is when this problem started to accelerate. Many people spoke of the same thing. Here's an excerpt from the Senate record - 1993 - Guess the Senator.
In many ways, we are witnessing the most rapid change in the workplace in this country since the postwar era began. For a majority of working Americans, the changes are utterly at odds with the expectations they nurtured growing up.
Millions of Americans grew up feeling they had a kind of implied contract with their country, a contract for the American dream. If you applied yourself, got an education, went to work, and worked hard, then you had a reasonable shot at an income, a home, time for family, and a graceful retirement. Today, those comfortable assumptions have been shattered by the realization that no job is safe, no future assured. And many Americans simply feel betrayed. To this day I'm not sure that official Washington fully comprehends what has happened to working America in the last 20 years, a period when the incomes of the majority declined in real terms.
In the decade following 1953, the typical male worker, head of his household, aged 40 to 50, saw his real income grow 36 percent. The 40-something workers from 1963 to 1973 saw their incomes grow 25 percent. The 40-something workers from 1973 to 1983 saw their incomes decline, by 14 percent, and reliable estimates indicate that the period of 1983 to 1993 will show a similar decline.
From 1969 to 1989 average weekly earnings in this country declined from $387 to $335.
No wonder then, that millions of women entered the work force, not simply because the opportunity opened for the first time. They had no choice. More and more families needed two incomes to support a family, where one had once been enough. It began to be insufficient to have two incomes in the family. By 1989 the number of people working at more than one job hit a record high. And then even this was not enough to maintain living standards. Family income growth simply slowed down. Between 1979 and 1989 it grew more slowly than at any period since World War II. In 1989 the median family income was only $1,528 greater than it had been 10 years earlier. In prior decades real family income would increase by that same amount every 22 months. When the recession began in 1989, the average family's inflation-adjusted income fell 4.4 percent, a $1,640 drop, or more than the entire gain from the eighties.
Younger people now make less money at the beginning of their careers, and can expect their incomes to grow more slowly than their parents'. Families headed by persons aged 25 to 34 in 1989 had incomes $1,715 less than their counterparts did 10 years earlier, in 1979. Evidence continues to suggest that persons born after 1945 simply will not achieve the same incomes in middle-age that their parents achieved.
Thus, Mr. President,
it is a treadmill world for millions of Americans. They work hard, they spend less time with their families, but their incomes don't go up. The more their incomes stagnate, the more they work. The more they work, the more they leave the kids alone, and the more they need child care. The more they need child care, the more they need to work.
Why are we surprised at the statistics on the hours children spend in front of the television; about illiteracy rates; about teenage crime and pregnancy? All the adults are working and too many kids are raising themselves. Of course, there is another story to be found in the numbers. Not everyone is suffering from a declining income.
Those at the top of the income scale are seeing their incomes increase, and as a result income inequality in this Nation is growing dramatically. Overall, the 30 percent of our people at the top of the income scale have secured more and more, while the bottom 70 percent have been losing. The richest 1 percent saw their incomes grow 62 percent during the 1980's, capturing a full 53 percent of the total income growth among all families in the entire economy. This represents a dramatic reversal of what had been a post-war trend toward equality in this country. It also means that the less well-off in our society--the same Americans who lost out in the Reagan tax revolution--are the ones being hurt by changes in the economy.
You might say that we long ago left the world of Ward and June Clever. We have entered the world of Roseanne and Dan, and the yuppies from `L.A. Law' working downtown. Many, many commentators have explained how the assumptions from that long-ago world will cripple us if we do not have the courage to look at today's economy with a clear eye. Back then, we were the only economic superpower. American companies had virtually no competition and, since they produced almost entirely in the United States, their workers felt no particular threat from workers abroad. This was the era when `Made in Japan' meant something was cheap--not good, just cheap.
Throughout the 1950's and 1960's productivity was rising rapidly throughout the American economy, so that people could expect over time to work less, but earn more. Back then, free trade for America meant more markets for America, not competition. We maintained the Bretton Woods rules, the GATT, and other treaty obligations not only to buttress the free world against communism, and not only out of the goodness of our hearts; we enforced a basic level of stability in the world because a stable world meant open markets for us, and we made the products people most wanted to buy.
Back then, large corporations and large unions set the pace for middle-class prosperity. Remember it was Henry Ford, no fan of unions, who created the mass production line to turn out cars cheaply--cheaply enough so that his own workers could buy them. When he finally capitulated to the United Auto Workers, he gave his workers the largest settlement of the Big Three.
In those days, Fortune 500 companies controlled well over 50 percent of our total economy, and employed three-quarters of our manufacturing work force. If the New Deal built the floor for personal security in America, the corporate economy put up the middle-class safety net, with pension plans and health insurance. In those days, American families lived on one man's paycheck, from one job that lasted with one company for an entire lifetime. If you were laid off, you were laid off for the duration, and you were called back when business picked up.
No more.
And two key words summarize the difference: globalization and technology. Each one feeds the other. Each one confronts American employers with a choice: Can I beat the competition by making a stand in America with my own workers, or must I beat the competition by going abroad? Will my workers join the ranks of the 70 percent falling behind, or will they join the ranks of the 30 percent--or fewer--who will get ahead?
The dynamics of this are familiar to anybody who works. Technology, particularly computer technology, makes it possible to move production anywhere in the world. Technology makes it possible for formerly large corporations to make do with drastically fewer people at home. Remember those bar-code readers.
Increasingly freer trade amongst nations means that competition comes from low-wage workers in developing countries, or from high-skilled, highly productive workers in the industrialized countries. The choice is a stark one: either a nation must secure more technology and become more productive or it must underbid all others for labor and other costs. Most countries understand that this is a choice they have to make. I submit to you, Mr. President, that this is a choice which we are not making, and the consequence is that the choice is being made for us--toward low costs, leading to the unprecedented wave of downsizing underway in our economy.
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
