(Note: this is an unedited post)
There has been a lot of talk about income inequality recently. Economics in the United States are not simple but a very complicated system if studied from the Academic level. Simple answers probably won't solve the problems. The problem, from what I see, is that we abandoned having a completely Capitalist society sometime after the Great Depression. Subsequently, we've had a semi-socialist system with some people (qualifying as poor, disabled or elderly) receiving money from the government An entirely Capitalist society wouldn't have that but an entirely Socialist economy wouldn't allow for the diversity in businesses and companies that we once had in the United States (a good portion of the industrial and manufacturing components have gone to other countries). This has also played into proponents of Socialism as they can now say (in fact Bernie Sanders flat out did say it) that all of the horrors that Socialism were supposed to have brought occurred under Capitalisim. This pseudo-capitalist/socialist society process that Government has taken has been with the blessing of a majority of people who want government help. These people, as some say, vote for their incomes. In a competitive society where the morally incline often lose to the people who will give money to certain people/corporations it seems to be common practice and as one political student once told me, "The ends justify the means." While it's worrying enough that a lot of people are curiously leaning towards the idea of Capitalism despite the poor examples of what happens when a country goes that way (who in the US would trade living here for a life in Cuba or North Korea?)...it's interesting that corporations are not really mentioned. The truth is, corporations and businesses have been branded as bad guys for decades now. I, however, see corporations in a different light. I believe that the current way of doing business is wrong but only corporations are able to fix the economic mess by changing their policies. Further, consumers have more control over corporations then they realize and can 'vote' for corporations they believe in by being selective on what brands, stores and companies that they spend their money on. Corporations As The Bad Guy This idea emerged in the nineties. The big baddies of them all being the 'banks and oil cartels' as conspiracy theorists love to say. The general belief in the populace is that companies are greedy, exploit humans to make a profit, and exist only to reward their owners with millions at the expense of the common person. (Note: most people don't think of businesses/corporations from the economic viewpoint of the company existing to fulfill a need and that by an almost natural selection basis those that are not needed do not survive). This idea is further spurred by the Governments bail out of certain banks that were 'too big to fail.' Despite a significant amount of money being channeled to the banks the average consumer found that their bank accounts were suddenly more expensive and the charges increased. The consumer, in effect, paid twice to save financial institutions that should have failed in a Capitalist system. The result is that most people view huge corporations the same way they view the government. (I will just call them the 'Difficult Customers' from here on out) Corporations are faceless creatures to be exhorted, taken advantage of and cheated because they have endless money and can 'absorb' losses. These people, in their mind, honestly don't connect that stealing from a company is going to hurt the employees of the company. By cheating the company in some way they feel that they are standing up against 'The Man.' This attitude spans all of the races and classes. Even people with a lot of money to spend with their black credit cards try to get a 'better deal' out of frontline customer service employees. The employees are also bitter and feel that corporations take advantage of them. Just take a look at fast food workers. Assigned a number and required uniforms that make them appear like everyone else they are essentially robbed of their identity at work. Add to that the concept that 'The Customer is always right' thought process coupled with 'An employee must protect the companies assets' and you have a very conflicted message sent to the employee. While attempting to fulfill their duty to ensure their paycheck they must act as subservient robots experiencing only joy...even when the customer lies or makes false allegations in an attempt to receive free compensation. Take for example a Taco Bell manager in the news recently. He dropped off his car for repairs and was upset when two of the dealership employees wound up in this drive through in his vehicle when taking it on a test drive. First, the employees were exploiting their company policy of test drives to buy lunch...which resulted in their termination. Second, despite being given hundred of dollars of repairs to his car for free the Taco Bell manager whined to the News despite the fact he ruined two employees lives by having them fired and getting free car repairs at the expense of the dealership. (NOTE:, Is it me or does it seem that Fast Food Workers are the most disgruntled and unhappy individuals getting the most attention in media?) New York Stock Exchange I'm not a huge fan of the New York Stock Exchange. I have stocks in companies, it's true, but they aren't worth much. The average joe will not make a fortune on the Stock Exchange. Not to mention, and as the Wolf of Wall Street suggests, it takes a certain amount evil for people to work in that environment successfully. The Stock Exchange system appears to benefit only the rich, who have a lot of money to invest already, and doesn't benefit that average consumer or low income stockholders (that can't afford a controlling portion of the stock to have a sya in the companies direction). To think that owning a small portion of a companies stock makes you an owner or partner is nonsense. The sense can be given to the employees that by having stocks in the company they are partial owners and the illusion that by ensuring the company prospers they prosper but it's not the reality. No one will notice if they sell their stocks unless it's done en masse. Companies go onto the New York Stock Exchange to grow revenue they can then invest in expanding the company. This can be a major boon for the company providing them with a lot of money and spring boarding them into a world market. The problem is, most companies never leave the New York Stock Exchange and become held in a position where they must constantly increase the profit of their shareholders (profit that could instead go to compensating employees). Further, the concept that companies can grow forever is simply illogical. While the need to innovate is important...constantly growing profits for investors is not something that is going to be feasible forever. Eventually, a company will hit it's maximum amount of profit. Companies constantly raise prices. If women had not gone out into the workforce along with their husbands forming two family incomes it's doubtful that the continuous trend of raising prices would have worked. However, in order to live a life style equal to their parents (albeit with a few more electrical items that are helpful) two people must work. The result is two incomes equal the same life style one person with a skilled income could afford a generation ago. Companies, meanwhile, haven't skipped a beat in raking in as much profit as possible. The companies that are able to increase their profit (some aiming for 100%) are praised by the media and people in general as a success. Companies that do not grow to be household names are not considered complete successes. This, I believe, is the reason for the 'income inequality' we see in the United States more then anything else. A combination of companies ever seeking to push profits higher and people willingly figuring out ways to pay those higher prices. There should be a point where companies go off of the New York Stock Exchange. The owners should realize they have enough capital to live comfortably and give a legacy to their kids. That companies have reached their potential. The money that was going to stock holders then could be redirected to employees. This, however, only rarely happens. Raising Minimum Wage Doesn't Work Companies exist to make a profit (at the very least to allow the owners to make enough money that they can take home a paycheck). To make that profit they must take in more money then they spend on basic costs (employees, facilities, etc.) This is just a basic concept and the most simple. When the minimum wage rises prices rise because every company has some sort of minimum wage worker on their most basic level of operations. To give those people, often the largest amount of workers, an increase in pay the money has to come from somewhere and still leave the company with a profit of some kind. Naturally, prices go up. Sadly, for the workers that are not minimum wage, wages do not go up to compensate. Instead, they find themselves in the lower income brackets. Neither does the tax code recognize that the disparity between minimum wage workers and those who make a little more then them shrinking. Therefore, the minimum wage workers go into a higher tax bracket and despite costs going up along with no increase in pay the middle class is taxed the same amount leaving them with less money. Add into the mix Stockholders demanding even more profit from the previous year from a smaller amount of revenue and of course you're not going to see the Middle Class income being adjusted to compensate. Instead, if anything, Middle Class wages will go down because now the company can't afford the same amount of hours that they could before or the amount of employees they had before the Minimum Wage Increase. Clearly, when looking at the system with a logical eye (and no tolerance of dogma or rhetoric from Academics) we can see why the Middle Class continues to diminish in this country. Conclusion While this essay indicates that the poor economy of the United States is mostly due to a New York Stock Exchange Corporate Policy and mishandling by the Government in the form of raising minimum wage....there is a way to fix the problem. The 'cure' doesn't involve government at all. The government, really, should be more concerned with fixing their tremendously complex nightmare inducing tax code then 'fixing wages'. The solution comes from consumers. Consumers can put pressure on the corporations with their buying power. All it would take would be a little knowledge. In my next blog I will go over my idea for this solution, how it works, how it empowers people, and how the people of this government can save themselves instead of looking to socialism or the government to save them. After all, in the history of this world when people look to their government for leaders with radical ideas that will take them out of economic downturns tyrants are the ones who usually feel the need to step up to the plate.
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Brave Soul! May Your Journey On The Path Of The Seeker Bring You Joy and Peace! I'm currently posting every Saturday. With a new addition the family I have pre-scheduled most posts through December 2022. Full Moon Posts will contain up-to-date content when I can get to them. Thank you so much for your support and understanding! This is a place where you can encounter new spiritual ideas that have helped me develop as an Individual On The Path of the Seeker. Take or Leave this information as you see fit. Archives
April 2024
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