Back when I studied economics, we “proved” in class that a minimum wage causes unemployment. But that proof depends on assuming a perfectly competitive market. Big low-wage employers like Wal-Mart have substantial market power; they can deliberately under-staff operations to force down wages. In that case, a minimum wage increase can actually create jobs–if it can be enforced.
The inequality and growth debate is a red herring. It just doesn’t matter. The problem is inequality, and its solution is simple.
For the past forty years American men’s incomes have stagnated, but women’s wages have risen. Unfortunately, the years of catch-up are now over. We need policies to raise wages for everyone.
If only the three big forces of American politics would faithfully serve their constituents, the 2012 election could be about real choice. Instead we have Mitt Romney versus Barack Obama.
The fact that the average American household today has an income of $50,000 instead of $100,000 can be attributed entirely to the fact that inequality has risen over the past four decades instead of declining.
The US economy has been growing since July 2009. So why aren’t things improving in the US realonomy?
All workers should pay Social Security taxes, including those with six, seven, and eight figure incomes.
Government workers are standing against a wave of austerity that threatens to swamp us all.
Here in the United States, corporations treat their workers as adversaries. Not so in Finland.
Americans have long experience of companies cutting benefits, cutting wages, and trying to prevent workers from joining unions. Few workers in America have been hit harder than aviation workers.