Workers' Share of National Income Plunges to Record Low

[MsProudSooner2]

http://news.yahoo.com/s/yblog_thelookout/20110614/bs_yblog_thelookout/workers-share-of-national-income-plummets-to-record-low

[OUMallen]

No one likes liberal fiscal policy on this board, but given that data, what if we said- we need to strengthen the middle class! Anyone on board with that?

[Chuck Bao]

http://news.yahoo.com/s/yblog_thelookout/20110614/bs_yblog_thelookout/workers-share-of-national-income-plummets-to-record-low

Of course it did. I have been saying this very same thing for several years already. The GDP calculation has substantially changed towards financial services, capital-intensive hi-tech industries and services. Although the official GDP number shows that the US economy is expanding, the average person or worker won't ever see any of it. And, this is only going to get worse.

Conservatives blame President Obama and think that a tax cut is a very simple cure-all, when we already have the lowest tax rates since the 1950s.

Thanks for posting that link, MsProudSooner2. That chart says a whole lot.

[Bourbon St Sooner]

There's a long term trend here for sure, but QE1 & 2 and the bank bailouts were a boon for a lot of well connected people.

[yermom]

No one likes liberal fiscal policy on this board, but given that data, what if we said- we need to strengthen the middle class! Anyone on board with that?

who needs a middle class?

you just need to work hard and you will be a CEO someday

[Sooner98]

We all know that the left is continually outraged that we live in a country where our freedom results in some people being able to use their God-given skills, smarts, and talents to make a higher income than others are capable of making. My question is: how, specifically, would you go about reversing this "injustice"? If you could, what would you do to make income levels more even to levels you consider to be acceptable?

[yermom]

a livable minimum wage and a system not designed to keep one poor would be nice

[OutlandTrophy]

a livable minimum wage and a system not designed to keep one poor would be nice


can you elaborate on this system, please?

[Bourbon St Sooner]

a livable minimum wage and a system not designed to keep one poor would be nice

You mean one not designed to make people gov't dependants generation after generation?

[OUMallen]

a livable minimum wage and a system not designed to keep one poor would be nice

I agree with the liveable minimum wage.


I don't get the second part.

[badger]

Taxation and tariffs... would they solve this growing gap, or just cause the wealthiest to move completely overseas?

[yermom]

can you elaborate on this system, please?

here's one article i saw about what i'm talking about:

http://www.businesspundit.com/the-cost-of-being-poor/

[OUMallen]

That is not indiciative of a system designed to keep poor people poor. Please.

And I care NOT that the poorest only saved an average of $10 on the last tax cuts. They don't pay anything in at all anyway! It's stupid factoids like that which LOOK and SOUND like something is wrong, but isn't.

I'm not saying there aren't points to be made, but that was nothing other than an inforgraphic of factoid stat-blips and not explanatory of a system DESIGNED to keep one poor.

[yermom]

ok, maybe it's not designed to keep them poor, but designed to exploit the bottom of the economic scale, and the effect is that they are stuck there

the policies for payday loans, and banking fees should be criminal in a lot of cases

[OUMallen]

ok, maybe it's not designed to keep them poor, but designed to exploit the bottom of the economic scale, and the effect is that they are stuck there

the policies for payday loans, and banking fees should be criminal in a lot of cases

Payday loans actually serve an important economic function, and there's nothing wrong with someone making a law to cap the interest rates.

You act like people HAVE to take out payday loans.

[yermom]

when you are poor, it doesn't take much to upset the balance of weak finances

[OutlandTrophy]

The majority of poor people choose to be poor.

[Chuck Bao]

My big lament is that small businesses are being squeezed out and the spirit of entrepreneurship is being driven out of our country.

My brother owns a small construction company started by my dad and currently employing about 10 people. My brother is most angry about all of the paperwork he must do in workers comp and stuff like that. He thinks Obamacare is just going to further add to his costs and paperwork.

I can sympathize with that.

But, I don't see that trend changing regardless of who resides in the White House.

Wal-Mart destroyed more home-owned and operated small businesses than anyone by not only driving retailers out of business but also selling cheap foreign made products. I guess that it is all about free market and capitalism and you can't really blame them for following the rules of the "new economy".

[Sooner98]

Another thing, if person A makes a certain income one year in his or her job/profession, and person B makes a certain income one year in their job/profession, and then person A makes 10 percent more the next year, while person B makes only 3 percent more the next year, why should person B view this as morally unacceptable? Other than person B's envy and greed, why should it bother him that someone else is doing better financially than him? Why does this need to be changed?

[yermom]

The majority of poor people choose to be poor.

i think this is only partially true

don't get me wrong, there are plenty of losers out there from their own doing

[yermom]

Another thing, if person A makes a certain income one year in his or her job/profession, and person B makes a certain income one year in their job/profession, and then person A makes 10 percent more the next year, while person B makes only 3 percent more the next year, why should person B view this as morally unacceptable? Other than person B's envy and greed, why should it bother him that someone else is doing better financially than him? Why does this need to be changed?

well, if you are managing to make 3% more than last year, you have no reason to complain...

i'm not sure where this is coming from though

[tommieharris91]

well, if you are managing to make 3% more than last year, you have no reason to complain...

i'm not sure where this is coming from though

Are we even comparing apples to apples?

[BermudaSooner]

I love that by the liberal definition I'm not a "worker" because I make too much, and yet someone who works part time flipping burgers is a "worker."

[NormanPride]

Effort does not make one wealthy. The knowledge to apply said effort (something poor people most often lack) and the luck of opportunity make one wealthy. If effort alone was enough to bring someone out of poverty there would be a lot less poor people.

[OutlandTrophy]

luck? seriously? you're going to go with luck?

[Sooner98]

well, if you are managing to make 3% more than last year, you have no reason to complain...

i'm not sure where this is coming from though

Those are hypothetical numbers, meant to illustrate what the OP's link indicates - a growing disparity between the haves and the "have-lesses".

[NormanPride]

What the hell else do you call it? You work your *** off for 20 years in, say, a manufacturing firm. Then one day in a coffee shop you hear a guy talking about a new thing he needs made. So you give him your card and the thing turns out to be a huge hit. Takes your business to a new level.

Do you really think pure effort is going to get that done? Be realistic.

[OUMallen]

My big lament is that small businesses are being squeezed out and the spirit of entrepreneurship is being driven out of our country.

My brother owns a small construction company started by my dad and currently employing about 10 people. My brother is most angry about all of the paperwork he must do in workers comp and stuff like that. He thinks Obamacare is just going to further add to his costs and paperwork.

I can sympathize with that.

But, I don't see that trend changing regardless of who resides in the White House.

Wal-Mart destroyed more home-owned and operated small businesses than anyone by not only driving retailers out of business but also selling cheap foreign made products. I guess that it is all about free market and capitalism and you can't really blame them for following the rules of the "new economy".

Good post.

[OutlandTrophy]

What the hell else do you call it? You work your *** off for 20 years in, say, a manufacturing firm. Then one day in a coffee shop you hear a guy talking about a new thing he needs made. So you give him your card and the thing turns out to be a huge hit. Takes your business to a new level.

Do you really think pure effort is going to get that done? Be realistic.

Can you define luck? That's silly.

Luck.

Is that same person still lucky if their skill set is in mopping floors and not in machining tools.


I really think that effort and education will lead any and everyone out of poverty.

[yermom]

Those are hypothetical numbers, meant to illustrate what the OP's link indicates - a growing disparity between the haves and the "have-lesses".

it's more like CEO gets raise, while he lays off workers and decreases their pay, not that one group's raise is bigger than the other

[NormanPride]

Can you define luck? That's silly.

Luck.

Is that same person still lucky if their skill set is in mopping floors and not in machining tools.


I really think that effort and education will lead any and everyone out of poverty.
Out of poverty, sure. But to the highest level?

[OutlandTrophy]

the highest level of what?

Can everyone be Bill Gates? nope

[yermom]

it's not like those things are givens anyway

[OutlandTrophy]

what things?

[yermom]

effort and education

[Mongo]

luck? seriously? you're going to go with luck?

I am seeing a chick who is nasty rich. so yeah, luck has something to do with it:D

[Bourbon St Sooner]

My big lament is that small businesses are being squeezed out and the spirit of entrepreneurship is being driven out of our country.

My brother owns a small construction company started by my dad and currently employing about 10 people. My brother is most angry about all of the paperwork he must do in workers comp and stuff like that. He thinks Obamacare is just going to further add to his costs and paperwork.

I can sympathize with that.

But, I don't see that trend changing regardless of who resides in the White House.

Wal-Mart destroyed more home-owned and operated small businesses than anyone by not only driving retailers out of business but also selling cheap foreign made products. I guess that it is all about free market and capitalism and you can't really blame them for following the rules of the "new economy".

I get tired of this Wal-Mart as the destroyer of America and everybody else as the victims crap. How did Wal-Mart get so big? They gave the consumer what they wanted. You are to blame, not Wal-Mart! Individual people making choices for their own benefit. Does that sound familiar?

Face it, our labor prices priced us out of the market to compete for manufacturing jobs because automation made it easy to ship them to low labor cost markets. We need to compete by innovating, but our education system is for ****. I don't know of any 8 second sound bite solutions that are going to fix these issues. That's the problem with our political system.

[OUMallen]

I get tired of this Wal-Mart as the destroyer of America and everybody else as the victims crap. How did Wal-Mart get so big? They gave the consumer what they wanted. You are to blame, not Wal-Mart! Individual people making choices for their own benefit. Does that sound familiar?

Face it, our labor prices priced us out of the market to compete for manufacturing jobs because automation made it easy to ship them to low labor cost markets. We need to compete by innovating, but our education system is for ****. I don't know of any 8 second sound bite solutions that are going to fix these issues. That's the problem with our political system.

He wasn't anti-Walmart, so much, I didn't think. Just pointing out that being a small- or medium-sized business is more difficult than it used to be.

[yermom]

i think Walmart is an example of why pure capitalism might not be the best way to go

[delhalew]

i think this is only partially true

don't get me wrong, there are plenty of losers out there from their own doing

It depends. It used to be you could ramble about and fit yourself into a "working man" type situation. Good for people who like hard work, and hate desks. These days, that can be a recipe for disaster. Our economy is based on the moving to and fro of imaginary money and ethereal services. That work stuff is for Mexicans. Unions won't save the middle class. We have to retain a level of production and creation in this country. There are not enough IT jobs to support all the The's in this country.

[soonercoop1]

Several reasons for that as we have lost many of the higher paying manufacturing jobs, Walmart and other allowed monopolies, illegal immigration, and unbelievable federal debt and spending all play a role...

[Chuck Bao]

I get tired of this Wal-Mart as the destroyer of America and everybody else as the victims crap. How did Wal-Mart get so big? They gave the consumer what they wanted. You are to blame, not Wal-Mart! Individual people making choices for their own benefit. Does that sound familiar?

Face it, our labor prices priced us out of the market to compete for manufacturing jobs because automation made it easy to ship them to low labor cost markets. We need to compete by innovating, but our education system is for ****. I don't know of any 8 second sound bite solutions that are going to fix these issues. That's the problem with our political system.

That's exactly what I am saying. I ain't blaming Wal-Mart at all. They did their job better than anyone else. Can't blame them for that.

I agree on junior high and high school education in the US falling behind other countries, particularly in math and science. I also think our universities are second to none. Some, obviously, are far too expensive. You can still get a good value education if you look for it and work hard to get scholarships and such. That in itself is a good life lesson.

I was telling my nieces 10 years ago about this growing divide of have and have-not will be coming and they should study hard and try to get in the best schools. My family can afford to support them. I don't think they understood or believed me.

One will be graduating from ECU with straight A's all the way through and will be a teacher. The other just graduated from high school and wants to be a nurse. I am proud of both of them.

In the corporate world it seems more and more like fast track to management or no track at all.

I don't claim to know about this stuff, but I do remember an economist in a conference in London about 15 years ago warning everyone "to watch out, China is getting ready to discount the world". That is exactly what has happened. China discounted our labor and technology played a role too.

[EnragedOUfan]

No one has seen anything yet! Wait until 2012 when the GOP takes over and cuts minimum wage! Then, Walmart can pay their employees $5.00 if their lucky............Would the economy then pick back up? Would more jobs then be created?

[EnragedOUfan]

After getting out of the military and seeing how the civilian world transition is, its either hit or miss in the American system in my opinion...........

1. Unless your job offers health benefits, private health insurance rates are ridiculous. If you for example have one child and you're a single parent and if you make $12.00 an hour, paying private health insurance will take a big chunk out of your income........But if you pay it, that leaves you with less money for other necessities like food, gas, rent, daycare. If this person has debts, they're screwed and that leaves them with even less money. Because this person makes sh#t for money, missing a day of work to look for another job could be costly (you'd lose a day's worth of pay). Capitalism is a great system, but its hard on those people who are either A) just not fortunate (which there are some legitimate cases) or B) you're just effin lazy and in this case you deserve nothing. Just my opinion...

[EnragedOUfan]

I personally think we should get rid of student loans, pell grants.......

What your future should be should take place in high school. I personally think we should monitor the German system (but some won't like that).

In high school, you take a test. How well you do on that test determines if you're eligible to go to college/a university. If you score too low, you'll learn a trade and go to Vo-Tech/some type of trade school.

It seems harsh, but hopefully it would make kids in general put in more effort/strive to make better grades/pay more attention in school.

[MR2-Sooner86]

Poor education, lower paying jobs, and the American system being thrown overboard?

hYIC0eZYEtI&feature

Crackpot thinking or real truths?

[GKeeper316]

I personally think we should get rid of student loans, pell grants.......

What your future should be should take place in high school. I personally think we should monitor the German system (but some won't like that).

In high school, you take a test. How well you do on that test determines if you're eligible to go to college/a university. If you score too low, you'll learn a trade and go to Vo-Tech/some type of trade school.

It seems harsh, but hopefully it would make kids in general put in more effort/strive to make better grades/pay more attention in school.

so you're a proponent of a democratic socialist system like the euros use? so am i. i lived there, i know how well it works.

[EnragedOUfan]

so you're a proponent of a democratic socialist system like the euros use? so am i. i lived there, i know how well it works.

I am, yes...

[usmc-sooner]

Poor education, lower paying jobs, and the American system being thrown overboard?

hYIC0eZYEtI&feature

Crackpot thinking or real truths?

on some of this I agree, mostly I think it's excuse making.

[StoopTroup]

Carlin died in 2008. We need a new hippie to tell us what to think.

[OutlandTrophy]

effort and education

I still don't know what you mean when you say that education and effort are not given anyways.

Is that a riddle? ;)

[pphilfran]

so you're a proponent of a democratic socialist system like the euros use? so am i. i lived there, i know how well it works.

Yes...

[pphilfran]

Looking at the chart three things jump out....

1. The decline corresponds to the rise of computers...

Computers have annihilated millions of jobs...rooms full of bookkeepers and accountants have been eliminated....barcodes in production facilities have eliminated high paying jobs...complex design on CAD systems required a new skill set...

2. The loss of manufacturing jobs after a recession....I realize the chart does not show type of job lost but when a manufacturing plant is shut down due to a recession the odds of that plant efficiently producing product are slim...

3. Imports gained a foothold...prior to the 70's there was limited off shore competition...once the imports grew market share the cost cutting began...the consumer demanded more value for their money and high quality/low cost imports filled the hole in demand....this was inevitable, marker share was going to be lost....

Us Baby Boomers got in at the right time...through the 70's I made 12 - 15ki a year as an asst manager in grocery...a standard starter home at the time was 1200 sq ft and cost 30k, twice my salary...my loaded new Cutlass set me back 4k, 1/4 my salary....

Today that same asst manager will make 30k...a starter home today will set you back a minimum of 100k...three or four times salary.. a car similar to the Cutlass would be 25k....80% of a years salary...

[The Profit]

The majority of poor people choose to be poor.




Would you care to show us proof of that, or is this just an assumption on your part?

[pphilfran]

Would you care to show us proof of that, or is this just an assumption on your part?

He conducted a scientific poll...

[usmc-sooner]

Would you care to show us proof of that, or is this just an assumption on your part?

evolution? or Darwinism?

[pphilfran]

How much did the barcode change manufacturing?

The Tyler Goodyear plant was the first tire manufacturer to implement a barcode system...and one of the first manufacturing facilities in the world to build a plant that relied on barcodes to such an extent...

This was a new state of the art plant built next to a 60's facility that was later shut down...

Prior to barcode implementation the new plant used a minimum of 80 production associates to sort and direct tires down the sort lines...there were a total of 60 QA inspectors...

After barcode implementation the sorting was done by computer and auto sorters...the number of human sorters was reduced by 1/2 to about 40....the QA inspection organization was decreased to 20....

So we saved 80 jobs...quality actually improved due to real time data collection...

The first data we pulled up from the auto system floored us...we completely revamped our QA system to take advantage of the new data flow...

Cost was high...we probably had a half million dollars in scanners and another half mill in activation systems...so a million or two to eliminate eighty 50k jobs (probably closer to 70 after OT and benefits)...labels initially were three cents a piece for 30k tires per day...so another 3-400k a year in expense...later, costs dropped to one cent per label once I started adding new suppliers to the authorized list..

With less than a year for payback the additional cost was a no brainer...

Total plant employment was about 1500...so we cut 5% of total plant workforce with a barcode system...

That is probably the most fun I ever had in a job...being on the ground floor of groundbreaking technology...working with the programmers to give the floor associated the system they wanted...since we were the only plant in the world with the system I was the expert...snap my finger and point and people jumped...great times!

[pphilfran]

Keep in mind I ain't got no friggin degree...

[Chuck Bao]

There is a different mindset and set of internal or external controls that will determine how successful someone will become. Yes, there are studies out there that determined that those who are poor operate with an external locus of control; hence, they look to others(government ) to provide for them.

That's an interesting point. None of us have to go back very far in our family history to find ancestors who were serfs working the fields in Europe for the lord of the manor. The industrial revolution didn't change things much as they traded in working the fields to working in crime-ridden, smog-filled big cities with barely enough money to get by. Then, without the protection of the lord of the manor, there was always the risk that English navy would kidnap able bodied men and set sail with them on board, leaving behind a pregnant wife and young children.

Seeking a patron is in all of our genes, worldwide and across various cultures. Our political system is one of patronage. We vote for politicians, if they help us out which is only natural.

I suppose there are some pure Kierkegaard existentialists out there. I profess to be one myself. I value my freedom and do not want to depend on anyone anytime.

In Thailand, sadly, farmers are still stuck with a serf mentality and expect the government to take on the role of the lord of the manor.

[OutlandTrophy]

Would you care to show us proof of that, or is this just an assumption on your part?


http://www.legacyforhealth.org/PDFPublications/SES_0311_temp.pdf

Income and Employment
• In 2009, 31% of adults below the federal poverty level smoked, compared with 19% of
those at or above the poverty level.2†
o Thirty-two percent of men below the poverty level were smokers compared
with 22% of men at or above poverty level.
o Twenty-six percent of women below the poverty line were smokers compared
with 17% of women at or above poverty level.
• In 2009, there were nearly 17 million poor or near poor current smokers aged 18 or
over in the United States.3†

http://www.childtrendsdatabank.org/pdf/1_PDF.pdf

Young people who drop out of high school are unlikely to have the minimum skills and
credentials necessary to function in today’s increasingly complex society and
technological workplace. The completion of high school is required for accessing postsecondary
education and is a minimum requirement for most jobs.1 High school dropouts
are more likely than those who complete high school to be unemployed.2 Additionally, a
high school diploma leads to higher income and occupational status.3 Interestingly,
however, many youth who drop out of high school eventually earn a diploma or a GED.4
One study found that 63 percent of students who dropped out had earned a diploma or
GED within eight years of the year they should have originally graduated.5
Studies have found that young adults with low education and skill levels are more likely
to live in poverty and to receive government assistance.6 High school dropouts are likely
to stay on public assistance longer than those with at least a high school degree. Further,
high school dropouts are more likely to become involved in crime.7

Just a few examples of people choosing to be poor.

[yermom]

smokers and high school drop outs? that's what you have?

a high school diploma and a dollar will almost buy you a Coke

[OutlandTrophy]

they were just two quick examples of people choosing to be poor.

sorry if you didn't understand.

[soonercoop1]

Thought we already had a democrat socialist system with SS, Medicare, Medicaid, Obamacare, unemployment, food stamps, pell grants, etc...this current system has us bankrupt and trillions in debt...:confused:

[GKeeper316]

Thought we already had a democrat socialist system with SS, Medicare, Medicaid, Obamacare, unemployment, food stamps, pell grants, etc...this current system has us bankrupt and trillions in debt...:confused:

defense spending has nothing to do with it.

[SpankyNek]

Thought we already had a democrat socialist system with SS, Medicare, Medicaid, Obamacare, unemployment, food stamps, pell grants, etc...this current system has us bankrupt and trillions in debt...:confused:

Remember how socialist we were when we caused The Great friggin' Depression?

[SpankyNek]

That's an interesting point. None of us have to go back very far in our family history to find ancestors who were serfs working the fields in Europe for the lord of the manor. The industrial revolution didn't change things much as they traded in working the fields to working in crime-ridden, smog-filled big cities with barely enough money to get by. Then, without the protection of the lord of the manor, there was always the risk that English navy would kidnap able bodied men and set sail with them on board, leaving behind a pregnant wife and young children.

Seeking a patron is in all of our genes, worldwide and across various cultures. Our political system is one of patronage. We vote for politicians, if they help us out which is only natural.

I suppose there are some pure Kierkegaard existentialists out there. I profess to be one myself. I value my freedom and do not want to depend on anyone anytime.

In Thailand, sadly, farmers are still stuck with a serf mentality and expect the government to take on the role of the lord of the manor.

In a roundabout way, anyone family that has turned childcare over to business/service industry and have both parents employed is valuing a serfdom to corporate greed.

[Spray]

they were just two quick examples of people choosing to be poor.

sorry if you didn't understand.

Sorry, Outland, but at first blush that seems over-simplified and intellectually dishonest. I would gamble that every poor person in America has made a life-choice at some point that you would use as proof that they, in effect, chose to be poor. That's too easy a game to play to prove your point.

[soonercruiser]

a livable minimum wage and a system not designed to keep one poor would be nice

That's the theory where almost all employers say that if you raise the minimun wage for entry level jobs, I will cut the number of my employees.
I have even seen these interviews on the so-called Lame Stream Media!
:rolleyes:

The answer is to give millions of people HOPE!
A good education....not wasting time on cultural and sexual diversity, etc.
Educating Americans do be capable to get higher education and get a job!
Please don't ask Black leaders, or Demoncrats to stop training young black men for victimhood, or just The Hood!
Truely fixing the American economy and increasing the production of American goods and products.
Higher taxes on business owners and Obama can't fix this!

It's all about I care, I want to, I work, I improve.
Son of a coal miner in WV here! I flipped burgers > mowed lawns > washed cars & swept floors > worked as a laborer for the state road commission > went to college on ROTC scholarship & worked as a waiter and dishwasher in the dorm > worked part-time for the university painting and housekeeping department > went into the Air Force as a butter bar > went back to professional school > went back into the AF > went to 2 residencies > went back into the AF > retired > got a part-time job at the health science center.
There were many very hard, skimpy years > 3 children > lots of hard work, studying, and patientence to "get ahead".
(BTW - none of the sons wanted anything to do with pain and hard work it took to get ahead. Therefore they are "suffering" for it. One spent 2 years unemployed!)

[pphilfran]

My girlfriend got laid off from the bank...it was a low level go nowhere job...

She went to Vo Tech and took 6 or 7 different medical related courses...heavy in terminology...about 18 months and 6 or 7 hundred bucks total...at the same time she volunteered a couple of days a week at the hospital...

Her hard work and smart volunteer work has paid off...a second interview Monday...looks like she it getting into admitting at $12 an hour with a slew of benefits...at the bank she was getting $9 an hour few bennies...

She ain't gonna get rich but it is an improvement and there is room for advancement...

If I can talk her into a few more Vo Tech classes she will have it made...

[SoonerBread]

a high school diploma and a dollar will almost buy you a Coke

A high school diploma could also land one a $90K+ per year job, to buy all the Cokes one wants.

[jkm, the stolen pifwafwi]

Face it, our labor prices priced us out of the market to compete for manufacturing jobs because automation made it easy to ship them to low labor cost markets.

I hate to break it to you, but labor prices didn't push manufacturing jobs out of the US. The ability to bypass both the corporate tax system as well as US quality restrictions are what pushed those jobs out of the US.

Chinese steel won't pass very many codes in the US if its made here. However, if the finished product is made with Chinese steel overseas, it magically evades those restrictions. This also allows for you to internally sell the product to your US subsidiary at a near loss minimizing your tax impact in the US.

For example, Microsoft sold all of its patents to its Irish subsidiary which RENTS them back to the US. They only make as much money in the US to cover US expenses leaving them with minimal tax liability.

What this has done is to lessen the incentive to give employees raises. For a small business owner, each dollar of bonus only costs them 75 cents or so because of the deduction of tax liability. For major corps now, that bonus is costing them even more since their tax liablity is much less on that dollar than a small business (upwards of 93 cents for the irish/dutch trick).

Another factor hurting the US worker is that most don't test the job market unless they have too. It is pretty much a given that any new employee is going to make 10-20% more than a person who has been at the company for 5-7 years, because a 2-3% raise per year just isn't going to cover the competition in the workplace which can be 7-15% per year.