Working more, earning less

Working more, earning less

by digby

With all the talk of inequality, this comment from Nick Hanauer strikes me as one of the more important insights:

If you’re in the American middle class—or what’s left of it—here’s how you probably feel. You feel like you’re struggling harder than your parents did, working longer hours than ever before, and yet falling further and further behind. The reason you feel this way is because most of you are—falling further behind, that is. Adjusted for inflation, average salaries have actually dropped since the early 1970s, while hours for full-time workers have steadily climbed.

Meanwhile, a handful of wealthy capitalists like me are growing wealthy beyond our parents’ wildest dreams, in large part because we’re able to take advantage of your misfortune.

So what’s changed since the 1960s and '70s? Overtime pay, in part. Your parents got a lot of it, and you don’t. And it turns out that fair overtime standards are to the middle class what the minimum wage is to low-income workers: not everything, but an indispensable labor protection that is absolutely essential to creating a broad and thriving middle class. In 1975, more than 65 percent of salaried American workers earned time-and-a-half pay for every hour worked over 40 hours a week. Not because capitalists back then were more generous, but because it was the law. It still is the law, except that the value of the threshold for overtime pay—the salary level at which employers are required to pay overtime—has been allowed to erode to less than the poverty line for a family of four today. Only workers earning an annual income of under $23,660 qualify for mandatory overtime. You know many people like that? Probably not. By 2013, just 11 percent of salaried workers qualified for overtime pay, according to a report published by the Economic Policy Institute. And so business owners like me have been able to make the other 89 percent of you work unlimited overtime hours for no additional pay at all.

I watched the phenomenon of "more work, less pay" grow over the course of my so-called career. It took many forms, from re-classification of workers to non-contract and "executive" to avoid paying paying overtime to subtle coercion from the boss implying that you won't get ahead if you put in for overtime pay. "Productivity" became the watchword which, in the business world, just means squeezing more work out of fewer people.

It's so pervasive that they don't even think about what they're saying when they run ads like this:



People who "work through" their lunch don't get paid for that time.

Read the whole piece. Hanauer is one of the most interesting rich guys around.


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