"A lasting effect of this pandemic will be a revolution in worker expectations. ... The truth is people in the 1960s and ’70s quit their jobs more often than they have in the past 20 years, and the economy was better off for it. Since the 1980s, Americans have quit less, and many have clung to crappy jobs for fear that the safety net wouldn’t support them while they looked for a new one. But Americans seem to be done with sticking it out. And they’re being rewarded for their lack of patience: Wages for low-income workers are rising at their fastest rate since the Great Recession. The Great Resignation is, literally, great." https://www.theatlantic.com/ideas/archive/2021/10/great-resignation-accelerating/620382/ A while back I opened a thread in which I argued that the stimulus packages killing jobs was a good thing. Now we are starting to see what I predicted. http://www.politicalforum.com/index...d-jobs-here-is-why-thats-a-good-thing.587935/ It has been dubbed "The Great Resignation". The stimulus has allowed workers to quit their crummy jobs and seek batter wages. It has forced many companies to increase their pay. The income gap should start a very slow decrease. Of course this causes inflation. But if workers hold on, they will be rewarded with better jobs and better wages. Some call this "The Life-Work Revolution" https://www.forbes.com/sites/ericaa...-lifework-revolution-is-here/?sh=668e2eec8db4 And, of course, like all revolutions, they don't come without a certain degree of "pain". There have been disruptions in the supply chain, and businesses that can't adapt, don't survive. Higher wages mean inflation... But now workers have more power over their lives. And if they can stick it out, the end result will be positive. Low pay doesn't make for good workers. Nor does long work hours, or lack of benefits, or workers who have two or three jobs. So I think this is good for workers, good for businesses (that can adapt), and especially good for the country.
Depends on what line of work you're in. For example, I dont mind working 120 hour weeks in the oilfield because I get paid $200k a year to do so. However, no one is going to pay you $50k a year to flip burgers. These companies will automate before they do that...
And yet, inflation is eating up any gains those who quite gained. The only thing that this has done is reduce small businesses and give more power the the power box stores. Why in the hell do you think Bezos is all for increasing wages? It impacts him null!
These companies aren't going to increase workers pay and benefits and just take the hit. The cost of their produced goods and services to the consumer will also increase. Then the price of everything goes up, and you will again demand a raise in pay. Rinse, repeat ad infinitum. Yeah, you'll be making 50k a year to flip burgers, but a gallon of milk will cost you $20...
We're already paying nearly double for many common, everyday things. When the manufacturing and supply bottlenecks are finally resolved, do you think the stores will lower prices back to pre-pandemic rates? So, if wages rise, will we even notice on top of the supply/demand issues we have now? If the employers who are bleeding workers could hire the thousands of willing souls piled up at our southern border, perhaps inflation would ease. Maybe the upside will be (at long last) a reform of our immigration policies.
Makes no difference. Right now workers can just quit any job that doesn't pay them a living wage.... makes no difference what that living wage is.
The majority of those who are paid hourly, or anywhere near MW, are entry level workers. I wish them good luck in their 'revolution'. As another poster stated, automation will fill the gaps.
'Right now' they won't be receiving unemployment benefits. How long do you think they will last in their revolution?
Not ad infinitum. Only until businesses decide to cut into their huge profits and pay their workers a fair wage. Like they did in the 60s and 70s. This country did very well back then. Companies did well, workers did well and the country did well.... Those that don't, just don't survive. And good riddance!
I don't know. The conditions are there. They have been given a chance. A chance workers haven't had in 50 years. We'll see if they make the best of it. My sense is that they already are.
You neglected to factor in the cost of living. When they leave their crummy jobs, crummy employers must pay more for the same crummy work and pass the expense along to the consumer. The worker takes their increased pay and pays increased prices for their needs, cancelling out any benefit. The only one getting a raise is the tax man!
But is the idea of senseless raising wages with consequent raises in prices really better? Would it not be better to allow the private sector CREATE the demand for more labor which would create increased wages a better approach? People quitting because social benefits are better than wages gains nothing.
So, the underlying message here is that people changed jobs frequently in the past than today because the “safety net” was stronger in the 60s and 70s? I don’t remember it that way.
This is silly. And the financial experts are already saying this inflation will not be transient and will be permanent.
lol... I thought this was a thread on all the Democrats leaving the House of Representatives and resigning or quitting. Anyone that thinks the economy is healthy right now and this is a good thing doesn't know Economics. The Inflation here is NOT a good thing, unless we are using it to pay off our debt and that is not what is going on.
Wouldn't it be better if the gap was closing without the highest inflation in decades? I seem to remember something like that. Oh yea under Trump low and middle class wages went up, and unemployment was the lowest in 40 years. The gap between the wealthy and poor will always be there and our whole American way of life depends on it. We want everyone to strive to be great and make a lot of money. It leads to innovation, it leads to productivity, and it leads to American greatness. For those who want everyone to be capped move to communist or socialist country.
How long can a business survive when the cost of the labor exceeds the value of that labor to the business?
That's up to them. Today they have leverage. And, as far as I have seen, they have been making the most of it. At least here in Florida. Where gas station attendants earned minimum wage of $8.56 before this year. But now I see gas stations all over the place advertising $15 an hour plus bonuses. Almost double!! And that's a typical entry level salary just about everywhere I have seen where people are actually applying for jobs... Even flipping burgers.
Absolutely! As I was telling another poster, here in Florida a typical entry level job would pay minimum wage: $8.56. Today it's easy to find a job making $15. That's a 75% increase. And inflation has been about 5%. So far it's working! Absolutely not! We tried for almost 50 year this solution of yours of making people work 2 or 3 jobs to make a living wage. It didn't work!!! People struggled. Businesses had to settle for tired overworked employees. Everybody lost! Social benefits ended. And it looks like The Great Resignation has not declined. So the social benefits did what they were intended to do. I don't know what the end result will be, but I very much doubt (my personal opinion) that we will go back to people having to work multiple jobs just to "survive" any time soon.
So the couple of stimulus checks that some received over a year ago is what's allowing these people to quit their jobs. How much did some of these people receive?
It's exactly what the underlying message was. "The truth is people in the 1960s and ’70s quit their jobs more often than they have in the past 20 years, and the economy was better off for it. Since the 1980s, Americans have quit less, and many have clung to crappy jobs for fear that the safety net wouldn’t support them while they looked for a new one.
