aside Dear Americans, Get Real! Your Stagnant Wages / Lost Jobs Are Due To Corporate Greed/ Not Others

I am disgusted that the republican President Donald Trump and his crony GOP sycophants keep disseminating lies to hard working Americans, that it is the the other (fill in the blank from immigrants to any minority group) who are taking their jobs, when the truth is that their woes are due to the same guys selling them this BS, outright lies.

Some of the causes for over 3 decades of stagnant wages, have to do with more US goods being manufactured in other countries where the hourly pay for workers is much less; corporations developing a greater reliance in technology; and there are changes in the culture, like a greater usage by utility companies of renewable sources of energy versus fossil fuel. But guess who are making these decisions. They are the corporations executives, not the other bogeyman.

THIS IS DUE TO CORPORATE GREED/ NOT THE OTHERS LIKE IMMIGRANTS

It used to be that after WWII until 1973, corporation executives shared the spoils of increased productivity, revenues, profits with their workers.

As per the EPI Economic Policy Institute, “From WWII Until about 1973, when US corporations productivity numbers increased to about 95.65%, the average workers’ pay wages increased to about 91%. There was this consensus that as corporations increased its productivity, revenues, profits, the workers also participated in the division of the spoils.

But after 1973, corporate productivity increased by 77% but workers’ pay increased by only 12.4%. This is due to CORPORATE GREED/ NOT THE OTHERS!

The gap between productivity and a typical worker’s compensation has increased dramatically since 1973 Productivity growth and hourly compensation growth, 1948–2017

Year Hourly compensation Net productivity
1948 0.00% 0.00%
1949 6.24% 0.74%
1950 10.46% 8.77%
1951 11.74% 11.07%
1952 15.02% 14.66%
1953 20.82% 18.17%
1954 23.48% 20.47%
1955 28.69% 25.67%
1956 33.89% 27.23%
1957 37.08% 30.12%
1958 38.07% 32.48%
1959 42.46% 37.48%
1960 45.37% 40.32%
1961 47.83% 44.49%
1962 52.31% 49.66%
1963 54.85% 55.26%
1964 58.32% 59.85%
1965 62.26% 64.60%
1966 64.69% 68.64%
1967 66.67% 71.12%
1968 70.48% 76.33%
1969 74.39% 77.41%
1970 76.29% 79.19%
1971 81.65% 85.19%
1972 90.84% 90.68%
1973 90.95% 95.65%
1974 86.61% 92.46%
1975 86.46% 95.98%
1976 89.34% 100.75%
1977 92.81% 103.51%
1978 95.64% 104.96%
1979 93.23% 103.56%
1980 88.31% 102.39%
1981 87.59% 107.64%
1982 87.92% 106.87%
1983 88.48% 109.81%
1984 87.02% 116.72%
1985 86.38% 119.80%
1986 87.45% 122.96%
1987 84.66% 126.36%
1988 84.00% 131.30%
1989 83.72% 130.03%
1990 82.35% 132.23%
1991 82.00% 133.99%
1992 83.19% 141.99%
1993 83.45% 141.47%
1994 83.88% 144.41%
1995 82.75% 147.50%
1996 82.86% 153.80%
1997 84.85% 159.82%
1998 89.26% 167.48%
1999 91.97% 173.81%
2000 92.94% 181.72%
2001 95.59% 186.46%
2002 99.48% 193.07%
2003 101.56% 200.72%
2004 100.55% 208.97%
2005 99.71% 215.29%
2006 99.87% 221.08%
2007 101.44% 217.07%
2008 101.38% 213.46%
2009 109.28% 219.48%
2010 110.98% 232.25%
2011 108.45% 235.24%
2012 106.49% 241.25%
2013 108.38% 239.89%
2014 109.10% 245.04%
2015 112.44% 246.44%
2016 114.38% 243.47%
2017 114.70% 246.25%

1948–1973:Productivity: 95.7%Hourly compensation: 90.9%1973–2017: Productivity: 77.0% Hourly compensation: 12.4%

Notes: Data are for compensation (wages and benefits) of production/nonsupervisory workers in the private sector and net productivity of the total economy. “Net productivity” is the growth of output of goods and services less depreciation per hour worked.

Source: EPI analysis of unpublished Total Economy Productivity data from Bureau of Labor Statistics (BLS) Labor Productivity and Costs program, wage data from the BLS Current Employment Statistics, BLS Employment Cost Trends, BLS Consumer Price Index, and Bureau of Economic Analysis National Income and Product Accounts

Updated from Figure A in Raising America’s Pay: Why It’s Our Central Economic Policy Challenge (Bivens et al. 2014)

Productivity–Pay Tracker

Change 1973–2017:

Productivity

+77.0%

Hourly pay

+12.4%

Productivity has grown 6.2x more than pay

Related image

What happened in 1973?

Many corporate executives joined up with Koch backed organizations like ALEC, the  American Legislative Exchange Council which started in 1973 where one of their major goals was to destroy the power of worker unions in the private sector. Currently, they would love to break up the public sector unions made up of folks like teachers, fire fighters, police officers, etc.

As per a May 18, 2012 Mother Jones article by Paul Abowd, “Much of the recent controversy surrounding the American Legislative Exchange Council has focused upon the way it brings together its key members, major corporations and state legislators, to craft legislation behind closed doors. Largely unnoticed has been the influence wielded by a third group of ALEC members: think tanks.”

Image result for MEMES FOR ALEC American Legislative Exchange Council

“Two of those state-level think tanks took center stage at last weekend’s ALEC Task Force Summit in Charlotte, North Carolina. The Arizona-based Goldwater Institute and the Michigan-based Mackinac Center for Public Policy successfully shepherded five model bills through ALEC’s Commerce, Insurance, and Economic Development Task Force—all targeting public-sector unions.”

“Goldwater representative Byron Schlomach introduced two bills, one requiring that public employees annually approve their employer’s automatic deduction of union dues from paychecks. Another would prohibit union officials from taking paid leave from public-sector jobs to perform union duties.”

“The Mackinac Center sent labor policy analyst Paul Kersey to introduce three more bills targeting unions. One of those model bills is already Michigan law, requiring public-sector unions to make public audits of their financial activities. Another Mackinac proposal would require public-sector union members to vote on their union membership every three to five years, and a third would make it easier for public and private employees to decertify their unions.”

Image result for MEMES FOR ALEC American Legislative Exchange Council

“Members of the ALEC’s commerce task force confirmed that the five union bills were approved in Charlotte.”

“The think tanks’ bills will become model legislation if the group’s board of directors does not initiate a formal review of the bills within 30 days. ALEC will then likely encourage its member legislators to introduce the model bills back in their home states. Since its founding in 1973, ALEC has successfully pushed hundreds of laws at the state level. According to the its website, every year legislators introduce nearly 1,000 bills based on ALEC model legislation, and 20 percent of them become law.”

Dozens of state-based think tanks, many of them part of a Heritage Foundation-affiliated umbrella group called the State Policy Network, have long held sway within ALEC. “A very large proportion of the bills are sponsored by these think tanks,” says Nick Surgey, a legal associate at Common Cause, which claims ALEC is actually a lobbying group and is violating its nonprofit status. “But behind that next layer is another set of unknowns about who is pushing the think tanks’ agenda.”

Image result for MEMES FOR ALEC American Legislative Exchange Council

“Some, though not all, of Goldwater and Mackinac’s other financial supporters have been revealed. They have been supported with grants from the Charles Koch Charitable Foundation, the Walton Family Foundation, and the State Policy Network—groups that also fund ALEC. Together, Goldwater and Mackinac draw money from 12 of the same conservative foundations, according to analysis by Media Matters Action Network. In 2010, the last year for which information is available, the think tanks had budgets of approximately $3.5 million each.”

More ALEC Coverage From Mother Jones

To add salt to these wounds. the Republican Party legislators have very recently openly advertised that they have plans to cut back on entitlement programs like social security, Medicare, Medicaid that workers have paid towards out of their paychecks for most of their working lives.

While the republican President Donald Trump and his corporate crony buddies are selling the American peoples on the concept that those foreigners (or the others which could be any minority group) are taking away jobs, look at what they are doing:

Even though the republican President Donald J. Trump has been doing his level best to decry the fact that foreigners are taking away the jobs from Americans, he has continued to this date to hire mostly foreign help via H-2B visas (99%) to staff temporary positions (seasonal) at his many resorts, including at Mar-a-Lago.

Image result for PHOTOS OF PRESIDENT TRUMP AT MAR-A-LAGO

While he rails against US corporations going overseas to manufacture goods, the following represents his purchasing practices for his own hotel businesses.

BI Graphics_Trump Hotel Imports@2x

Added tidbits:

Many of these huge profitable corporations like International Paper and General Electric have been paying -0- dollars towards the IRS federal taxes.

Here are Some Key Findings from a 3/9/17 ITEP study that evaluated profitable companies only for an eight year period  from 2008-2015:

  • “As a group, the 258 corporations paid an effective federal income tax rate of 21.2 percent over the eight-year period, slightly over half the statutory 35 percent tax rate.”
  • “Eighteen of the corporations, including General Electric, International Paper, Priceline.com and PG&E, paid no federal income tax at all over the eight-year period. A fifth of the corporations (48) paid an effective tax rate of less than 10 percent over that period.”
  • “Of those corporations in our sample with significant offshore profits, more than half paid higher corporate tax rates to foreign governments where they operate than they paid in the United States on their U.S. profits.”

In conclusion, blaming others won’t change our less than rosy economic conditions. Instead if we all join together, our numbers create a force to be reckoned with that gives us average Joe workers tremendous power. This is what those on top would do just about anything to prevent. We do not begrudge the success of the rich but they have to learn that we cannot be ignored and easily deflected into blaming our fellow brothers and sisters who are traveling on the same boat, paddling upstream and getting nowhere Corporation executives are going to have to do their part to lift up the middle class/ poor by sharing their companies’ spoils.

We don’t have to sit back while those in the White House and the US Congress pass bills that neglect the quest for a better quality of life by average every day workers while mostly rewarding the very rich individuals and large corporations with the major 2017 tax cuts bill, while some like the republican Senator Chuck Grassley, of Utah blames us for not being rich.

This November 2018, back all Democratic candidates as they are the ones truly championing the causes like the protection of worker unions of average American workers.

5 comments

    • Dear Suzanne,

      There needs to be more education as to why the US has a shrinking middle class which is NOT due to immigrants and any other minority folks.

      Thanks a million for all of your support and for this reblog.

      Hugs, Gronda

      Liked by 1 person

  1. Gronda, there is a lot here. Between Trump, ALEC, Sinclair Broadcasting, Fox, etc., Republicans do not hear or read the real truth. After I left the GOP, I noted that over 1/2 of Republican voters are voting against their economic interests and have no idea they are. Instead of making it better, the GOP had stepped the lying playing on people’s fears.

    Using your example, Trump has stated loudly that disenfranchised areas of the country are the result of immigration and trade. These are lesser factors. The two dominant reasons are techonology advances (which continue) and CEOs chasing cheaper labor which dates back for over 100 years, but especially since the 1980s when outsourcing and offshoring heightened.

    Quite simply, a CFO said in the book “The Rich and the Rest of Us,” if a compact could get by with no employees, it would. What Trump has prescribed addresses the wrong problems and will actually make things worse. Keith

    Liked by 2 people

    • Dear Keith,

      Thanks for your added input and information.

      It’s important for hard working folks who are angry because they are losing ground in their quality of life and/ or their ability to care for their families to focus on the real reasons for their plight which has little to do with others like immigrants taking their jobs and trade issues.

      It is also important for Dems to focus on ways to lift up the middle class and to demonstrate this with real accomplishments. Words are cheap and have little value without the action to back up the words.

      Corporations cutting out their workers from the share of spoils after 1973, has been deliberately done. But the devastation and instability that this thinking has done, is immeasurable.

      They have to become party to the solution of fixing this divide.

      Hugs, Gronda

      Liked by 1 person

Comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.