Summary 9

In the article “The Truth About Wages” by Bruce Bartlett it is suggested that the average American worker is in no better shape, financially, today versus that of seven years ago. Bartlett claims that even though the economy was growing steadily in the year 2005, a man’s yearly income dropped $1,772.00 from what it had been in the year 2003. He states that male earnings were lower in 2005 than the previous years since 1997. Bartlett goes on to say that annual income for females also are lower in 2005 by around $427, this being the lowest it has been since 2000.
Bartlett insists that there isn’t a simple explanation for this decrease in wages. However, he gives a few examples on what may be the cause. The first argument is that workers don’t have any “organizational mechanism” to be able to fight for higher wages because of the Labor Union membership’s sharp fall. The second argument is that workers are thankful enough to even have a job even if the pay isn’t so great after the layoffs and givebacks throughout the past years. And the fact that there is a lack of health insurance coverage offered by employers workers aren’t ready to leave their job for one that pays more hourly in fear of losing their health benefits. Bartlett feels that because of the rising cost of health benefits that employers pay, there isn’t any money left over to give any raises. And even though workers may not like it but it is a reality that they have chosen to accept.