I was reading somewhere that fifty percent of Americans are now working for $10 an hour. Down the road that’s bad for the American economy.
Worse, most of the new jobs being created are low-wage part-time jobs in the service sector. And most service sector jobs like fast food, retail and customer service are engineered to turn over in 90 to 180 days.
And the value of that $10 isn’t what it used to be. $10 in America is worth about $5 in 1990’s money and $2 in 1970’s money.
The American economy is on a trajectory to collapse. When one does the math the economic system is just not making enough money to sustain itself. When half the people in the country are making a dollar or two more than minimum wage, that’s not enough money to sustain the United States economy long-term.
People making $10 an hour in jobs that only last anywhere from 90 to 180 days aren’t going to be able to build our economy. A person working in a retail, fast food or customer service job isn’t getting the skills they can build on to take to another employer or start their own business. Six months into a job a person is barely learning how things go in a company; that’s not enough time to build valuable work experience.
And with the way jobs turnover in two to four years in the American job market, American workers aren’t developing the experience necessary to develop proficiency in a trade or a craft. Most people these days know next to nothing about the businesses they work for or how their work relates to other businesses or even their own customers! It usually takes five to ten years to get the kind of experience where someone is a skilled craftsperson in their work, and today’s job market and its high turnover isn’t helping to create the kinds of workers with the kind of expertise.
Businesses that pay $10 an hour that create jobs that are only designed to last 90 to 180 days aren’t going to be able to sustain the economy long-term. Usually most retail, fast-food or customer service businesses go out of business in 10-15 years. That’s not the kind of business that can help Americans pay for a 30-year mortgage or even a five-year car note or start a family.
That’s why so many people under 35 are still living at home with their parents. Even with a college education, they just don’t make enough money to start living on their own. Compound these low-wage jobs with six-figure student loan debt and it’s a recipe for disaster for the United States economy.
A person making $10 an hour working for 20-25 hours a week isn’t going to pay enough money in taxes to sustain a government and pay for services like roads, fire departments, law enforcement, or traffic lights.
Nor will they make enough money to pay for entitlements like Social Security, Medicare. Senior citizens on fixed incomes have no idea that the money that pays for their retirement benefits is coming from the taxes of those young workers.
And they don’t make enough money to pay for big ticket items such as cars, homes, or expensive high-end appliances. Again, it’s hard to even think of buying a home or a car when you don’t even have enough money left over after paying for a week’s worth of trips on mass transit or putting gas in your car.
Long-term this service-based American economy will eventually cripple not only America’s economy but the global market as well. Americans If 50 percent of middle-class Americans aren’t making enough money to buy the cheap imported goods from the third world, then where are those foreign manufacturers going to get the millions of consumers to buy the products that keep their factories that manufacture those cheap goods running?
And if there is no American middle class to buy cheap imported consumer goods to pay for the cheap labor factories, where are the American companies going to get the money to pay all those wonderful seven figure salaries and bonuses American executives enjoy?
Americans are so disconnected that they have no understanding of how everything in their economic system is interconnected. If one part of the U.S. Economy falls apart, the entire thing will eventually fall apart. Low-wage part-time American workers can’t make enough money to keep rich American businessmen profitiable. Low-Wage part-time American workers can’t make enough money to pay the taxes that allow government to sustain itself.
For all the educated eggheads out there no one is smart enough to see this.
The American service economy created in the early 1980s is clearly unsustainable now. It’s an economic model that’s clearly obsolete. Services can’t be sold or exported. They’re intangible. They have no long-term value. They can’t be used to build wealth. It’s an economic system that does not create jobs that enable people to develop skills to create tangible goods and services.
The service model only creates consumers. Consumers who now only buy goods and from companies who produce cheap imported goods, not American manufacturers. So none of the money stays in the American economic system.
Without a manufacturing base to supplement services, the American economy won’t be able to compete in the global marketplace with countries like China and Russia. The value of the American dollar is dropping every day while the value of foreign currencies go up. Ten dollars in Euros, Rubles, or Chinese money buys more than $10 in American money. So all an American workers wages in those service sector jobs is not helping them get ahead, but left behind.
When half the country is working for $10 an hour or less and the money has less spending power than it did 20 years ago, sooner or later America is going to go bankrupt.
As long as a growing majority of Americans are working in low-wage service sector jobs they can’t get the skills they can use to develop a craft or to develop a business that produce goods and services that can be sold and exported. Unless American companies start creating the right jobs, America’s economy will never pull itself out of the slump it’s been in for almost seven years.
Worse, most of the new jobs being created are low-wage part-time jobs in the service sector. And most service sector jobs like fast food, retail and customer service are engineered to turn over in 90 to 180 days.
And the value of that $10 isn’t what it used to be. $10 in America is worth about $5 in 1990’s money and $2 in 1970’s money.
The American economy is on a trajectory to collapse. When one does the math the economic system is just not making enough money to sustain itself. When half the people in the country are making a dollar or two more than minimum wage, that’s not enough money to sustain the United States economy long-term.
People making $10 an hour in jobs that only last anywhere from 90 to 180 days aren’t going to be able to build our economy. A person working in a retail, fast food or customer service job isn’t getting the skills they can build on to take to another employer or start their own business. Six months into a job a person is barely learning how things go in a company; that’s not enough time to build valuable work experience.
And with the way jobs turnover in two to four years in the American job market, American workers aren’t developing the experience necessary to develop proficiency in a trade or a craft. Most people these days know next to nothing about the businesses they work for or how their work relates to other businesses or even their own customers! It usually takes five to ten years to get the kind of experience where someone is a skilled craftsperson in their work, and today’s job market and its high turnover isn’t helping to create the kinds of workers with the kind of expertise.
Businesses that pay $10 an hour that create jobs that are only designed to last 90 to 180 days aren’t going to be able to sustain the economy long-term. Usually most retail, fast-food or customer service businesses go out of business in 10-15 years. That’s not the kind of business that can help Americans pay for a 30-year mortgage or even a five-year car note or start a family.
That’s why so many people under 35 are still living at home with their parents. Even with a college education, they just don’t make enough money to start living on their own. Compound these low-wage jobs with six-figure student loan debt and it’s a recipe for disaster for the United States economy.
A person making $10 an hour working for 20-25 hours a week isn’t going to pay enough money in taxes to sustain a government and pay for services like roads, fire departments, law enforcement, or traffic lights.
Nor will they make enough money to pay for entitlements like Social Security, Medicare. Senior citizens on fixed incomes have no idea that the money that pays for their retirement benefits is coming from the taxes of those young workers.
And they don’t make enough money to pay for big ticket items such as cars, homes, or expensive high-end appliances. Again, it’s hard to even think of buying a home or a car when you don’t even have enough money left over after paying for a week’s worth of trips on mass transit or putting gas in your car.
Long-term this service-based American economy will eventually cripple not only America’s economy but the global market as well. Americans If 50 percent of middle-class Americans aren’t making enough money to buy the cheap imported goods from the third world, then where are those foreign manufacturers going to get the millions of consumers to buy the products that keep their factories that manufacture those cheap goods running?
And if there is no American middle class to buy cheap imported consumer goods to pay for the cheap labor factories, where are the American companies going to get the money to pay all those wonderful seven figure salaries and bonuses American executives enjoy?
Americans are so disconnected that they have no understanding of how everything in their economic system is interconnected. If one part of the U.S. Economy falls apart, the entire thing will eventually fall apart. Low-wage part-time American workers can’t make enough money to keep rich American businessmen profitiable. Low-Wage part-time American workers can’t make enough money to pay the taxes that allow government to sustain itself.
For all the educated eggheads out there no one is smart enough to see this.
The American service economy created in the early 1980s is clearly unsustainable now. It’s an economic model that’s clearly obsolete. Services can’t be sold or exported. They’re intangible. They have no long-term value. They can’t be used to build wealth. It’s an economic system that does not create jobs that enable people to develop skills to create tangible goods and services.
The service model only creates consumers. Consumers who now only buy goods and from companies who produce cheap imported goods, not American manufacturers. So none of the money stays in the American economic system.
Without a manufacturing base to supplement services, the American economy won’t be able to compete in the global marketplace with countries like China and Russia. The value of the American dollar is dropping every day while the value of foreign currencies go up. Ten dollars in Euros, Rubles, or Chinese money buys more than $10 in American money. So all an American workers wages in those service sector jobs is not helping them get ahead, but left behind.
When half the country is working for $10 an hour or less and the money has less spending power than it did 20 years ago, sooner or later America is going to go bankrupt.
As long as a growing majority of Americans are working in low-wage service sector jobs they can’t get the skills they can use to develop a craft or to develop a business that produce goods and services that can be sold and exported. Unless American companies start creating the right jobs, America’s economy will never pull itself out of the slump it’s been in for almost seven years.
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