No one really knows the prospects for Americans over the next twenty years but more and more of our children with good college educations are now part of a “slasher” job market. Many grads are saying, “I’m a slasher, cat-sitter/waitress/bar tender, and it’s just a matte of time before I get back on my career track.”
Noted economist, Jeff Faux, said during a recent presentation in San Miguel d’Allende, MX., “If your ship is heading to the rocks and your crew doesn’t know, there may be trouble ahead.” Faux is the author of the book, “The New Servant Economy,and sais that the root causes of our dire economy are l) Globalization (a series of free trade organizations with people in lower wage countries); 2) Financial deregulation (shift of capital away from manufacturing towards short-term speculation; 3) Loss of employee bargaining power (not only unionized but all people who work up to the top l0 percent; 4) Attack on domestic government.
“When the union sector declines, it lowers the bargaining power of all workers. How come, the economy looked so good between l980 and 2008 if the numbers tell us there was stagnation in wages?” He answered: “During that time period, families were sending more people out to work which kept the family income up. Consumers borrowed and it will take a decade or more to reinflate the credit bubble, allowing for a 40% drop in peoples net worths.”
Companies began holding on to money as corporate managers saw that they could keep more earnings and invest without giving it to investors. The unemployment rate only includes those people look for work not the forty percent who have been out of work for more than six months. The definition of poverty is now middle class as fifty million are below poverty level of $23,000 because there are ten million jobs missing in the U.S. economy.
“The college grads who wait on you at the Apple Store, make eleven bucks an hour, are usually part time and have student debt because supply of workers exceeds the demand. A company will go where labor is cheaper and workers are docile.” According to his research, by 2020 if there are ten jobs available, one position will be available for four-year nursing or health graduate, one for a two-year graduate, four for high school graduates, and four with no education.
“This is the new servant economy, persons working as taxi drivers, in retail, gardeners, teaching tennis or fitness The era of the cushion when more women were working is over. Forty seven million are on food stamps and more will be cut meaning that for three million persons sixteen meals a month will be eliminated and food stamps will be cut from military families.”
Faux saw no hope for our political system in which he says a top senator spends ninety percent of his time begging or asking for money, a corrupt congress and a government out of control. What does it take to change the political system? “Nothing unless there is conscious interest to change it. We are ripe for political chaos.”