American culture tends to assume that people who have a lot—of money, power, stuff, whatever—work hard for it. Maybe they didn't at first; maybe they started off with an advantage... but they have to work to keep it and grow it. And that people who have little must be lazy.
This assumption has deep roots in the Puritan ethic that played a huge role in founding our country. The Calvinists who believed that their fates were predestined and completely unaffected by their actions still saw success and prosperity as signs of their favor from God. And, although their fate after death was already written, they did not seek to anger God by frivolous activities and self-adornment; their asceticism meant that their hard-won profits were re-invested in their livelihood.
But today, while we have shed that asceticism and instead revel in pursuit of worldly signs of wealth—nice cars, big houses, designer clothes, or even less conspicuous consumption such as constantly climate-controlled houses or lights on in every room—we retain the notion that affluence is a sign that you are favored by God. Even if we don't consciously understand it this way, we still implicitly assume that those who have, worked for it; those who lack, deserve it.
We've entered a Bizarro world where, not only do we assume that wealth requires hard work, we actually rate the hardness of work based on the wealth it generates. We think of “flipping burgers” as easy, even as we watch people sweating over fryers, running back and forth to fill orders, and taking flak from abusive customers with a smile on their face. We think, “I would never want to do that.” and yet, we consider it “easy.” We don't think it's easy because we have any reason to think the work itself is not hard to do, but merely because it is low pay. And then in a strange tautology, we think the work should be low-paid because it is so easy.
Consider how hard is the work of a megacorp CEO sitting at a desk larger than my son's bed, in an office larger than the typical American living room, with an en-suite bathroom and multiple assistants for various tasks? To be sure, CEOs do work hard. They often work 60+ hours a week, evenings, weekends, travel away from their family, manage meetings with very powerful people and millions of dollars on the line. Their work is stressful. But when they are taking home millions of dollars per year, how do we compare that to the “hardness” of their work?
On the other hand, consider a man who wakes at 4 a.m. to get ready for his first job. He showers quickly, dresses in worn but rugged clothes, and reports to a shuttle point by 5:30 to go to a far-flung construction site. By 7 a.m., he's doing heavy lifting and working with tools that can maim or kill if used incorrectly. As the sun rises in the sky he starts sweating. The dust kicks up and sticks to his brow. He gets a half hour for lunch, and an occasional bathroom break; he knows they're supposed to give him two 15-minute breaks on the clock, and he knows of union jobs where that happens, but he's never been able to get one. Here, he's an “independent contractor,” hired as a temp with no benefits, no paid time off, no job security. Keep your head down and don't complain; you're lucky to even have a job.
He comes home at 5:30, showers, grabs a bite to eat, and leaves for his evening retail job. If he's lucky, it's in a tipped establishment and he can smile and accommodate his way to more money. If he's unlucky, it's again temp work, seasonal, could end at any moment... and an inconsistent number of hours stocking shelves, ringing up customers, and trying not to take it personally when people yell at him for not being able to meet their every unreasonable demand.
Meanwhile, he barely sees his spouse and children. That's who he's doing this for: working 60+ hours a week at low wages, so that his spouse can work a more flexible job and sometimes show up for the kids' holiday programs and school open houses. But 80 hours a week doesn't cut it anymore for a family of four. If they are compensated for 50 weeks a year (because in jobs at this tier, you don't get vacation time, and sometimes don't even get sick time), at 80 hours a week, at an average of $10/hour (nearly 40% higher than the Federal minimum wage), after payroll taxes they've got about $3,000/month to pay rent (that's not enough income to get a mortgage), buy groceries, put gas in a car or buy a bus pass, pay utilities, buy clothing and school supplies, pay for after-school care, and handle any other expenses that come up – such as a $2,000 emergency room visit or a $4,000 blown head gasket in their 12-year-old car. Health insurance? Savings? Laughable—every dime is spent the second it comes in.
Who works “harder”? That's a ridiculous question; the work isn't remotely comparable. They both work hard. But does the CEO's vastly higher compensation actually cause him to “work harder”? At some point, does more money actually get more product?
Now we've elected a President who definitely “has.” His home glitters, his name illuminates skylines. He travels in the rarefied circles of world leaders and business magnates. He's famous for being rich, and rich for being famous. He can lose $916 million in one year—enough to give every Pennsylvanian in poverty $550—and just keep on chugging.
Does he know what it means to work hard?
Many of us assumed he did. We assumed that it has to be hard work to maintain that empire. But the more we get to know him, the more it seems that he doesn't ever actually do that work himself. Intelligence briefings are boring—go meet with Kanye. Let's take a phone call from Taiwan; it's too complicated to understand why that pisses off China. Rather than finding people with impeccable qualifications and distinction in the relevant field, let's just pick our friends and colleagues, or their spouses, to fill our Cabinet. It would be too much work to do otherwise.
We need to change our understanding of work, and hard work, and how it relates to assets. We need to remember that farm work is hard. Caring for children is hard. Preparing safe and appetizing food is hard. Stopping fires is hard. Chasing down criminals is hard. Cleaning offices is hard. Constructing new buildings is hard. Mining coal is hard. Managing a store is hard. We ALL work hard. We ALL deserve to be able to come home after 40 hours a week, know that there's enough food, that our housing situation is stable, and spend time with our children and partners free of stress and worry. This isn't a rural issue or an urban issue. It's not a white issue or a black issue. It's not a coastal issue or a plains issue. It's not a Boomer issue or a Millennial issue. It is a human issue.
Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts
Thursday, December 22, 2016
Monday, November 12, 2012
God bless the child that can pay his own way.
Mitt Romney, May 17, 2012:
“There are 47 percent of the people who will vote for the president no matter what. All right, there are 47 percent who are with him, who are dependent upon government, who believe that they are victims, who believe that government has a responsibility to care for them, who believe that they are entitled to health care, to food, to housing, to you name it. That that's an entitlement. And the government should give it to them. And they will vote for this president no matter what. And I mean, the president starts off with 48, 49, 48—he starts off with a huge number. These are people who pay no income tax. Forty-seven percent of Americans pay no income tax. So our message of low taxes doesn't connect. And he'll be out there talking about tax cuts for the rich. I mean that's what they sell every four years. And so my job is not to worry about those people—I'll never convince them that they should take personal responsibility and care for their lives.”
“It’s a changing country, the demographics are changing. It’s not a traditional America anymore, and there are 50 percent of the voting public who want stuff. They want things. And who is going to give them things? President Obama.”
What I found most shocking about these
two quotes... and most similar... is the lack of any sort of
acknowledgment that people might actually deserve
“stuff”. Might actually be
“entitled.”
Is it possible that, if you work 60 hours a week, moving
constantly, doing the things that other people don't want to do for
themselves, stuff that requires lifting belts and work gloves, where
you don't get paid vacations or sick days, that you have earned
health care, food, and housing? Is that enough for Mitt Romney? Is it enough for Bill O'Reilly?
Here
in California, the minimum wage is $8.00/hour. Plenty of really
grueling jobs pay that wage. I'm not an accountant, and don't even do my own taxes... but I'll keep things simple. Here's the math for a family of four
with one full-time, one part-time job at minimum wage:
60
hours per week x 52 weeks per year x $8.00/hour: $24,960 gross pay
possible
...but
let's say four days per year, on average, they're too sick to work.
Because they're “contractors” instead of full-fledged employees,
they don't get paid sick time (it's rampant all over the place... my
mother-in-law has been a tech writer “on contract” for the last
13 years). So take off...
8
hours x 4 days x $8.00/hour: $256 so the gross is now $24,704. This
assumes no vacation, no taking a morning off to go see their kid's
holiday pageant at school, nothing.
But,
these are still wages, so in spite of no paid vacation or sick time,
they still pay payroll taxes. They're kind of complicated; there's
several different ones. At least the $110,000 wage cap for social
security deductions doesn't come into play. Here's what your
hypothetical family will be paying:
FICA +
Medicare: 7.65% of gross pay $24,704 = $1,889.86
Federal
Unemployment Insurance: 0.9%* of the first $7,000 = $63
State
Disability Insurance: 1.0% of gross pay $24,704 = $247.04
State
Unemployment Insurance: 1.5% to 6.2% depending on employer's record;
using average 3.85% of first $7,000 = $269.50
There's
also an Employment and Training Tax, but it maxes out at $7 and isn't
paid by all employers, so I'll just ignore it for now.
*
Usually FUI is 0.6%, but California is paying its bills late, so we
have to pay more into the Federal system.
The
grand total of all wage taxes paid in a year by this family is now
$2,469.40. But they haven't paid income taxes yet, so they're still
in that 47%.
What
do they have left at this point? $22,234.60 per year, for a family of
four.
So do
they pay income taxes? Well, let's take a look at the standard
deductions, and the Child Tax Credit:
This
family, assuming they're married, middle-aged, and not blind,
qualifies for a standard deduction of $11,600, though there's the
whole part about deducting the children and the tax credit. Some sources say such a family gets a total of $15,200 in deductions,
which makes their taxable income $7,034.60.
According
to the IRS tables for 2011, this family will owe $703 in Federal
income taxes. However, since they have two children and make less
than $110,000/year, they can claim $2,000 in child tax credits. These
are now the tax-free folks who actually get money back
from
the government after a negative Federal tax bill. They can receive a
credit of $1,297, to add to the $22,234.60 they take home.
We
haven't even looked at what that $23,531.60 will pay for. This family
has no
health insurance, no
401(k) or IRA, and has to buy housing, food, transportation,
clothing, and utilities. (But we're upset that they might get an
Obamaphone.)
Why
aren't they working more hours, though? Surely if they worked 80
hours a week, they'd be taxpaying citizens?
A
family with two parents who work a total of 60 hours a week can get
by without paying for childcare. Once you have two parents working
full-time, though, you have to pay someone to care for the kids when
they're not in school (if they're not under five and still not
eligible for free education... another thing we don't think these
people deserve). At minimum wage, the math just doesn't work out. Some families can rely on a grandparent or other relative for childcare, but if this person is not working, the wage-earning family likely is still somewhat responsible for the caregiver's expenses.
But
let's say that their local school happens to offer some sort of free
after school program, so they can both work 40 hours a week. Or one
works 30 and the other works two jobs... somehow they get to 80
hours. They are still
not paying taxes. With two children, you need a taxable income of
$19,000 or more to exceed the tax credit, and the 80-hour a week
minimum wage four-person family is at $14,634.92. Even if they get
bumped up to $9/hour and 80 hours/week, they're in the 47%.
All
they had to do was back-breaking, often humiliating, sometimes
dangerous work, cleaning up after other people, 80 hours a week. And
they think that this entitles
them
to health care, food, and housing? They think that they should have stuff?
In
the Republican world, poverty is not just a moral failing. Your
economic standing is a measure of your worth as a human being. If you
do not already
have
something, that is sufficient to determine that you are not deserving
of that thing.
“Them that's got shall get, them that's not shall lose. So the Bible says, and it still is news.”
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