commands priority attention by society. I'll spare you specific examples at just this moment, so we don't get too side-tracked. For now I just want to note I've reclaimed my right to use it notwithstanding my lapsed membership in organized religion.

I'm still working on what to do about the terminology of prayer. I don't find myself with an urge to consult some supreme being, but when bad things happen to others, or when they're just fearful, I wish there were a conversationally simple phrasing like “I'll pray for you” that expressed caring. I often just resort to “I'll think good thoughts.” But just because I don't believe in a supreme being doesn't mean I don't sometimes wish for one. I did read comic books, for example, and I do watch superhero movies, and even though I don't believe in Superman or Aquaman, it doesn't mean I think the world would be worse off if there were such folks. Well, probably. It probably wouldn't work out like people think, and perhaps we're better off just wishing.

Actually, praying for someone is a complicated issue, because it has always troubled me ethically. I was taught that the reason you couldn't put God's name before the word damn was that it violated the commandment about taking the Lord's name in vain. That is, you are asking Him to do you some petty favor of damning someone or something just because it offends you. He's not going to do it on your say-so, and so you're asking in vain. He's not your servant, you're his. And prayer seemed to me to be full of that. It's one thing to make requests, but prayers seem full of command form. “God, bless so-and-so.” That seems similarly pushy to me, so I never really understood why it wasn't much more polite.

I don't think it's a minor point, actually, because once one gets used to telling God what he should and shouldn't be doing, it seems contagious to other things. One starts to hear political leaders telling us what God likes and doesn't, as if they know. Even if there were a God, it seems really unlikely to me that these people who are so free with His name are really the ones God chooses to chat with. Frankly, it seems to me that if there were really a God, the evidence would be in the little piles of ash all over the place where brash politicians went around taking His name in vain in myriad ways that go well beyond merely asking God to damn them. It's as if they don't even have the faith needed to see if God is going to answer their prayer of damnation, and they have to find a way to make sure to damn them here and now, as some sort of offering to a God too feeble to handle his own affairs. Some faith.

Again not to lean too heavily on my long-since-lapsed Christian upbringing, but I was taught that God gave us free will so that we could make choices in life, not so we could go around telling other people they have no choice. Too often, of late, we see hyperevangelicals impatient at the fact that God is not acting in the way they want or expect and worried somehow that the world will come to an end if they don't act. That, to me, seems the very essence of faithlessness.

According to the moral training I received in my youth from the church, it should be our business here on Earth to love, care for, help, and accept one another. Even today, that seems to me like it should be right, God or not. Tolerance and compassion are just good ideas no matter where they come from, but if you're a Christian I just don't understand how you could not think they were requirements.

And yet the GOP, the self-appointed party of God, purports to care about “life,” even though—as far as I can tell—that sense of caring stops just about the time a person is born. GOP politicians hold their heads high and smile cheerfully as they explain why it's important to kill plans for health care, education, minimum wage and other employment standards. Frankly, if there's a form of common human decency, it seems safe to suppose there's a GOP plan to obstruct it. And, I have to admit, if there's a place I feel a need for a word like “Evil,” this is it.

Some days I really don't know what to do about such Evil. For now I guess I just wanted to make note of the fact that these things the GOP has been doing offend my Christian sensibilities.

Footnote

One ray of sunshine, though, is Pope Francis. He's not likely to get me to believe in God again, but his willingness to take on the big money and power that has infected the church and his seemingly genuine desire to lead by example in teaching people to care more seriously about other people is at least restoring a bit of my faith in humanity. Maybe we could get him to moderate the 2016 Presidential debates. It's not that I think the GOP has to answer to him particularly, but he seems to know the right questions to ask.


Author's Note: If you got value from this post, please “Share” it.

Originally published November 18, 2013 at Open Salon, where I wrote under my own name, Kent Pitman.

Tags (from Open Salon): politics, gop, republican, religion, love, love thy neighbor, tolerance, compassion, health care, minimum wage, living standards, employment standards, human decency, ordinary human decency, common human decency, pope, francis, miracles, loaves, fishes, matthew, church, sunday school, not religious, non-religious, atheist, atheism, agnostic, agnosticism, god, dogma, moral, morals, morality, philosophy, caring

The image was added later (May, 2025). It was created as a hybrid of two different candidate images generated by abacus.ai using Claude Sonnet 3.7 and GPT Image. The composition and some post-processing was done in Gimp.

Saturday, August 10, 2013

The Overtime Loophole

Part 1 | Part 2 | Part 3

President Obama has been talking up the idea of raising the minimum wage. I would certainly support such a move. But until we require the minimum wage to always be a living wage, there's more work to do.

Author's Note: This is the last in a three-part series that began with Breaching the Social Contract and Lien Times for Startups.

“No one who works full-time
should have to live in poverty.”

President Barack Obama
in his State of the Union speech, February, 2013

People are having trouble making ends meet. There are signs of it all around, but it's not always spoken about. It's embarrassing, after all, and something people often just endure rather than talk about out loud. But shame gave way to outrage recently, and shy silence to loud cries of incredulity, when when McDonald's published a “Sample Monthly Budget”  (see excerpt at right).

What caught they eye of many was the unabashed acknowledgement, right up front, that McDonald's knows they are not paying enough for a person to live on, and that of course their employees will need a second job. That their pay is not a living wage was no surprise to anyone, but that McDonald's was willing to so casually acknowledge that fact was quite striking.

Not only that, but also striking was that the sample budget doesn't even mention obvious costs like food, clothing, and gasoline. And though it mentions health care, it seems to think $20/month is enough. That's not even a full copay for a doctor visit on most plans, much less a payment for the plan itself.

Curiously, the McDonald's 2012 annual report speaks proudly of its employees as part of its McFamily, and of their jobs as “a career.” I asked the all-knowing web what the difference was between a job and a career, and it referred me to Yahoo, which offered lots of talk about careers being things you build, things you work toward, or something that doesn't just pay the bills but is a passion. Merriam Webster defines career as “a profession for which one trains and which is undertaken as a permanent calling.” Hmmm. A permanent calling that doesn't pay enough to live. What could possibly go wrong?

In fairness, though, we probably owe McDonald's a thank you for publishing this budget. It doesn't show them to be much different than I'd imagine many other employers to be. It's just unusually honest and invites public discussion with a new degree of specificity. We don't have to guess what they're thinking. They've spelled things out.

For example, what leapt out at when I saw this budget, was that it acknowledges an ugly reality of modern employment that everyone probably knows about, but that gets far too little open discussion: that Big Business has found a pretty reliable way around overtime laws.

In the McDonald's budget, it's plain that they expect employees to work additional hours to break even. That's the reason for the second job. But just as obviously, they're not offering to let their employee work those hours at McDonald's. Why?

Is it that they're not open that many hours a week? No, McDonald's has a lot of interest in being open late. Is it that they want their employees to be well rested? Well, obviously not. The budget says the company expects their employees will be working long hours, just not for them. So it's not about more hours to rest up.

Antitrust laws notwithstanding, I imagine what's really going on is something like this: Suppose I have a company where I want to employ 100 workers at very little money for 80 hours without overtime. And suppose you do, too. That would violate employment laws and maybe also make a mess of various corporate policies. So I get an idea. I call up my friend Donald, who has a business similar to mine, and we get together to brainstorm about this problem:

Donald has an idea: “How about I cut my workers to 40 hours a week and you do the same? Then I'll hire your 100 workers, also for 40 hours, and you can do the same for me. We'll each now have 200 workers instead of 100, each working at 40 hours instead of 80 hours. Presto. Problem solved: We each get what we want, 8000 hours of work a week, but with no messy overtime for the employees.”

I'm skeptical this is what's intended, but Donald is insistent: “Nonsense,” he says of my concerns, “if they didn't want us to do this, they'd pass a law against it. Instead, they've created an economic incentive for us to do this. Congress must know it happens, so since they don't make a law against it, they must want us to do it.”

“But this Congress doesn't want to pass any laws,” I reply, still not convinced.

“Not my problem,” Donald responds. “I can't be running my business based on made-up constraints that my competitors aren't shackled by. It wouldn't be a fair fight.”

“But what's fair about cheating workers out of overtime?”

Donald scowls at me. “First, it's not cheating. And second, they signed up voluntarily. They could have gone elsewhere if they didn't like the deal you were offering.

“Like where? To your company? You'll offer them the same rotten deal that you suggest I offer. What if everyone does that trick you're suggesting?”

I don't know if a conversation like that ever happened. It might have. If it did, I'm sure there are no records. But, conversation or not, it seems clear to me that the companies engaged in this practice know they are doing it.

If the reason people were taking second jobs was to reach for something extra—not something they need to live, but something nonessential—that might be okay. But the McDonald's budget is a clear admission that these companies know that they aren't paying any kind of living wage. A claim to the contrary wouldn't pass the laugh test.

Employees have no real choice but to work overtime to break even. And since they have to do the overtime with another company, they won't get overtime pay. That's called an externality: These companies get the benefit, and the cost is someone else's problem—the employee's, to be exact. If the companies were paying time-and-a-half for that overtime work, the employee wouldn't have to work as many hours for the same money, or the employee would make more money for working so many hours. That seems the clear intent of the overtime law, even if not the letter of it. But the companies have found a way around it.

So what's to be done? To get the discussion onto something concrete, I suggest a tax. There being no employer to collect the extra money from, I suggest the government can pay it—up to the level of a living wage. Then the government can tax the employers to recover the cost. In that way it's also “revenue neutral” and the anti-tax folks should have nothing to object to.

If a worker is paid so little that he must work 80 hours for two employers, he's due 40 hours of half-time pay because he was only paid a straight wage, not time-and-a-half. At tax time, he gets a credit for the half-time pay. The government then taxes the two employers for their share of the cost, based on the number of hours each employed the worker and how much they paid him below a living wage. For every hour they underpaid him, a bit of tax is held in reserve to cover the very likely situation that he'll file for overtime.

None of this keeps an employer from offering overtime work directly and honestly with their own company. That would avoid the tax. Or they can just pay a living wage. That would avoid the tax, too. I'm not suggesting a tax because I'm fixed on taxing people. It's just a tool of last resort to make sure employers can't find a legal loopholes to hide from what should be their responsibility.

Let businesses find another way to make their money than on the backs of employees. Let them offer good products and services at prices that more fairly incorporate all legitimate costs of those products and services rather than hiding those costs by pushing them onto workers and society.


Author's Note: If you got value from this post, please “Share” it.

This third part of a 3-part series was originally published August 10, 2013 at Open Salon, where I wrote under my own name, Kent Pitman.

The other articles in this series are:
Breaching the Social Contract (part 1)
Lien Times for Startups (part 2)

Original graphic created from data obtained at motherjones.com.

Tags (from Open Salon): monthly budget, budget, necessities, essentials, paying enough, overtime, forced overtime, unpaid overtime, overtime law, antitrust, antitrust law, collusion, tax, poverty, jobs, employment, mcdonald's, sample monthly budget, loophole, overtime loophole, second job, another job, extra job, make ends meet, making ends meet, business, taxation, politics, social contract, minimum wage, living wage, externality

Friday, August 9, 2013

Lien Times for Startups

Part 1 | Part 2 | Part 3

Author’s Note: It became clear after writing this article and seeing some of the comments that my use of the word “startup” had been misinterpreted. I had not meant to imply anything so narrowly specific as Wikipedia attributes to this term, but rather to speak generally about any newly formed business, however owned, funded, or organized, that has not yet achieved its targeted, financially self-sustaining state. I'll thank you here in advance for respecting my intent and not getting side-tracked by my arguably poor choice of words.


We hear all the time how with great risk should come great reward. It's used as a way of justifying the flow of dollars to the founders of a company after it succeeds. These courageous benefactors of society have put their heart and soul into the company at great personal risk to themselves and their families, and so when the profits come rolling in, they deserve to share handsomely in the spoils.

Well, isn't that also what the people living at less than a living wage are doing? In my recent article Breaching the Social Contract, I noted that since the minimum wage is not tied to a living wage, minimum wage workers run a daily personal deficit as they struggle to survive. There's risk in that as well. They've put themselves out to make the company successful. Shouldn't they share in those spoils, too?

I'd like to see all workers paid a living wage, not just a minimum wage, but when discussing that idea, I often hear the concern that companies might not be able to turn a profit if wages were required to be so “high.” Funny how seldom one hears that same concern as those same companies think about paying their CEOs millions. “Just a cost of doing business. We'll find a way—we'll have to,” they mutter with steadfast determination, just as our nation's best schools have taught them to do. No problem too difficult for American ingenuity—other than finding a way to treat our most vulnerable citizens with dignity, I mean.

But, okay, suppose we accept that as a premise for this discussion that we need to ease cash flow for startups. Founders of a company, even if they'll later be paid millions, often do take a lower salary in exchange for stock, so let's say it's acceptable for workers in the company to be paid a minimum wage that's below a living wage while the company is getting going.

Even so, the founders are getting delayed compensation for taking their lessened salary. Why not delayed compensation for workers who are taking less than a living wage? We could say that before a dime of profit can be enjoyed by a company's owners, all workers must be making a living wage. After all, if there is profit to be paid out, then by definition there is surplus. So no one can claim that there is no money available for paying a proper wage at last.

And since it's really obvious that employees earning below a living wage have been making the largest sacrifice, risking their very day-to-day survival, it seems to me they should have a priority claim on money that might otherwise be deemed surplus, or profit.

Traditionally, the founders of a company will negotiate profit-sharing details as they form a legal partnership arrangement, but lower-wage workers rarely have the kind of clout needed to participate in that, so they need force of government to require that they're treated equitably.

One way government could help would be to maintain not just an official minimum wage but an official living wage. Everyone would always have to pay at least the minimum wage, but the difference between the living wage and whatever lesser wage they were paying would become a sort of priority debt that the founders were accumulating as they brought their company toward profitability. They could continue to continue to carry this debt while the company got up and running, but all the while there would be a sort of lien against the future profits of the company by the workers who had worked at this startup rate.

It seems to me that the only businesses that would not be able to accept rules like this are ones that could never break even without an ongoing tax on their employees' very ability to survive. If that's how a company is profiting, such businesses shouldn't exist anyway. If the company is profiting in other ways, there's no reason all workers who contributed to that profit shouldn't share at least to the degree of having enough money to live. Once a company is alleging any form of profit, that doesn't seem an unreasonable demand.

And anyway, if the debt to the workers ends up being huge, it certainly calls into question the claim so often heard that all the risk was on the part of the founders. Workers who've made a major sacrifices certainly deserve not to be overlooked.

Think of the decision to pay workers below the living wage as coming with a cost—the requirement to make such people a kind of temporary partner. Or think of it like members of a cooperative, where special priority shares get purchased by working at these lower-than-reasonable wages, a variant of sweat equity. Using one of these ways of thinking, a low-wage worker might finally be able to see their sacrifice as investment, and the founders could feel better that they weren't exploiting their workers.

Of course, if a company continues to lose money, it might legitimately claim that it can only ever afford a minimum wage. Perhaps it would never be able to make good. But that's a risk the founders take as well. And it's unlikely anyone would form a company with the intent in mind of never making money. So everyone is motivated to make things work: The owners will still want to make money. They'll just have to do it on the basis of an honest surplus based on product or service value provided, without the externality of a subsidy imposed on employees too poor or otherwise disempowered to defend the importance of their own contribution.

The ultimate purpose of this would be to assure that a company had not just a moral but a legal responsibility, once profitable, to treat its workers fairly, paying them a living wage. It doesn't require that a company profit—that would require magic. But it just says that profit must never come at the expense of someone's living wage. And it acknowledges risk that has always been there but rarely if ever spoken of—the risk of the day-to-day survival of the company's least well-paid workers.

And, yes, it does occur to me that companies might do creative tricks involving bankruptcy or splitting the sale of assets and debts to wash themselves of this kind of lien. I think that could be legislated around. After all, no one thought it too complicated to write laws that keep human beings from eliminating their education debt. Where there's a will, there's a way. It's amazing how obstructionist the capitalists can be when they think they're about to lose an entitlement to free flow of cash at someone else's expense. But I think we as a society can do it anyway.

Don't worry. In spite of their protests, the capitalists won't find any particular set of rules so onerous that they lose interest in making money. And if they did, others would surely step forward to take their place. It'll just mean whoever's in the game will have to find different and more fair ways to make money. Nothing wrong with that.


Author's Note: If you got value from this post, please “Share” it.

This second part of a 3-part series was originally published August 9, 2013 at Open Salon, where I wrote under my own name, Kent Pitman.

The other articles in this series are:
Breaching the Social Contract (part 1)
The Overtime Loophole (part 3)

Tags (from Open Salon): profit sharing, profit, cooperative, co-op, coop, partner, duress, inequality of bargaining, bargaining, deficit, unemployment, employment, jobs, cycle of poverty, poverty, penalty, punishment, reward, success, failure, entrepreneurship, entrepreneur, wealthy, poor, rich, inequity, investment, living wage, minimum wage, reward, risk, startup, social contract, politics

Sunday, August 4, 2013

Breaching the Social Contract

Part 1 | Part 2 | Part 3

When discussing the really obscene amounts of money some rich folks have amassed in the world, the justification I always hear is: “It's their due. They are the ones taking the risk, so they should get the spoils.” I understand why they say that, but I still don't buy it. It's at best an oversimplification, and at worst just a clever lie designed to put a nice face on institutionalized inequity.

Of course, lie or not, I don't doubt that the rich believe the excuse. They need to believe this wealth is rightly earned through the risks they took. It soothes their conscience to believe that. So they repeat the excuse a lot, and they find after a while that they do believe it.

“They risked everything to get there,” say others, trying to vary the wording just a little. In this form, the parallel between “risk everything” and “get everything” makes it seem ever so fair, like a carefully balanced scale, with the same quantity on both sides: “risk everything, win everything.” What could be more obvious justice? Except the “everything” risked was only one's private fortune, if one even had one at the time—they may have had little to lose—and the “everything” to be won is a lot more.

The net worth of the Walton family, who inherited the Wal-Mart retail chain, was pegged earlier this year at $115.7 billion. I somehow doubt that they risked that much to get that much. Even the late brothers Bud and Sam Walton, who founded the company and I'm sure worked quite hard, still had human limits on what they could contribute. In present day, I'll bet the combined Walton family wealth exceeds the combined wealth of every one of their employees, probably every employee past and present. Did the family work harder than all of the other employess put together? That seems an unlikely truth.

If the rich really did have a way to take unbounded risk in exchange for unbounded reward, that might be a different matter. But bankruptcy laws generally place a bound on risk, preventing folks from having to pay back more than a certain amount in really extreme cases. This allows them to start over, sometimes even more than once. We coddle our rich in ways we don't our poor.

By “rich” here, of course I mean the class of folks that feel entitled to be rich, because even when they are without money, they are rarely without a whole social network who sees them as differently poor than those who were always poor, and who understand that these particular poor need to be made rich again before all is right.

Likewise, when I speak of the “poor” in this context, I mean those who are not similarly entitled to riches by virtue of birth or connection. Odd that these should be called the “entitlement class.” The reverse would seem more apt.

Poor folks often don't actually go bankrupt. They may just get stuck in a cycle of poverty that restricts their lives, but they may not have the luxury of time, money or knowledge to do a proper bankruptcy, or even know it's possible, so they never clear their debt.

In fact, we've done to this class of people something the rich would never tolerate: We've taken the primary longshot investment they could make that might raise them out of their poverty, education, and have written it into law that if this longshot fails, they may not clear their education debt. We would never do that to a rich person's longshot. And why? Because we want to encourage entrepreneurs, I'm told. But we don't want to encourage people to invest in education?

Closer to the truth, I fear, is that those people buying the lobbyists that write our policies are comfortable that their own kids are going to end up educated, and they really just can't find it within themselves to care about anyone else being educated. In fact, they'd probably rather we have a broad underclass of exploitable poor ready to work at junk jobs, since that offers a direct profit advantage to them. Right now they have to get their ultra-cheap labor from abroad, which means managing at a distance, dealing with foreign governments, and lots of transportation costs.

Just think of the Utopia the US would be for them if only they could achieve real poverty here at home. Once minimum wage is eliminated and overtime regulations are repealed, pay could drop to a level where the rich could afford to offer tons of jobs and get everyone to shut up about unemployment. A job for everyone—maybe two or three, actually, since the pay for any one of them would never be enough. Isn't that what the liberals have wanted? Jobs? Imagine the joy the conservatives would feel in being able to satisfy that request if allowed to do it on their own terms.

And when the rich do need a few educated folks to work for them, they can always import them from other countries. There are plenty who would love to come here, and they'll take lower wages than those in the US because they grew up in a part of the world where the cost of living and of getting an education was lower. In effect, we're now outsourcing education because many of the heirs apparent to our educated jobs have gotten their degrees elsewhere. The fact that the people who are thus educated may not be American citizens is a mere detail, irrelevant to the business. And anyway, a less-talked-about aspect of modern immigration reform is the desire to ease the path to citizenship for these people, so they'll be citizens soon enough.

And, hey, I'm not xenophobic. I don't mind people coming from the outside, especially if they're going to become citizens, commit to living here and invest in our society. But I do mind a great deal using that trend as an excuse not to educate those who are already citizens. Our first responsibility is to them. If education is too expensive or ineffective here, our priority should be to make it cheaper and more effective. We can't treat our existing citizens as expendable just because it's cheaper or easier to fill STEM jobs from the outside.

Now let me come back to risk, because we were talking about education as the big risk. An education is needed for a good job, but it's not a guarantee of a good job. There are lots of people with college degrees working at retail outlets and fast food places. So getting an education is actually a huge risk, and we've allowed Congress to eliminate bankruptcy protection for those whose investment utterly fails. When the money coming in from those low-paid jobs doesn't pay back the loans, there is no escape for them as there would be for the rich when their investments fail.

Nor is that the only risk. There's the day-to-day risk of not having enough food, health care, housing, heat or air conditioning, and so on. The sad truth is that the minimum wage, which many of these people make, is not a living wage. That's also true, by the way, for some making over the minimum wage—say, minimum wage plus a buck. They're still not breaking even either, but they just don't have a catchy title like “minimum wage worker” to describe their plight. They may even be made to feel guilty for not speaking appreciatively about being above the minimum. But really, they're all in the same boat until they're at the level of a living wage.

After all, the minimum wage doesn't measure anything related to anyone's ability to survive, so being above it doesn't really mean one is somehow surviving. It just measures, through its distance from a living wage, how much we as a public are willing to stand by and watch people sink before we finally decide to care. And whether a person works at minimum wage or barely above, if they're not making a living wage, they're still running a daily deficit. Yes, deficit. The “D” word. And although the Republican Congress worries a lot about deficits, they really only worry about public deficits, and only because they themselves might have to pay. They imagine these private deficits are the result of private choices, and they're well-practiced at chiding people about the need to take responsibility for their own actions.

Never mind that these others have taken responsibility. Many got an education. Most work every day. By and large, most folks do their part of what should be our social contract: Be a good citizen, improve yourself, contribute the skills and strength you have to the general good. That should be enough that society should treat you as one of its own without insulting you by suggesting in the end that you're asking for a handout or not taking responsibility. If anyone is not taking responsibility, it's Society. We asked these people to do these things. They did what they were asked and are now beaten up for it and told they must suffer.

Implicit in our request that people work full-time should be that they be given work that will support them. Implicit in our request that people educate themselves should be that we'll find something to do with that education. And if some jobs don't require education, let's not treat the people who go that path as if they've disappointed us. Society asks different things of different people, and we need to treat everyone who does their fair share with a certain baseline respect. We've got a ways to go on that.

Meanwhile, back in the real world, the poor are stuck in situations they didn't freely choose. As Adlai Stevenson once aptly summed it up, “A hungry man is not a free man.” In bargaining for a way to survive, there is huge inequality of bargaining power. That, in turn, makes a mockery of any notion that the poor really elect their fate, and calls into question whether it's their responsibility to fix a problems they didn't create.

As Adam Smith put it in his book The Wealth of Nations:

“It is not, however, difficult to foresee which of the two parties must, upon all ordinary occasions, have the advantage in the dispute, and force the other into a compliance with their terms. The masters, being fewer in number, can combine much more easily; and the law, besides, authorizes, or at least does not prohibit their combinations, while it prohibits those of the workmen. We have no acts of parliament against combining to lower the price of work; but many against combining to raise it. In all such disputes the masters can hold out much longer. A landlord, a farmer, a master manufacturer, a merchant, though they did not employ a single workman, could generally live a year or two upon the stocks which they have already acquired. Many workmen could not subsist a week, few could subsist a month, and scarce any a year without employment. In the long run the workman may be as necessary to his master as his master is to him; but the necessity is not so immediate.”

It therefore falls to those of us who are not economically disempowered to speak in support of those who are, to acknowledge the legitimacy of their plight, and to stop insulting them by saying they should take responsibility for their actions. Of necessity, they take responsibility each and every day. They're not failing us. We're failing them. And it's time we took some responsibility.


Author's Note: If you got value from this post, please “Share” it.

This first part of a 3-part series was originally published August 4, 2013 at Open Salon, where I wrote under my own name, Kent Pitman.

The other articles in this series were:
Lien Times for Startups (part 2)
The Overtime Loophole (part 3)

The Adam Smith quote was borrowed from the Wikipedia entry, “Inequality of Bargaining Power.” It's quite a fascinating entry full of very instructive and powerfully-expressed quotations. If you have the time, I recommend that article as important reading.

Tags (from Open Salon): politics, social contract, bankruptcy, risk, reward, responsibility, entitlement, minimum wage, living wage, education, investment, inequity, walton, wal-mart, rich, poor, wealthy, class, entrepreneur, entrepreneurship, failure, success, reward, punishment, penalty, poverty, cycle of poverty, immigration, xenophobe, xenophobia, xenophobic, jobs, employment, unemployment, stem, college, degree, tuition, cost of education, deficit, congress, bargaining, inequality of bargaining, duress, adam smith, adlai stevenson

Friday, June 3, 2011

To Serve Our Citizens

There is a recent move by Republicans to try to cut back on child labor protections. In Missouri, a Republican-sponsored bill proposes to eliminate the prohibition on employing children under 14, to eliminate restrictions on numbers of hours a child may work, to eliminate requirements for a work certificate or permit, and to eliminate the presumption that the presence of a child at a workplace is evidence of employment. In Maine and other states, Republicans have mounted related attacks on child labor laws, proposing to change the minimum wage for children and to eliminate limits on the number of hours children can work during school days.

And, of course, a couple months ago, the Wisconsin legislature passed a law eliminating collective bargaining rights for government employees. (That law was recently struck down on procedural grounds, but there is still a chance they could repair the procedural problem and try again.)

Where is all this leading? The Republicans seem to say “give us control and we’ll return the jobs.” Maybe. But so far the only structural suggestion they have is to reduce taxes on those who already have a huge amount of the wealth.

They say the words, but sometimes I wonder if we’re speaking the same language. If you’ve seen the Twilight Zone episode “To Serve Man,” you’ll know what I’m talking about when I say we should make sure we’re clear on our terminology.

Increasingly, I’m thinking the Republican plan is like this: We take our orders from Big Business, which has been offshoring jobs aplenty because they regard that it’s just too damned expensive to employ US workers and to try to achieve US standards of product and environmental quality. So when the US has pay like the third world and product and environmental standards like the third world, then they’ll start hiring here again and declare success because “the jobs have returned.”

But are they even the jobs we’re talking about?

It seems like a race to the bottom.

As recently as this weekend, I endured watching a painful interview with Rep. Eric Cantor (R-VA) on one of the Sunday talk shows. In it he alluded to how he’d been talking to Vice President Biden about restoring jobs. Already I’m dubious that Biden was making the concessions Cantor attributed to him, but even if what he said was true, that they did talk about such things, are we all talking about the same things? Which jobs are coming back? How exactly?

Yes, I hear occasional talk of numbers of jobs returned. But it’s just not true that a job is a job is a job. Don’t get me wrong, numbers are important. But so are other things.

The quality of those jobs matters, too, so when I see the Republicans talking about the need to cut education while at the same time talking about how we’ll need to make it easier to employ the uneducated in ways that don’t conform to existing labor standards, I have to wonder just what exactly this plan of theirs to restore jobs looks like.

They seem to be short on details. apparently wanting to leave it to the market to decide. If the market were going to be offering back anything with good pay and good working conditions, why would there be this all-out assault on worker protections?

Something doesn’t smell right in what the Republicans are cooking up.

Midnight at the Glassworks

The photo used here is a cropped version of a photo that is in the public domain. It was obtained from Wikipedia. The photo is one of many by master photographer Lewis Hine (1874-1940), who wanted to document the living and working conditions of his time. One would like to believe those times are past. Seeing recent Republican plans for the future, one might not be so sure. Hopefully through the power of the photograph, we can collectively remember where we were, so that we can keep from going back. To quote Hine, “Photography can light-up darkness and expose ignorance.”


Author's Note: If you got value from this post, please “Share” it.

Originally published June 3, 2011 at Open Salon, where I wrote under my own name, Kent Pitman.

Tags (from Open Salon): politics, jobs, labor, labor standards, education, child labor, labor protections, minimum wage, working conditions, offshoring, international, business, big business, multi-national business, multi-national, multi-nat, multinat, multinational, biden, joe biden, joseph biden, vp, vice president, vice president biden, cantor, eric cantor, rep cantor, representative cantor, representative eric cantor, employment, unemployment, service, serve, to serve man, to serve our citizens