Reviews | Our economic model is failing workers: call on the scapegoats

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As the economy gradually crumbles to levels of deprivation and drudgery not seen in decades, workers are subjected to a chorus of disinformation from liberal sources.

Our business model is full of jobs based on low wages, low benefits or no benefits.

EJ Dionne is a columnist for the Washington Post. Speaking on National Public Radio’s WBUR on November 8, he applauded the work of the Biden administration regarding the number of jobs in October. He cited the Bureau of Labor Statistics (BLS) standard measure which is U-3. The BLS reported that the unemployment rate in October fell to 4.6 percent. It would be a cause for applause if it was remotely accurate. This is certainly not the case.

The Axios news site said on November 5 that:

“The job market added an astonishing 531,000 jobs last month. The unemployment rate fell to 4.6% – a new pandemic-era low.”

John Cassidy, a reporter writing in the New Yorker on November 5, claimed that:

“Job gains have been particularly strong in restaurants and bars, which have added nearly 120,000 jobs.”

Certainly, jobs in the restaurant industry have increased and many have seen their wages increase to $ 15 an hour.

Mr. Cassidy’s praised the growth in employment in the industry which appeared to be an accomplishment for the Biden administration. $ 15.00 an hour was an improvement over decades of poverty wages.

However, a brief examination of the cost of living in various parts of the country leads to the conclusion that $ 15 an hour is barely enough for workers to live on basic necessities.

Restaurants operate on minimal profit margins and have traditionally relied on the temporary, low-paid workforce of students or those with second jobs. If it’s industry that measures our economic health, rather than manufacturing, then there are serious problems with our economic model.

Numbers

The most cited BLS calculation for unemployment is the aforementioned U-3. He understands:

Unemployed persons who actively looked for work in the four weeks preceding the survey and who are currently available for work. People are considered to be employed if they have performed paid, full-time, part-time and temporary work.

The U-3 does not include:

Marginal attachment: Discouraged job seekers who have looked for work in the past 12 months and have stopped looking in the past four weeks for a variety of reasons.

Part-time — those who want to work full-time or who are underemployed for economic reasons.

Part-time — those who have part-time jobs for non-economic reasons.

The BLS created a more precise calculation in 1994 identified as U-6. It consists of the U-3 standard measure plus marginally attached workers and those who work part-time for economic reasons.

Real numbers

The Ludvig Institute for Shared Economic Prosperity (LISEP) reported a more accurate calculation of the unemployed in America.

LISEP has tracked the percentage of the US workforce that does not have a full-time job (more than 35 hours per week) but wants one, does not have a job, or does not earn one. living wage, conservatively set at $ 20,000 per year before taxes.

For that month of September, LISEP calculated unemployment by race: Black unemployment was 27.9%, Latinx unemployment was next at 22% while White unemployment was 22%.

Shadow Government Statistics (SGS) is also an alternative website on the economy. SGS calculated the seasonally adjusted employment rate by including discouraged long-term employees who were defined out of existence in 1994. Their actual total unemployment rate in September was 25.1%.

Quality of work

The BLS reported in its first monthly calculation that 531,000 jobs were created. Superficially, this appears to be an improvement since the economy has been crippled by the scourge of Covid-19.

Liberal praise has been lavished on the Biden administration for these job creation numbers. However, the types of jobs created was the most important variable not examined in the calculation.

Our business model is full of jobs based on low wages, low benefits or no benefits.

National surveys indicate that the vast majority of Americans are grappling with financial burdens that have not been alleviated by the new jobs created in recent years.

Bankrate reported in July 2021 that half of Americans couldn’t afford three months of emergency spending.

Magnify Money reported in February 2020 that 53% of respondents live paycheck to paycheck and 62% don’t have at least three months of savings to keep them.

Lending Club reported in July 2021 that 54% of consumers live paycheck to paycheck. 21 percent struggle to pay their bills.

Career Builders reported in April 2021 that 34% of women and 45% of black Americans leaving the workforce accepted a pay cut to find a job.

The Stacker reported in 2019 that the share of American adults living in middle-income households rose from 61% in 1971 to 51%.

Underemployment

Underemployment is another persistent problem in our economic model. The Center for Law and Social Policy (CLSP) released a report in August 2020 based on the recalculated figures from the BLS. The more inclusive figures from the CLSP revealed a rate of part-time underemployment twice the BLS figures.

Additionally, Emsi / Burning Glass Technologies and Analytics reported that 43 percent of college graduates are underemployed in their first job; 66 percent of graduates will be underemployed after five years and 75 percent will be underemployed after 10 years.

The numbers clearly show that our business model is failing to provide lasting and permanent jobs to the vast majority of the workforce.

It remains to be seen whether recent job creation figures from the Biden administration affect chronic and systemic unemployment and underemployment. The historical record is against.

Scapegoats

The mainstream corporate media are a key element in the dissemination of disinformation. The plan is simple. Keep workers distracted from the structural problems of our economic model.

Instead, trot the usual scapegoats to blame. They would be the “immigrants”, the “minorities”, the “big government”. and “unions”.

There is overwhelming evidence that none of the above is responsible for our economy which is gradually destroying the lives of workers:

Immigrants contribute to the economy in several positive ways.

Minorities have suffered the most since the economy began its most recent decline during Covid-19.

Strong government is essential to maintain and protect the many components of our complex society. Businesses cannot compete without modern transportation, roads, technology, and data security provided by federal spending. Health care, child care, education and family stability are also essential for businesses.

More importantly, the federal government has historically saved our economic model from its inherent crises.

Finally, unions benefit the economy for all workers and now enjoy more support than they have garnered for many years.

Success of disinformation

The dominant scapegoat narrative is gaining traction in large part thanks to the mainstream corporate media. Add to that the relentless and repetitive package of disinformation being circulated by the right-wing media at a breakneck pace. There are approximately 1,500 conservative talk radio stations across the country that relentlessly keep workers in disinformation.

The Columbia School of Journalism reported in July 2020 that Nexstar and Sinclair, companies with a deeply conservative outlook, now own the majority of television stations nationwide.

Remedies

The employment figures above demonstrate the continued decline of our business model. A progressive model must be developed to disillusion workers from the destructive path ahead; neofascism seems to be a closer political reality here than had been imagined in previous decades.

Spiritual and secular entities that oppose the serpentine plans of the ruling class must continue to speak, write and disseminate facts. Connect the dots. Facts matter.

Workers of all races and ethnicities have common interests that transcend the narrow and self-defeating prism of identity politics. It is a racketeering designed to keep workers divided and to vote against their own economic interests. The moralizing rhetoric about “freedom” and “rights” dishonestly attacks the patriotic instincts of workers while stripping them at the same time.

Under the noise and confusion of today lies the immutable reality that our economic model will continue to work as it should until workers understand it politically and decide that enough hardship and suffering is enough.


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