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Food-Twinkies No MoreThere have been a number of stories in recent days implying that the demise of Hostess was somehow the result of unreasonable demands from workers. Here, however, are a couple of stories that debunk that narrative.

In the first (“No cupcake: Workers turn down bad deal from Hostess”), Dean Baker at the Center on Economic and Policy Research points out that the management team with whom the workers were attempting to negotiate were basically a bunch of predatory knuckleheads.

In the second (“Hostess blames union for bankruptcy after tripling CEO’s pay”), the folks at Think Progress provide more disturbing details.

 

 

The N.C. Budget and Tax Center reported recently that while North Carolinians are working harder than ever, most are not reaping the benefits economically. The report points to the “off-shoring” of jobs as a major contributor to soaring income inequality.

Yesterday, Senior Economist John Schmitt of the Center for Economic Policy Research reported similar findings on the national level; American workers are better and more productive than ever.

“The workforce today is more experienced, much better educated, and working with more –and better– capital. Largely as a result, GDP per capita was 63 percent higher in 2010 than it was in 1979.”

Schmitt’s report, however, points to parallel and closely related contributing cause for growing wage and income inequality: the decline in worker bargaining power. Read More