WORKING LONGER WILL MAKE YOU SICKER

#RaisingTheRetirementAge #retirement #WorkingLonger #disabilities
The government continues to raise the retirement age.
People are working longer.
Yet, their health continues to decline.
Ben Steverman discussed this in an article for Bloomberg News. It was also published Oct. 24, 2017, in The Atlanta Journal-Constitution.
“The age-adjusted mortality rate in the U.S. rose 1.2 percent from 2014 to 2015, according to the Society of Actuaries,” the article reads. “That’s the first year-over-year increase since 2005, and only the second rise greater than 1 percent since 1980,” the article says.
So, Americans are retiring later, dying sooner and are sicker, the article says.
Almost one in three Americans age 65 to 69 is still working, along with almost one in five in their early 70s, the article says.
Americans in their late 50s have more serious health problems than people of those same ages 10 to 15 years ago, according to the article. To boot, cognitive skills have declined. Those with a retirement age of 66, 11 percent already have had some kind of dementia between ages 58 and 60, the article quotes a study by University of Michigan economists HwaJung Choi and Robert Schoeni.
Experts say obesity, high rates of suicide, drug overdoses and alcohol abuse have been cited as causes, the article says.
The higher death rates are good news for pension plans, the article points out.
“Americans may have already seen most of the benefits from previous positive developments that cut the death rate, such as a decline in smoking and medical advances like statins that fight cardiovascular disease,” the article reads.
So are you among the group that feels worse than you think you should for your age? Has the economic downturn of 2008 got you working at a job you hate, when it’s high time for you to retire?
Perhaps a solution to the latter problem may relieve the difficulties of the former. There are many ways to make money beyond a traditional W-2 job – especially one that you hate, or that is making you sick. To check out one of the best such vehicles, message me.
And though pension plans may like this news – the Society of Actuaries calculates a typical pension plan’s obligations could fall by 0.7 to 1 percent , the article says – not everyone is fortunate enough to have a pension.
That puts the onus on every worker to make sure their retirement is not only survivable, but potentially prosperous.
This may entail some thought outside the proverbial box, especially if your employer is not providing you a pension.
If you’re young, start saving your money sooner. Cut out that extra coffee-shop visit or extra meal out, and put that money toward your retirement.
If you are older, not only must you think about how long you WANT to work, but also how long you will BE ABLE to work. It may not be an illness that gets you. You may be one bad manager or one reorganization away from a dead career.
You may not be able to solve health problems, but money problems can be conquered. You just have to have the best life you can, and try to live as long as possible.
Peter

HOW ABOUT ANYONE DOING ANY JOB?

More men are expected to be attracted to “women’s jobs” in the coming years.
However, the reverse is not proving to be a trend.
That’s according to research by Jed Kolko, economist at the job-search site Indeed. His study was quoted in an article by Ana Swanson in the Washington Post. It was also published in the April 23, 2017, edition of The Atlanta Journal-Constitution.
Kolko concludes that less-educated men may especially face challenges in the job market of the future, the article says.
“In recent decades, fields that are dominated by men and by women have not fared equally. Many men have fallen out of work as increased mechanization has allowed the U.S. to produce more agricultural and manufacturing goods than ever, with fewer people than before,” the article says.
“Jobs that are dominated by women are projected to grow nearly twice as fast as jobs that are dominated by men,” the article quotes the Kolko study, based on figures from the Bureau of Labor Statistics.
“Fast-growing ‘male’ jobs that require lots of education don’t really help men without a college degree who have been in traditionally ‘male’ jobs,” the article quotes Kolko.
We all have an idea what a “male” job – construction, manufacturing, mining, farming etc. –or a “female job” – nursing, administrative assistant, etc. –is. The article says that computer programming was once dominated by women, but is now heavily male.
It’s been reported many times that men fared worse in the Great Recession than women. The good jobs done largely by men went away more quickly than those done mostly by women.
Kolko points out that some “female” jobs, such as telephone operaters and textile workers, also have been automated out, according to the article.
The broader trend is away from manufacturing and more toward services, which could draw men into jobs traditionally dominated by women, the article says.
So let’s step back and examine this. Good jobs in general are disappearing quickly. Lots of folks, if they are lucky to find new jobs, generally are getting paid less than their previous jobs paid them. Many are not using the skills they were trained for. Those skills, largely, are being replaced by machines. There’s nothing a person can do to stop that!
But what a person CAN do is think about other ways to make money. There are many such vehicles out there for those willing to step out of what’s comfortable, and look at something different. To learn about one of the best such vehicles, message me.
The economy, the recession, downsizing – however you wish to think about it – is not something that will, or can, go away. So, if such circumstances hit you, don’t beat yourself up. Sure, those circumstances will hurt, but by further beating yourself, the pain will be worse.
Americans can be very resilient. Sometimes, tough circumstances require bold action. Sometimes, one has to think differently to better himself.
If you view yourself as a hard-working person, and most do, don’t expect someone to give you something. You may have to look for other opportunities, perhaps completely unrelated to what you’ve done before.
So whether you’ve been doing a “male” job, or a “female” job, and it has gone away, remember that someone you know, or may not yet know, may introduce you to something you may have never heard of. Listen. Don’t dismiss out of hand. You could be hearing about the light at the end of your tunnel.

Peter

WHY ASIAN PARENTS HAVE THEIR KIDS’ BACKS IN SCHOOL

Why do students of East Asian descent do so well in school? Because parents are the primary educators.
So concludes Maureen Downey, education columnist for The Atlanta Journal-Constitution. Her column on the subject was published July 31, 2017.
While American parents are concerned with how engaging their child’s teacher is, how much homework their child will have and whether their child will be able to balance school and other activities, such as band or soccer, in East Asian countries, parents are worried about one thing: whether their child will learn, Downey writes.
The Asian children’s success will depend not only on their own effort, but that of their parents, she writes.
That difference may explain the performance gap between American students and those from East Asian countries, Downey writes.
According to a research scholar on East Asian education, this lagging performance by American students will not change unless we upend two beliefs: teachers are responsible for student achievement and parents play a supportive, rather than primary, role in their child’s education, Downey writes.
Cornelius N. Grove, author and researcher on East Asian education, has challenged the assumption that school performance is determined by innate aptitude, Downey writes. He says children bring – or don’t bring, in the case of some U.S. students – a receptiveness to learning and a moral and cultural imperative to excel, Downey writes.
Students who fail an algebra test here might say, “I’m just not good at math,” Downey quotes Grove. East Asian students use failure to figure out what they don’t know and redirect their study plan, Downey quotes Grove.
One could argue that while education is important, so are other things in life. The balance American parents look for in their children is a worthy endeavor. We want children to have a life, to do things that kids do, to enjoy growing up and not be put in a pressure cooker.
On the other hand, some parents can be too loosey-goosey, fret about the child’s self-esteem, etc.
Those old enough may remember when parents sent kids to school, let them figure out what to do, perhaps had one or two conferences a year with teachers and that was it. Some parents were disinclined, or perhaps even incapable, of helping with homework.
Still, “we have masses of young people (In the U.S) who aren’t able to do simple math, who have trouble reading a sentence,” Downey quotes Grove.
Yet, she quotes him, “we are not short of entrepreneurs in this country.” If your child is an entrepreneur, and is looking for something to apply that trait that could earn him potentially a lot of money, there are many vehicles out there that may fit him or her. To check out one of the best, message me.
The bottom line is that parents have to find the happy medium in which their child can excel in school, and still be a kid. The parents have to devote a higher priority on education, and not leave everything up to teachers and schools.
The children have to want to learn. A parent who cultivates a child’s desire to learn is parenting at its best. So let your kids be kids, let them do what they enjoy, yet still have focus on education. Perhaps the parents can take a leading role in increasing school performance of American children.
Peter

PARENTS’ INCOME MAY INFLUENCE KIDS’ EARNINGS

#income #ParentsIncome #earnings
“If you’re born poor, you die poor.”
That’s according to a United Kingdom politician from six years ago. The quote leads off an article by Michael Heath Bloomberg published in the Aug. 30,2017, edition of The Atlanta Journal-Constitution.
The article says little has changed in those six years. Great Britain, France, Italy and the U.S. continue to show a high correlation between parents’ earnings and those of their children, the article quotes a report by Standard Life Investments. The Scandinavian countries, Australia, Germany and Canada show a similar correlation, but to a lesser extent, the article says.
As a result, human capital is wasted and workers are less motivated, the article says. Higher levels of inequality in earnings stunts economic growth, the article says, quoting research.
Let’s think about this. Perhaps children go into the same, or similar, professions as their parents. More likely, however, parents probably have told their kids that their potential is limited because of finances, innate ability etc. How many have been advised by parents, or other trusted elders, to seek security, rather than follow dreams?
The article says researchers tracked the proportion of 30-year-olds who earned more than their parents did at that age, and found a significant downtrend: just 50 percent of children born in the 1980s earned more than their parents at the same age, compared with nearly 80 percent of 1950s-born kids, the article says.
Another figure the article quotes: in the American Midwest, just 41 percent of children born in 1984 earned more than their parents at the same age, compared with 95 percent of those born in 1940.
Certainly, decline in manufacturing, as the article says, has much to do with that. Inflation is certainly another factor. People working in the 1940s and 1950s were paid much less than their children would earn. But wage stagnation is real. And it’s obvious in just about every industrialized country.
So what to do? Most everyone could sense this problem that the article actually quantified. The security that one’s parents may have advised their children to seek is just not there. A young person today – even some who’ve invested in a college education – can expect, unless he or she is truly fortunate, that his job and career he starts with will change, or end, before he wants it to.
And the change that happens usually means more work for less money, or having to take a new job that pays less.
There are ways to combat this. First, don’t be afraid to change careers. See what the market is looking for, learn the appropriate skills, and change. Second, save your money. That may require forgoing frivolous pleasures so that you can bank, and properly invest, money over time. The time trajectory, remember, may not have a person working to age 65. It may only last until, say, age 45.
Finally, be open to checking out different ways to make money. Perhaps you are unaware of the many good ways to make money that have nothing to do with a W-2 job. To check out one of the best, message me.
Though the article paints a gloomy income picture, it doesn’t have to be that way. It may take a desire to want a better life, a willingness to looking at things that may look uncomfortable and a belief that YOU can ultimately control your own situation.
The security your parents may have told you to seek is likely imaginary. Therefore, not only is there no harm in pursing your dream, there could be a real benefit to doing so. Remember, too, that pursuing a dream can also allow you to help others do the same.
Peter

STUDENT LOAN DEBT KILLING ECONOMY FOR SOME

#StudentLoans #StudentLoanDebt #economy #college
Imagine having your dream job, after a great education, and yet be broke.
That is the case with Melissa Cefalu, a veterinarian, and her husband Andrew, a chiropractor.
You see, Melissa and Andrew are buried under $365,000 in student loan debt.
Paul Davidson highlighted their story in his USA Today article about how student loan debt is hurting the U.S. economy. It was also published in the July 7, 2017, edition of The Atlanta Journal-Constitution.
Melissa and Andrew never take vacations. They may grab a long weekend with friends or relatives. Andrew drives a 13-year-old Chevy Tahoe. Instead of buying new clothes, Melissa, 35, wears her sister’s hand-me-downs, according to Davidson’s article.
The $1.34 trillion in student loan debt, a record high, is affecting the overall economy, Davidson writes. It’s causing delays in home purchases, it’s crimping consumer spending and inhibiting formation of new businesses, the article quotes analysts. He quotes others as saying the student loan debt crisis is no more than a lot of hype.
“I love what I do but … I don’t feel my degree was worth the sacrifices we have to make every single day,” the article quotes Melissa Cefalu. The couple, between them, makes $125,000 a year, and lives in affordable Madison, Miss.
Let’s break this down further. We’ve all heard about the excessive student loan debt, and the debate rages on about how to fix the problem. Should we, as a nation bail out these loans, or should we let the people who incurred the debt take their medicine – probably for a lifetime?
At the rate they are going, Melissa and Andrew will probably never be able to save for a house, let alone retirement, for a good long time. Theirs is a lesson for others thinking about whether college will be worth what they will have to do financially to get through.
And the Mississippi couple’s example shows that even if you come out of college with a decent job, doing what you had always wanted, debt can punch you in the gut for many years. Think about the graduate who comes out of college with no job, AND lots of debt.
Statistics repeatedly show that the more education one has, the better his job prospects. Still, the decision whether to go to college should not be automatic, even for the brightest of students.
There are many different ways to approach the problem. Consider these options: if a student is college material, but his family cannot afford to send him, he could work for a few years at a relatively menial job, i.e. a restaurant server, and save his money to go to college later in life. That same student could take that menial job, and take some college courses part time over a few years until he has the money to go to school full time.
Secondly, a student could consider military service for a few years, presuming he is physically able for that. The service may entitle him to college benefits after he serves his tour of duty.
Thirdly, a student may decide to look for a vehicle that will provide him enough income to eventually give him a world of educational options, without incurring a lifetime of debt. To check out one of the best such vehicles, message me.
Regardless of how you may feel about student loan debt, and how it may be affecting the economy, consider this: if a student incurs debt that would surpass a mortgage, that student will not be able to do much of anything financially for a good long time. He or she could grow old and broke, with very little help to get out of their situation.
If you don’t want to be among those folks, think long and hard about whether, and when, to go to college. College is not for everybody, and for those who are ripe for college academically, but not financially, it’s still not a decision to be made without lots of thought.
He who properly thinks through the college decision will likely see the most success as a productive adult.
Peter

MONEY CAN BUY HAPPINESS: REALLY?

#MoneyCanBuyHappiness #time #money
“If you were given $40 on the condition that you had to spend it on something that would make you really happy, what would you do with the money?”
So asks Jenna Gallegos, who discussed time and money in an article in The Washington Post. The article also was published July 30, 2017, in The Atlanta Journal-Constitution.
The answer to the above question would be different for just about everyone. Some would buy a piece of their favorite food or beverage. Some would buy that shiny, new object they’ve had their eyes on. Some wise folk might decide to put it in the bank, postponing their happiness for another few years.
Gallegos quotes a study published in the journal PNAS, saying people who buy time by paying someone to complete a household task are more satisfied with life.
We all have a to-do list that includes tasks that someone else can do better and faster than we. If it’s going to take you several days to, say, paint a room, but a professional painter can come in and knock out that job in a few hours, would that be worth it to you?
OK, some folks love to paint, garden, mow the lawn or do household and auto repairs themselves. For many of us, though, those are drudge tasks, or tasks we cannot accomplish ourselves competently. For some people, the “challenge” of doing something themselves rather than paying someone else to do it allows them to brag about it to friends and family.
Gallegos might ask: are those people in that latter category really happy? Across all surveys, Gallegos writes, life satisfaction was typically higher when people spent money to save their time – regardless of their household income, hours worked (at their regular job) per week, marital status and number of children living at home. (Disclaimer: very few with extremely low incomes were surveyed, Gallegos points out).
The point here is that time is money. Most leadership and motivational experts say you should devote the largest percentage of your (work) time to the things YOU do best. The rest, if possible, should be delegated. There’s a trap here, too. Those same experts might also advise that you not ask anyone who works for you, or with you, to do anything you would not do, talking about those menial, yet necessary tasks to get the job done.
So, for the sake of argument, we won’t focus on those work-related things. We’ll focus on tasks you must do in your time outside of work.
Gallegos cites another study, in which 60 working adults in Vancouver were given $40 on each of two consecutive weekends. They were told to spend that money on a material purchase one weekend, and a time-saving purpose another. The researchers found the time-saving purchases were accompanied by an increased positive effect, and less time stress, Gallegos writes.
Yet in another Vancouver study group of 98 working adults, they were asked how they would spend $40 if it were given to them. Only 2% said they would buy more time, Gallegos writes.
In short, time is indeed money and using your money to buy more time for you to do things you enjoy creates happiness. There are many folks out there who have a combination of not enough money and not enough time to enjoy life. If that description fits you, and you are willing to check out something outstanding that will solve your money/time problems, message me.
Understand that time can’t be replaced. You should be spending the bulk of your time doing things YOU do best, if you can. You should maximize your leisure time doing things that please you the most. It will make you happier.
Money CAN buy happiness, if you use it to purchase time.
Peter

BOOMERANG KIDS COME BACK TO CHANGE PARENTS’ LIVES

#BoomerangKids @AdultsLivingWithParents #EmptyNest
“Boomerang kids.”
These are the young adult children who move back home with Mom and Dad either because they don’t want, or can’t afford, to live on their own.
Of parents whose adult children returned in the last year, 68 percent reported more stress, and 53 percent said they were less happy.
That’s according to an article by Erin Arvedlund for The Philadelphia Inquirer. The article was also published Aug. 7, 2017, in The Atlanta Journal-Constitution.
One in nine parents surveyed by Fidelity and Stanford University’s Center on Longevity reported having children who moved back home in adulthood, the article says.
Not only were most of the parents more stressed and less happy about that, 46 percent of mothers reported worse sleeping and weight gain, the article quotes the study.
The study, as quoted in the article, also reports that more 18- to 35-year-olds live with parents than with a spouse.
To prevent adult children from moving home, some parents are resorting to buying houses for the children, the article says.
It may be oversimplification to pinpoint causes for this, but let’s start with the economy. After the 2008 meltdown, jobs, even for young people, became scarcer. Those that did get jobs don’t make the kind of money to would allow them to live on their own.
The article also points out that some of these adult children are moving back with children of their own, so divorce, or having children outside of marriage, plays a part.
It’s hard for many of us in a different generation even resorting to moving back home for any length of time, no matter the circumstances. But these younger folks don’t see it as a problem, perhaps because their life at home was so good.
As Kelly Yamanouchi reported in the Oct. 24, 2017, edition of The Atlanta Journal-Constitution, the average pay for Delta Air Lines flight attendants is $25,000 a year. It’s tough for a young adult to pay rent, eat and otherwise have a decent life today on that salary.
It still begs the question of how one has a social life around Mom and Dad, and how Mom and Dad work a social life around adult kids at home.
From the parents’ viewpoint, money that you give to your children is money you probably won’t have to retire on.
Undoubtedly, it’s not an easy decision to turn away your children in times of trouble. Many of them don’t have the opportunities for earning a living that their parents had, because there are fewer good jobs.
If you are a young adult contemplating moving home, for financial reasons or otherwise, remember that there are more ways to make an income, potentially a great income, than a W-2 job. To check out one of the best, message me.
If you are a parent getting set to take in an adult child, try to discern the real reason they want to move home, and try to help them find an alternative – perhaps short of buying them a house – to moving back home.
Parents and adult children living under one roof can create so much tension, simply because each has his or her own way of doing things. Neither parents nor children need that stress.
It’s good for adults to live on their own when possible. It helps the economy and society as a whole. Make sure that if you have to move back in with Mom and Dad, that it will be very temporary, and for the right reasons.
Peter

ECONOMICS: A MATTER OF CHOICE

#economics #NobelPrizeForEconomics #RichardThaler #BehavioralEconomics
People make poor choices about money.
That may seem obvious to some, but Richard Thaler of the University of Chicago has made a career of studying people’s economic behavior. He was rewarded last week with the Nobel Prize in economics.
“Far from being the rational decision makers described in economic theory, Thaler found, people often make decisions that run counter to their best interests,” write David Keyton and Jim Heintz of the Associated Press. Their article on Thaler’s prize was published Oct. 10, 2017, in The Atlanta Journal-Constitution.
“To contain the damage from such collective actions (like not saving enough for retirement, buying houses as prices soared, or failing to get out of a bad investment even as the value plummets etc.), behavioral economists say, policy-makers must recognize human irrationality,” the reporters write.
Irrationality is part of being human. It applies not only to economic decisions, but also other life choices. Everyone knows smoking is bad for you, yet there are still people smoking. Everyone can cite all the foods that are bad for them, but eat those foods anyway.
Not everyone makes bad decisions all the time, and not every “bad” decision is terribly consequential. But a pattern of bad decisions over time – or just one bad decision made consistently over time – can be detrimental, even disastrous.
It hardly takes a Nobel laureate to figure out that if one does not save for his retirement, his life will be worse for it.
There’s good news in all of this. The world has created ways to perhaps compensate for bad economic decisions – ways that don’t involve someone, or something, bailing someone out.
There are actual ways to earn extra money, perhaps even lots of extra money, by spending a few non-working hours a week in their pursuit. To learn about one of the best such vehicles, message me.
One always can put himself on a path to good economic decision-making. It boils down to spend less, save more and, to continue borrowing from consumer adviser Clark Howard’s tagline, “don’t get ripped off.”
It requires discipline, of course. It requires rational thinking throughout your life. It requires watching where every penny goes. Yes, even a few pennies saved here and there can add up over time.
It requires thinking less about today, and more about tomorrow, and years from now. That may be difficult to do as a young adult, just starting to build a life. You’ll have expenses, family etc., that will cost you money. But a good way to start is by saving a specific amount every week – even, say, $5.
Save it and don’t think about spending it. As your pay at work increases, save that increase. As your savings grow, get good trusted advice about how to invest it.
Thaler joked to the AP reporters that he would spend his Nobel Prize money “as irrationally as possible.”
“In traditional economic theory, it’s a silly question,” Thaler told the reporters. “And the reason is that money doesn’t come with labels. So once that (Nobel) money is in my bank, how do I know whether that fancy bottle of wine I’m buying (is being paid for by) Nobel money or some other kind of money?” he told the reporters.
In other words, money is money. When it is put into our hands, being a good steward of it is essential. That’s not to say that we can’t have a nice bottle of wine, or some other treat, once in a while. We need SOME irrationality in our lives just to be human. It gets dangerous, though, when one allows irrationality to always trump rationality.
Peter

BROKEN PROMISES AND PENSIONS: NEVER PRESUME

#UPS #pensions #FreezingPensions
UPS plans to freeze pensions for non-union employees effective 2023.
So says an article by Kelly Yamanouchi, a reporter for The Atlanta Journal-Constitution, which was published June 29, 2017.
The freeze will affect about 70,000 administrative and managerial employees, the article quotes UPS.
The employees will be shifted to a plan that includes extra company contributions to each employee’s 401(k) accounts, the article says.
“Continued increases in future pension obligations and volatility that makes it difficult to plan for future costs,” was cited in the article as the reason for the change. The non-union pension plan has a deficit of about $6.5 billion, according to the article.
It’s difficult to judge how badly those non-union employees will be hurt by this change, but it speaks to an ongoing trend.
If you are fortunate enough to work for someone that provides a pension plan – they are getting fewer by the day – be prepared for some changes somewhere along the way. Unionized employees in both the public and private sectors are susceptible to changes, even if a contract locks the employer in.
It’s truly the wise person who anticipates changes, even if he or she doesn’t know what those changes are, or when they will come.
UPS, it seems, is giving their affected employees some warning, so they can begin planning.
It’s unsafe to presume that your employer – again, if you are lucky enough to be in a pension plan – will do the same, or even give you notice.
So, if you are not covered by a pension plan, or if your pension plan undergoes a sudden change that may give less than you had anticipated, what should you do?
If you are still relatively young, start by not presuming that your company will take care of you when you retire. Remember the adage, if it is to be, it’s up to me.
Save your money as if there will be NO benefits coming to you from your company. If you get benefits, then you’ll be that much better off. In other words, consider whatever pension you get to be gravy.
Next, sit down with a trusted adviser who can guide you to a financial plan that will cover your life expenses now, and encourage you to save so you can provide for yourself in your elder years.
There’s nothing worse that working your tail off for, say, 40 years, and be broke, or close to, when you are older.
Also, anticipate the possibility that you WILL BE retired before you want to be. That is happening, and has happened, to countless people.
Another tip: instead of getting a second job if you are unable to save enough, look into one of the many vehicles out there that allows you the chance to earn a potentially lucrative income with a few part-time hours a week. To check out one of the best such vehicles, message me.
The corporate and business worlds are littered with broken promises to employees. Never presume that promises made when you were hired will be kept when you retire. Don’t even assume that promises made the day you were hired will be kept throughout your career.
Remember, too, that as you walk through that broken promissory litter, no one but you will pick up the pieces.
Peter

WAGE DISPARITY AND THE SHRINKING MIDDLE CLASS

#WageDisparity #MiddleClass #WageGapBetweenWealthiestAndRest #IncomeGrowth
A Pew Research study says middle-income Americans have fared worse in many ways than their counterparts in Western Europe in recent decades.
Meanwhile, business writer Rex Huppke of the Chicago Tribune says the wage gap between the richest and the poorest is jaw-dropping, and that CEOs are going to have to deal with the problem sooner or later.
Nelson D. Schwartz wrote about the Pew Research study on the middle class for The New York Times. His article was published May 29, 2017, in The Atlanta Journal-Constitution. Huppke’s article about wage disparity was published May 28, 2017, in The Atlanta Journal-Constitution.
Schwartz’s article talks about a man in Gillespie, Ill., whom his neighbors consider lucky. After a year out of work, he found another job making cardboard boxes that pays him $19.60 an hour. The steel-mill job he lost paid $28 an hour.
“The middle class is struggling for sure, and almost anybody in my position will tell you that,” Schwartz quotes Gillespie.
The reporter points out that although the U.S. has a higher median income than Europe’s, the Europeans are catching up. Median incomes in the middle tier grew 9 percent between 1991 and 2010, compared with a 25 percent growth in Denmark and 35 percent in Great Britain, Schwartz writes.
That kind of U.S. growth only widens the wage gap between the wealthiest and the rest.
Data collected by the AFL-CIO show the average pay for an S&P 500 CEO last year was $13.1 million. That’s 347 times the average American worker’s pay, Huppke quotes the labor union’s study. Meanwhile, online jobs review site Glass-door says the CEOs only made 205 times more than average workers at their companies, Huppke writes.
In other words, pay for the honchos growing and pay for the working stiffs is shrinking.
Why should the CEOs care?
“Ignoring this disparity is as short-sighted as it is counterproductive for the future health of an organization,” Huppke writes. “They’ll (CEOs) will hear a lot less complaining about their giant paychecks if they find a way to grow everyone else’s as well,” Huppke writes.
Believe it or not, the news is not all bad for the working stiffs. There are plenty of ways for any person, from any background or education, to raise his income – perhaps not at the job he is working at now.
The key is to be open to looking at such ways openly, and be willing to do something you may not have ever done. As a bonus, you’ll have a way to help others prosper, too. To check out one of the best such vehicles, message me.
As another aside, many CEOs are going to scratch their heads in wonder why fewer folks are buying their products. Perhaps your customers have been forced to spend less because their pay keeps shrinking. People work for you, but can’t afford to buy what they help make. Certainly, some of that is inevitable, but if a company makes an affordable, everyday product, the folks that make it should be able to afford to buy it.
It will take work to fix the problems of income disparity and the shrinking middle class. Perhaps the powers that be will get the message and fix it, but it would be more prudent for each person to take matters into his own hands. It can be done, if you have the desire to change and better yourself.
Peter