John Stevens
English 8A
Exploratory writing
October 8, 2012

Worked and Overworked

Exploratory Writing This opening chapter from Greenhouse’s book The Big Squeeze sets forth a series of concerns about today’s labor market. In a 3-page paper, identify what are those concerns are. Are they directed solely at the manual-labor jobs? At outsourcing? At factory conditions? What does Greenhouse indentify as “the big squeeze” on American labor today?

Greenhouse indentifies, discusses and gives examples of numerous concerns and changes that have taken place in the labor market over the last few decades. These concerns and changes are presenting major challenges facing today’s worker and as Greenhouse terms it, in a collective sense, “the big squeeze” on today’s labor market. While there are almost too many issues to mention, a few of the more major ones include small increases in wages, limited and no health insurance, longer working hours, no severance pay, limited job security, decreased workers compensation, reduced pension and retirement benefits, and increased workplace stress levels and pressures. In summary, there has been a steady decline over the last few decades in the status and treatment of the American worker, not only for the low-income and blue-collar worker, but also for members of the white-collar and middle-class. As a result, a recent survey has revealed that American are less satisfied with their jobs today (just 47% are satisfied) than at any time over the last two decades.

The lack, or only moderate, of increase in income and wages is at the top of the list of concerns of today’s worker and their family. For example, the median income for nonelderly households has barely kept up with inflation from 2001 to 2008, increasing only 1 percent (after inflation). This is on top of the economic expansion during this same period where corporate profits doubled. In fact, this trend started back in 1979, where earnings of 80 percent of American workers have risen by only 1 percent, after inflation. It was more alarming for male works whose average wages have actually declined by 5 percent since 1979. During this period, worker's productivity climbed 60 percent. If wages kept up with productivity, the average worker would have been earning $58,000 in 2007, instead of the reported $36,000. The conclusion is that while the county has experienced economic growth over these periods, corporations have not been willing to share their prosperity with their workers.

While much of the ‘big squeeze” has primarily affected the low-income and manual labor force, it has also had significant impact on the middle class. For example, from 1979 to 2005, a period when the economy more than doubled, after tax income increased only 6 percent for the bottom fifth of American households (after accounting for inflation) and rose just 21 percent for the middle fifth of county’s total workforce. On the other hand, the top fifth jumped 80 percent and the top 1 percent soared 228 percent. So in general, while the manual labor force was most affected, the “big squeeze” affected most classes of the economical ladder, improving as you moved toward the top. It was not until one is in the top percentile were they were not somehow affected. As Paul Krugman wrote --- “It’s a great economy if you’re a high-level corporate executive or someone who owns a lot of stock. For most other Americans, economic growth is a spectator sport.”

Some forms of outsourcing have also exacerbated the employee’s concerns and challenges. Many companies now hired low-skilled outside contractors to perform certain tasks. As such, they do not have to pay many of the benefits due their regular fulltime employees, such as Social Security, unemployment insurance and overtime pay. The outsourcing even extends overseas, where corporations can have things made at much cheaper labor rate than they could have the same items manufactured here in the United States. So the increased use of outsourcing has further worsened the situation for the domestic worker, especially at the low income levels.

I believe what Greenhouse identifies as the “big squeeze” on American labor market today is the collection of all these issues and challenges facing the worker today. This is particular troubling since the economy, corporate profits and worker productivity had been growing quite steadily up to 2008. The “big squeeze” is mainly affecting the blue collar worker, those individuals on the lower rung of the economic ladder. They are getting more squeezed everyday in terms of wages, benefits and workplace conditions. Just extrapolating the recent trends into the future, there is a strong indication that the situation will get worse before it gets better. The American worker appears to be walking 3 mph on a treadmill that is moving at 4 mph and gaining speed. In addition, the space between the "haves" and the "have not’s" is getting greater in America.

Besides lower wages and reduced benefits, another aspect of the “big squeeze” is the time squeeze between work and play. In a recent survey, about two–thirds of employed parents indicated they do not have enough time with their kids, and about an equal number said they did not even have enough time with the spouse. It is said that no one in the world's advanced economies works more than the U.S. worker. Another great concern for the country and our society as a whole.