Take a look at this graphic to the left. I pulled this from a Christian Science Monitor article which was reporting on our new Treasury Secretary, Henry Paulson. In his first major speech last year, he declared what most of us already know to be true: the poor and middle class of our country are getting screwed while the nation's elite are prospering. "Amid this country's strong economic expansion, many Americans simply aren't feeling the benefits," Paulson said during his first major speech as Treasury secretary, at Columbia University's business school in New York on Monday. "Their increases in wages are being eaten up by high energy prices and rising health care costs, among others."
And the median wage hasn't really gone up at all. Between 2001 and 2004, the median income of Americans with college degrees rose from $72,300 to $73,000 (after adjusting for inflation), according to a Federal Reserve survey of consumer finances.
So, what does the graph mean? Well, even though we are a wealthy nation, we rank below all these other countries in the fair distribution of that wealth. I don't know about you but....Denmark? Fucking Denmark? Good Lord.
10 comments:
Yeah, what a beautiful country this is becoming. I think that the wealthy people of this country should pick up a French history book and read about what happened there in the late 18th Century.
This graphic really spells it out, doesn't it? And from the Department of the Tresury nonetheless. Super!
Thanks for the kind thoughts in the last post, downtown. Clearly anyone who rips me for not having a "real" job because I have stayed at home and taken care of my kids has:
a)never raised kids full time themselves.
b)no sensitivity whatsoever for the millions of women throughout time who have done the same thing I have done...i.e. is a sexist
and c) is flat out wrong from the basic fact that I do work part time now and pay state and federal taxes.
Boohoo...I feel just terrible.
Being called sexist is certainly an improvment over the things you normally call conservatives, so I'm moving up in the world.
(Oh, and I do have 3 kids.)
Yes, but have you ever been a full time parent for any length of time?
Instead of trying to tear down millionaires, why don't you people tell the poor and the middle class how they can succeed in life.
Maybe give some life advice that is proactive.
RLD,
What would you tell them?
You should tell them to not get their hopes up too high, that there are some positions open to them in the sanitation and food service industries and that for god's sake don't expect any health insurance or benefits or to be in that job for more than a couple years. You can also tell them to get to school so that they can learn a profession that will leave them open for a job market that won't pay their high end salary (high end compared to that of say India or China) so that they don't have alot of options even with an education and training.
Once again it comes down to a very simple fact...it may be nice to talk about the unfairness of spreading the wealth around, but the reality is that if it doesn't happen you will see continued increases in the crime rate, prisons filled beyond the breaking point and continued social decay that will start with racial tensions, but will culminate in class war. History tells us that people will accept a certain level of inequality, when it reaches a critical mass, there is change...sometimes it is controlled, other times it is not.
I’d tell them to plan for a good career and to take responsibility for preparing themselves through education in order to make themselves a more valuable commodity in the workforce. Doesn’t have to be at the collegiate level either – there will always be a demand for building trades.
I’d tell them to not have kids until the age of 30 and to put off marriage until the age of 30. Married people with children at home are the biggest group of people filing bankruptcy. So many people get a big salary raise and the first thing they do is up their expenses by buying opportunities for their children – bigger house in the suburbs, another vehicle, etc. I’d also have them question the idea of marriage and children altogether, as many in society these days already are. If they do get married, I’d advise they marry someone who shares their economic values. If your potential spouse has a mountain of debt and unpaid credit card bills you will be in for a long, hard road when your finances are combined.
I’d tell them to learn the value of saving money. I’d remind them that making money is not the same as having money. I’d remind them that nobody is guaranteed a high end salary.
I’d advise them against accumulating debt. Someone who borrows money to buy something will always pay more than the person who doesn’t. The 2 biggest culprits are credit card debt and car loans. If you never make a car payment in your life you will spend half of what everyone else spends on cars for the rest of their lives. Pay cash for your cars and only buy what you can afford.
I’d advise them against risk taking. Insurance is necessary (increase your deductible if necessary), saving for emergencies in necessary, keeping your job is necessary, grades and graduation are critical, don’t drink and drive, don’t do drugs or smoke, be honest and pay your taxes.
Get on your employers 401K plan. That is one of the greatest wealth builders out there. Many people who started in on these when they became the norm retired with over $1 million in them.
I’d tell them that if they decide to do what they love they will probably starve. We've been sold a bill of goods when we're told to "Follow your passion". Yes, some people do what they love and the money follows. Others make less money but still are happy, but millions of people have followed their passion and still haven't earned enough money to even pay back their student loans, let alone make a middle-class living doing what they're passionate about.
The problem is that too many people crave the same few careers, for example, the arts and non-profit work. Because employers in these fields get dozens if not hundreds of applications for each job, you have to be a superstar or extremely well-connected to get the job. In other cases, salaries tend to be low or nonexistent. Do what you love and volunteer work will probably follow.
The irony is that the small percentage of people who do make a living in "do-what-you-love," "follow-your-passion" careers, are on average, no happier than people in less sexy jobs. Here's why. Not only do salaries in "cool" careers tend to be low, employers in those fields know they needn't treat their employees with kid gloves because zillions of other capable people are panting for the opportunity to work 60 hours a week for $27,521 (with no benefits) for the good feeling of knowing they're playing an infinitesimal role in saving the spotted owl or whatever, even though they may never get closer to a spotted owl than a pile of accounts receivable statements.
I’d advise against having a passion for status. So many people endure years of boring law school and accumulate boatloads of student debt for the privilege of slaving under a 2,200-billable-hour quota for the law firm of Dewey, Cheatham and Howe, with a futon in their office so they can sneak in a few "zzzs" in the middle of the all-nighters they pull to boost the chances of another lawyer's corporate client giving money to their corporate client.
Other status seekers are too focused on climbing the corporate ladder. They put in 60-plus-hour workweeks and kiss up to their bosses, smilingly willing to uproot themselves and their families for a few years in Dubuque, Tuscaloosa, and/or anyplace else the company wants to dump them. They endure years of theoretical crap in an MBA program so they can put those three letters on their resume. And for what? So they may finally get a title of director or vice president, and after their 12-hour cover-their-butt workday, collapse on their sofa, get blitzed and stare at their oversized living room in their oversized neighborhood wondering, "Is that all there is?"
In contrast, if your job is mundane, for example, accounts payable manager for the Ace Processing Company, the employer knows there aren't hundreds of people champing at the bit for your job. So, to keep you, the employer is more likely to offer halfway decent working conditions, reasonable work hours, kind treatment, opportunities for learning, and pay you well. Those are the things that, much more than being in a "cool" career, lead to career contentment.
You say you want status? Unless you're a true superstar (brilliant, driven, great personality, or have great connections), give it up. Status is often the enemy of success. You're more likely to find career contentment in a lower-status career. If someone thinks less of you because your job isn't high-status, those people aren't your friends.
If you're at all entrepreneurial, I recommend starting your own business. Yes, I know, only 20 percent of new businesses are still in business after five years, but you can beat the odds. Just this one rule: Do not innovate. Copy a successful simple business. Innovations are risky. Your product might not work, may not be popular with the public, or a competitor could beat you to market. Why be a guinea pig? Drive around to find a simple business at which customers are lined up out the door. For example, see a successful burrito shop or espresso cart? Open a similar one in a similar neighborhood. Your chances of success will be a helluva lot higher than 20 percent. Confine your urge to innovate to your hobbies.
Another approach to finding a good business is to pick a grungy one, for example, automatic transmission repair or mobile home park maintenance. Few top-notch people go into such businesses, so if you do a decent job, you'll probably make pretty good money.
You say you don't have the knowledge to run such a business? No problem. For example, I don't know squat about transmissions, but if I wanted to open a transmission shop, I'd find the best transmission mechanic, pay him well and hire a consultant who is the owner a successful transmission shop far enough from my store that he wouldn't fear my competition. The two of them would teach me how to set up my business. Then, I'd spend my time building relationships with car repair shop owners so I'd get their referral business.
If you're not at all entrepreneurial and want to be well employed, there are always areas where the job market is not hypercompetitive: Court reporting, car finance & insurance, accounting, insurance, sales of little known commercial products, health care, health care administration, fundraising, financial services, anything serving Latinos (entertainment, schools, hospitals, criminal justice system), and maybe biotech regulatory affairs.
Just some thoughts that people can work with.
Some good thoughts, rld. Thanks for putting so much effort into a well written post. I hope you continue to post here and maybe you should take some of your ideas to the state government. Sometimes simple logic can work.
Thank you RLD.
God Bless America....still the land of opportunity.
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