Ed’s Daily Notes for August 19th   1 comment

Bloomberg: Only Rich Know Wage Gains With No Raises for U.S Workers

Call it the no-raises recovery: Five years of economic expansion have done almost nothing to boost paychecks for typical American workers while the rich have gotten richer.

Meager improvements since 2009 have barely kept up with a similarly tepid pace of inflation, raising the real value of compensation per hour by only 0.5 percent. That marks the weakest growth since World War II, with increases averaging 9.2 percent at a similar point in past expansions, according to Bureau of Labor Statistics data compiled by Bloomberg.

Federal Reserve Chair Janet Yellen has zeroed in on faster wage growth as an important milestone for declaring the job market healed and ready to withstand policy tightening, even as other labor measures improve…

Households in the top 20 percent of U.S. socioeconomic groups saw their incomes grow by an average of $8,358 a year from 2008 to 2012, compared with a $275 annual decline for the lowest 20 percent, according to data from the Bureau of Labor Statistics.

If you want to know why the riots in Ferguson, Missouri are happening, look no further than the news above. While the Media might be stoking the racial aspect of the riots, I see the police shooting that took place there as a spark in a tinder box. Before you write that incident off as “blacks being blacks”, consider that every time this country goes through an economic recession or stagnation, blacks always do worse in the employment statistics than other races. The U.S. has serious racial issues, which are only exacerbated by the moat which the upper classes have put around their wealth. When you see the stock indexes hitting new highs with obscene regularity, at the same time the bond markets are flooded with money to the point of paying almost nothing in yield, yet the employment and wages are stagnant, this is clearly an economic disconnect. There is an absurd amount of money being invested, but there isn’t a “trickle down” effect.

On top of the economic flaws, we have a huge education problem, especially in the black community. I would draw your attention to this article, “Did School Integration Fail Black Children?“:

The reality is that black families faced heavier burdens with the desegregation mandate than whites. Black children spent more time commuting, black schools were closed to make desegregation more convenient for whites (and to prevent their flight to the suburbs or private schools), and black teachers and principals were fired when white and black schools were merged. Estimates show that more than 82,000 black teachers provided instruction to a black student population numbering around 2 million in 1954. Within a span of 10 years, around 40,000 black teachers lost their jobs. Ninety percent of black principals lost their jobs in 11 Southern states.

Today, increased public school closings across the nation disproportionately impact black, Latino and poor students who lose their neighborhood schools. Eighty-eight percent of the school closings in Chicago affect black students.

The decimation of black educators has had a long-lasting impact. A study by the National Center for Education Statistics found that among 3.3 million teachers in American public elementary and secondary schools in 2012—where minority students are quickly becoming the majority—they were 82 percent white, 8 percent Hispanic, 7 percent black and about 2 percent Asian. The loss of black teachers means that many students have lost contact with their most impactful role models. As black educator Kevin Gilbert told the Associated Press, “Nothing can help motivate our students more than to see success standing right in front of them.”

As usual with most progressive solutions, desegregation sounded good on the surface, but had horrendously bad results. Unfortunately, because of decades of being the only group willing to deal with the black community, the progressives are the only ones to whom the black community are listening. So when smart people like Kareem Abdul-Jabbar offer solutions, they naturally include progressive solutions like food stamps and welfare, which are temporary crutches, not real solutions.

I won’t offer a solution here, but I will say that any solutions that sound good on the surface need to be viewed with more discerning eyes. And the already failed policies of the progressives need to be thrown out. They have already done enough damage.

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Posted August 19, 2014 by edmcgon in Economy, Editorial/opinion, News, Politics

One response to “Ed’s Daily Notes for August 19th

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  1. My mother has a master degree in education and retired from the post office. More money less work to take home.

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