Employee exploitation

Back in the 60’s, when I began my professional career, and on into the 70’s and 80’s, the business model in America was far different from what prevails today. That earlier model was based on the concept that experienced employees had value. This was reflected in the “compensation package”: besides salary, paid sick leave and vacation, there was added vacation time after a few years and an employer-funded pension for 25 years or more of employment.

But even then, there was a sense of change coming. And over the past 30 years or so the employment environment has shifted more and more into an employee-hostile one.

Here are clear signs of that employee exploitation. From 1979 to 2022, wages for the top 1% of wage earners (corporate managers) in the U.S. rose by 171.1% compared to 32.9% for the bottom 90% of wage earners (blue collar and entry level white collar).

As a result, 78% of Americans now live paycheck to paycheck (Payroll.org poll 2023). And over 60% would not be able to cover an unexpected expense of $500, out of pocket (Secure Save poll 2023).

Additionally, as the cost of living continues to increase, people are going further into debt to maintain their standard of living. This year, “U.S. household debt reached a record high of $17.3 trillion.” (Federal Reserve Bank of New York). This includes credit card, student loan, auto, and mortgage. That just isn’t sustainable.

The root cause of this problem is that our free market is no longer free, but instead is controlled by a few mega-corporations that have, in effect, monopolized our economy, setting the prices we pay for goods and services and setting the salaries they will pay.

There are only a half-dozen or so economic areas, like food distribution and health care, they need to dominate in order to have complete control of our economy. To free our free market, we must put an end to those monopolies: Now!

John H. Terrell