I spend a good deal of time thinking about our American economic system, and how it abuses labor, consumers, and the environment. There has, in my opinion, been an elaborate orchestration of the illusion of wage fairness that has helped pacify what should be an outraged labor force. The entire idea of a “Middle Class” is, in fact, an illusion. Allow me to outline first why a minimum wage that no longer keeps up with the cost of living has endured for so long.
The corporate world has dictated how the labor force is allowed to make up for low wages. We are led to believe that it is our responsibility to make up the deficit in earning a livable income by....
- Taking a second job (or third). As fewer and fewer jobs exist with full-time hours, the need to secure a second job is becoming the standard for more and more workers. Even full-time jobs may not pay enough to cover rent, food, utilities, and other necessities, so workers end up taking at least a part-time job to supplement the full-time job.
- Side Hustle. Labor is encouraged to monetize activities that they may otherwise consider hobbies. Platforms like Etsy and e-bay are examples of this, but also blog platforms like Medium, and video outlets like YouTube. These are all still largely corporate marketplaces, and subject to the same problems as other corporate entities. Uber, Lyft, and other transportation services, including delivery of food and merchandise, is another form of the side hustle, and they carry added risks to personal safety. In all cases, such endeavors tend to take the fun out of pursuits that one once found pleasurable.
- Borrowing. This broad category includes credit cards, lines of credit, conventional loans, mortgages, and other forms of lending through banks, plus loans from family and friends. This naturally produces debt that is rarely paid off in a timely fashion, and the borrower actually loses money in the long run thanks to interest, fees, and other attached expenses.
- Lotteries, legalized gambling. National and state lotteries have become commonplace, and there is now widespread legalized sports betting. Most states also have casinos, often on Indigenous reservations or "offshore" on rivers. Once again, odds are stacked against patrons of those enterprises. Enough low-level prize money is made available, with enough regularity, to keep gamblers coming back for more. It can become an addiction that necessitates borrowing again, sometimes from ruthless sources.
- Civil Litigation. Have you noticed how many law firms advertise these days? The implication is that through lawsuits, an individual can recoup what they believe they are already entitled to. It is classic displacement. Your wrath over low wages or salary at your job is taken out on a third party when circumstances such as traffic accidents or malpractice on the part of physicians or hospitals present themselves. Guess who is footing the bill for those prime time television advertisements. The expense and emotional stress of litigation is seldom worth the trial, or even the settlement. It is also an enterprise ripe for corruption itself by unscrupulous attorneys.
- Government Assistance. Low-level employees at many corporations still qualify for government assistance in the form of foodstamps, Medicaid, the Child Care Credit, and related programs. Because there is still a social stigma attached to receiving government benefits prior to retirement age, there is reluctance to avail oneself to those avenues of income.
- Crowdfunding. Social fundraising has become a popular go-to for individuals facing tragedy or trauma, to cover the expenses of medical, veterinary, or repair and reconstruction emergencies. Platforms like Kickstarter can also help someone launch their own business, or creative project, in the hopes of abandoning their dependence on corporate wages over which they have no control. Again, there exists some social stigma over the idea that individuals are self-indulgent and/or "needy."
- Pawning, garage sales. Selling one's existing possessions is a socially-acceptable way of generating money, albeit precious little. The assumption is that you are making a sacrifice, something laudible, and also providing other people with items that they need or desire. Pawning something of sentimental value, on the other hand, like a wedding ring, may signal that you assign little true value to the object, and thus the person or institution it represents.
- Service gigs. What was once the domain of child and teenage money-making opportunities is now being undertaken by people of all ages. Lawn-mowing. Snow shoveling. Running errands. The classic lemonade stand. All are acceptable enterprises because customers are receiving a product or service. The supposition is that you are also teaching your children lessons in economics, either by example, or by encouraging your children to contribute to family income.
- Illegal activities. There are some enterprises that are expressly unlawful, but for which enforcement is lax or applied prejudicially. Selling illicit substances, engaging in prostitution, participating in illegal gambling, and other criminal activity is risky, but potentially highly lucrative. Besides the obvious legal downside, there is extreme risk of physical and emotional abuse. The idea that these pursuits are encouraged would be laughable were it not for the example of decriminalizing marijuana. Can decriminalization of other activities be far behind?
All of the above ways of earning supplemental income are frought with uncertainties, and expenses, if only in terms of taxes. There is frequently great emotional and physical stress involved. Many of these include a social cost where you are subject to incorrect assumptions over your work ethic, morality, or other aspects of your persona. You deserve better.
You are more than your credit score. The normality of borrowing has turned the "Middle Class" into the Debt Class. It is no accident that debt liability is not figured into poverty statistics. If that were so, the veil would finally be lifted and we would see the Emperor indeed has no clothes. Corporations would at last be exposed as the greedy organizations we all know they are, but cannot otherwise prove. Only corporate executives and majority shareholders matter. Capital is not "scarce" as we are told, it is being hoarded. That this is in any way legal is reprehensible.
What is the solution? Until Universal Basic Income and reparations are the order of the day, cancel, as much as humanly possible, your subscription to this corporate economic model. It is, arguably, nearly impossible to do so, but we have to try. The irony that I am writing this post on a platform owned by a monolithic digital tech entity (Google) does not escape me. Still, I buy little beyond food, utilities, communication devices, and fuel. We are fortunate to be privileged by a modest inheritance from my late father that allows us to live debt free for now, but that does not mean we feel safe from financial ruin. More on that in another post.
