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384 pages, Hardcover
First published January 1, 2008
A master in the art of living draws no sharp distinction between his work and his play; his labor and his leisure; his mind and his body; his education and his recreation. He hardly knows which is which. He simply pursues his vision of excellence through whatever he is doing, and leaves others to determined whether he is working or playing."
For workers with just a high school diploma, average hourly earnings slid nearly 2 percent between 1979 and 2005, after adjusting for inflation. The decline was far worse for those without a high school diploma, with their real wage slipping 18 percent. For those with a college degree, real wages climbed 22 percent, and for those with advanced degrees, real wages rose 28 percent. One explanation for this wage stagnation among the less educated is that since 2000 the United States has lost 3.5 million manufacturing jobs, good paying jobs that often went to workers without college degrees. The transfer of factories overseas and new technologies, like factory robots, have wiped out many of these jobs. The flood of immigrants has depressed wages for the group they most compete with: American-born workers with limited educations. Deunionization, competition from imports, the decline in the value of the minimum wage, and the rapid expansion of low-wage service sector jobs have also hurt this group of workers. All these factors go far to explain why the earnings gap between college graduates and those with just high school diplomas has climbed to 74 percent from 40 percent in 1979 [p. 39].
. . . it is of course vital to tackle the problem of languishing incomes. Fortunately, there are many strategies to address this problem, among them [1] a higher minimum wage, [2] greater unionization, and [3] keeping unemployment low to increase workers’ bargaining power. Continued [4] productivity growth is, of course, important, too.Notice that none of his four "strategies" include a policy that would include stepped-up enforcement of immigration laws—a policy that he perhaps thinks either unwarranted or politically incorrect to espouse.
Congress should appoint a bipartisan commission that would have six months to determine how much income is needed to meet a household’s basic needs in each of the fifty states.Nice. Sweet. A few sentences later, he states
Congress should make vigorous use of the minimum wage and the earned income tax credit (EITC) to assure that all fulltime workers have sufficient income to support their families.Nice. Sweet. A few sentences later, he suggests:
To show their seriousness about stopping theft of wages, prosecutors should seek to send some executives to prison for cheating workers.To me that all reads like the wishlist of a child to Santa Claus.
Congress and the states should also enact laws making companies jointly liable for any wage violations committed by the contractors they hire.
Every American is given the right to a public school education. Is the right to health coverage any less important? Our system should [1] guarantee that every American can obtain coverage without financial hardship, it should [2] bring health care inflation under control, it should [3] ensure that people don’t go without coverage because they [A] changed jobs or [B] lost their job or [C] had a preexisting condition, and it should [5] prevent health costs from undermining the nation’s industrial competitiveness.
There are options for solving the looming retirement crisis.... [A]ll workers [should] have a retirement account that would piggyback on top of their Social Security balances. Workers would be required to contribute several percent of their wages into that account.... [T]hese retirement accounts would promise a specific rate of interest each year, perhaps 3 percent after inflation.Wow! The idea that retirement accounts should promise 3 percent after inflation indicates just how badly dated this book is. That proposal is laughable. Today some $15 trillion of sovereign debt worldwide is priced to yield a negative return.
When the proportion of recent immigrants in the labor force declined during the 1930s and 1940s, unions grew stronger and the distribution of income became more equal. New Deal legislation favorable to the labor movement, as well as the social consequences of World War II, also played a central part in these changes, but curtailing immigration may have made unionization easier.