Inflation vs Wage Increase

I recently wrote a paper for an English class (which I will post here eventually) based on the income distribution problems in the US. This paper required actual research and citations, so I ended up looking up things like average inflation and wage increase over the last 50 years. What I found is appalling and rather damning for large businesses. It turns out that the current situation is many times worse than I had initially thought.

The two above mentioned statistics (inflation and wage increase) should give a very clear indication of exactly where the problem lies. The statistics are as follows: average inflation from 1961 to now (the last 50 years) is 659%, and average wage increase for the lower 99% of wage earners is 75%. If you don't see the problem, let me explain.

This means that businesses are charging 6.5 times more for goods, but only paying 1.75 times more wages (to 99% of the population). Note that for the top 1%, wage increase is 250%, which is still only half of the rate of inflation. In short, everyone is getting ripped off, except for the few CEOs that are keeping the enormous leftovers.

Ok, this might sound kind of bad now (to me, this by itself is appalling). There is more though. The cost of production is literally at all time lows. I am not talking monetary costs. In the end, all production costs break down to labor. The cost, in labor, of producing even the most advanced technology is less than it has ever been, in the entire history of mankind. Our ability to produce food is legendary. The US produces many times more food than we need and with only a tiny fraction of the available labor. This goes for nearly everything produced in the US. Instead of lower prices however, businesses are raising them. Instead of using the surplus cash to pay their workers a fair wage though, they hoard it, paying their CEOs absurdly high wages (see that xkcd.com comic I posted a bit ago; typical CEO wages are $5,000 an hour), and squandering it on other fairly pointless endeavors.

I tried to explain this to someone recently, and the excuse for inaction was that it is none of our business if other people are getting ripped off by businesses. I was told that I could leave the US if I did not like how the businesses here treat people. First, to my knowledge, there is no place in the world that employers treat their employees fairly. The US and Europe are the best we have (actually, this is debatable) and both stink. This idea that ripping off people is ethical as long as they agree to it is nauseating to me (I believe I also posted my opinion on the idea that it is ethical to charge as much as people are willing to pay; I feel the same about the idea that it is ethical to pay the lowest wages people are willing to work for). Now the first argument, that it is none of our business, is just as bad. This is the argument used by Germans who were not willing to help the Jews. I know a cliche that fits this situation perfectly: "All that is needed for evil to triumph, is for good men to do nothing." I apologize if some people find this comparison to Nazi Germany to be offensive, but if you will take the time to think about it, you will find that there is little difference. If you believe that slavery in the South was bad and that freeing the slaves was a good thing, then it is hypocritical to claim that this injustice is none of your business. (When I post my paper, you will find that what is happening in the US now is not that far from actual slavery.)

I am a member of the LDS Church, commonly known as Mormons. Most Mormons that I know are very conservative. I consider myself to be fairly conservative (though I do not like to associate myself with the Republican party, as I have found it to be no less corrupt than any other party). Still, my religion dictates that it is my business to care that my fellow humans are being treated unfairly and are being oppressed. I have heard the argument that those running businesses have the agency to choose how to treat their employees. This, however, is not a valid excuse to allow them to continue to rob them of fairly earned wages. This argument is as valid as the argument that thieves should not be prevented from robbery (or punished for it), because they have the agency to act as they please. We live in a democratically run government (at least, in theory). It is the business of the people to enforce fairness. This is the purpose of a democratic government. My religion specifically states that I am my brother's keeper and that the term "brother" is used to represent every human ever born and that ever will be born. In short, my religion expressly dictates that how others are treated by their employers is my business. The agency of others does not even apply in this case. Any Mormon that tries to use this argument as an excuse for inaction does not understand the teachings of their religion. This applies equally to any religion that believes the Bible to be the Word of God.

One of these days, I will work out the math for these rates and post a projection for cost versus pay 50 years from now. I suspect that it will predict that 99% (or more) of the US population will not make enough money to eat without being on welfare in 50 years.

I doubt that this will ever happen, however. If the situation continues to decay, the Occupy Wall Street movement will eventually evolve into a violent revolution, and our government and all of the big businesses that control it will be destroyed. If the government tries to quell the movement, it will be another Tienanmen Square and will probably result in even a more violent revolution. Of course, maybe this is what SOPA and PIPA are all about. Maybe our government is trying to gain control of the internet so that they can kill thousands of protestors and then cover it up, just like China did. I doubt that it will work here, however. If nothing else, the nerds (I include myself in this group) will manage to spread the news even against all the efforts of the government to cover it up.

Since my last few posts, the government has not done anything significant to appease the 99%. In fact, they have blatantly tried to further oppress them (SOPA, PIPA). At the rate they are going, revolution is nigh. I recommend preparing. Still, don't give up. If it is possible to force our government to acknowledge that it is at the mercy of the people, peacefully, then it will take the effort of as much of the US population as possible.

Lord Rybec