Working Harder & Falling Further Behind

(Community Matters) There’s a reality to this statement (working harder & falling further behind) for too many Americans. In today’s lead NYT editorial, it’s cited as what voters want acknowledged to believe a candidate understands the economic threat.

A slippery yet real slope – one I’m not qualified to diagnose, much less treat, though I have my thoughts. The adoption of new technologies and globalization have cost workers wages and jobs – most experts believe technology has cost twice as many jobs as globalization. Yet, I can’t argue against either. There are cases of unfairness in all markets, including international. With few and specific exceptions for even fewer industries, we’d be sacrificing long term financial health for very short lived benefits if we obstructed technology adoption or the realities of a global market.

The competition for highly-skilled workers, especially those bringing intellectual capital to their employers isn’t the problem market. I’m assuming here workers and their families are experiencing real increases in wages and wealth.

Industries subject to further automation (i.e., adoption of new technology) and outsourcing as well as the service industries, these are our Achilles heel. The problem is supply and demand. I’m not sure maximizing profits (i.e, as a result of lower wages as well as lower prices, greater revs) is always in our national interests, nor even in the long term interests of US stockholders. America has been an extraordinary economic power in part because of our rich middle class. And, as the Harvard/Cambridge study showed, even our national political stability rests (at least in part) on the belief that one’s children have a fair shot at the American dream.

This overly simplistic review suggests the need for more wage bargaining power. I’m not yet prepared to sign on as an advocate, but it’s the start of my thoughts on this topic. I’d love others’ perspectives.