Wednesday, August 7, 2013
There has been a lot of "chatter" (to borrow a misused word) on Facebook about the difference between Costco and Wal Mart. Costco has been outperforming Wal Mart while paying its workers an average of over $20 an hour, plus some good benefits. Wal Mart pays its workers an average of under $13 and many Wal Mart employees are on food stamps.
I've also been seeing reference to Australia, where the minimum wage is much higher than in the US, while the unemployment rate is about two points lower.
We have a Democratic president who is going around proposing more tax cuts for the wealthy, and more spending cuts, which is the exact opposite of what you'd do if you wanted to stimulate the economy, and exactly what you'd do if you wanted to discipline the worforce by keeping growth at near zero percent.
Zero growth is fine with the ruling class. Stocks and profits are at record highs, fueled by lower wages and quantitative easing, the program of printing money -- i.e. running up the working class credit card -- to fuel the stock market. In the face of this the president has the gall to talk about "revenue neutral" tax cuts, meaning he intends to go after the social welfare net again -- Medicare, Social Security, the safety net in general -- in other words transfer more wealth from the ones least well off to the ones most well off. I've recorded his history of doing this even if it's not often reflected in the corporate media. Try putting "Social Security" in the search box on the right. This man should be thrown out of the Democratic Party along with most of congress.
The massive transfer of wealth and income upward -- we are back at 1920s Gilded Age levels -- has been the hallmark issue of our time. You might think you're doing OK, compared to those around you, but our share of GDP is at an all time low. After 30 years of what's called in some quarters Neoliberalsim -- it's basically Reaganomics -- we are well on our way to being a third world nation.