Friday, August 26, 2005

CASE IN POINT By Joe Koester, Councilman Ward 9

Labor Day is coming up soon, so it’s appropriate to discuss our economy. Many in the media tout a recovery and many still even speak of a “jobless recovery,” but I don’t think the picture is all sunny skies and smiles. Those of us here in the shrinking middle class, at least, can see the dark cloud in spite of the silver lining that has been thrust in front of our eyes by the current administration in Washington. I, for one, think the very idea of a “jobless recovery” is corporate mumbo-jumbo that’s supposed to make us feel okay about the fact that our manufacturing jobs are heading to China, India, or Mexico.

Just look at the recent unemployment numbers, it doesn’t look bad by that account. Numbers never tell the whole story though, but they can tell most any story you want them to. Here are two points that need to be considered along with the numbers: 1) How many people have dropped off of the unemployment radar because they have given up their job search 2) How do the wages of those who have found work compare with their previous pay scale? I think that the latter point is made by a sad fact — Wal-mart is now America’s largest employer!

Certainly, many readers have followed the numerous charges brought against this corporate giant and many more know that their “predatory pricing” helps close up independently owned and operated shops from coast to coast, or better said nowadays, from meridian to meridian!

Did the man or woman who is trying to support his or her family give up a job with a living wage, health insurance, and a retirement to work part-time with insurance that is not affordable with the wage they earn and not even available to them for two years? The facts seem to show that indeed this is the case.
Shamefully, we now speak of, “the working poor” in this country. We cannot help but speak of working poor when you consider that an employee making $7.50/hour and working forty hours per week will GROSS $15,600! Americans have always believed that those willing to put in a full week’s work should be able to get ahead, but “ahead” for many is just keeping their heads above water and living with the constant threat that the slightest negative change in their situation will cause them to drown into poverty.

Some would say, “If Wal-mart” can sell its products cheaper, well, that’s just free-market capitalism. Ah, if that were only the case! The fact of the matter is these giant corporations use our own tax money to subsidize their low prices and lousy wages and are always ready to threaten removing their big box presence if they don’t get the subsidies they demand in order to undercut our local grocers, auto repair shops, gas stations, pharmacies, banks, (you name it, they are ready to provide you that service...”cheaper”). Furthermore, they use their massive size to enable them to use “predatory pricing” to close down small competitors. Do you need to drive a couple shops out of business? Not a problem, simply sell your goods at cost or even below cost until they fold. After mission accomplished, simply readjust pricing.

Consolidation of ownership in our country continues to occur in most areas of business and commerce to be sure, but Wal-mart seems to be the one that sticks out so clearly in our towns. Wal-mart has also driven out those businesses that many of us considered in our reach to maybe own and run one day...the business supply shop, the car repair shop, the grocery shop, pharmacy, and so on. Most of us are less concerned with the merger of huge accounting firms but all of these corporate mergers eat away at the ability of locals to have ownership in their communities.

Here is a way of thinking about the situation — we all agree that a homeowner usually takes better care of his property than a renter does of the landlord’s. These corporations are renting our markets and have little long-term interest in our communities. When they decide we no longer serve their purpose, they will pack up and leave us with the bill of cleaning up behind them. How long has the old K-mart building sat vacant? How long will Wendy’s sit boarded and decaying?

So, what are we to do about things?
First of all, start worrying about these issues once again! Too long have we squabbled about abortion when we should be striving for better education, better living standards and health insurance that will make abortion unnecessary! We have to remain pro-family beyond this one issue! People of Faith seek Justice on all counts!

If we agree that we want to stand up for local ownership in our economy, then we can demand from Congress a federal law ending tax giveaways to corporate America; federal laws that prevent offshore accounting in order to avoid paying taxes; federal laws that forbid wheeling and dealing with our tax money just to do business in our communities. No one state, county, community can end their potential competitive edge over their neighbors, but Washington can put an end to the practice of pitting state against state, and town against town. If the corporations move shop overseas, place a penalty on them for moving and heavily tax the goods they wish to sell back to us within our own borders (Protectionism? You bet! I want to protect our living standards more than I want to guarantee a larger golden parachute for the corporate raiders!).

Demand stiffer punishment for predatory pricing! If you are caught selling under your own cost then let’s make the fine sting all the way back to HQ!
Demand that social costs be added into corporate pricing! If a forty hour work week leaves an employee without affordable health insurance, then allow the corporations to pay into an account that provides this insurance. If a big box retailer abandons a shop, force them to return the property to a natural state if the property isn’t filled with another business within twelve months!

Let us use our clout in the U.N. to demand better wages and working conditions worldwide so that our workers can better compete. Would as many corporations do their business in China if they had to pay a living wage complete with health insurance and part of each workers retirement?
Finally, make Labor Day your starting point to think about where you spend your money. There aren’t many local shops left, but choose “It’s A Grind” coffee shop over Starbucks, “Main Street Books” over Borders, and for the brave, make a resolution not to set foot in Wal-mart, Sam’s, or any other business who pays poverty-level wages!
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