Is the Wagon Rolling Against the Robbing Rich?

Amid the recent fiscal carnage in Washington several studies of the US have been published concerning the situation of the average American. First, IMF economists analyzed the US public deficit and debt levels, and their relation to the demands aging Baby Boomers will place on the government’s Medicare and Medicaid healthcare programs, while the birth rate lags at a record low:

The United States is facing an untenable fiscal situation due to the combination of high fiscal deficits, an aging population and rapid growth in government provided healthcare benefits.

IMF study, An Analysis of US Fiscal and Generational Imbalances:
Who Will Pay and How?

To “go a long way in returning the United States to a fiscally sustainable path”, the US government must cut the entitlement programs and especially healthcare—among the most expensive in the world—that face rapidly rising costs in coming years. Americans will have to pay more taxes and the government will have to cut spending on Baby Boomers—those Americans between about 45 and 65—and their immediate heirs.

To eliminate all current deficits and long term shortfalls on social plans for the current generation “would require all taxes to go up and all transfers to be cut immediately and permanently by 35 percent”, and “delay in the adjustment makes it more costly”.

Unless currently living Americans pay more in net taxes or unless government spending on current generations is curtailed, future Americans will face net tax rates that are about 21.5 percentage points… higher than those facing current newborn Americans.

Of course, the IMF is an arm of US foreign policy, or rather, an arm of the international policies of the US uber rich class who rule the world for the sole purpose of making themselves richer than their already obscene levels of riches. The IMF always makes the people pay whenever the rulers of any country get its finances in a twist by their greedy machinations. The ruling clique in the US are among the main beneficiaries usually. It is time they paid! Normally, they pay least, often nothing!

But the average Yankee seems amazingly placid, or gets worked up over the wrong enemy, all too often supporting the greedy manipulators because they are all too easy to fool. Often, they seem to think that they are themselves among the uber rich, but less than a single percent of the population are. That one percent have gotten three times richer in real terms over the last 30 years, while the average Yankee has got poorer once inflation is accounted for.

Not surprisingly, more Americans say that their financial situation is worse not better in recent years. For the first time since 1972, 31.5 percent of Americans are “not at all” satisfied with their financial situation compared with 23.4 percent who are “pretty well” satisfied (General Social Survey, NORC, University of Chicago).

Americans are also more insecure about employment. A record 16.4 percent thought it “likely” (fairly or very) that they would lose their job or be laid off. As few as 52.2 percent thought it “not at all likely” that they would lose their job or be laid off, easily the lowest confidence ever recorded by the GSS. Those who thought their standard of living was “much better” or “somewhat better” than their parents declined.

The General Social Survey—which NORC has conducted for forty years based on 2,044 interviews—is a biennial survey that gathers data on contemporary American society to monitor and explain trends and constants in attitudes, behaviors, and attributes.

On top of these, American “happiness” has been measured and took some blows, but some American stoicism shone through here. While only 28.8 percent of Americans, the lowest percentage since 1972, were “happy”, another 14.2 percent were “not too happy”. Happiness was hit mainly because of the economy and people’s own finances. Even so, 85.8 percent of Americans were “happy”.

Not all aspects of happiness fell during the downturn. 97 percent of marriages were judged to be “happy” (very or pretty), and 86.0 percent of Americans claim to be “very satisfied” or “moderately satisfied” with their work, a steady average since 1972.

If anything, it suggests that the average American lives in a cocoon. They are concerned for themselves and their immediate family, and are satisfied that they are not being repossessed like the family over the street, and still have a job to hang on to. Despite the hugely vaunted Christianity of the Christian nation, the average American is indifferent to his neighbour, as long as he’s all right.

The motto is not “Do unto others as you would be done by”, it is “I’m all right, Bud, You look after yourself”.

Fortunately, recent proposed cuts in public services have been firmly rebutted by encouraging united strength and purpose. Is the US sleeping Leviathan waking up? Let’s hope so, then you smug financiers, corporate bosses, bankers and bought men will have to watch out! Once enough of the people stop being taken in by the great Washington Repucrat-Demoblican farce, then the wagon of unity may be rolling, and the callous and greedy exploiters of the rest of us will be crushed by its irresistible momentum.

Who Would Want to be a Teacher in Walker’s Wisconsin?

Craig A Olson, a University of Illinois professor of labor and employment relations, and an expert in employment relations and labor economics, shows the salaries of Wisconsin teachers have fallen behind changes in the cost of living as well as wage growth in the private sector over the last 16 years.

By comparing public data from 1995 to 2009 of the earnings of an average college graduate employed in the private sector in the US versus the earnings of an average college educated teacher in Wisconsin, after accounting for inflation, and not counting fringe benefits, Olsen found:

1. in Wisconsin, the average teacher’s salary declined by 10 percent,
2. the average private sector college graduate’s weekly earnings increased by 10 percent.

In 1995, the average college educated private sector worker in the US earned 17 percent more than a Wisconsin teacher, in 2009, this gap had increased to 36 percent. Olson commented:

Not only did Wisconsin teachers not keep up with inflation, their earning power also fell behind their private sector counterparts.

Many teachers accept that they have some security of employment compared with many in private industry, and have school holidays—though they seem a much better perk than they are because the have to spend more time preparing for the academic semester than many onlookers think. So they are content not to be paid the same salary as their fellow graduates in the sometimes riskier private sector, but this work shows that their wages are getting progressively worse, with no added benefits to compensate for the decline.

Governor Walker argued that Wisconsin public employees should be required to pay higher premium co-payments to match the higher co-payments paid by employees in the private sector. In Illinois, the average inflation adjusted premium for a family health insurance policy for Illinois teachers increased from $5,758 to $10,905 from 1993 to 2008. Health insurance premium costs for the private sector also have risen sharply during that time, increasing from $5,742 in 1999 to $13,770 in 2010, adjusted to 2009 prices.

But typically, when premiums have gone up the most, teachers, through their local unions, accepted lower salary increases or agreed to higher teacher health insurance premiums when compared to districts that faced smaller increases in premiums. And Wisconsin teachers did protect their health benefits when premiums were rising rapidly… by accepting lower wage increases.

Olson thinks that Walker’s budget bill will have ill considered consequences. While these changes will save Wisconsin school districts some money in the short term, he thinks it will have an adverse impact on the quality of the state’s teacher workforce:

My rough calculations of the changes in employee pension and health benefit contributions required under the proposal suggest the changes will cost the average Wisconsin teacher about $5,000 in total compensation. This reduction in total compensation is equal to about 10 percent of the salary for an average Wisconsin teacher. Since salary increases under the bill are limited without a voter referendum to changes in the cost of living, teachers will have great difficulty negotiating higher pay to offset these higher contributions. Obviously, it will make it more difficult for Wisconsin to attract high quality young adults into teaching. What parent in Wisconsin would encourage their child to become a teacher given the trends of the last 16 years and Governor Walker’s proposal?

The cause of the Walker attack is supposedly the deficit. And whose deficit is it? Clinton had a virtually balanced budget, but the aim of Republicans is to stiff the poor to give the rich more wealth. Theft from the poor is the source of the deficit, most obviously the manufacture and sale of junk bonds and the accompanying accumulation of banking bonuses in the so-called banking crisis. Banks now are back to their old tricks, and so Joe and Jane Public are forever coughing up their hard earned moolah for the benefit of the already sickeningly rich. Hillary Clinton tells us the US is losing the information war. Without proper education, the country will nosedive into the trough. The pigs at the top already have already had their nose in it for the last thirty years. If many Arabs, every American’s favorite bogeymen of the hour, can evict their corrupt leaders, maybe it is time smart Americans did.