Could Low Wages Actually Be Responsible For The Increase In Poverty?

Discussion in 'Economy' started by TruthOut10, Dec 13, 2012.

  1. TruthOut10
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    TruthOut10 Active Member

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    “I really want people to understand that we all work just as hard as the next person that’s in a business suit,” says Tamika Maxwell, mother of three, describing her work as a janitor in Cincinnati, her hometown.

    Along with 1,000 colleagues in the city, Maxwell hopes that current negotiations between SEIU and the city’s cleaning contractors will raise their $9.80 hourly wage—which, for annual full-time work, still leaves a family of three below the federal poverty line and relying on food stamps and Medicaid. In essence, the state ends up subsidizing corporations to continue paying people a non-living wage.

    “My paycheck is the same amount as my Duke Energy bill,” says Maxwell. “And you know they don’t care—they will cut you off if you don’t have their money.”

    Maxwell works part-time while also pursuing a business degree at Cincinnati State. She’s now employed by Scioto Services, which recently won the contract for the Public Defender’s office building that she has cleaned for four years. The company retained Maxwell but cut back all of the janitors’ hours. Instead of working the 5–10 pm shift five days per week, Maxwell now works only four.

    “That’s a big deal when you’re only making $9.80 an hour,” she says.

    But perhaps what is most frustrating to Maxwell and her colleagues is that among the cleaning contractors’ clients are some of the richest companies in the world. Macy’s, for example, made $1.25 billion in profits last year; Fifth Third Bancorp took in $1.3 billion; and Kroger netted more than $600 million. In all, thirteen Fortune 1000 companies with their corporate headquarters in Cincinnati earned combined profits of nearly $17 billion in 2011. If any of them told the cleaning contractors to pay a living wage, the contractors would do so, and would pass the additional cost onto the multibillion-dollar corporations.

    This Week in Poverty: The Fiscal Cliff and the Janitors Who Are Already on It | The Nation
     
  2. AmyNation
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    AmyNation Road Warrior Supporting Member

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    If increasing min. wage solved poverty we would have done it already.
     
  3. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    do you notice how pure liberal ignorance always leads them to the simpliest of solutions. THey have 1000 ways to cure poverty and one is dumber than the next one.

    Why not make everyone a lot richer and life a whole lot sweeter by merely giving everyone a 500% raise tomorrow!!?

    A liberal will have no idea whatsoever why that would not work!
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says, "Dat's right - under Obama the more ya make, the behinder ya get...
    :mad:
    BLS: Real Wages Declined in 3rd Quarter; Down 3.2% Under Obama
    November 1, 2013 - The real median earnings of both men and women dropped in the third quarter of 2013 and are down 3.2 percent since President Barack Obama took office in the first quarter of 2009, according to data released today by the Bureau of Labor Statistics.
    See also:

    Since Bernanke, Inflation Increases 43% More Under Obama Than Bush
    October 30, 2013 -- Since Ben Bernanke has been in control of the Federal Reserve, inflation has increased 43% more under President Barack Obama than George W. Bush, according to data from the Bureau of Labor Statistics (BLS).
     
    Last edited: Nov 2, 2013
  5. expat_panama
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    expat_panama Silver Member

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    --so why don't she get paid what Mr. Business Suit get paid --huh? huh?

    OK, back to real life. If she looked as good and sang as good as the lady on TV then maybe she'd get paid what the lady on TV gets paid. If she could pass the bar exam and convince a jury to give her client a jillion bux, then she'd get paid what the high priced lawyer gets. If she could get an MD license and save lives with a scalpel then she'd get paid what the fancy doctor gets paid.

    She can't so she doesn't. It doesn't matter if she thinks she's working as hard, she just isn't working as well.
     

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