The drive to pay workers less and less is leaving Americans
unable to buy much besides essentials.
America’s economic
recovery can be measured not only in the performance of stocks — but also of
socks.
Most economists,
pundits, and politicos see this year’s boom in the stock market and say: “See, the recovery is
going splendidly!”
What if they went to
such stores as Kohl’s, Target, and Walmart to find out what’s selling? The
answer would be: Socks.
During this
back-to-school season, usually the year’s second-biggest buying spree, sales
are sluggish at best. Customers are foregoing any spending on their kids except
for socks, underwear, and other essentials.
The sock market isn’t
just a key economic indicator. It’s a way to gauge the widening inequality in
America.
Charles M. Holley Jr., Walmart’s chief
financial officer, seems puzzled by this. As he puts it, there’s “a
general reluctance of customers to spend on discretionary items.”
Golly, sir, could it
be because job growth in our supremely-wealthy country has been both lackluster
and miserly?
Yes, for jobs today
are typically very low-paying, part-time, and temporary, with no benefits. Mr.
Walmart-man should know this, since his retail behemoth is the leading culprit
in downsizing American jobs.
In recent months,
headquarters has directed Walmart managers not to hire at all or to concentrate
on hiring temporary
and part-time workers, while cutting the hours of many full-time
employees and making it harder for all workers to get the corporation’s meager
health care plan.
Walmart’s sales and
profits are stagnant today because — hello — even its own
workers can’t afford to buy anything besides socks.
OtherWords columnist Jim Hightower is
a radio commentator, writer, and public speaker. He’s also editor of the
populist newsletter, The Hightower
Lowdown. OtherWords.org