Poverty nation: How America created a low-wage work swamp

This article seems to be suggesting some kind of pattern that connects lower wages and general welfare.

It cites quite a few examples where many large corporations use low paid workers who also simultaneously collect various forms of welfare like Medicaid, food stamps and Earned Income Tax Credits.

Large outfits like McDonald’s, Wal-MArt, as well as others including some banks seem to be the major culprits.

Perhaps this is evidence of corporatism ?

Is this a plot to keep profits higher and at the same time force taxpayers to fund extra living expenses of the low wage workforce ?

Would elimination of all tax on low wages allow low wage workers to be self sufficient without "help" ?

Details and names are in the story.....
Poverty nation: How America created a low-wage work swamp

For decades, both parties supplanted a push for higher wages with well-intended public aid. The result: calamity

2013 is the year many Americans discovered the crisis of the working poor. It turns out it’s also the crisis of the welfare poor. That’s tough for us: Americans notoriously hate welfare, unless it’s called something else and/or benefits us personally. We think it’s for slackers and moochers and people who won’t pull their weight. ....


But it’s not just fast food and Wal-Mart: One in three bank tellers receives public assistance the Committee for Better Banks revealed last week, at a cost of almost a billion dollars annually in federal, state and local assistance. That’s right: One of the nation’s most profitable, privileged and high-prestige industries, banking, pays a sector of its workers shockingly low wages and relies on taxpayers to lift them out of poverty. In New York alone, 40 percent of bank tellers and their family members receive public assistance, costing $112 million in state and federal benefits.


Poverty nation: How America created a low-wage work swamp

xuenchen

Would elimination of all tax on low wages allow low wage workers to be self sufficient without "help" ?

No.
It would simply serve to remove the need for reform and would underwrite the profits for the very companies you are discussing.

A hallmark of industry that receives government subsidies also tend to pay minimum or low wages. These same industries make massive profits. These same industries give untold millions to political parties and campaigns. These same industries influence congress into making more laws that benefit there corporations. Conservatives are taught by the right wing media to hate the poor because they are stealing from them and they don't support welfare for the people, but do support it for business.

Perhaps this is evidence of corporatism ?

Perhaps? Are you joking? It is absolute evidence of Corporatism. It's not just the U.S, it's the majority of World's nations. There are several exemptions, but not many. They have the workers by the short and curlies and absolutely detest the idea of workers unions. And the politicians speak out on their behalf, demonising unions and workers rights.

A perfect example of this is how the Tories bleat about a democratic vote to call industrial action. They whinge about the percentage of members that vote, which is usually around 20 - 35% in most instances and claim it's not a fair representation. But it's okay when it comes to the political system. Take Bristol, my own Town. Just over a year ago the people had the opportunity to vote for a Mayor. A relatively new concept in the U.K, but none the less another role the U.K Government is keen on introducing. Now around 20% of the population voted in this election, around about the same as a typical union vote. Not one politician spoke about the percentages who voted, it was all applause and congratulations.

It's the entire hypocrisy of politicians that grinds my gears, and it seems to have become more and more prominent over the last few years.

Once Governments start subsidising wages you know that the Corps are in control.

reply to post by xuenchen


That is where the competition between companies in certain sectors leads to. In the competitive environment, the company, who can sell at lowest price, wins. At some point simply the corporations realised, that the easiest way to cut costs is not innovation, but paying the employees less. Majority of clients don´t care, as long as they get their products at good price, never thinking much on what creates the low prices.

Without government intrusion to the market by setting a minimum wage, the problem will never get fixed. At the end, the people create value significantly more than the minimum wage, although the value is not added to their salary in order to lower the prices or add to extra profits.

Market itself will never balance itself out, especially in current economical situation and many companies are simply taking advantage of it by lowering their salaries even more. Considering the amount of unemployed, there will always be another one to take for the low-paying job.

I think we need to raise minimum wage but only make it mandatory for businesses with over 50 employees or so. That would give start ups a hand while helping alleviate the tax burden on those making better wages.

You're right Xenchuen, it's another method of subsidizing big corporations.
Personally, I think we need to increase taxes on those who only make money by investment or stock ownership.
Also a small tax on all stock transactions would go far to help.

What we are now enjoying in the workplace is the result of tireless effort by the neocons to create the Corpratracy.
The Republican wet dream of big business calling the shots is now a reality. Are you happy now??

www.thomhartmann.com...

www.heartcom.org...

one more....

www.batr.org...

It's going to get real nasty for the middle class!

But hey, let's blame it all on Obama!! The convenient scapegoat for all that's wrong in America!!

reply to post by xuenchen


It’s a deliberate worldwide conspiracy to bring the western world to serfdom.

America is going the way of Europe’s austerity in a deliberate conspiracy by the political parties.

They play the good( dems) bad cop( GOP) scam on the American people and what happens is that the corporations just get more money, power and control and wages, jobs, and growth goes to naught.

On issues such as abortion, stem cell research, affirmative action, welfare reform, issues the elite could really care less about and other peripheral matters it is clear the elite allow their political puppets to argue over and pursue the left/right struggle bs issues thereby fooling the American people that these politicians actually have sincere beliefs.
Nothing is further form the truth, for the average politician, such as George Bush and Barack Obama, cares about one thing—their own ass.

The American people don’t realize that it is the tax and trade policies that have ruined this country and these other left/right issues are BS distractions while the Corporations get more power and wealth and the politicians ALL get wealthy by being bribed by these mercenary international corporations.

Busting unions is one thing that lead to lower wages.
Then you have job scarcity due to computerized machines that do what manual/unskilled/skilled laborers used to do.
Job scarcity means you can pay less and hound people that they should feel lucky to have their low paying job at all.
But now that there are no unions worth much, except for maybe the teamsters, the others (low wage slaves) cannot fight big corp alone.
Small businesses and heck, even moderately big businesses (see JCPenney, K-Mart, Sears) cannot compete with the mega giants.
Mom and Pop shops just cannot compete with the Mega Low Mart.
There is a reason why big corporations used to be illegal in the US and we would break them up to avoid monopolies...
But hey, I got my stake just in time, too bad for my kids.

reply to post by xuenchen


Interesting isn't it if you look at the current minimum wages, the push to force those jobs under 30 hours per week, throw in taxes you have a ready pool of people at the federal poverty line. Got to keep the slaves in their place.

$9 (wage) X 29 hrs/week X 50 weeks /year = $13050 per year
Deduct 15% for random taxes = $11092.50 net income
US federal poverty line (1 person) = $11,490

They've got it all worked out. Of course it could be coincidence.

Bassago
reply to post by xuenchen

 

Interesting isn't it if you look at the current minimum wages, the push to force those jobs under 30 hours per week, throw in taxes you have a ready pool of people at the federal poverty line. Got to keep the slaves in their place.

$9 (wage) X 29 hrs/week X 50 weeks /year = $13050 per year
Deduct 15% for random taxes = $11092.50 net income
US federal poverty line (1 person) = $11,490

They've got it all worked out. Of course it could be coincidence.

edit on 981pm5555pm42013 by Bassago because: (no reason given)

Total coincidence, 'God bless America' 'God bless the Queen' 'God bless ze fatherland' I could go on, but it will only read the same.

When I was in 6th thru 8th grade , I had TWO paPer routes,but now 35 old man have paper routes.

When I was 15 I worked at Kentucky Fried Chicken. None of the hourly people were over the age of 24, none of us had kids or family to support.

You are blaming the wrong Industries. Blame the loss of manufacturing on global lose em ( what an appropriate auto correct of globalism) and NAFTA