Question: My husband and I both work full time. It seems we work all the time. Yet by the end of the month, we simply don't have any money left over. What should we do?

Answer:
Steven Greenhouse, writing in his recent book, The Big Squeeze: Tough Times for the American Worker, says you aren't alone.

Since 1979, hourly earnings for 80 percent of American workers (those in private-sector, nonsupervisory jobs) have risen by just ONE percent, after inflation. The average hourly wage was $17.71 at the end of 2007.

Worker productivity, meanwhile, has climbed 60 percent. If wages had kept pace with productivity, the average full-time worker would be earning $58,000 a year. $36,000 was the average in 2007.

Had earnings kept pace with worker productivity, you would be making around $27.88 per hour today. Read a short excerpt from Greenhouse's book, The Big Squeeze

American workers are well aware that wages have stagnated. Economists note that dismal worker pay has made the recent downturn in the nation's economy even more painful. Skyrocketing fuel and food costs have hit workers extra hard because their incomes have not kept pace with inflation during this decade. To make ends meet, you are working harder than ever. Greenhouse's research shows:

The typical American worker toils 1,804 hours a year, 135 hours (nearly four weeks) more than the typical British worker, 240 hours (six weeks) more than the average French worker, and 370 hours (or nine full-time weeks) more than the average German worker.

This has created both a financial and time squeeze. Employed parents don't have enough time today to be with their kids or their spouse. There isn't time to exercise, run errands or have a high quality of life.

In addition you are more productive today than U.S. workers have ever been in history. You are putting in more hours at work; you are more productive on the job. This equates to increased profits for businesses. So where is all the extra money going?

Greenhouse points out that corporate profits have doubled since November 2001. Between 1996 and 2006, corporate CEO pay rose 45 percent. CEOs at 386 of the Fortune 500 companies took home an average of $10.8 million in total compensation in 2006, more than 364 times what the average worker earned that same year.

You're busting your ass; your kids suffer; yet corporations and CEOs rip you off by stealing the profits you are earning.

Who Works For You?
In 1983 union membership was slightly greater than 20 percent; today it's around 12 percent. As union membership has gone down, so has worker compensation. Who fights to get you higher pay and better benefits? Without a union, you are on your own -- GOOD LUCK! Your paycheck speaks for itself.

Unions aren't popular -- with management. This is because they are effective. You will hear many negative things about unions. Most of this is untrue and deceptive. Corporate America hates unions -- because they fight to keep jobs in America, keep worker pay high relative to increases in worker productivity, and ensure work places are safe, fair and fun!


Unions work. The chart above shows that, across all demographic groups, union employees make more money than non-union workers. Looking at the Total column, union workers make over $10,000 more per year than non-union laborers. According to the U.S. Bureau of Labor Statistics, the union wage benefit is even greater for minorities and women. Union women earn 33 percent more than nonunion women; African American union members earn 37 percent more than their nonunion counterparts; for Latino workers, the union advantage equals 51 percent, and for Asian American workers, the union advantage is 4 percent. source

Whether you are in a union or not, high union membership causes ALL worker pay and benefits to increase. Businesses must complete for workers -- at the market rate. In many cases today, businesses set their rates for labor by comparing to the world market. Workers in China, India, Mexico and other developing nations can afford to work for pennies per hour. Can you?

A professional in India may make $4,000 per year for doing a job that is similar to the one you are currently doing. Can you live on $4,000 per year? Can you send your children to college on that salary? Can you afford medical care, retirement or a long deserved vacation?

Today America is a playground for the corporate rich, not for American workers -- and, it was American labor who built this nation; American labor fought and died in WWII to create the greatest period of prosperity that the world has ever witnessed.

The prosperous period created by our parents and grandparents has ended. If you hesitate to get involved now, your job and lifestyle will be outsourced.

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