Portofino Resort- Now with a new BEACH BAR!!
Topic Options
#199732 - 08/30/06 12:55 AM Devaluing Labor
Marty Online   happy
According to a report by Goldman Sachs economists, "the most important contributor to higher profit margins over the past five years has been a decline in labor's share of national income."

...my eye was recently caught by a story on Mesaba Airlines, an affiliate of Northwest, where the starting annual salary for pilots is $21,000 a year, and where the company is seeking a pay cut of 19 percent.

Devaluing Labor

By Harold Meyerson
Washington Post
Wednesday, August 30, 2006; Page A19

Labor Day is almost upon us, and like some of my fellow graybeards, I can, if I concentrate, actually remember what it was that this holiday once celebrated. Something about America being the land of broadly shared prosperity. Something about America being the first nation in human history that had a middle-class majority, where parents had every reason to think their children would fare even better than they had.

The young may be understandably incredulous, but the Great Compression, as economists call it, was the single most important social fact in our country in the decades after World War II. From 1947 through 1973, American productivity rose by a whopping 104 percent, and median family income rose by the very same 104 percent. More Americans bought homes and new cars and sent their kids to college than ever before. In ways more difficult to quantify, the mass prosperity fostered a generosity of spirit: The civil rights revolution and the Marshall Plan both emanated from an America in which most people were imbued with a sense of economic security.

That America is as dead as the dodo. Ours is the age of the Great Upward Redistribution. The median hourly wage for Americans has declined by 2 percent since 2003, though productivity has been rising handsomely. Last year, according to figures released just yesterday by the Census Bureau, wages for men declined by 1.8 percent and for women by 1.3 percent.

As a remarkable story by Steven Greenhouse and David Leonhardt in Monday's New York Times makes abundantly clear, wages and salaries now make up the lowest share of gross domestic product since 1947, when the government began measuring such things. Corporate profits, by contrast, have risen to their highest share of the GDP since the mid-'60s -- a gain that has come chiefly at the expense of American workers.

Don't take my word for it. According to a report by Goldman Sachs economists, "the most important contributor to higher profit margins over the past five years has been a decline in labor's share of national income."

As the Times story notes, the share of GDP going to profits is also at near-record highs in Western Europe and Japan.

Clearly, globalization has weakened the power of workers and begun to erode the egalitarian policies of the New Deal and social democracy that characterized the advanced industrial world in the second half of the 20th century.

For those who profit from this redistribution, there's something comforting in being able to attribute this shift to the vast, impersonal forces of globalization. The stagnant incomes of most Americans can be depicted as the inevitable outcome of events over which we have no control, like the shifting of tectonic plates.

Problem is, the declining power of the American workforce antedates the integration of China and India into the global labor pool by several decades. Since 1973 productivity gains have outpaced median family income by 3 to 1. Clearly, the war of American employers on unions, which began around that time, is also substantially responsible for the decoupling of increased corporate revenue from employees' paychecks.

But finger a corporation for exploiting its workers and you're trafficking in class warfare. Of late a number of my fellow pundits have charged that Democratic politicians concerned about the further expansion of Wal-Mart are simply pandering to unions. Wal-Mart offers low prices and jobs to economically depressed communities, they argue. What's wrong with that?

Were that all that Wal-Mart did, of course, the answer would be "nothing." But as business writer Barry Lynn demonstrated in a brilliant essay in the July issue of Harper's, Wal-Mart also exploits its position as the biggest retailer in human history -- 20 percent of all retail transactions in the United States take place at Wal-Marts, Lynn wrote -- to drive down wages and benefits all across the economy. The living standards of supermarket workers have been diminished in the process, but Wal-Mart's reach extends into manufacturing and shipping as well. Thousands of workers have been let go at Kraft, Lynn shows, due to the economies that Wal-Mart forced on the company. Of Wal-Mart's 10 top suppliers in 1994, four have filed bankruptcies.

For the bottom 90 percent of the American workforce, work just doesn't pay, or provide security, as it used to.

Devaluing labor is the very essence of our economy. I know that airlines are a particularly embattled industry, but my eye was recently caught by a story on Mesaba Airlines, an affiliate of Northwest, where the starting annual salary for pilots is $21,000 a year, and where the company is seeking a pay cut of 19 percent. Maybe Mesaba's plan is to have its pilots hit up passengers for tips.

Labor Day is almost upon us. What a joke.


#199733 - 08/30/06 01:37 PM Re: Devaluing Labor
cracked up Offline
Though 21K 1st yr F.O. pay sounds low, it is actually above the industry standard for a regional airline 1st yr first officer.

Initial training for the entry level regional airline pilot is roughly $25,000 (plus another $10 / $15k a year recurrent training costs). This cost is absorbed by the airline with the knowlage that it is likely that the candidate will not remain with them for more than a few years.

Still don't make it right though.

#199734 - 08/30/06 03:23 PM Re: Devaluing Labor
Gela Offline
I just flew on Mesaba Airlines last week and the poor pilot had to fly around a tornado in the area. I thanked them for a bumpy but safe ride as I deplaned but now I think I should have apologized for them being so underpaid and responsible for MY safety eek
Gela's AC Motto: "All Roads Used to Lead to BC's" frown


Click for excellent scuba lessons with Elbert Greer!

Things to do

Daily News
Daily Weather

Classified Ads
San Pedro Sun
Ambergris Today
SP Town Council
Channel 7
Channel 5
Love FM
The Reporter
Caye Caulker

TV Newscasts
Radio Stations

Click for our
Search thousands of Belizean-only websites

Event Guides
Event Calendar
Specials & Events
Things to Do
iTravel Belize
Paradise Theater

San Pedro Scoop!
Tia Chocolate
My Beautiful Belize
I-Travel Belize
Belize Adventure
Belize Hub
Romantic Travel
Bound for Belize
Conch Creative
As The Coconuts Drop
More Blogs...
Search thousands of Belizean-only websites
Chaa Creek is an award-winning luxury Belize Resort, rated as one of the worlds best Eco Lodges. We are a pioneer in adventure travel to Belize since 1981!
White Sands Dive Shop - 5 Star PADI Dive Facility - Daily diving, SCUBA instruction and Snorkeling
Caribbean Inspired All Natural Condiments & Spice Blends, Over 100 are Gluten Free!
We manage a variety of homes, apartments, condos and commercial properties here on Ambergris Caye. Our minimum lease on ALL properties is six months.
Conch Shell Inn: All rooms are right on the beach in the heart of San Pedro, so within walking distance to anything and everything!!
Lilí Alphonse has snorkel equipment to fit anyone as well as Marine Park Tickets and flotation devices to assist those not as experienced.
Coastal Xpress offers a daily scheduled ferry run to most resorts, restaurants and private piers on the island of Anbergris Caye. We also offer  private and charter water taxi service.
Mini Chat

Cayo Espanto
Click for Cayo Espanto, and have your own private island
More Links
Click for exciting and adventurous tours of Belize with Katie Valk!
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31
Who's Online
1 registered (Marty), 54 Guests and 7 Spiders online.
Key: Admin, Global Mod, Mod
Forum Stats
18,635 Registered Members
44 Forums
63,718 Topics
461,261 Posts

Most users ever online: 1,262 @ 06/10/07 02:16 PM

AmbergrisCaye.com CayeCaulker.org HELP! Visitor Center Goods & Services San Pedro Town
BelizeSearch.com Message Board Lodging Diving Fishing Things to Do History
BelizeNews.com Maps Phonebook Belize Business Directory
BelizeCards.com SanPedroDaily.com Picture of the Day

The opinions and views expressed on this board are the subjective opinions of Ambergris Caye Message Board members
and not of the Ambergris Caye Message Board its affiliates, or its employees.