Wake Up!

The Sassistas! would like to acknowledge and thank Jerseysista for dishing today's sass.

The President, in his State of the Union address, sympathized with the country by bemoaning the “longer hours for less pay” that Americans are working.

We have been spoiled.

Most of the rest of the world has been laboring under depressed wages that barely sustain and in some cases are not enough to do even that. We should not be surprised that a just leveling factor has started to impose itself. We had been immune for so long because we had the luxury of not living in a global economy. We could suck in imports at reduced prices and export goods made at our wage levels.

Now the world is not only our market but also our competitor in wages. We started to see the impact a several decades ago when it was noted how many many more hours per day and days per year Americans worked than other developed countries. Those additional hours were the trade off to enable our goods to be sold overseas at competitive prices while we enjoyed higher wages. Then we started to see a slowdown in wage increases.  Then, when the current repression hit, companies took the opportunity to adjust.

In my own company, I first saw pension cut-backs, then cuts on vacations, then withheld bonuses, then lay-offs, then transfers of jobs to overseas divisions where wages were lower and most recently, wage cuts -- all within a year and a half. In addition, more and more expenses are being pushed out to the employees. The very prevalence of telecommuting is turning each employee in my company into a quasi-independent contractor bearing his or her own costs and bargaining for their jobs.

Who, but the world, do we think we are bargaining against? We are not quite yet waking up. The world is willing to work at much cheaper wages because they live at much lower standards than we Americans. I get tired of hearing the public and our politicians (Republican and Democrat alike) rail against the sending of jobs overseas and against the lowering of wages and the standard of living.

Until we are willing to pay for what we consume, our standard of living SHOULD decrease. We have been living at the expense of the rest of the world and cry at our misfortune of seeing our standard of living now decrease. We have decried the sweat shops and child labor and deforestation of tropical rainforests but we don’t want those areas to compete on a level playing field for our jobs.

It’s time to wake up! Our standard of living is neither a right nor a necessity.  It is certainly not moral to defend that standard of living. Our country is great because of our hard work, willingness to compete and generosity. We need to start buckling down and, if necessary, throw out the luxuries until the rest of the world can catch up.  Are we afraid to compete for a fair wage?

Comments

[Flannista]

Well, it's about 4:30 in the morning, and I'm awake, Jersey.

What about you?

[Flannista]

Now that I've gotten my frivolous comment out of the way . . . when Jersey shared this piece of writing with me, my first reaction was, "What CAN'T this sista write about (or talk about, for that matter)? Conversation is never dull around Jersey.

What inspired this piece, Jersey?

And how would you answer the last question you raise in this post about American fear of competing for a fair wage?

[Flannista]

Forgot to add that I'm very curious about nowayasista's perspective on this . . . as he is the resident expert on all things financial.

[Flannista]

Does anyone know the stats for the standard of living in America versus other countries? The stat that sticks in my gut is this one: that more than 90% of the world lives on $2.00 or less a day.

[half-a-sista]

What the term "current repression" intended? I found it funny either intentionally or as a Freudian slip.

Fair wages? What are fair wages? That term is too vague.

Also, the fact that more than 90% of the world lives on $2 or less per day doesn't take into account their monthly expenses. Perhaps $2 per day is adequate for the place in which they live.

To blame Americans for their level of consumption is too easy. Yes, Americans (in general) consume way too much of the planet's resources, but weren't we taught that we deserved the "good" life which just kept getting "gooder"?

And don't even get me started on American businesses and their part in the economic meltdown. Must pause now as my blood pressure is going up.

[nowayasista]

Great piece that is well written and concise. Easy to understand. We have been and are king of the economic hill for many reasons, not the least of which has been our willingness to take risk, push and compete. Others around the globe want a piece of that hill and rightly so.

Business everywhere does what it must to stay in business which requires turning a profit. Otherwise we have zero jobs. During recessions businesses have always found ways to adjust. It has no choice.

I was not taught that I deserved anything. Great line that our standard of living is neither a right nor a necessity. Not only time to wake up, but to get to work and earn it.

[Flannista]

Preach it, half-a.

American businesses DID contribute much to the economic meltdown. Just yesterday, I heard this in a meeting:

CEO: "We made a brilliant decision when we sold so many assets in 2006, but we were really bone-headed when we took those profits and invested them in some private placements that tanked."

FLANN: "Is that bone-headedness the reason for two rounds of lay-offs in the company last year?

CEO: "Yes"

Free enterprise isn't free for the rank-and-file at many companies. They pay for the bone-headedness of their superiors who not only don't lose their jobs, but also get their bonuses.

WAKE UP, CORPORATE AMERICA!

[Flannista]

noway -- our comments passed in the 'sphere.

What's your perspective on the conversation I posted above?

[nowayasista]

My perspective is that it is one sided and does not account for most of business. Most employment occurs at local levels. The cleaner, the guy who owns the restaurant, the investment advisor, the designer. There is much of the corporate world that does need to wake up or next time thay make that bonehead investment, they will be out of business all together. The various boards of directors need to do their jobs. But that is off track. We cannot blame our situation just on the "fat cats" or "congress". It is us and we can prevail should we choose.

[Jerseysista]

It’s not hard for me to get on a soap box. This post proves it.

My skills are a commodity. I sell them to my employer in exchange for wages. I have received good wages and have spent those wages on good things. Big house. Expensive car. Great gadgets and toys. But, increasingly for the last half century, my employer has had to compete with companies that can produce a comparable product for less because that competition has lower expenses. Those lower expenses are primarily employees who sell their skills for less than I do. (Corporate bonuses may seem huge to me but they are a drop in the bucket and not the cause of our lack of competitiveness in the world market.) Like a child, I have a tantrum and demand that the company not hire those foreign workers and keep paying me my wages but my objections are ignored as the rantings of a spoiled brat.

So, at first, I bargained. “How about if I keep my wages but I work longer hours than my counterparts in Europe and Japan? Can I keep my job then, can I, huh?” In effect I cut my rate but kept my salary (at the expense of family and personal life). That was sufficient for a while but as more and more of the world’s workers stepped up as my competition, it was not enough. In the last ten years or so, in spite of working longer hours than my counterparts, wages have stagnated and started to slide.

There is a correction going on and if I want a job and if I want my company to be around to employ me and if I want it to produce earnings that will fund our retirements, I have to compete with others whose skills are for sale at lower rates. If I want to keep my job, I have to be better than the competition or I have to accept compensation more in line with theirs.

I am curious what others in the Sassosphere are seeing as “corrections” in their jobs. What are you doing or what are you foregoing in your job that you didn’t have to do or forego in the past?

[Jerseysista]

Half-a, I'm not sure if I understand your point about the $2-a-day and it being sufficient where that worker lives. I understand that the bread may cost pennies rather than dollars in those communities but it's not the bread that is being sold in the world market, it's the circuit board that the $2-a-day worker is building that is being sold. And, if the $2-a-day is adequate there, doesn't that mean that we have to start paying our bakers less for our bread if we want to compete?

[Jerseysista]

Flann, you asked what inspired this piece. I guess it is a combination of things. I have been thinking about this topic for years but I am sure it is bubbling to the surface now because I am questioning what it is that makes me happy. What do I really need? Is it all this "stuff"?

[Jerseysista]

I also recognize that it is much easier for me to say let's take a step back in our standard of living than it is for those who have kids. Everyone wants their children to have a better life than their parents. What do those here with kids have to say about that?

[PEACEsista]

Jersey, this is an intelligent, thought-provoking, well-written post. I read your 8:34 comment to noway before he headed out the door. He says that he has to manage more assets now to maintain his income, but also that his income is down from when the market was at its peak. Also, the entire office now manages more assets with only half the brokers of earlier days, which is the only way for the office to remain profitable.

I put myself out of business when I had kids in the '80's. I worked doing freelance graphic design. The going rate in town for preparing ad copy in town was low. With one kid, I could afford childcare and still come away with enough to feel it was worth it, but when the twins were born it became unprofitable. I'd asked for a raise, but the firm I worked with said that they would do the work themselves instead. For awhile, they did try to lump small jobs together to make it worth it for me, but ultimately, it wasn't.

I'd imagine that in this economy, with stagnating incomes and increased childcare costs, that there are many moms trying to find ways to work at home, or to stay at home, reducing both their income and expenses.

[Flannista]

When the economy tanks, one of the first things corporate America lets go of is creativity. If I didn't have this TRM gig, I would certainly be working retail part-time. Some in Corporate America make bone-headed decisions, but ALL of corporate America has cut expenses to the bone.

Three years ago, 3/5 of my annual income would be billed during the first third of the year -- annual report season. I normally would be contracted to write at least three annual reports. Last year, I just had one. This year: zero.

The annual meeting I am attending today three years ago included a buffet lunch. Nothing fancy, but people could dine together, which is always nice. This year: round tables with bowls of pretzels and pitchers of water and lemonade.

The speakers -- members of the Executive Committee -- will, of course be served a full lunch an hour before the meeting is scheduled to begin.

God Bless Capitalism.

[Chrysosistah]

I think one of the advantages we enjoyed as Americans that we unwittingly gave away was our university system. We were an education magnet for years for other country's kids - and we did such a good job that they were able to go home and finally start good education systems in their countries.

I saw some of this phenom first hand with Embry-Riddle Aeronautical University - we rented to so many kids from the middle east at my grandmother's house! The university was thrilled to have the foreign students, because they were charged so much more in tuition than US students, and the kids were serious about their education. Now, they don't need to come here for many of the degrees, because ERAU and all the other universities have figured out that they'd better have an internet presence or they will lose their standing as a top-notch school.

I guess what I'm trying to say is that this leveling of the playing fields is inevitable - we had so many advantages - a fresh start, geography, stable government, free press, creativity, inventiveness, etc., that the riches appeared endless. Of course they aren't, and a more-serious, more-disciplined, more-aware approach will be much healthier for our country and our people.

I agree, Jersey, there are a hell of a lot of spoiled baby-adults out there, all wanting some mythical promise. But, in fairness, there's a hell of a lot of people who have had their contracts broken and pensions looted and retirements plundered, all thanks to the favorable tilt our legal system has taken toward corporate interests over the last 20-30 years - always seems like the head honchos manage to keep working, to live in style, while the regular guys are screwed royally. I suspect that unjust tilt is fueling much of the anger we see and feel around us today.

[Flannista]

To amend my comment above, I actually think I would be working retail part-time with a couple of jobs. I might be able to find SOME creative work, but it would not be enough to cover the bills. When I started out as an independent consultant, I worked part-time as a gardener and also at a local Barnes & Noble. I often think that once the TRM gig is over, I'll be back where I started: part-time retail, though perhaps working on more of my own stories, etc., as I would still have to pay bills -- my health insurance went up another $239 a month. Starting April 1, I will pay $1,241.56 a month for health insurance. And I'M HEALTHY.

Matissta and I would like to buy a larger home, but neither one of us is confidant that we will continue to have steady work. Thankfully, I have no mortgage, but what I save in not paying a mortgage has -- in just two years time -- been diverted to pay for my health insurance. I pay more for health insurance today than I did three years ago for a mortgage, utilities AND health insurance.

[Flannista]

Love the last paragraph of your 10:11 a.m. comment, Chryso. It helped me feel somewhat vindicated by what I've observed over the last couple of days.

Regular folks are always screwed royally by head honchos with enough money to pay for lawyers -- the true source of power in the country.

TRM always says, "Protect the downside and the upside will take care of itself." Right. Pay for enough lawyers and you'll never again have to worry about health insurance.

Let them eat pretzels.

God Bless Free Enterprise!

[Chrysosistah]

Damn, Flannista, I feel terrible that you're having to work in such a soul-deadening place...just makes my skin crawl....

[Jerseysista]

half-a, my brain finally kicked into gear and realized what you meant about the slip on "current repression". It was a brain fart. Actually, I meant "recession" but I kind of like "repression," don't you?

[Flannista]

Chryso -- I'm just a consultant. I don't have to work there, day in and day out. Imagine what it's like for folks who do have to work there day in and day out.

But let me say that I love members of what is referred to as "the rank and file" of this company. They work very, very hard and are always grateful. I've known some of them now for more than 20 years, and they are like family to me.

Like most companies, there is a profound disconnect between administration and services. Between leadership and rank-and-file. I think it's simply inherent in capitalism. The higher you are on the corporate ladder, the more you make with less oversight. Also, from observing leaders in corporate America, I can say with much certainty that sh!t floats.

[Jerseysista]

I think about European homes. I have seen folks there who have jobs as good or better than mine but living in much more modest homes and driving cars that are meant as mere transportation rather than mobile convenience centers. Perhaps this is because they are being taxed to death but it feels, looking in from the outside, as if it is contentment with less and living within means and focusing on the more important things of life: community, family, conversation, connectedness. Sure their jobs, like ours, are going to Malaysia, Taiwan, China, South Africa and India but not as quickly. They are competing better than we are and maybe are richer, in non-monetary ways, for it.

[Jerseysista]

Maybe I should just move to Ireland. I can do my job from there as well as from here and the cost of living might be less, in which case, I can accept a pay cut rather than a lay-off next go-round. Or, maybe South Africa? That might work.

[Matissta]

Jersey, I think this is an interesting post, but I don't completely agree with you. Yes, some are workers are "spoiled brats," but I do also think that there are many people out there just trying to make ends meet.

I do also think it's much easier for you, because you don't have a family. Technically, you should be able to support more than a family of four, so you're in good shape. You also have benefits, even if they did cut back on them. I'm always amazed that couples can even afford to have a family today.

Would you call how I live lavish? Yes, I treat myself from time to time. I'm not complaining about my lifestyle. I get paid a decent salary. I also don't spend money on cable, live in a small home, have an 11 year old car, etc. but it's still difficult to have something left over at the end of the month. Even still, I feel fortunate to live as I do.

I think the main reason this post is irritating me is my experience in my own company. Year's ago we had a pay freeze. I understood and didn't complain, because I still had my job. Guess what? The Officers of the company still received their bonuses. My CEO's bonus was close to half his salary. Why? Because he saved the company money.

Over the past year, my company laid-off over 70 workers of an already skeleton crew. I've been doing two jobs for the past 5 years with no compensation. I found out today, and only because I have such strong connections in the company, that our company is hiring 3 high-level positions at the same cost of those 70 workers.

My CEO goes flies up to the NY office once a week. He gets driven to and from both airports, rather than driving himself to the airport or renting a car once he gets there. A total cost of over $400 even before the cost of flying. He also has a driver when he goes out to dinner, at the expense of the company. I'd like to remind you that I work for a non-profit. If these are the benefits and perks he's getting, what benefits are those who work for profit companies?

Something's not adding up for me.

[Chrysosistah]

Matissta, I think we are seeing the same thing. Planta and I are astounded when we tote up what we make, as we know we are likely the best-paid of the whole family - and we definitely don't feel like we are living high on the hog. My car is 10 years old as well. And I only confirmed yesterday that I still have a job - thanks to the finanglings of the company's owner. It feels almost like a week-to-week thing. At least I've gone thru this cycle enough that I no longer invest a great amount of my self-worth in my job - just too ephemeral for that valuable an investment. Planta's looking at likely job cuts at his agency next year as well, just not enough work coming in (due to the real estate crash) to justify all the employees on staff. He's hoping his seniority will save his job, but who knows?

This is the real rub - both Planta and I are very good at our jobs, and could actually do much more than we do, if given a chance. But those skills aren't needed, thanks. The incompetent managers/supervisors above us are happily ensconced, and because they stroke their managers very well, they are in no danger of losing their jobs. Not that they do their jobs well, they just stroke their bosses well, and their bosses are sufficiently out-of-touch with us, so they will never catch on. Of course, they are all strokers at those upper levels. That's a kind of competence I hope to never, EVER, acquire.