By Harry Rix in Rhode Island’s Future
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“An unfettered pursuit of money rules. That is the dung of
the devil.”
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The Pope doesn’t care much for greed.
The wages of 30 million U.S. workers cause so much misery they
leave within a year. The Economist states this chaos
continues because, “The most obvious incentive—more money—is often the last to
be considered.”
Often, the issue is greed.
Retail and fast-food businesses also stiff taxpayers. Walmart
pays ‘low, low’ wages to impoverished employees: Forbes reports
taxpayer assistance totals about $6.2 billion annually.
James Parrott, the Fiscal Policy Institute’s Chief Economist, states, “Wages are so low that 60% of fast-food workers qualify for public assistance.”
What to do? Purdue University’s study concluded that doubling
Indiana’s fast-food workers’ wages to $15 an hour would raise prices only 4.3
percent. A $3.99 hamburger would increase 18 cents.
This increase is slight because employee turnover is
significantly reduced: Recruiting and training costs decrease; worker morale
and productivity improves. With current turnover greater than 100 percent,
retail and fast-food industries, on average, lose all employees every year.
This can change. Seattle restaurant owner Jeremy Price says of
paying $15 an hour, “It has been a positive change for our staff and our
business.”
A living wage is a win/win/win: Employees receive a just wage;
employers overcome high turnover and reduced productivity; and taxpayers avoid
paying ‘corporate welfare’ for low-wage workers.
The primary problem is greed.
The wealthy counter with the myth: “The rich are makers, the
poor are takers.” The reverse is true.
First, lobbyists write laws giving corporate welfare for ‘the
takers.’ According to the conservative InvestmentWatch, their loopholes and
looting are so brazen that, in 1950, corporations paid $3.00 for every dollar
paid by workers; corporations now pay 22 cents.
Second, corporations have stashed $2.1 trillion overseas. This
‘takers’ tax scheme, according to the nonpartisan New America Foundation,
eliminated 1.3 million to 2.5 million jobs through 2011.
Third, aristocrats’ paltry effective tax rate on inheritance is
17 percent. The wealthy pay only 20 percent on capital gains.
Fourth, it bears repeating: Taxpayers bankroll corporate
profits. New York Governor Andrew Cuomo is livid, “It costs this state $700
million a year to subsidize the profits at McDonald’s and Burger King—and that
is wrong, and that must stop.” UC-Berkeley estimates public subsidies for
corporations’ low wages totals $153 billion.
The greedy rich are takers. Justice requires they pay their fair
share—in taxes and wages.
Fifth, this myth states government rewards poor people who avoid
work. Actually, nearly 90 percent receiving benefits are working or disabled.
The rest have job training or must find work to avoid losing their safety net.
All laborers, ‘the makers,’ should be paid wages which escape poverty.
Sixth, poor workers pay significant taxes: Sales taxes; Social
Security; other taxes on wages; and property taxes—directly, or indirectly
through rent.
Seventh, by spending all their pay, the working poor create
demand for more products and services. This demand ‘ripples’ from one business
to the next, multiplying business spending. Thus, living wages spur economic
growth—and poor workers’ increased spending creates jobs.
Eighth, the system cheats workers. Laborers’ wages kept pace
with productivity from 1948 to 1975. Since then, productivity increased 100
percent—but wages for ‘the makers,’ adjusted for inflation, declined seven
percent.
The working poor are makers. Justice requires they are paid
their fair share.
Wage slavery requires abolition. The ‘Fight for $15’ movement is
right: The minimum wage must become a living wage.
Barriers to wage justice include ignorance and fear, but the
main obstacle is greed, “The dung of the devil.”
Absent government action, businesses can still win—achieving low
turnover and high productivity—by paying substantial annual increases until $15
is achieved. In this season of wonderment and thankfulness, businesses must act
with courage and caring to restore dignity and decency.
Rev. Harry Rix has 60 articles on spirituality
and ethics, stunning photos and 1200 quotations for reflection available at www.quoflections.org. ©2015 Harry Rix. All
rights reserved.
