Scotties Toy Box

April 13, 2019

Bank CEO Dimon Schooled As To How An Employee Would Have To Budget At An Entry Pay Scale

Filed under: News — Scottie @ 12:33

Grand post on how hard it is for people today. Poverty is now institutionalized.

U.S. Inflation Rate, $40,000 in 1990 to 2019
According to the Bureau of Labor Statistics consumer price index, prices in 2019 are 94.49% higher than average prices throughout 1990. The dollar experienced an average inflation rate of 2.32% per year during this period.

In other words, $40,000 in 1990 is equivalent in purchasing power to $77,797.09 in 2019, a difference of $37,797.09 over 29 years.

Wages are not keeping pace. The minimum wage is not a living wage. Most of the people starting today have no way to get ahead. They can barely survive. They can not save nor spend for better educations to get a better job, and they have no time to get the education if they could afford it. The fact is people are buying less because they can not afford to buy more. A good economy is built on the selling of a product. If the population can not afford to buy anything , then the economy crashes. By putting more money in the hands of those who have less, who need more, then they will spend it as they need to and that stimulates the economy. In 1989 I bought a new home, a new truck, a used motorcycle and still had money for luxuries. Two years later I bought another new car and another motorcycle. There is no way a person starting out today could do that. Ron and I lived well for years on my one income. Today you need roommates just to afford a small apartment. This is not a sustainable situation.
At the retirement end the situation is also dire. The people who had defined retirement plans are dying off. The people nearing retirement now for the most part have no retirement plans from their jobs and little to nothing saved. People my age needed everything they earned just to keep going. Social security doesn’t pay enough to live on at today’s prices. I know seniors who are making a choice between food, paying bills, or medications. I know of people rationing their medications because they can not afford to buy it. The rents and taxes these people pay are driving them from their homes forcing them to live with their adult children. The system is not working for the majority of americans.

What is the poverty line income in the US?

The Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is in poverty. The 2010 figure for a family of 4 with no children under 18 years of age is $22,541, while the figure for a family of 4 with 2 children under 18 is $22,162.

What is considered low income?
The median family income in the area is $118,400. The HUD also now considers households of four earning $44,000 to be “extremely low income,” while households of four earning $73,300 are considered “very low income.” A one-person household is now considered to be low income if it earns $82,200.Jun 27, 2018

January 2018 Median Household Income. Median household income in the U.S. rose to an estimated $59,055 in January 2018, an increase of nearly 0.4% from our December 2017 estimate of $58,829.Mar 1, 2018

The annual earnings for a full-time minimum-wage worker is $15,080 at the current federal minimum wage of $7.25

Think about this. The minimum wage is 7 grand below the poverty line in my example above.

People can not survive on this income today. Low income is $118,400 and very low income is $73,300. Yet the average income in the US is only $59,055.

Hugs

Gronda Morin

At a recent House Committee hearing, it was a moment of pure joy to watch a Democratic Party freshman Rep. Katie Porter take the clueless JP Morgan CEO Jamie Dimon to task on how his front-line workers would have to budget on an entry pay scale of $16.00 per hour. Now just translate these budgeting challenges with someone who earns closer to the current minimum wage scale of $7.20 per hour.

Image result for photos of DIMON AND REP KATIE PORTER

Katie Porter biography as per Ballotpedia:

Katie Porter (Democrat) is the representative from California’s 45th Congressional District in the U.S. House. Porter was elected to the office on November 6, 2018.

Porter defeated Republican Mimi Walters in the 2018 general election by a vote of 52.1 percent to 47.9 percent. Porter ran on progressive campaign themes including Medicare for all, affordable college, abortion access, and gun reform. To read about Porter’s stances on various issues, click 

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12 Comments »

  1. The wage stagnation and endless cuts to taxes and the social safety net since the Reagan administration are transforming the US into a Third World society, with a minority middle class, a small ultra-wealthy elite, and the majority living in poverty.

    The European Union has used the same kind of policies to inflict the same kind of devastation on southern Europe, although people in places like Spain and Italy at least started out with things like national health systems that mitigated the worst of it.

    The thing is, most actual Third World countries recognize that being that way is a problem and are trying to escape from it. Americans have been brainwashed into passivity with buzzwords like “socialism” which are used to blank-out thought whenever any discussion of real solutions is attempted. And whatever problems you have, there will always be a libertarian being paid to think up reasons why those problems are your own fault and you don’t deserve any help from the government with them.

    At least we have one party trying, however haltingly, to address these problems. The ACA was a start. But nothing will get done about the broader issue of poverty and inequality until the Democrats again control the Presidency and both Houses. If that doesn’t happen in 2020, I don’t know if the decline can be stopped.

    Liked by 2 people

    Comment by Infidel753 — April 13, 2019 @ 13:06

    • Hello Infidel. Well said. I am not sure what will happen. I heard once that the lotto is the new American retirement system. But it is scary for a lot of people. As I said James moved out last year. He needed two roommates to afford a two bedroom room apartment. He had to get the most basic small car. He works long shifts, often working OT. It is not the same for him as it was for me starting out. Hugs

      Liked by 1 person

      Comment by Scottie — April 13, 2019 @ 13:14

  2. The irony for me is people in low wage jobs are subsidized by whatever meager public support like food stamps, housing assistance and state medical insurance if available. This means the taxpayers are subsidizing corporate profits. What we have here my friends is a rigged economy that favors business at the expense of their workers.

    Liked by 2 people

    Comment by nationofnope — April 13, 2019 @ 13:32

    • Hello Nation. True. That was one of the things used against Walmart and McDonalds. Their full time workers needed public assistance to just get by and have food to eat, and housing assistance. Some companies are being forced to raise wages, and I think they all should. Hugs

      Like

      Comment by Scottie — April 13, 2019 @ 13:36

  3. Hi Scottie;
    I read the article and got to thinking. In keeping with Nation’s’ comment, Machine Operators at the plant I work in get paid about 10.50/hr. x 40 = $420 – 10% taxes = $378/week. Rent for even the less expensive apartments in the area is $700 for a 2 bedroom. So, a full two weeks of wages goes in to JUST making rent. Now, if they have insurance with us, that’s a minimum of $35/wk. If for a family, $115/wk. That means, they have $260/wk. Now, just to pay rent, it takes nearly 3 paychecks. This doesn’t include gas for a car, car insurance, utilities, food…. I’ve not included things like tv/internet and phone, even though the need for a phone is nearly as important now as heat and water. The operators where I work are barely making a wage that could support a family of 3 on the bare minimum – and I mean BARE minimum. And, there are few jobs in the area paying someone who is not skilled at a better wage.

    Hugs;
    randy

    Liked by 2 people

    Comment by randy — April 13, 2019 @ 14:06

    • This is shameful. It’s a scandalous exposure of the lie that capitalism rewards hard work. Less and less of the wealth is going to the people whose work creates it. More and more is skimmed off by the parasite class which dominates the financial world and the upper tiers of giant corporations.

      It did not have to be this way. A couple of weeks ago I posted about how other advanced nations are preserving the basis for a majority-middle-class society, while Americans struggle and fall ever further behind. Do those American machine operators realize they’re making a lower wage than a McDonald’s burger-flipper makes in most of the developed world?

      Liked by 1 person

      Comment by Infidel753 — April 13, 2019 @ 14:53

      • Hi Infidel;
        No, they likely don’t. To be honest, the education system has gotten worse and worse, especially for the poorer community. I live in an area that has small towns close together, each town having its own school system. The town that is currently hardest hit economically, but was the production center for the area 40 years ago – those factories have left, has one of the worst school systems. The expectations of the adm. are very low, and yet the graduation rate is maybe 20%. I was talking with one of our workers and his son is only in school 2 days a week, taking home study courses for the rest. Well, I’ve taken on-line and self study courses through college, and it was a very difficult thing to maintain my discipline and focus as an adult. How is a 14 year old to do it?
        These students are “graduating” or just leaving school, with a middle school reading level, math level, and almost no science education at all. They have no idea how to balance a check book, the importance of saving for retirement, how to understand compound interest and how credit cards are dangerous. They have to pay $300 to learn to drive – and these kids don’t have $300. So, many are driving without a license, without insurance. They are getting robbed by these shark used care sales places that charge huge fees and interest for the trade off of a low down payment. And, the problem is generational, because not only are these kids parents no well educated either, but the kids are having kids because, let’s face it – it’s fun, feels good, they don’t have to be really smart to do it (maybe clever, but not smart) and they aren’t going to be financially responsible for the kids anyway. I’m sorry, I’ve gotten worked up on this. But, our society is not only splitting on economic lines, but the education lines.
        The government is happy for this to be the case, I guess. I think it no wonder that our education system has deteriorated at the same time as our prison system has boomed.

        Whoa. Deep breath. Sorry.
        hugs;
        randy

        Liked by 2 people

        Comment by randy — April 13, 2019 @ 15:28

        • Hello Randy. A low income slave labor force unable to complain or change locations for better jobs. The corporations become richer off the low paid labor, provide no benefits, no healthcare and eventually the corporations run the government while the people are too uneducated to be able to do anything about it. Overlords and serf peasants. Welcome to the middle ages for the US population. Hugs

          Like

          Comment by Scottie — April 13, 2019 @ 15:35

        • Nothing wrong with getting worked up about such things. I wish more people did — especially in the voting booth. The problem is that lack of education, which makes it hard for people to understand the real causes of their situation. Which is probably the intention. The “kids having kids” problem has the same origin. Proper sex education would allow them to have the “fun” without the consequences — except that that’s anathema to the religious-based taboo-think that infects this country.

          The problem is that we are competing with other countries whose educational systems are not similarly regressing. Did you know that Iran teaches evolution in its schools with no equivocation, and has a government program to make birth control available throughout the country — using women doctors in rural areas, since women in a traditional society might not be as comfortable discussing sex and birth control with a male doctor? Can you imagine how the fundies here would react to that kind of thing? And that’s Iran. Try to imagine how far behind Japan and Europe we are.

          I have heard that part of the reason the North Korean regime survives, despite locking its people into the most miserably deprived standard of living in East Asia, is that its strict control of information keeps the people ignorant of the outside world, and they genuinely believe most other countries are worse off than they are. I sometimes think the US is in a somewhat similar position. The huge size of the country, brainwashed arrogance about being “the greatest nation on Earth”, and ignorant disinterest in things foreign, all conspire to do here what state control of information does in a dictatorship.

          Liked by 1 person

          Comment by Infidel753 — April 13, 2019 @ 15:50

    • Hello Randy. Thanks brother for the information. It should be a national shame what we are doing to the lower incomes in this country. There is no way a person starting out can make it, no way a retiree can keep up with the rising costs. I am not sure where this will end. Either it will change, turn around, or we will have a nation of people dying in the streets. Ron says he think it will come to a revolution. Oh did you see I posted the Kerry video? Hugs

      Like

      Comment by Scottie — April 13, 2019 @ 15:02

  4. More than 20 years ago, I saw a quote from a Russian activist commenting on the poverty in Russia despite its vast wealth of natural resources:

    “For a country to be so rich and its people to be so poor, its leaders must be either fools or criminals.”

    Sadly, the exact same could now be said of our own country.

    Liked by 1 person

    Comment by Infidel753 — April 13, 2019 @ 19:37

    • Hello Infidel. Yes it can. I wish it was one or the other, but I think it is both. Hugs

      Liked by 1 person

      Comment by Scottie — April 14, 2019 @ 05:16


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