Recently, in response to one of my blogs about the excessive salaries paid to university administrators here in the U.S., and particularly in Utah, one of my readers sent me a link to a UK site, which, interestingly enough, contained a news story about how university administrators there had received a five figure pay increase while faculty got, as I recall, less than a one percent increase, after almost a decade of essentially no pay increases. Unfortunately, this trend isn’t confined to universities; it’s also a trend in business, and that trend is to stiff the people actually doing the work and reward the executives and managers for keeping costs down and profits up – effectively by keeping pay as low as possible and piling more and more work on those under them.
Paul Krugman, the Nobel Prize-winning economist, observed just several weeks ago that the 99% versus the one percent was a highly inaccurate and deceptive depiction of income inequality, in that nine-tenths of the uppermost one percent had seen modest real gains in income, perhaps less than ten percent after inflation, accompanied by as much as a twenty-percent increase in hours worked… and that didn’t take into account that this group already worked long hours. In short, 99% of the working people in the United States have seen real wages and salaries decline, the next nine-tenths of a percent have managed modest gains in income by working much longer hours, while the income of the top tenth of one percent has skyrocketed.
To make matters worse, at least here in the United States, wealthy business types, such as the DeVos and Koch families, have embarked on what amounts to political crusade to reduce the bargaining power of “labor” at all levels – except very upper management – while also pressuring politicians at all levels to keep taxes low and to reduce support services to the poor and working poor, as well as the unemployed…and, of course, to provide a wider range of “business” tax subsidies. The result is, of course, more of what we’re already experiencing – increasing income inequality as the real income of the top tenth of one percent goes up and the real [after taxes and inflation] income of everyone else goes down, or perhaps holds steady or rises slightly for a “fortunate” few; slow, almost non-existent job growth; and an anemic economy at best.
I’m as incensed as anyone about the comparative handful of the “professional poor,” and the grifters, especially huge agribusiness combines and special interest loophole users, who employ every angle to con money from the federal government, and I’m not exactly pleased by couples who have far more offspring than they can support, and knowing that, who continue to have more children. BUT… statistics show that the majority of those receiving unemployment assistance are still looking for work… and the vast majority of working Americans are getting screwed.
Meantime, the top one tenth of one percent, such as hedge fund managers, and the DeVos and Koch families, are doing just fine, and all too many of them are trying to find ways to lower their taxes and keep down labor costs, regardless of the devastating impact on most working Americans.