recession

If you want to know why you’re making less money now than you were five years ago, it’s because the recession replaced good jobs with low-wage jobs. 

The NELP report finds that mid-wage jobs, paying between $13.83 and $21.13 per hour, made up about 60 percent of the jobs lost during the recession. But those mid-wage jobs have made up just 27 percent of the jobs gained during the recovery to date. By contrast, low-paying jobs have constituted roughly 58 percent of the jobs gained since 2010. (x)

Mid-wage jobs are being lost, and the jobs that are gained in their place are either low-wage or high-wage jobs. 

The middle class is literally being squeezed out of the economy.

Take a look at the breakdown of the low-wage jobs with the highest growth in the new economy:

The jobs that are on the lower-end of the scale, like food preparation and retail work are experiencing higher growth, while the higher end jobs, like construction work and manufacturing work, hasn’t grown quite as fast. 

(source)

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7 charts show how trickle-down economics doesn’t work

In 1974, an obscure economist scribbled some thoughts on a napkin that served as the engine for the most influential presidency of the past three and a half decades and the most unequal economy America has experienced since the Great Depression. 

The napkin notes — written by Arthur Laffer and later embraced by Ronald Reagan — contained a figure illustrating the logic of “supply-side” economics, which translates to lowering taxes and regulations on corporations and the affluent to stimulate growth and have wealth “trickle down” to the rest of society.

That theory turned out to be wrong.

Why Obama’s Regulators Let Wall Street Bankers Off Easy

If there’s anything more maddening than the sheer scale of the financial fraud that sent America and the rest the planet spiraling into the economic abyss in 2008, it’s the fact that no Wall Street bankers have gone to jail for causing the mess. As in zero, zilch, none at all.

So at his farewell party last month to celebrate a lengthy career at the Securities and Exchange Commission (SEC)—the US regulatory agency that supposedly keeps Wall Street in check—James Kidney, a trial attorney who had been hamstrung for years by indifferent bosses, broke his silence and went off on an awesome rant about how no one in the financial sector fears the body supposedly policing their behavior. The SEC, in essence, is a joke.

Describing it as “an agency that polices the broken windows on the street level and rarely goes to the penthouse floors,” Kidney told an audience of fellow employees that they had dropped the ball because of a revolving door of corruption between the SEC and Wall Street megabanks. “I have had bosses, and bosses of my bosses, whose names we all know, who made little secret that they were here to punch their ticket. They mouthed serious regard for the mission of the Commission, but their actions were tentative and fearful in many instances,” he said.

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