Here’s a toast to all hardworking Americans! As we recently celebrated Labor Day—the holiday founded for average working Joes, not corporate titans—I thought it’d be worthwhile to see where we’ve come since the devastating Great Recession of 2007-2009.
In a nutshell, jobs are back but wages are still mired in the mud. Since President Obama took office, there have been a net 8.9 million private-sector jobs created, with a current string of 66 months of consecutive private-sector job growth (longest ever). Total net jobs created is less at 8.3 million—fewer since there’s been a net LOSS of 600,000 public-sector jobs under Obama. Yes, government has actually shrunk under Obama!
Over 8 million net jobs created is cause for celebration. To put this job growth into perspective, look no further than the comparable growth of the 35 other advanced economies of the world—countries like Germany, Japan, Canada, France, United Kingdom. The United States, since 2010, has created more jobs than these 35 countries combined!
August saw a respectable 173,000 jobs added. Under Obama unemployment has dropped from 7.8% to 5.1%. The vast majority of these 173,000 jobs were in the private sector. We need to remember, for comparison, that GW Bush had a net LOSS of 463,000 private-sector jobs in his 8 year tenure. While Bush had about 1.3 million net jobs created in his 2 terms, he was “saved” by substantially growing public-sector government jobs. Go figure! Bush grew government, Obama shrinks it. Personally, I’d like to see more teachers, police, meat plant inspectors, public health nurses, and the like. But facts are facts.
Over the past year the big job-producing sectors have been healthcare and professional/business services. You can thank “Obamacare” for some of the explosive growth in healthcare. While there’s still a nationwide shortage of nurses, therapists, and family docs, Obamacare has expedited the hiring of innumerable healthcare workers—providing more accessible and affordable healthcare to many, many millions. This is making Americans healthier and more productive. Obamacare was the right thing to do—morally and economically.
While job creation has been hot, employee wages are not. The average hourly earnings for all employees on private nonfarm payrolls is $25.09. Lately there’s been some pickup to wages, but they’re still stagnant.
In fact, inflation-adjusted wages have been stagnant since the early 1980s. And income inequality is reaching 90-year highs. Why is this? Americans keep working harder, ever-improving their productivity. Why are most workers getting squeezed? The evidence puts the blame at the corporations’ doorsteps. While working stiffs are laboring harder and increasing productivity, corporations are giving their employees less and pocketing the difference. Fortune magazine (9/1/15) notes corporate profit margins are at historic highs, while the portion of company income going to workers has steadily declined.
We all know corporate executives, defenders of the elite 1%, make ridiculous salaries. Company shareholders are given priority over employees. Plus, corporations are sitting on $trillions. Rather than raising workers’ wages, or benefits, corporations sit on their cash, often in overseas accounts. It’s simply not fair. American workers labor too hard and deserve better.
It’s also no surprise that the moribund wage growth over the last 35 years correlates directly with weakening labor unions. Corporate charters have changed too. No longer do corporations put employees and products first. Now, company charters prioritize profits and shareholder returns.
These disturbing trends and corporate behaviors need to reverse. Pressure needs to be applied, for corporations won’t change simply because it’s the right thing to do. We need to roll back undue corporate influence on policy makers in state capitols and in Washington. Workers need to once again effectively organize; municipalities need to pass progressive minimum wage laws. We as a nation need to set a higher federal minimum wage, and close unfair corporate tax loopholes and overseas tax havens. And, we need to elect more Democrats! Democrats fight for workers, Republicans fight for corporate omnipotence and personhood (remember Citizens United?).
Next Labor Day, think of the workers who made this country strong. Give yourself credit too, keep working hard, and demand a wage that’s fair and just. Good luck!
Van P. Keele
Hamilton