One out of six American workers, including manual and low-level laborers, are forced to sign non-compete agreements. It’s abusive, it’s strange, and studies say wages are 10% lower on average as a result.
Workers hate hate hate open office spaces, which they say make them feel undignified, constantly distracted and cramps their personal space. But corporations think workers should just tolerate open spaces anyway. Oh, the joy of open office spaces.
Forget terrorism, Ebola or even climate change — the most dangerous threat to this country is an epic retirement crisis.
We will soon see tens of millions of Americans reduced to poverty, bringing an end to the United States as an economic superpower.
Unlike attacks and pandemics, this crisis is an absolute certainty, one with a clear, near start date. But the media is hardly mentioning the imminent retirement crisis. So politicians haven’t even begun to think about it, much less take it seriously.
Actually, “retirement crisis” is a misnomer. The problem isn’t that people won’t be able to retire or will be living on a shoestring, though those things are true. We’re staring down the barrel of an epic old age crisis. For the average American, to be elderly will mean not mere belt-tightening, but real, grinding poverty: homelessness and hunger.
Throughout the last few decades, vulnerable people living from payday to payday have gotten battered by the shredding of the government safety net, a lack of accumulated savings caused by the boom-and-bust cycle of capitalism, and a lackluster real estate market.
Now members of the poor and lower middle class in their 50s and 60s are heading into a retirement crisis created by a perfect superstorm.
Traditional defined-benefit pension plans have been replaced by stingy 401(k)s and similar programs which employers no longer pay into, cap how much you can contribute (assuming you can afford it), take a beating during downturns in the stock market, and allow workers to tap when they’re laid off or run into financial trouble. After years of sketchy raids and outright theft, workers with old-fashioned corporate and government pensions can’t be sure their money will be there when they need it. The first Generation Xers — many of whom never had the opportunity to accumulate wealth due to several long recessions that impacted them particularly hard — will reach the traditional retirement age of 65 in the year 2024.
The facts are brutal:
No savings: The average Gen Xer only has a net worth of about $40,000 — enough to live on for a year. Maybe. In Akron. 36% of Americans don’t have a dime saved for retirement.
Later Social Security: Thanks to that lovable wacky Ronald Reagan, the Social Security retirement age was quietly raised to 67 for Gen Xers born after 1960. When you finally get Social Security, it doesn’t pay enough. The U.S. ranks third to last in social security benefits among developed nations.
Age discrimination: The continuing post-2008 recession hit those in their 50s especially hard; employers want cheaper, younger workers. 25% of Americans over age 55 now have no savings whatsoever.
About those pension plans: When journalists mention the retirement crisis, they focus on problems with the defined-benefit system. But that’s irrelevant to most Americans. 90% of private-sector workers don’t have one. Most government workers do — but 85% of Americans work in the private sector.
401ks suck (if you have one). Three out of four workers have no pension plan. What they might have is a 401k. The average Gen Xer who has a 401k — 69% don’t — has a $63,000 balance.
Financial experts say 92% of U.S. workers fall significantly short of what they’ll need to live decently after retirement. “In the decades to come,” Edward Siedle writes for Forbes, “we will witness millions of elderly Americans, the Baby Boomers and others, slipping into poverty. Too frail to work, too poor to retire will become the ‘new normal’ for many elderly Americans.”
This is about you — not some theoretical lazy Other.
“At some point,” Siedle says, “lack of savings, lack of employment possibilities and failing health will catch up with the overwhelming majority of the nation’s elders. Let me emphasize that we’re talking about the overwhelming majority, not a small percentage who arguably made bad decisions throughout their working lives.” [Emphasis is mine.]
America’s army of starving old people will drag down younger people too. “Public finances will be pushed to the limit, crowding out other priorities such as education,” Christian E. Weller predicts in The Hill. “Moreover, economic growth will be slower than it otherwise would be because employers will have more workers whose productivity is declining, while many older families, who could start successful new businesses, will forego those opportunities.”
And the pols?
Useless, Siedle concludes. “Conservatives are trying to pare back so-called entitlements that will mushroom in the near future and liberals have failed to acknowledge the crisis or propose any solutions.”
We can hit the streets to demand action now — or we’ll be living on them later.
(Ted Rall, syndicated writer and cartoonist, is the author of the new critically-acclaimed book “After We Kill You, We Will Welcome You Back As Honored Guests: Unembedded in Afghanistan.” Subscribe to Ted Rall at Beacon.)
COPYRIGHT 2014 TED RALL, DISTRIBUTED BY CREATORS.COM
There they go again.
Whenever anyone floats an idea that would improve the lives of workers — shorter hours, higher wages, or better working conditions — employers claim they’ll be forced to fire workers.
They’re always wrong. But they never shut up.
The California Chamber of Commerce, which represents business, has elevated this argument to a media event. This year’s annual CCOC “Job Killer” list features 26 bills the organization would like to kill. (Last year, the CCOC killed 35 out of 36 pro-worker bills on its hit list.)
Among the “killer 26” is AB 1522, sponsored by Lorena Gonzalez, a San Diego Democrat. Gonzalez’s bill would guarantee California workers at least three paid sick days a year. (The exact formula is one sick hour for every 30 hours worked.)
To hear employers whine, you’d think that letting employees stay home sick less than one percent of the year — as opposed to dragging themselves to their jobs where they may infect coworkers and customers — would destroy the capitalist system.
Assemblyman Donald P. Wagner (R-Irvine) called the bill an “ill-considered, heavy-handed, one-sided piece of legislation,” Melanie Mason reports in The Times.
A similar law recently went into effect in New York over the objections of the city’s billionaire then-mayor, Michael Bloomberg, who argued that sick leave laws “hurt small businesses and stifle job creation.”
But there’s a problem with the Chamber of Commerce “job killer” talking point: it’s baseless. There’s no evidence that requiring companies to provide paid sick leave hurts business. A year and a half after such a law went into effect in Connecticut, for example, a study by the Center for Economic and Policy Research found that “the impact of the new law on business has been modest…nearly two-thirds said it had led to no change or an increase of less than 2% in their overall costs. About another 12% didn’t know how much their costs had increased.”
“Virtually none [of the companies] reported reducing wages,” the authors wrote. “About 90% did not reduce their workers’ hours; 85% did not find it necessary to raise prices.”
Job killer? Job annoyer, at most.
Meanwhile, Seattle enacted a major increase in the minimum wage, to $15 per hour, prompting predictions that similar wage hikes could spread across the nation. As usual, pro-business extremists are predicting doom. ” Seattle’s economy will be hurt by this policy and so will some low skill workers who will lose their jobs thanks to the people claiming to be helping them,” Jeffrey Dorfman writes in Forbes.
In the real world, however, minimum wage increases have not caused job losses — even in isolated hamlets like SeaTac, Washington, where restaurants and other low-wage employers could seemingly pick up and move a few miles away.
Courtesy of the big business lobby, that’s the screw-the-workers propaganda machine for you. Why let facts get in the way of the eternal quest for an extra buck?
Not long ago, journalists were expected to work stories by getting out of the office and tracking them down. The new breed of online journalists who have replaced them sit on their butts, monitoring tweets in the hope that some celebrity or politician will say something stupid so they can trash them. This is what, in an age of minute budgets, passes for journalism.