If we could somehow give incentives to businesses for paying people more than the minimum wage so that it would pay more to work than to stay at home and do nothing, it would go a great deal.
During the past 13 years (Bush’s 8 plus Obama’s first 5), the wealth of America has generally increased substantially on an annual basis. However, the main people who prospered during this time were the wealthiest 5% of Americans. The middle class has seen wages stagnate, and the lower 50% of Americans have actually seen take-home wages go down.
Though Kathleen Sebelius is technically Catholic, I doubt she truly understands the Church’s reasonings
The only cure for the disease is to listen to people who disagree. Otherwise, each election just becomes a turnout battle between two bad options - and becomes “Us” versus “Them” - with “Us” being the “Good guys” and “Them” being “Bad Guys”.
Interesting ideas, but let’s talk about them a little.
The only real Incentive of business people to pay more for labor is to increase the demand for labor. You can’t, by government action, cause the price of labor to go up anymore than you can, by government action, cause the price of one particular brand of corn flakes to go up without hurting the demand for that particular brand.
If you look at the top 5% of earners, you’ll find they’re also the main owners of capital and the ones with the greatest access to credit. Capital earns income as well as labor does. The relationship between labor’s percentage of national income and that of capital has not changed significantly since 1929. If one moves up, both move up. If one stagnates, so does the other, though labor’s percentage is always highest at full employment; the reason being that, at a point, further infusion of capital does not increase return. But no matter what, those who have capital fare better than those who don’t when it comes to income.
But capital, in the sense of “free and clear” capital, has not fared all that well either in the last five years. If one looks at the stock market, one sees what seems like a lot of capital generation. But since so much of it is the effect of money borrowed at artificially low interest rates, one can be misled. “Retail” trade (ordinary people) brokers will tell you, is moribund. People with cash can’t get any return on it to speak of.
So, the people who already were in the market in 2009 and didn’t panic and jump out, as well as those who have, in the meantime, borrowed money to invest in the market, pretty much constitute the whole market. People with steady nerves and speculators have been the principal gainers since 2009.
What, perhaps other than cost-cutting, which major corporations have definitely been doing, can put more reality into the market? Well, greater demand for goods and services. But that won’t happen while so many are endlessly mired in unemployment or underemployment.
But it wouldn’t just be the market that would benefit for higher employment. Those already employed would benefit as well, as the demand for their labor got tighter and tighter.
Therefore, comparing the incomes of “top 5%” to everyone else can lead us to think there is some kind of social inequality problem when the big problem is really lack of employment.
It has to be said that governmental policies of the last five years have suppressed employment. The government stifles energy production, reducing jobs in that area and making the cost of living higher. The government over-regulates, causing employers to back off projects that might employ people. The government imposes policies like Obamacare that very clearly destroy jobs. And what, exactly, does the government trot out as a remedy for unemployment? Well, shoving borrowed money out the door that simply vanishes into thin air.
Returning to topic, while not everyone articulates all of the above to himself/herself, there really is a strong sense on the part of the public that strong employment really is the key to a better economy and a widespread better life. The Democrats have utterly failed in that objective, and everybody knows it. It does not seem to me the Repubs are going to win the presidency in 2016 on arcane arguments about constitutionality. Nor are they going to win by arguing about the virtues of the marketplace or how some CEO deserves his millions. Nor are they going to win by pushing some watered-down open immigration policy. People care more about having a job, keeping a job, getting better pay, than they care about any of that.
And Repubs will gain nothing by agreeing with Dems on the policies that have caused so much unemployment and underemployment, and should, if anything, distance themselves from it even more.
I don’t think you give Kathleen Sebelius enough credit. She isn’t stupid. She knows exactly what she’s doing…the will of Obama and his group, (which corresponds to her own) and she fully intends what she does.