PBS Video Frontline: Two American Families

[kev374]

http://www.pbs.org/wgbh/pages/frontline/two-american-families/

Interesting show chronicling the economic ups and downs of two American families over 2 decades!

[The-Shoveler]

Relentless Worldwide market Forces and Automation are the biggest changes in the last 20-30 Years, I don’t see anything that is going to change that.

For the most part if you don’t have IT (computer skills) or you don’t work for the Gov, it has been extremely challenging to say the least (well there is the medical professions as well).

Even if you have a good IT Job I would not automatically assume I could afford a coastal home in SoCal however (not everyone can live in CV ).

[The-Shoveler]

I would add if you work in IT plan on being kicked to the curb sometime between 45-55 years old so you will need a plan-B maybe a plan-C, also very unlikely you will have a pension.

[FlyerInHi]

I would add the worldwide dissemination of education, knowledge and skills.

Billions of people around the world have developed skills that American workers with barely a high school education previously had a lock on.

But, in America, we still have the largest market, abundant natural resources, cheap energy, and the rule of law. And the best universities.

[barnaby33]

I was hoping to watch this episode this week. Were there any strong conclusions drawn by the show?
Josh

[FlyerInHi]

I watched bill Moyers on Charlie Rose talk about the documentary. I find it more interesting to hear Moyers talk.

I’ll take Moyers advice and build more empathy.

It’s a systemic problem that can be fixed.

[The-Shoveler]

Minimum wage really needs to be about $15.00 an hour now just to get back to where it was in the 70’s adjusted for inflation.
There is no inflation adjustment for minimum wage currently and this is a big problem no one wants to hear.

I predict there will be wage riots in the near future.

[livinincali]

[quote=The-Shoveler]Minimum wage really needs to be about $15.00 an hour now just to get back to where it was in the 70’s adjusted for inflation.
There is no inflation adjustment for minimum wage currently and this is a big problem no one wants to hear.

I predict there will be wage riots in the near future.[/quote]

Incorrect.

1970 minimum wage was 1.60 and cpi was 37.8. Today minimum wage is 7.25 and cpi is 232.94. Adjusted for cpi (the governments measure of inflation) 1970’s 1.60 would be worth $9.85 today. Of course the value of minimum wage vs inflation changes.

In 1989 minimum wage was 3.35 and cpi was
121 so 1989’s minimum wage is worth $6.44 today. On the other end of the spectrum the 1968 minimum wage of 1.60 is worth 10.93 today. The mid point of those extremes is 8.69 so that probably a reasonable level for today’s minimum wage.

The big problem between 1970 and today is our standard of living and the costs that go a long with that have gone up quite a bit. You didn’t have a cable bill, an internet bill, a cell phone bill, you cooked at home, and had one family car in 1970. Now we expect a lot more and wages haven’t keep up with those expectations. Maybe we need to reduce our expectations and live more within our means.

[FlyerInHi]

[quote=livinincali]
Maybe we need to reduce our expectations and live more within our means.[/quote]

Why? There is excess capacity in the economy right now. Why let that capacity go to waste? We should be intelligent enough to find a way to clear that excess capacity and let us all live better.

[The-Shoveler]

I respectfully disagree, If we calculated the CPI today the same way we did in 1970, inflation (CPI measurement) would be significantly higher. I think 15 is much closer to the real inflation rate,

[jeff303]

The bottom line is that technological automation is rapidly displacing labor, and therefore those who own the means of production own a greater share of the profits. Stated another way, those who are already wealthy are seeing their wealth increase at an even faster rate due to automation.

There’s a great/controversial recent episode of This American Life (in partnership with Planet Money) which is, on the surface, about disability payments. However, I found the subtext to actually be about this increasing effect of automation on the economy, with “disability” payments actually serving as a crude transfer mechanism to alleviate some of the symptoms.

I’m not sure what’s going to happen, but I think there will have to be some major societal shift to deal with the problem.

[moneymaker]

I’m shocked that CA is actually below the national average for percentage of people on disability. Last time I went to Walmart all 24 handicapped spots were taken (many with SUV’s, some were even jacked up 4×4’s) and as I watched people get in or out I could not tell what there disabilty was. But if I were to apply I’m sure I would be turned down as I’m white and college educated. Once knew a person who was diagnosed bipolar, who was on disabilty (i.e. getting a regular check), nothing physically wrong with her and smart too, I had no idea she was bipolar.

[The-Shoveler]

Food Stamps, Disability etc.., it’s all a mask so no one notices that wages for 80% of the work force just have not kept up with inflation (painfully calculated to show minimal possible).

Basically the Fed Gov is subsidizing the Wal-Mart and J-Box Type workers And the Displaced over 55 workers.

[livinincali]

[quote=The-Shoveler]I respectfully disagree, If we calculated the CPI today the same way we did in 1970, inflation (CPI measurement) would be significantly higher. I think 15 is much closer to the real inflation rate,[/quote]

I guess you could use the big mac index. A big mac in 1970 was $0.45 today it’s about $3.50 so 1.60 in 1970 turns into about $12.50 today under that measure. Of course liability insurance, workers comp, and other restaurant costs have gone up faster than CPI measures of inflation too and McDonald’s has to make a profit.

Part of the problem is that we don’t see a lot of the hidden costs that come with employing somebody. While minimum wage might be $7.25/hour by the time you add in employer’s social security, medicare, worker’s comp, unemployement insurance, Obamacare penalties, and/or coverage the out of pocket to employ somebody is much higher than what they see on their paycheck. It probably cost close to $12/hr to employ somebody with today’s regulations.

[bearishgurl]

[quote=livinincali] . . . The big problem between 1970 and today is our standard of living and the costs that go a long with that have gone up quite a bit. You didn’t have a cable bill, an internet bill, a cell phone bill, you cooked at home, and had one family car in 1970. Now we expect a lot more and wages haven’t keep up with those expectations. Maybe we need to reduce our expectations and live more within our means.[/quote]

Very astute of you, livinincali, except for the one-car family. I was there and it was common in that era for families to own two vehicles and even more if they had the land to park them on. I’ve been posting this same mantra here for years. Today’s “lifestyle” expectations for those born between about 1970 and 1990 (even straight out of the gate) are thru the roof!

Even the vast majority of “millenials” today who are still teenagers have no idea even how much an i-phone costs to operate every month, let alone a car-insurance premium. I’ve been listening to snippets of their conversations lately and you would be surprised how many in this group believe they can completely live on their own today with a full-time minimum-wage (or slightly above) job. Even if they’ve been told the cost of things by their parents, there is a HUGE disconnect with this group between a known cost figure of a monthly bill (ex: their i-phone, either on a parent’s plan ($50-$60)… or on their own bill ($80-$90)) and how many hours they would have to work every month to pay the bill. Even if they already HAVE a part-time job, many of them couldn’t tell you what their take-home hourly wage is, after taxes.

Compared to boomers, especially the older set, most of Gen Y seems very “high maintenance” to me.

[Author]

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