Wednesday, October 13, 2010

Low wages are the official policy of the U.S. government

This remarkable and startling observation was made by Jim Hightower in his book: If the Gods Had Intended Us to Vote They Would Have Given Us Candidates, published in 2000, before the the November Presidential elections:

Let me be blunt: Low wages are the official policy of the U.S. government. If you're a manufacturer wanting to hold down wages here at home, the government will book you on a trade delegation to Asia, hook you up with a contractor that provides workers for as cheap as fifteen cents an hour, underwrite your foreign investment, suspend tariffs and quotas so you can ship your cheap-labor products to stores back here, and put out a press release saluting you for joining in a private-public partnership to foster "global competitiveness." If you're a minimum-wage employer, don't worry about any rabble-rousing populism from Democrats--they'll give you a wink as they hold any increases to a level way below poverty. Even at the higher wage levels, if you're a Microsoft, IBM, or Silicon Valley giant and want to put a drag on the salaries of your engineers, programmers, and other high-tech workers, count on the Democrats to join Republicans in helping you import an extra fifty thousand or so of these workers each year from Pakistan, Russia, and elsewhere, letting you pay them a third to a half less than U.S. workers, thus busting the American salary scale.

And if wages do show any sign of creeping up, count on Uncle Alan to step in and stomp on them. Alan Greenspan, as chairman of the Federal Reserve Board, is the ruling authority over our nation's monetary policy, and he hates wage increases. You see, if wages rise, that might possibly pinch corporate profits ever so slightly, and this might spook your big Wall Street investors, causing the high-flying stock prices of corporations to slip a notch. Since today's upper-class prosperity is built almost entirely on the bloated prices of those corporate stocks, both parties are determined that nothing should spook those investors, even if this means keeping [ordinary working people] down. It's really a choice of who you want to help--the few who profit from stock prices, or the many who depend on decent wages. Both parties have made the same choice--Greenspan, first appointed by President Reagan and reappointed by Presidents Bush and Clinton, has been their bipartisan hit man ... There's no relief in sight ... since both Democrat Gore and Republican Bush have signaled that they Uncle Alan back for yet another term... [E]ssentially Greenspan uses the Fed's power over interest rates ... much like some clod might use a sledgehammer to swat a fly. At the slightest hint ... that it's possible sometime in the future for wages somewhere to rise even negligibly ... Grenspan pounces. This guy hunts down wage hikes like Joe McCarthy used to hunt down commies, and he'll use every power the government has to keep working people's paychecks down. Last summer ... Greenspan openly urged Congress to bring in more immigrants, using them as wage-busters: "I have always thought ... we should be carefully focused on [what] skilled people from abroad and unskilled people from abroad ... can contribute to this country.... If we can open up our immigration rolls significantly, that will clearly make [wage inflation] less and less of a potential problem."