“McDonalds and Wal-Mart pay their employees so badly that they are among the top employers of Americans who rely on Medicaid for healthcare and food stamps for basic sustenance. 70% of recipients of federal aid work full-time and are still so poor they qualify for help from the government.”
Stagnant Personal income
Personal income is stagnant even as corporate productivity is up 40%.
Systematic limits on control of wages at all levels
All big companies use the same compensation consultants to define pay scales for the roles they employ.
They periodically recalibrate.
Nobody pays more than they need, and everybody knows what everybody else pays, so there’s perfect pricing.
As long as employees will accept a wage, there’s no reason to pay more.
As long as unemployment requirements are take a job if it’s offered, there’s not great leverage on the part of the employee, who only searches for a job every few years, so isn’t a good negotiator and is negotiating from a position of weakness while unemployed, needing the money, and concerned about refusing an offer for fear of losing benefits.
A proposed solution
“The solutions are not that complicated.
A $15 federal minimum wage is the baseline; really, we should triple it, and do away with the tipped minimum wage entirely.
High-quality universal childcare should be at the top of the government’s To Do list to ensure that no parent has to choose between work and their children’s care.
Next on that list should be paid sick and vacation days,
paid parental leave and
laws mandating predictable work schedules.
And workplaces simply need to be more humane, with employers and bosses treating their employees like trustworthy adults, not potentially naughty children in need of constant control and hyper-surveillance.”