The economy by many measures is chugging along fine. The problem is the way much of the working class don’t have access to good jobs that can pay a livable wage. There are numerous reasons for that, including inadequacies in our educational & training systems. A basic fundamental flaw is within the overall compensation structure itself, as the evolution of our capitalistic system has resulted in capital being compensated substantially more than labor, while corporate management & shareholders have gained significant leverage/power over their employees. It won’t be easy to upset the apple cart as wealthy donors have tremendous influence over governing leadership in our increasingly pay-to-play crony capitalist system, but it will ultimately take a total restructuring of the standard order of things to finally restore the middle class & American Dream throughout all sectors in our society. It matters little if unemployment keeps going down as GDP goes up, the economic system is flawed at its core without shared economic growth where all have access to opportunity.
The average hourly wage paid to a key group of American workers has fallen from last year when accounting for inflation, as an economy that appears strong by several measures continues to fail to create bigger paychecks, the federal government said Tuesday. For workers in “production and nonsupervisory” positions, the value of the average paycheck has declined in the past year. For those workers, average “real wages” — a measure of pay that takes inflation into account — fell from $22.62 in May 2017 to $22.59 in May 2018, the Bureau of Labor Statistics said. This pool of workers includes those in manufacturing and construction jobs, as well as all “nonsupervisory” workers in service industries such health care or fast food. The group accounts for about four-fifths of the privately employed workers in America, according to BLS. Without adjusting for inflation, these “nonsupervisory” workers saw their average hourly earnings jump 2.8 percent from last year. But that was not enough to keep pace with the 2.9 percent increase in inflation, which economists attributed to rising gas prices.
“This is very likely because of the spike in oil prices eating into inflation-adjusted earnings,” said Allen Sinai, chief global economist and strategist at Decision Economics. “We pay for energy-related costs out of our wages, out of our compensation. And it’s making a real impact.” The fall in those wages has alarmed some economists, who say paychecks should be getting fatter at a time when unemployment is low and businesses are hiring. “This is odd and remarkable,” said Steven Kyle, an economist at Cornell University. “You would not normally see this kind of thing unless there were some kind of external shock, like a bad hurricane season, but we haven’t had that.” The falling wages promise to exacerbate historic levels of U.S. inequality. Within the labor force, it means workers who were already making less are falling further behind. And if private laborers as a whole are seeing their earnings flatten while the economy as a whole grows at an annual rate of more than 2 percent, that means the gains are going almost exclusively to people already at the top of the economic ladder, economists say.
“The extra growth we are seeing in the economy is going somewhere: to capital owners and people at the top of the income distribution,” said Heidi Shierholz, director of policy at the Economic Policy Institute and a former chief economist at the Labor Department, noting workers’ share of corporate income remained relatively low as of January. “And what we’ve seen is in recent period a much higher share of total income earned going to owners of capital.”
But why is wage growth so tepid? This problem is not new: Slow wage growth bedeviled the Obama administration, as well. Economists broadly disagree about the cause of persistently weak wage growth, offering a variety of possible explanations. Ernie Tedeschi, a former treasury official under President Barack Obama, said the unemployment rate may create a misleadingly positive impression of the health of the jobs market, given how many Americans dropped out of the labor force during the Great Recession.
“The economy,” Federal Reserve Chairman Jerome Powell declared this week, “is doing very well.” And it is. Steady hiring has shrunk unemployment to 3.8 percent — the lowest since the 1960′s. Consumers are spending. Taxes are down. Inflation is tame. Factories are busy. Demand for homes is strong. Household wealth is up. Yet the numbers that collectively sketch a picture of a vibrant economy don’t reflect reality for a range of Americans who still feel far from financially secure even nine years into an economic expansion. From drivers paying more for gas and families bearing heavier child care costs to workers still awaiting decent pay raises and couples struggling to afford a home, people throughout the economy are straining to succeed despite the economy’s gains. When analysts at Oxford Economics recently studied American spending patterns, they found that the bottom 60 percent of earners was essentially drawing on their savings just to maintain their lifestyles. Their incomes weren’t enough to cover expenses. “Many people are still living on a paycheck-to-paycheck basis,” said Gregory Daco, head of U.S. economics at Oxford. Daco and other economists describe the economy as fundamentally healthy, a testament to the durable recovery from the 2008 financial crisis. The job market, in particular, is booming. But even many people who have jobs and are in little danger of losing them feel burdened and uneasy.Problem is, America’s wealth is increasingly lopsided, with the affluent and the ultra-wealthy amassing rising proportions and everyone else benefiting modestly if at all. The top 10 percent of the country holds 73 percent of its wealth, a share that has crept steadily up since 1986, according to the World Inequality Database. The most sweeping gains are concentrated among the top 1 percent; this group holds nearly 39 percent of the wealth. And they’re arguably poised to become even more prosperous because Trump’s tax cuts largely favored the wealthiest slice of individual taxpayers. Contrast that with the middle 40 percent of the country, a group that would historically be considered middle class. In 1986, they held 36 percent of the country’s wealth; now, it’s just 27 percent. Worse off is the bottom 40 percent of Americans: They have a negative net worth and almost no financial cushion in case of an emergency. Most Americans can’t draw on stocks, rental properties, capital gains or significant home equity to generate cash. They depend almost exclusively on wages. And after adjusting for inflation, the government reported that Americans’ average hourly earnings haven’t budged over the past 12 months.
When Republicans in Congress passed a big, fat tax break bill in December, they insisted it meant American workers would be singing “Happy Days Are Here Again” all the way to the bank. The payoff from the tax cut would be raises totaling $4000 to $9000, the President’s Council of Economic Advisors assured workers. But something bad happened to workers on their way to the repository. They never got that money. In fact, their real wages declined because of higher inflation. At the same time, the amount workers had to pay in interest on loans for cars and credit cards increased. So now, workers across America are wondering, “Where’s that raise?” It’s nowhere to be found.
The U.S. Bureau of Labor statistics reported this week that wages for production and nonsupervisory workers decreased by 0.1% from May 2017 to May 2018 when inflation is factored in. The compensation for all workers together, including supervisors, rose an underwhelming 0.1 percent from April 2018 to May 2018. That’s not what Congressional Republicans promised workers. They said corporations, which got the biggest, fattest tax cuts of all, would use that extra money to increase wages. Some workers got one-time bonuses and an even smaller number received raises. But not many. The group, Americans for Tax Fairness, estimates it’s 4.3% of all U.S. workers. Most of the money went to stock buybacks, which enrich corporate executives and wealthy stock holders because they have the effect of raising stock values. Corporations set an all-time record for buybacks in the first quarter of this year. They bought $178 billion of their own shares, up by more than 42 percent from the first quarter in 2017.
Polls suggest that the public considers health care the most important issue in the midterm elections. This immediately raises the question: Do voters understand what’s at stake? In particular, do they realize that if Republicans hold Congress, they will strip away protections for the 52 million Americans — more than a quarter of nonelderly adults — who have pre-existing conditions that, before passage of the Affordable Care Act, could have led insurers to deny them coverage? It’s a clear signal of Republican priorities: G.O.P. to Americans with health problems: Drop dead.
So demands that the A.C.A. be scrapped always meant taking away coverage from the people who need it most; Obamacare opponents just hoped people wouldn’t notice that fact. And the truth is that they mostly got away with it until last year, when Republicans had to offer specific health care legislation. At that point the game was up. It immediately became clear that every Republican alternative to Obamacare would, in fact, hang Americans with pre-existing conditions out to dry. And the public backlash against that revelation is basically the reason the G.O.P.’s repeal effort failed. But it only failed narrowly. And if Republicans still hold Congress next year, anyone who has a history of medical problems and doesn’t get health insurance from his or her employer will lose coverage.
So at the risk of being wrong again — an occupational hazard for all opinion columnists — allow me to ring a faint alarm on inflation once again. This time, I’m spurred by a recent conversation with a veteran of America’s freight-hauling industry, a bellwether sector given the number of lives it directly affects. For a variety of reasons, trucking prices have gone through the roof over the past year, with no end to the upward trend in sight. The problem starts with a shortage of drivers. Interstate truckers have a long history as the ill-treated workhorses of the U.S. economy — underpaid, disrespected, pressured to put in long hours and battling loneliness far from home. With unemployment down to unusually low levels, blue-collar workers have plenty of alternatives to this life. According to a report last year for the American Trucking Associations, U.S. freight companies were short by about 50,000 drivers last year. Given that the median age of private-company drivers is 52 and that young Americans are shunning the field, the shortage could more than triple by 2026. Widespread adoption of self-driving trucks is too remote to offset the problem. This explains the sign-on bonuses that major freight haulers are offering to new drivers. The going rate, according to one industry insider, has climbed tenfold over the past couple of years, from $1,500 to as much as $15,000, collectible after six months on the road. The chance to collect two bonuses per year is fueling rampant driver turnover: as high as 95% annually at major fleets.
Important safety advances are adding to the labor shortage, most notably the new requirement that rigs be equipped with an electronic logging device, or ELD. Designed to tame the problem of overtired drivers skirting federal requirements for adequate rest, the tamper-proof ELDs record precisely the number of hours each driver has been on the road in a given day. My new friend from the freight industry estimates that more than 800,000 noncompliant trucks were pulled from circulation when ELD enforcement began on April 1. These trends, along with rising fuel costs and strong consumer demand for shipped goods, are driving the price of freight sky high — up from last year by about four times the rate of inflation, and the worst may be yet to come. Demand for truck space is growing while supply is shrinking. Given that 70% of America’s freight moves by highway, this runaway cost engine is felt in all corners of the economy. At a time when high stock prices reflect expectations of growing corporate earnings, one manufacturer after another has reported that freight costs are weighing noticeably on profits. The story repeats itself across the iconic brands of America’s grocery stores: Coca-Cola, Hershey, General Mills, Tyson, Procter & Gamble. You name it. The heat from this inflationary fire is singeing farmers, food processors, manufacturers, big-box stores, restaurants, and e-commerce giants such as Walmart and Amazon (whose founder and chief executive, Jeffrey P. Bezos, also owns The Post).
Zero tolerance means that people caught crossing the border are treated as criminals, charged accordingly and incarcerated pending trial and sentencing. As one would expect, children don’t go to jail with their parents. Thus, the children are separated and housed in secure, makeshift shelters, including a converted former Walmart in Brownsville, Tex. Appalling.
Maybe some hardcore Trump supporters, who elected him president on a promise to get tough on immigration, can swallow this collateral cruelty as a necessary unpleasantness. But I can’t imagine that many of them are parents. As a mother, my heart breaks at the thought of a frightened and confused child being taken away from his or her parents and stashed like an orphaned animal in what amounts to a holding pen.
To be blunt, I don’t recognize this country anymore. This “solution” to stanching the human exodus from Latin America across our border takes a toll not only on those arrested and detained but also on our own humanity. To insist that traumatizing children is the way to deal with the problem is a failure of imagination. To not anticipate the consequences of children being detained under a zero-tolerance policy that imprisons their parents is a failure of leadership.
Now we’ve just got reports even babies were stolen from their moms! They try to couch the horrors by calling these baby/toddler imprisonments “tender age” shelters. It’s as though Trump’s mindset has been given over to pure evil, with his servants following his lead! They’re traumatizing these kids & their families! Where’s the humanity? Who could do this?: happening-crying-childr
By defeating Republican candidates in the coming midterms, voters can help save our threatened democracy and civil life. Democrats in Congress could then counter the Trump administration’s threat by promoting legislation that upholds our democratic principles and blocking that which does not. They could investigate corruption and illegal practices, and display more oversight over the administration’s actions. And from positions of leadership, they could speak out publicly against the subversion of our democracy and let their Republican colleagues know that if they do not do so as well, they might be targeted in the next election.
Other important articles are here exposing the toxic GOP that has lost its soul:
Morning Consult is back with its latest state-by-state job approval numbers for the president, and without investing too much in any one number in any one state, the trends are interesting in terms of what might happen in November — or in November 2020. The president’s ratings among registered voters are underwater (more negative than positive) in the very heartland states he flipped from a past heritage of Democratic voting in 2016: Wisconsin (-12), Michigan (-9), Iowa (-7), Ohio (-4), and Pennsylvania (-4). In the short term, that matters because all these states other than Iowa have Senate races in November, and there are a total of 12 highly competitive House races among them (according to the Cook Political Report). There are some other Trump ’16 states where his high standing has eroded significantly, including six that are holding Senate races this year: Arizona (+2), Montana (+3), Florida (+5), Missouri (+5), Texas (+5), North Dakota (+6), and Indiana (+8). There are other 2018 Senate battlegrounds, however, where POTUS is still very popular, such as Tennessee (+20), Mississippi (+23), and West Virginia (+27).
Here’s a rather interesting chart showing how Trump’s net approval rating has shifted in every state since inauguration day, as seen from how-trumps-popularity-is-
How Trump’s net approval rating has changed, by state
|
NET APPROVAL |
|||
|
STATE |
JAN. 2017 |
MAY 2018 |
CHANGE |
|
New Mexico |
+17 |
-14 |
-31 |
|
Illinois |
+9 |
-22 |
-31 |
|
New York |
+8 |
-21 |
-29 |
|
D.C. |
-31 |
-58 |
-27 |
|
Utah |
+27 |
0 |
-27 |
|
Vermont |
-2 |
-27 |
-25 |
|
Delaware |
+8 |
-17 |
-25 |
|
Washington |
+1 |
-23 |
-24 |
|
Oklahoma |
+34 |
+11 |
-23 |
|
Massachusetts |
-4 |
-26 |
-22 |
|
Connecticut |
+5 |
-16 |
-21 |
|
Montana |
+24 |
+3 |
-21 |
|
Oregon |
+2 |
-19 |
-21 |
|
Rhode Island |
-4 |
-24 |
-20 |
|
Kentucky |
+34 |
+15 |
-19 |
|
Arizona |
+20 |
+2 |
-18 |
|
Minnesota |
+3 |
-15 |
-18 |
|
New Jersey |
+2 |
-16 |
-18 |
|
Ohio |
+14 |
-4 |
-18 |
|
Wisconsin |
+6 |
-12 |
-18 |
|
Alaska |
+24 |
+7 |
-17 |
|
Colorado |
+1 |
-16 |
-17 |
|
Florida |
+22 |
+5 |
-17 |
|
North Dakota |
+23 |
+6 |
-17 |
|
Nebraska |
+23 |
+6 |
-17 |
|
Arkansas |
+30 |
+13 |
-17 |
|
Michigan |
+8 |
-9 |
-17 |
|
Kansas |
+24 |
+8 |
-16 |
|
New Hampshire |
+1 |
-15 |
-16 |
|
Iowa |
+9 |
-7 |
-16 |
|
North Carolina |
+18 |
+2 |
-16 |
|
Texas |
+20 |
+5 |
-15 |
|
California |
-6 |
-21 |
-15 |
|
Indiana |
+22 |
+8 |
-14 |
|
Maine |
+8 |
-6 |
-14 |
|
Missouri |
+19 |
+5 |
-14 |
|
Pennsylvania |
+10 |
-4 |
-14 |
|
Virginia |
+8 |
-6 |
-14 |
|
Tennessee |
+33 |
+20 |
-13 |
|
Hawaii |
-13 |
-26 |
-13 |
|
Idaho |
+29 |
+16 |
-13 |
|
Nevada |
+10 |
-2 |
-12 |
|
Wyoming |
+40 |
+28 |
-12 |
|
Georgia |
+18 |
+7 |
-11 |
|
Mississippi |
+34 |
+23 |
-11 |
|
South Carolina |
+25 |
+14 |
-11 |
|
West Virgina |
+37 |
+27 |
-10 |
|
Maryland |
-13 |
-20 |
-7 |
|
South Dakota |
+21 |
+14 |
-7 |
|
Alabama |
+36 |
+30 |
-6 |
|
Louisana |
+31 |
+25 |
-6 |
Well in case you failed to notice,
In case you failed to see,
This is my heart bleeding before you,
This is me down on my knees
And these foolish games are tearing me apart,
And your thoughtless words are breaking my heart
You’re breaking my heart
Excuse me, guess I’ve mistaken you for somebody else,
Somebody who gave a damn,
Somebody more like myself
And these foolish games are tearing me,
Your tearing me, your tearing me apart
And your thoughtless words are breaking my heart
You’re breaking my heart.

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