Wages have fallen lower and stayed low longer in this recession than in any time since the Depression. With unemployment at 9 percent or better for 20 months and likely to stay that way for a while, wages will continue to drop.
Even the Wall Street Journal (WSJ) admits that wages for working people are heading down. In an article today, ”Downturn’s Ugly Trademark: Steep, Lasting Drop in Wages, ” the Journal reports that 54.9 percent of unemployed people who were lucky enough to find new jobs are making less than they did before and more than a third (38.5 percent) took a 20 percent pay cut.
Dale Szabo, a Wisconsin man who lost his job as a manufacturing manager and who holds two Master’s degrees, sums up the bleak situation. Szabo, who now works as a janitor, tells the Journal:
It’s very hard work. I never dreamed I would be doing it. But I have to pay the bills.
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What the Journal does not say is that corporations and Wall Street are getting filthy rich while the rest of us are struggling. It doesn’t say the “wealth gap,” which measures total net worth, is now 225 times greater between the richest 1 percent and the median family net worth.
Or that corporations are sitting on $1.93 trillion as of Sept. 30—up from $1.8 trillion at the end of June–and not using some of that money pot to create jobs.
Check out the WSJ article here.