Uncategorized

The big profits of low wage employers

In anticipation of Big Business Day, er uh,  Labor Day, the good people at the National Employment Law Project are out with a new report that shines some welcome light on a much undereported subject in modern America: the huge and growing profits of low wage employers.

This is from the release that acccompanied the report:

“America’s low-wage economy is marked by two extremes.  On the one hand, workers earning at or near the minimum wage are seeing the real value of their paychecks diminish steadily over time, as the cost of living increases while their wages remain stagnant.  After nearly half a century of neglect, today’s federal minimum wage of $7.25 per hour is decades out of date.  In terms of purchasing power, its value is 30 percent lower today than it was in 1968.

On the other hand, many corporations are posting record-breaking profits. The Wall Street Journal reported earlier this year that, after sinking from 2007 to 2009, corporate profits had successfully caught up to their pre-recession peak by the beginning of 2010 – and that by the third quarter of 2011, total profits for U.S. corporations reached a new record high of $1.97 trillion.

This report examines the connection between these opposing extremes of stagnant wages and soaring corporate profits.  While a great deal of attention has been directed at the role of Wall Street and the financial sector in driving economic inequality in the U.S., it is important to recognize that the top low-wage employers also bear responsibility for the growing disparity between corporate profits and worker compensation.

Read the Full Report — Big Business, Corporate Profits, and the Minimum Wage

Check Also

Editorials: Trump backs down, but GOP continues to block real immigration solutions

Be sure to check out the editorials from ...

Top Stories from NCPW

  • News
  • Commentary

The lump started small and hid behind her ear. Harmless, the doctor said, nothing to worry about. So [...]

The Senate voted along party lines Tuesday night to overturn a partial judicial redistricting bill i [...]

Viola Williams has been crunching numbers and working out possible solutions since last week, when t [...]

With midterm elections around the corner, lawmakers have, unsurprisingly, taken aim at last minute c [...]

From 1999-2016, opioid-related overdose fatalities increased by more than 800 percent in North Carol [...]

Would that North Carolina lawmakers had been so direct as “Pitchfork Ben” Tillman, a virulent white [...]

“I’m speechless.” So began the heartfelt lament of Rep. Verla Insko (D-Orange) late last Friday afte [...]

The post SB 711 – The pig’s roast appeared first on NC Policy Watch. [...]