DEAR WALMART, MCDONALD'S AND STARBUCKS: How Do You Feel About Paying Your Employees So Little That Most Of Them Are Poor?
One of the big problems with the U.S. economy is the disappearance of the middle class.
The rich keep getting richer and the poor stay poor, and many folks who used to have decent jobs and lives in the middle are now joining the ranks of the poor or near-poor.
The reason this hurts the economy is that pretty much all the money earned by middle-class households gets spent, while much of the money earned by rich people gets saved or invested.
N.B.: And investment income is taxed at much lower rates than earned income. So this trend erodes the tax base as well
Many Americans who used to have middle-class manufacturing jobs—or who would have had them had they not disappeared—now work in low-wage service jobs at companies like Walmart, McDonald's, and Starbucks.
The consensus about these low-wage service jobs is that they're low-wage because they're low-skilled.
But that's not actually true. They're low-wage because companies choose to make them low-wage.
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