Showing posts with label Employment. Show all posts
Showing posts with label Employment. Show all posts

Friday, February 5, 2021

Solving Overwork and Unemployment: How to Create a Functional Labor and Tax Platform in Eight Easy Steps

     American tax and labor policies are in a state of dysfunction, inactivity, stagnation, and chaos. We must restore functionality and logic to the American economy and its labor market as soon as possible.

     Unemployment, being overworked and overburdened with pressure to accept overtime hours, and struggling to scrape together enough work-hours to qualify for benefits and make ends meet, have all become severe problems in the United States.

     In order to fix this problem, each our overtime laws, our minimum wage laws, poverty threshold laws, and laws on tax credits and basic income, need to work together. Laws on taxes and labor need to be crafted in a coordinated manner which makes sense, with each policy measure logically proceeding from, and being justified by, and making room for the other related policies being implemented, in order to help fulfill the conditions necessary to achieve those policies' goals.


     The following is a set of proposals regarding laws on taxes, labor hours, poverty levels, and related topics. But it is also a set of instructions for those wishing to legislate on economic matters.

     You can come up with your own proposal like this; by going through each of the eight topics, and choosing your favorite proposal from among the two or three choices listed below them. I have called these options are the “Conservative”, “Progressive”, and “Libertarian” plans, which in some cases feature combinations or alterations. [Note: I do not mean to suggest that all conservatives would be likely to support the proposals I've termed "conservative", however; I only mean that the "conservative" reforms are the most conservative reforms, of the reforms I've proposed below.]
     I suggest highlighting your favorite proposal, crossing everything else out, jotting down a few notes based on what's left, and adding your own ideas.

     This proposal can also function as a political survey.


     I recommend selecting either the “a” option for all questions, or the “b” option for all questions, or the “c” option for all questions. I say this because consistency is important, given that the whole idea of this article is to provide a framework for achieving an interlocking set of proposals that make sense together.

     But libertarians and conservatives, conservatives and progressives, and progressives and libertarians each have a specific set of things that they agree and disagree about; therefore I will not discourage my readers from mixing and matching. Just keep in mind that the consistency will be diminished, and the problem may not be fully solved as the result of your choices.


     Feel free to e-mail me at jwkopsick@gmail.com if you have any questions or suggestions about this proposal and survey, or if you would like to tell me your response to the survey.


     Notes about the statistics referenced in this article:

     The 6.7% unemployment rate figure (which I use to estimate a 26.8% "real real unemployment rate") is cited because the unemployment rate was 6.7% in December 2020. In January, that rate decreased to 6.3%, so adjustments should be made wherever necessary, when updating these statistics to generate policy suggestions conforming to the new economic reality and the new statistics coming out.

     The 34.5 work-hours per week figure is based on statistics from 2019.
     The original statistic was 34.4 hours per week, but I have rounded that to the nearest half an hour, for simplicity's sake. More precise numbers should always be used to generate final policy proposals. This article should be used only as a template and place-holder, until closer to the election for which it will be developed and perfected.     




     1. Reduce the standard number of work-hours per week which the government intends to be the standard number used in regards to the pertinent federal labor laws:

     1a. (“Conservative” or “simple/basic” option, only solves half of the problem but could also be a major first step towards finishing the job): Reduce the standard number of work hours per week from 40 to 34.5, the average number of hours worked by Americans.

     1b. (“Progressive” or “complex/extra” option): Reduce the standard number of work hours per week from 40 to 27.2, to account for the number of unemployed people who would start working if they could, which issues from the fact that “real real unemployment” (i.e., U6 or U7) is at approximately 26.8% (so it would require reducing the 40 hours a week by 26.8%, down to 27.2 hours per week).

     1c. (“Libertarian” option): Repeal all laws which establish or suggest a uniform or target goal as it pertains to desired number of work-hours per week (This would be difficult without eliminating vast numbers of government workers).



     2. Repeal or amend overtime laws to reflect the need to reduce competition for labor-hours between temporary and gig workers, underemployed people, and seasonally and structurally unemployed workers (etc.) vs. overtime workers with secure jobs:

     2a. (“Conservative” option, assuming that 1a was followed and completed): Keep overtime laws, but make overtime start at 34.5 hours per week, without increasing the “time-and-a-half” pay requirement for overtime work.

     2b. (“Progressive” option, which might make the problem worse): Keep overtime laws, but make overtime start after 34.5 hours per week, and increase the “time-and-a-half” pay requirement for overtime work to 175% or 200%.

     2c. (“Libertarian” option): Repeal and eliminate overtime laws altogether, thereby reducing external pressure and incentive to work overtime.



     3. Set a goal to achieve an average American worker income:

     3a & 3b. (“Progressive-Conservative” option): Set a goal to achieve an average American worker income of $34,500 per year.

     3c. (“Libertarian” option): Repeal all laws which establish or suggest a uniform or target goal as it pertains to desired average American worker income.



     4. Raise the poverty level (up from $12,760 per year, per single-person household):

     4a. (“Conservative” option): Raise the poverty level to $17,250 (equal to half of the $34,500 per year goal).

     4b. (“Progressive” option): Raise the poverty level to $34,500 (the average annual income goal).

     4c. (“Libertarian” option): Repeal any and all laws establishing or suggesting any sort of poverty level or uniform poverty threshold.



     5. Increase the minimum wage, to adjust for cost-of-living increases and other economic factors which need updating:

     5a. (“Conservative” option): Set a $17.25 per hour minimum wage. (This is based on the premise that many people may still choose to work for forty hours a week or more, and thus might not need $20/hr. At fifty five-day weeks per year, that comes out to an annual income of $34,500 per year).

     5b. (“Progressive” option): Set a $20 per hour minimum wage (to account for the fact that 34.5 hours of work per week, for $20 per hour, for fifty five-day work-weeks per year, comes out to $34,500 per year).

     5c. (“Libertarian” option): Repeal and eliminate minimum wage laws altogether, in order to remove and criminalize all external suggestions on prevailing, minimum, and maximum wages, which may not only be unnecessary, but which also distort the market by distorting price signals for wage labor. Allow the labor markets to dictate the prevailing wage, and let the free-floating prevailing wage to be the only wage rate that is considered “average”, or remotely “official”, in any way.



     6. Create a tax exemption for poor people which is based on the average annual income suggested by the new minimum wage and standard number of work-hours:

     6a & 6b. (“Progressive-Conservative” option) Exempt all 18-year-olds (most of whom lack proper tax documentation) - and all people 19 and older whom disclosed their taxes the previous year - from all taxes, as long as they do not earn more than $34,500 per year, and can prove it.

     6c. (“(Geo-)Libertarian” option) Exempt everyone from taxes, except for people and businesses which profit from the despoilation of land, and from the improper solicitation of taxpayer subsidies and monopoly privileges. Eliminate all taxes which are levied based on quantity, and only enforce tax laws against those who use violence and/or destruction to earn their livings.



     7. Establish an alternative minimum tax payment that gives taxpayers some choice in regards to how they are taxed:

     7a & 7b. (“Progressive-Conservative” option): Establish an alternative minimum tax payment of $17,250, or up to $17,250, per year; and require that taxpayers choose between the following: 1) report that your annual income was over $34,500 and pay taxes; 2) report that your annual income was under $34,500 and receive an exemption from taxes for that year; or 3) keep information about the amount you earned private, but disclose the sources, and pay the alternative minimum of $17,250.

     7c. (“Libertarian” option): Repeal and eliminate the alternative minimum tax payment.



     8. Provide a basic income (or refundable tax credits which occur on a routine basis), or else pass additional non-refundable tax credits.

     8a. (“Conservative” option): Pass non-refundable tax credits for people with sick, young, old, and disabled dependents, and for people earning slightly more than $34,500 per year but may still need and/or qualify for assistance.

     8b. (“Progressive” option): Pass a universal basic income guarantee for all residents earning less than $34,500 per year; providing a basic income equal to $17,250 per year ($1,437.50 per month).

     8c. (“Libertarian/Friedmanite” option): Pass a Negative Income Tax proposal which builds on the voluntary tax information sharing proposal. Those who elect to provide the amounts in their tax receipts, shall receive refundable tax credits of an amount which is equal to 50% of the difference between the amount they earned in the previous year, and $34,500.



Written and published on February 5th, 2021

Edited on March 17th and April 22nd and 23rd, 2021

Thursday, January 24, 2019

The Skilled Trades Lead to Engineering, Not Poverty and Shame


     On January 21st, 2018, I met a man who used to be a wood shop teacher at a Kindergarten-through-8th-grade school in Lake Forest, an affluent suburb of Chicago, Illinois.
     My acquaintance told me about how he lost his job. He said that, one day, he came in to work at the school as usual, and a construction worker walked into his wood shop classroom, and laid some blueprints on a table. When asked what he was doing there, the construction worker casually informed the teacher that he and his crew were going to have to start taking the machines down.
     Unbeknownst to the wood shop teacher until that moment, the school was ending the wood shop program, and wanted to re-assign the teacher to a different subject.

     The reason the school gave was that there was a safety risk; a student could lose a finger, or get seriously injured in some other way.
     But on the other hand, high school students would be better able to understand and adjust to that risk than younger high school students, so why not allow only seniors and juniors to take the courses? Students need to acquire hands-on skills at some point, and they should start acquiring those skills, so that they're ready to start working when they're 18 (or 16).
     Aside from being better able to respond to dangers in the wood shop, older students are better able to understand the risks and consequences associated with using wood cutting equipment. So why not allow juniors and seniors to sign waivers, indicating that they understand the risks, and – with parents' permission – agree to accept them, in exchange for receiving wood cutting skills.
     While we're on the subject, why don't we make sure that more (or all) schools, have wood shop, auto shop, and other technical courses and programs, on site? And why don't we encourage more schools to take others' lead, and have one campus for juniors and seniors (who can drive, and take wood and auto shop), and another campus for underclassmen (i.e., the freshmen and sophomores who still mostly take the bus to school)?
     But I'm getting off topic.

     The supposed safety risk associated with wood shop classes is just a ruse, because that risk can be allayed; through proper safety education, and waiver programs.
     But, of course, waiver programs do not satisfy those who support terminating wood shop classes. That's because waiver programs do solve the problem.
     Parents who want to take wood shop classes out of high schools, want to avoid the risk of liability lawsuits against the school. For a public school to be found liable for an injury to a student, and have to pay damages, would be costly to the school (and the local school board) in terms of both finances and reputation.
     It is my assessment that parents who are against wood shop classes, by and large, do not care that waivers and proper safety education solve the problem, because the waiver system eliminates the possibility that the school could be found liable to pay damages to an injured student. It does this by refusing to accept students into wood shop programs if they do not agree to foreswear suing the school.
     This is a wise policy in my opinion. The intent is to reduce the chance that a student will behave carelessly in a wood shop classroom.
     What upsets parents who are against wood shop classes, is that solving this problem exposes their real agenda. That's because the ulterior motive behind the opposition to wood shop classes is more than just safety concerns, and concerns about legal and financial risks to the school.

     People who enter the trades – such as construction, automobile repair and maintenance, electrician work, heating and cooling, plumbing, etc. - are generally not regarded in a positive light by wealthy suburbanites.
     The wealthy tend to see those types of jobs as somehow “beneath” themselves and their children; particularly construction and auto repair. And plumbers? Forget about it. Plumbers are garbagemen in the eyes of many of these people.
     But then, of course, “garbagemen” are really sanitation engineers. People who get really good at automobile repair and maintenance, end up offering suggestions that improve the quality of their trade. Wood shop can lead to wood crafting, not just construction. And construction, heating and cooling, and plumbing, are all essential things we need to survive comfortably in the modern world.
     Any person who takes wood shop or auto shop in high school, or studies electricity, could become an engineer. Don't believe me? Think of all the math that goes into the study of those subjects; algebra in electricity, trigonometry in simple construction, calculus in advanced construction.
     Studying a skilled trade late in high school could potentially lead a student to choose a trade school or technical school over a university.
     There, students could study C.A.D. (computer-aided design), 3-D printing technology, CNC machining and die casting, mechanical engineering, electrical systems engineering, architecture, bridge design, and more. And the electrical systems, homes, and bridges that result from those studies, improve all of our lives.
     So why disparage tradespeople? Why pretend that someone who wants to work with their hands, learn a trade, develop their skill, and produce or manufacture something of value, is only going to be a garbageman for the rest of their life?

     In Lake Forest, Illinois in particular, and in other nearby affluent suburbs, there is a sentiment among many well-off parents, who believe that - to paraphrase the words of my wood shop teacher acquaintance - “We want our children to be doctors and lawyers; we don't want them in construction or plumbing. We pay people to do those things for us, and we want our children to as well.”
     My friend's portrayal of the attitude among these parents, confirmed my worst suspicions about this topic, which I had long suspected.
     Parents like that would never tolerate their child become a skilled tradesman. Even if it meant cheaper electricity or a better home for themselves. After all, a person who becomes a skilled tradesman might join a union, or even – God forbid – become a card-carrying red! A bourgeois parent would never tolerate it, when they'd rather see their child working in an office or a trade floor, or better yet managing a workplace from afar.
     The effect is that any child who grows up wanting to earn an honest living, without manipulating money or simply managing and moving resources that somebody else produced, is not going to have an easy time finding a career in which his parents can take pride.

     Perhaps more importantly, one potential outcome is that many children will grow up in privilege and opportunity, without any skills or common knowledge to take advantage of those opportunities.
     The students who would have studied the trades, but were deterred by their parents' disapproval, would have found paths to perfectly comfortable livings. In the more valued of the common trades, tradespeople can even earn six-figure salaries (that is, if they're particularly skilled in their fields, or if they become managers). That's a hefty sum, compared to the salaries earned by most people who graduated college after having studied humanities, social sciences, and liberal arts.
     How is a wealthy parent harmed by having a child who grows up to be an industrial engineer, civil engineer, or public works employee (even if he is a garbageman)? A parent is only harmed by such an outcome if they have both 1) an unhealthy sense of identification with their child's achievements; and 2) a twisted set of values that derides honest work that hurts no one, based on the field somehow being “dirty” or “low-class”.
     Well, disparaging people for being “low-class” is how you get a lower class. Antagonizing people who perform tasks that are essential to making our lives easier and more comfortable, is how you get both increased social division and increased stagnation of infrastructural development.

     What about the rich kids who weren't intelligent enough to become doctors? What about the kids who studied political science, but were too honest to defend obviously guilty people or push a political agenda? How are they supposed to make ends meet?
     It might sound like I'm saying “the poor rich kids”, and in a way, I am. But the poor and rich alike deserve opportunity to acquire skills and become independent, and become self-employed if they choose, and to choose a field that has meaning and value to them.
     Students who grow up well-off in the suburbs, grow up disconnected from both the reality of nature on the rural farms, and from the reality of large concentrated numbers of people (and, importantly, poor people) in the urban centers. So they grow up without people skills and without connection to animals and nature, and to the life processes which sustains human beings. They grow up away from the world of the productive; away from places where food is grown, and things are built and manufactured, alike. Away from the majority of the people, and as a consequence, away from people who might suggest alternative ways of living and working, of which a student might not have otherwise heard.
     As a result, they grow up without essential sets of skills that have to do with life outside the suburbs.  Without picking up hands-on skills, they grow up completely unprepared for the real world and its problems, and with little practical ability to be independent and self-sustaining. These are real problems, and neither they, nor the problems that poor kids experience, ought to discount the seriousness of the others'.
     Poor kids (and rural kids), at least, get to go on school field trips to farms, plants, factories, and refineries. Those field trips can do either of two things: 1) prepare them for farm work, factory labor, working in a steel plant or oil refinery, etc.; or 2) scare them away from those fields, so that they'll be effectively encouraged to go to college instead (and pursue a “higher” course of study).
Rich kids never had those field trips. Or if they did, then it was mostly about scaring students away from “dirty work”, and there was no real risk anyone would end up in those fields (unless they wanted to).
     That is, as long as the rich kids are willing to take advantage of all of the privileges and opportunities which their upbringing affords to them. And sometimes that means taking advantage of white privilege, or succumbing to social pressure to boast about your achievements and employability to the point of it compromising your humility.
     The suburbs are no fun. Say what you will about poor urban areas, and rural areas; they're where real life takes place.

     Students should not leave high school, having practically no clue what a factory is, nor what S.T.E.M. fields are (science, technology, engineering, and math).
     An eighteen-year-old graduate from a public high school ought to instantly know what you're talking about if you say the phrase “the trades”. A young adult should be able to recognize a grain elevator, or an energy plant, when he sees one.
     Someone who is just entering the work force should also know what their basic rights are in the workplace; in regards to safety, health, breaks, wages, conditions, and how to participate in effective negotiation with management.
     Neoliberals and neoconservatives in the suburbs don't care about workplaces having good, or even adequate, safety and health conditions, or good pay, or good break policies. They just wonder why employed people can't start their own businesses, create jobs, and contribute to society to a degree equal to the help they've received.
     Not that they would ever listen, but there is a simple answer to this: If you didn't shame them for becoming independent contractors, or for trying to survive without striking a deal with some large corrupt multinational, then they might do just that!
     The last thing a wealthy parent wants is for their child to grow up a unionized tradesperson. Someone who can destroy the work they've just done, if the person who hired them refused to pay what they promised. A wealthy suburban parent would hate to have to treat such a person like a human being with dignity; whether it's their child or not.
     The only thing they care about is shitting on those people, criticizing them at every opportunity, controlling them, and making it as difficult as possible for them to become independent through honest work.

     The last thing we need is for parents and teachers to educate children, while completely neglecting to inform them as to what types of professions the world will need most badly when they enter the workforce.
     If I had been told at age 14 that the world desperately needed more engineers, doctors, or whatever, then I would have considered studying engineering or medicine, and I would have thought about how I could fit in to those careers. Not only to make a lot of money; but because I know that people need those services. I'd know that I'd be contributing something which is valued by others, and that would give my work (and the studies which precede it) a sense of purpose. And the quality of work of someone who believes in the work they're doing, is impossible to put a price on.
     It saddens me to realize that many wealthy parents have neglected to suggest back-up plans to their children, in case they don't turn out to be the doctors, lawyers, astronauts, cowboys, and artists they expect to be when they leave college.
     While they heap criticism and disdain upon the skilled trades (which they regard as unskilled), such parents are usually also content to allow their children to make money carrying bags at gold courses. To such parents, the fact that caddying involves sucking up to the wealthy for money, makes the indignity of that job tolerable.
     Moreover, it provides the caddy with an opportunity to ape the most Machiavellian, narcissistic, and psychopathic tendencies of the business and political elite who belong to those golf courses. This, of course, will be essential to furthering their future white-collar career.
     The fact that, by allowing their children to caddy - and intern with corrupt businesses, law firms, political offices, etc. - they are conditioning their children to serve the elite and the old money, not to become independent of it. In effect – despite their privileged upbringing - they are reduced to the same level of servitude to the wealthy elite, to which the poor are reduced as well.
     The only consequences of obedience to affluent suburbanite parents is eternal servitude. The best form of rebellion against such a flawed parenting style is total independence.

     In 2014, Chicago teacher Douglas Bartlett, was suspended for four days without pay, after he showed common hand tools to his elementary school students. The tools included screwdrivers, wrenches, pliers, a pocket knife, and a box cutter.
     According to Warren Richey of the Christian Science Monitor, Bartlett “thought he was using physical objects to help his students learn the required course material.” However, since the set of items he displayed in his classroom included a pocket knife and a box cutter, his instruction that day was deemed to be in violation of Washington Irving Elementary School's policy against “possessing, carrying, storing, or using a weapon on the job when not authorized to do so.”
     I guess they were worried that one of the kids might pick up the box cutter, hijack the classroom, and fly it into the World Trade Center.
     Bartlett maintained that he displayed all of the items as tools, not as weapons. The school, on the other hand, says that Bartlett failed to ensure that the knife and box cutter were inaccessible to the students, and that he failed to obtain permission from the school before showing the items.
     Auto shop and wood shop classes are disappearing from high schools, depriving students of hands-on skills, while standardized multiple choice tests relieve students of the burden of having to actually remember the correct answers. Wealthy parents want their kids to get into good schools so they can have dignified jobs (that is, jobs that the parents consider dignified).
     So you have to wonder whether reprimanding the teacher for showing common tools, was anything more than a way to distract students from acquiring valuable trade skills that could risk injury to them (or, more importantly, to their public school's finances).
     Where are those life skills and agriculture classes in high schools?

     A world where everyone knows advanced math, and everyone knows one or more skilled trades, and anyone can farm part-time on their own property, is not something that the business or political elite want. They want obedient workers who are equally dependent on big business and the corrupt governments with which they collude.
     Luckily, however, many of these people are dying, and their death cannot come soon enough. They, through their ignorance and passivity – and their need to be persistent social-climbers and yes-men – are causing the destruction of our ecosystem, and the poisoning of our food with toxic industrial preservatives.
     But this is not enough for them; they must also profit off of our efforts to save the planet, in order to render them ineffective and useless. After all, what do they care? They're intent on dying before anyone can catch them in the act. They'd hate to sit around waiting for judgment and revenge to come. And it will come.
     But the fact that their judgment is coming, does not stop them from encroaching on our ability to merely subsistence-scavenge from within the shell of the old world which they have destroyed, but kept alive like a zombie. Just like the “headless” “zombie corporations” which they have kept alive through bailouts and restructuring, heading companies with C.E.O.s who often have little to no understanding of the industry in which they're working. Just like the idiot politicians who know nothing about the things they're regulating.
     Don't ever allow yourself to become so deluded as to think that you could never become like one of these people. All you have to believe, in order to slip down the road to their twisted line of thinking, is “Hey, I got mine, and I'm not complaining!”
     I, for one, will complain as long as I am pressured into renting things which I would rather own, and as long as I have to beg and apply and pay for permission to use something that I thought was my own property.

     We must each own a means of production, if we are to be independent, and self-sustaining. For only when we own the means to produce, can we keep everything we produce with it, without the owner of the equipment demanding compensation for its use. We should return to the days when many companies gave their employees tools as part of their compensation package.
     We should also seek to ignore and invalidate all contracts which pressure employees into agreeing - as a condition of gaining employment - to refrain from competing with their employer company, when they leave that company, for some duration of time. These are called “non-competition contracts”, and they interfere with the freedom of competition which is afforded to us in the marketplace.
     These contracts, as well as other anti-competitive agreements, only make it harder for a worker to resist the temptation to borrow other people's means of production in order to earn a living, instead of the owning a means of production outright by himself. The enforcement of non-competition contracts results in a truly sorry state of affairs, in which virtually every worker who 1) is not the best in his field, and 2) dares to quit working for an employer, is effectively unable to operate successfully and competitively in the field he has chosen. And maybe even the field to which he has decided to dedicate his life.
     The only alternative to redressing this unjust state of affairs, is to coerce 99% of people into dependence and “skill-lessness”, while those who already have advanced skills – and those who represent them  receive more pay, more economic rents, and more legal insulation from competition and legal responsibility, year after year.

     Students in high school today, as well as all young people in general, should be encouraged to at least consider the trades. Being a doctor or a lawyer is all well and good, and medicine is literally a life-saving field. But skilled farm labor, and H.V.A.C., will become devastated fields if several million people do not learn the skills necessary to join them within the next several decades.
     And that is the kind of information that I wish I'd had when I started high school. I hope that the younger of my readers will not discount the value of that information.




Based on a Facebook Post Published on January 22nd, 2018
Edited and Expanded on January 24th, 2019
Published on January 24th, 2019

Monday, August 6, 2018

Alexandria Ocasio-Cortez is Part-Right on Unemployment

Table of Contents

1. Introduction
2. Multiple Job Holders
3. “The” Unemployment Rate
4. Working Overtime
5. Additional Factors in Employment



Content

1. Introduction

     On July 13th, 2018, U.S. House Democratic primary winner Alexandria Ocasio-Cortez (NY-14) appeared on PBS's program Firing Line, to discuss her campaign with host Margaret Hoover.
     Ocasio-Cortez, a former Bernie Sanders campaign staffer who has been described as a democratic socialist, was criticized for her response to Hoover's question about unemployment. The following is a transcript of that exchange:

            Margaret Hoover:
     In your campaign. It was always about working-class Americans. You talk about the top versus the bottom, not the left versus the right.


Alexandria Ocasio-Cortez:
     Right.

MH:
     Now, the economy is going pretty strong, right? There's roughly four percent unemployment, 3.9% unemployment... um... Do you think that capitalism has failed to deliver for working-class Americans, or is [it] no longer the best vehicle for working-class Americans?


AOC:
     Well, I- I think the numbers that you just talked about is part of the problem, right? Because we look at these figures, and we say, “Oh, unemployment is low, everything is fine”, right? Well, unemployment is low because everyone has two jobs. Unemployment is low because people are working sixty, seventy, eighty hours a week, and can barely feed their kids. And so, I do think that we have this no-holds-barred, Wild West hyper-capitalism. What that means is profit at any cost. Capitalism has not always existed in the world, and it will not always exist in the world. When this country started, we were not a capitalist- we did not operate on a capitalist economy.


     Ocasio-Cortez's comments were quickly criticized by numerous figures in conservative media, including Tomi Lahren and Dan Bongino on Fox. On July 17th, former Republican congressman turned conservative radio host Joe Walsh tweeted “@Ocasio2018 is proof that just because you have a degree in Economics doesn't mean you actually understand economics.”
     Alexandria Ocasio-Cortez graduated from the College of Arts and Sciences of Boston University in 2011, with a bachelor's degree in economics and international relations. Her critics have also pointed out their reasons for suspecting she is as unqualified to speak about international relations as they feel she is about economics, specifically her position on what she called “the occupation of Palestine”.
     Although many news outlets and fact-checking sites were determined to prove her wrong, she did have a point. While her comments on unemployment were not technically correct in the strictest and most literal sense, the way she articulated her position on why unemployment is low is, at the very least, understandable and on the right track.
     That's because, as Harvard economics professor Gabriel Chodorow-Reich says – as quoted in “Ocasio-Cortez Wrong on Cause of Low Unemployment”, written by Corey Berman and Robert Farley, published on FactCheck.org on July 18th, 2018 - “if she meant 'The unemployment rate is low[,] but that doesn't mean the economy is at its potential[,] because many people don't have a solid job and instead are forced to work two jobs to make ends meet', you could find economists willing to agree or disagree with the statement.”
     I suspect that that's exactly what she meant.


2. Multiple Job Holders

     Ocasio-Cortez's critics say that one reason she is wrong about unemployment, is that the percent of workers who have multiple jobs is near an all-time low.
     That is true; however, that low was achieved in 2013, in the middle of the Obama presidency, and thus, could arguably be attributed to Democratic policies. But on the other hand, that rate increased from 2013 to 2016, and decreased from 2016 to 2017. This rate has ranged between 4.8% to 5% since 2010, and ranged between 5-6% during the previous 25 years before that.
     Ocasio-Cortez never claimed that the number of people working two jobs was at an all-time high. Although it was hyperbole for her to use the word “everyone” to describe who has two jobs, it would be incorrect to say that she claimed that the multiple job holders rate is higher than it has ever been. While she arguably may have appeared to imply that, she did not directly say it.
     Despite the fact that that figure is actually near its all-time low, many people, nevertheless, still do have two or three jobs. George W. Bush said this is possible “only in America”, but it's also only necessary in America.
     One job ought to be enough for people to make ends meet. But a minimum-wage job is not enough to support a small family in a two-bedroom apartment in any state in the nation. And that statistic is not made-up; it's the people who say the minimum wage doesn't support a one-bedroom who are wrong.

     The reason Ocasio-Cortez was not technically correct about the cause of low unemployment rates, is that employed people getting second and third jobs, does not, by itself, increase, nor in any way affect, the unemployment rate.
     But that's because the figure we're talking about is the “proportion of employed persons with more than one job”; that is, the number of total workers, divided by the number of workers with multiple jobs. That statistic is not based on the relationship between the number of multiple job holders and the number of unemployed people.
     That's why the unemployment rate does not change when a job goes to a person who is already employed, instead of someone who is non-employed, who arguably needs the work more badly than the already employed person.
     Focusing on the multiple job rate instead of unemployment, blinds us to the fact that unemployment can stay about the same, even while the number of jobs rises, which is largely attributable to people getting a second job, and having both jobs' hours fall to 25 to 30 hours a week each.
     The last thing I want to do is to pit unemployed people against employed people who are struggling to balance two jobs. But the truth is that people who take-on a second job are “taking jobs” from unemployed people who actually need those jobs.
     This is a struggle related to the ease of obtaining employment, yet changes in the number of people with two or more jobs does not affect the unemployment rate the way it is currently measured. Alexandria Ocasio-Cortez rightfully drew attention to that fact, when she said “ I think the numbers that you just talked about is part of the problem”. The way we measure unemployment does not in any way give us a clear picture of the general woes the people are experiencing as it pertains to obtaining employment opportunities.


3. “The” Unemployment Rate

     As Margaret Hoover noted that the unemployment has been hovering between 3.8% and 4.1% lately, Ocasio-Cortez's detractors have noted that as well. Some conservative commentators have described this as an all-time low, and some have even credited President Trump for this supposed achievement.
     The idea that the U.S. is currently experiencing all-time low unemployment rates is false. Around the year 1970, the unemployment rate hovered around 3.5%, which is lower than it is now. Since the unemployment rate's history began in 1948, the lowest unemployment rate ever measured was 2.5%, in 1953.
     Additionally, the decline in unemployment numbers began long before Trump took office, near the beginning of the Obama administration.

     Alexandria Ocasio-Cortez was correct when she implied that the decline in the unemployment rate has to do with the way they're measuring it.
     You see, when people say "the unemployment rate", that's a misnomer, because there really is no single way that the U.S. government measures unemployment. But what is almost always meant by "the unemployment rate" is the so-called "official unemployment rate"; a measurement called "U3". According to the Bureau of Labor Statistics, the "Current U3 Unemployment Rate" is defined as the total number of unemployed people, as a percent of the civilian labor force.
     The Bureau of Labor Statistics measures unemployment in a variety of ways; known as U1, U2, U3, U4, U5, and U6. There have been conflicts between presidents, the Congressional Budget Office, and the Bureau of Labor Statistics, about how to measure unemployment, and these different ways of measuring unemployment reflect some of those differences of opinion.
     The Bureau of Labor Statistics defines U6 as “Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force”.
     Using U3 instead of U6 is basically a way to “fudge the numbers” on unemployment, resulting in a lower “official” unemployment rate than the “real unemployment" rate (U6). And U6, itself, represents a number of workers that's about half as much as the total number of people who are out of the work force and could potentially be employed (we might call this the "real real unemployment rate").

     The U3 unemployment rate excludes a lot of people who aren't technically “unemployed” in the sense that they have filed for, and collect, unemployment benefits from the government, and are currently searching for work, and have not yet become discouraged enough to stop looking. Such people are “non-employed”, but they are not “unemployed”. People who are between jobs, and think they'll find a job soon, and never file for unemployment, fall in this class, and so do college students who do not work due to having support from their parents.
     The U3 excludes not only non-employed people, but 1) underemployed people; 2) structurally unemployed people (whose industries or professions are uncertain or struggling due to long-term changes in the economy); 3) seasonally unemployed people; and 4) “non-attached workers” who work on-and-off, and also couch surfers who lack a permanent residence, some of whom might work in the gig economy; as well as homeless people who cannot file for unemployment benefits because they have no permanent residence.
     The U6 unemployment rate is about 90% higher than the U3 unemployment rate. If you factor-in everyone I mentioned in the last two paragraphs, then the real unemployment rate might be four times higher than the stated unemployment rate of 3.8% - that is, 15-16% - if not more than that. In fact, to prove that Donald Trump is wrong that unemployment is low, I'm going to cite one of his harshest critics, Donald Trump. In an August 2015 interview for Time Magazine, Trump told Pete Schroeder that he doubted the official unemployment rate, saying “our real unemployment rate is 42 percent” because “ninety-three million” people “aren't working”.
     In summary, we're measuring unemployment the wrong way, and the official unemployment rate (U3) is not the best way to measure the general economic woes of the country as it pertains to obtaining quality employment. Again, that's because U3 includes neither the non-employed, the structurally unemployed, the seasonally unemployed, non-attached workers, the underemployed, nor the homeless.


4. Working Overtime

     Ocasio-Cortez's critics also took issue with her claims that “people are working sixty, seventy, eighty hours a week”. Again, at no point did she claim that the number of people who work long hours is at or near an all-time high. Whether her critics have alleged she said that or not, her critics are not wrong to point out that the average number of hours worked per week is near its all-time low.
     That is correct; however, the Obama presidency saw an overall rise in the average number of weekly hours worked. Under Obama, that number did not quite rise to the numbers seen under Bill Clinton and George W. Bush. For the past twenty years, the average number of hours worked, has ranged between 34.25 and 34.5 hours, with a brief but significant dip to 34 hours in 2009.
     Average weekly hours worked is near its all-time low, but nevertheless, it is true that many people still do work sixty hours per week or more. I work as a private security guard, and I do know people who work such long hours like that. The fact that historically few people work long hours, should not distract from the fact that there are many individual human beings who are working long hours; just like the fact that historically few people work multiple jobs, should not distract from the fact that there are many individuals who are working multiple jobs.
     It is certainly a good thing that many people work less than forty hours a week, and the facts show that a 34-hour week is not only possible but the norm. Weekly hours worked could be much lower, especially if we utilize technology to its full potential and allow automation to flourish. Nearly 250 years ago, Benjamin Franklin predicted that a 20-hour work week would soon be possible, and Franklin D. Roosevelt declined to sign a bill that would have established a 30-hour work week about 85 years ago.
     Another thing to consider is that low average weekly hours worked, might not even be desirable, especially if it is caused by policies that incentivize people to work fewer hours than they want to. Examples of these policies include: 1) laws limiting the number of consecutive days which may be worked (which can negatively impact farm laborers); and 2) Obamacare's exemption of “part-time workers” (defined as people who work less than 30 hours a week), a policy which arguably gave employers an incentive to cut employees' hours in order to avoid being legally required to provide them with health insurance.


5. Additional Factors in Employment

     Here are some additional factors which indicate the general prospects of the American people as it pertains to obtaining employment, which do not directly relate to unemployment, but which affect non-employment nevertheless.
     First, fewer people on unemployment benefits might simply mean that people have stopped looking for work, and have declined to file for unemployment benefits.
     Second, lower unemployment numbers could also mean that more people have given up trying to become self-employed, given up trying to start their own businesses, and given up trying to make money through investments. In general, that they given up looking for other ways to get by without selling their labor to an employer (which arguably indicates desperation to find a job; desperation to prostitute themselves to potential employers by giving up rights to organize on the job, rights to full pay, etc.).
     Third, even if it were true that the economy is fine, and that the low unemployment rate reflects that, then more people having jobs is still not necessarily a good thing. Remember, a lot of the jobs people are getting, are jobs in industries that were given multi-trillion dollar bailouts just a decade ago. The jobs might be in industries which are being favored and privileged and bailed-out by the Trump Administration.
     The jobs might be in industries which are destroying our environment for profit. Maybe some of those jobs aren't all they're cracked up to be. The employees at the job in question might be overworked. The employees might be working multiple jobs, or might hope for full hours or raises, so that they can avoid taking on a second job. The workplaces might have safety and health hazards. Not every job is respectable; not every job saves lives; and not every job and industry should be subsidized, protected, and bailed-out by taxpayers.
     Alexandria Ocasio-Cortez is not “mad because people have jobs”, nor mad because low unemployment numbers are accurate and prove her wrong. She is “mad” (read: heartbroken) because when someone who already has a job takes a job that somebody else needs, it doesn't change the unemployment rate. Similarly, when someone who needs Food Stamps loses them because the government throws them off, it's counted as a success, as though they stopped needing Food Stamps and got off the S.N.A.P. program voluntarily. And that affects people's ability to feed themselves and their children.
     There are many people, who struggle to feed their families, whether they are working or not, and whether they are on government assistance or not. Some people are on government assistance even though they have jobs; not always because they're lazy and greedy, but often because their job doesn't pay them what they need to subsist. Alexandria Ocasio-Cortez is in the spotlight now because the electorate is ready to hear from a candidate who considers these issues to be serious problems, even if these problems are not as bad as they have ever been.



President Donald J. Trump,
explaining why unemployment and the economy are doing just fine





Sources











Written on July 4th, 20th, 26th, and 27th, and August 1st through 4th, and 6th, 2018

Originally Published on August 6th, 2018

Table of Contents and Aquarian Agrarian Links Added on August 8th, 2018

Saturday, June 7, 2014

Minimum Wage Recommendations for Each State



Statistics estimated, estimates based on
statistics from the H.U.D. and the Bureau of Labor Statistics
(number of minimum wage hours worked per week
necessary to afford to rent a two-bedroom apartment
and spending 30% of monthly income on rent)

More information available here:

http://www.usatoday.com/story/news/nation-now/2014/03/24/minimum-wage-rent-affordable-housing/6817639/

Sunday, April 20, 2014

Labor Protectionism

Written on June 16th, 2012
Edited in April 2014



   I'm not saying that the value of labor should be manipulated so that it loses its value here... But absent the manipulation of the value of labor so that the effort of workers gains value (I'm alluding to minimum wage laws), the going rate for entry-level labor feels like it should be about 5 or 6 bucks an hour here in America.

   ...What I am saying - however - is that that shit should be allowed to decline naturally; that is, without artificial government manipulation; that is, government controls should be removed so that the value of labor can find its real free-market rate, and our purchasing power and our balance of trade aren't all out of proportion.

   Remember... We don't have a primarily industrial- / manufacturing-based economy anymore. We're more of a service economy now. What's allegedly "backing our money" is more labor / services than it is goods / products.

   Now... I'd imagine that there are a lot of people who want to keep minimum wage laws in place, and who even desire that the minimum wage increase. I'd also imagine that a lot of those same people oppose the outsourcing of American jobs, prefer unionized to non-unionized labor, oppose Right-to-Work laws, and oppose benefit and pay cuts for government employees providing public services.

   So we're living in a primarily service-based economy where the combined government agencies confiscate 40% of the wealth and employ over 2.2 million people, and most of the debate on labor issues revolves around government jobs.



   Most of the people on the left want the government to artificially raise the value of the efforts of workers - including its own workers - who offer services rather than produce goods. They oppose both non-interventionism in the value of labor and government intervention to lower the value of labor.

   So doesn't the left want what could basically be described as a form of mercantilism or protectionism, except one that focuses on services instead of industry? Isn't this just liberals wanting America to protect the value of its economy and its money by keeping artificially inflated the value of its most valuable assets; its workers and their labor? Aren't these people more "capitalist" (specifically, state-monopoly capitalist) than are we free-marketers?




For more entries on enterprise, business, business alliance, and markets, please visit:
http://www.aquarianagrarian.blogspot.com/2010/10/enlightened-catallaxy-reciprocally.html
http://www.aquarianagrarian.blogspot.com/2014/05/agorist-protection-agencies-and.html

For more entries on free trade, fair trade, the balance of trade, and protectionism, please visit:
http://www.aquarianagrarian.blogspot.com/2014/05/foreign-trade-agreements.html

For more entries on unions and collective bargaining, please visit:

How to Fold Two Square Pieces of Card Stock into a Box

      This series of images shows how to take two square pieces of card stock (or thick paper), and cut and fold them into two halves of a b...