Tag Archives: economy

Bad gig.

There’s been a lot of crowing about how great the economy is now, with low unemployment, marginally rising wages, etc. (Sure, only 20,000 jobs were gained last month, but what the hell … rich people are making a lot of money, and that brings the average up.) Every administration takes any opportunity to exaggerate their accomplishments, but this claim of “full employment” is frankly laughable and doesn’t hold up to even the slightest scrutiny. What lurks behind the seemingly strong job numbers is the fact that many, many of these “jobs” are not really jobs at all. I’m referring to the vaunted “Gig Economy”, which currently employs about 36% of all American workers – a staggering statistic.

Unemployed

This isn’t a Trump-only thing – the gig phenomenon really got going under Obama, and they presented these “jobs” and part-time employment as evidence of their success, just as the current administration does (though with a bit less verve). Anyone who has worked as a contractor knows what total bullshit this is. As one who worked in the original “gig economy” – the music industry – I can tell you that, aside from the amount of effort involved, it’s the furthest thing from having a real job that you can get.  You have no security. You receive no benefits. If you get sick, it’s your hard luck. You are, in large measure, perpetually unemployed, always scraping for the next gig. Sure, some people thrive in this type of arrangement, but most struggle with very little reward.

This is great news for business owners who use contractors of various descriptions. Contractors cost a lot less than employees. There are few enforceable responsibilities employers have toward informal workers. And particularly with these app-driven companies like Uber, etc., when one gigger doesn’t work out, there are many more ready to take his or her place. That makes it hard to organize, hard to demand better wages or working conditions. In short, these are not jobs; they are contracts, and as such, ones in which all of the obligations point one way – toward the gig worker. This is why wages have remained pretty much flat for a very long stretch, though there has been some small upward movement this past quarter.

All of you gig workers out there: you have my sympathy. You deserve better than this type of “full employment”, as do we all.

luv u,

jp

Paycheck politics.

California and New York both passed minimum wage bills this past week; California’s a bit more generous, but both better than the status quo. Quite an accomplishment, given where this issue was just a few years ago: namely, the conservative business class demagoguing the very idea of raising working people’s wages, warning of job losses, companies shutting down, etc. The federal minimum wage, enacted in 2009, is $7.25 … an amount of money so puny that it barely makes it to your pocket before it evaporates. I would like to see some of these business owners, trade association representatives, and conservative political pundits who complain so heartily about raising it try to live on that. The simple fact is, it is not a livable wage, not by a long shot, and yet it is the amount earned by a substantial segment of the population caught up in this weak economic recovery.

They did it. Nice work.Frankly, it amazes me how cynical the resistance to a higher, inflation-indexed minimum wage truly is. Pegging the minimum at $7.25 was low enough in 2009; but the buying power of that wage has declined since then. Those who argue for leaving it where it is need to explain why they feel business should pay progressively less money for the same labor, year after year. (Am I the only one bothered by this?) Those who say that only teenagers looking for after-school work earn the minimum wage need to move into the current century. Those who feel raising the minimum wage gives earners more than they deserve, amounting to a kind of tax/entitlement, should be reminded that poor wage-earners rely more heavily on remaining forms of public assistance just to get by, such that we are all, in effect, subsidizing employers like Wal-Mart.

So things have moved on this issue a bit. Thanks are due to the many thousands of fast-food workers across the nation who stood up and demanded justice. One would hope that all of them get justice before too terribly long, but the fight continues. My own feeling is that we need a minimum wage pegged to inflation, and that the calculation for inflation should reflect more realistically the cost of living for most Americans and the types of things they spend the most money on. An indexed minimum wage will pull this issue out of the political sphere – it would also indicate a level of national comfort with the notion that people should be compensated for their hard work, and that that compensation should be resilient enough not to back-slide every time there’s an energy spike.

Nice work, everyone who got involved. Let’s move on to what’s next.

luv u,

jp

Crapucopea.

Not sure what to concentrate on this week for my rant, so I’ll break it up into bits.

Ukraine drama. I have heard endless reports on NPR and NBC about the Russian flag being raised above the Crimean capital and how much this is becoming like the bad old days of the Cold War. Much, too, has been made of Russian military exercises near the border of Ukraine, termed by the media as “provocative” – a word they no doubt borrowed from McCain or some other favored pol. Just rewind to their last reports about Korea and our planned military exercises there – did they use the same modifier? Didn’t think so. Not provocative in any wayThat potentially catastrophic confrontation-in-waiting apparently can withstand mock-invasions of North Korea and simulated bombing runs without being “provocative”. So, why are the Russian exercises any worse? If there’s a return to Cold War mentality, it’s on the part of our corporate media. (Most of our politicians have never left that particular ideological space.)

Arizona anti-gay bill. This notion of religious freedom, based on the dodgy concept of “who would Jesus refuse to serve,” is obviously based on a very skewed interpretation of Christian values – namely, tolerate no one different from you. That Jan Brewer vetoed it is no surprise. Why did it take her several days? Because the attention of the nation was on her for that stretch of time, and she was happy to bask in it – an art form the senior senator from her state has perfected over his decades in office.

Jobs and health. I’ve heard a number of reports about the CBO estimate of potential job losses related to the Affordable Care Act. These are mainly attributed to people who work specifically for a job related health care benefit choosing to opt out of the workforce. One economist / commentator I heard this morning suggested this might be a drag on the economy. But what, after all, is the economy? Is it metrics on productivity … or is it how well individuals are doing? When someone leaves a job they really don’t want, doesn’t that open a position for someone else? Should we really be chaining people to work and holding them hostage for the sake of health insurance coverage?

I think not.

luv u,

jp