Wednesday, September 25, 2013

Gaming the system


In keeping with my tendency to read more about television than actually watching it, I am fairly up on "Breaking Bad" even though I have never seen an episode. One of the most interesting things I have read on it lately was an article exploring how accurately it depicted meth:
It was interesting from a scientific point of view, but what really got me was the section on meth often being an economic necessity:
"There are "functional" addicts, especially working mothers, who rely upon strong stimulants like meth to juggle their sundry responsibilities. One plausible theory has it that the rise of meth coincided with the rise of low-paying low-skilled service work, where people had to work multiple menial jobs to earn the same amount they used to earn in one manufacturing job, or other good-paying low-skilled position...
This holds up if you look at places where meth use is highest. Hawaii's heavy rate of meth use has been attributed to its high cost of living and service-based economy."
We went to Hawaii in 2006, and we talked to a few locals. Everyone worked multiple jobs and had a lot of roommates, and that was the only way to survive. Now, being on an island that is several hours away by plane from the mainland, moving to an area with better jobs and a lower cost of living is pretty difficult. Even if you're here, though, moving is big. There can be application fees, paying deposits and the first and last month's rent, possibly with moving costs, and those are purely economic factors. Time is huge, especially if you are working multiple jobs.
This is the new normal. McDonald's put up a budgeting tool that assumed that their employees had a second job. They got a lot of flack for that, and then they had defenders pointing out that minimum wage jobs are supposed to be temporary things. That only works if there are better jobs out there.
We have had a decent amount of economic recovery, in that a lot of corporations are profitable again, and stocks are doing well. Job recovery is still an issue, not just for quantity but for quality. Employers who took benefits away and imposed wage cuts when things were tight have dragged their feet on bringing things back. And why wouldn't they? Isn't it always better to keep as much as possible for yourself? Okay, maybe not, because that money does not flow through the economy like it could, producing more business, but hey, they've got theirs.
This just isn't sustainable, and I am going to go back to SNAP here. If people spent an average of three months unemployed, and during that time collected unemployment and SNAP, but then got good jobs, where they could support themselves and their families, that program is probably giving you the right amount of good for the money spent. People don't get too desperate during the bad time, and the bad time is temporary.
However, if they get the job and still need their food subsidized, or if they need two jobs, so it is not enough to have a job for everyone, but everyone needs two jobs, the pool of people needing help is going to be unworkable.
Let's pick on Wal-Mart for a bit:
Again, their employees are working. In fact, they are working horrible jobs for such low pay that taxpayers need to help them buy food. That might be okay if it was a struggling company on the verge of becoming successful - again with the idea that the government can help you through the rough patches - but Wal-Mart makes billions. They make more in pure profit than the government assistance required.
This is the real abuse. The bipolar person who complains about not getting disability and that McDonalds doesn't take SNAP is annoying. Yes, she could probably be a more productive member of society than she is, but you could have a million people just like her and they would not be the drain on the taxpayers that Wal-Mart is, or oil companies, or, well, that's a really long list.
Some time ago I remember reading about how the changing economy required changes in rules. One option would be greater government regulation of wages and healthcare, or the other would be a much expanded welfare state. Very few people like being on the dole. It's demoralizing. I prefer the other one.
Double the minimum wage. Move to single-payer health care. Properly fund basic education and make higher education free.
Does that sound radical? It's not nearly as radical as this move towards corporate feudalism. Some smaller companies will have a hard time perhaps, but this is a good place for corporate subsidies. Once you get the additional income into the economy, that will help a lot of businesses.
I do realize there will be some concerns about working teenagers, and I was one for a long time, so I get that. I don't propose allowing minors to be paid less, which will surely lead to different problems, but I think you can make those under eighteen exempt from any withholdings. They can't vote until they're eighteen anyway, so it is taxation without representation.
There is a lot that goes into it. There are scary things that are happening now that I have not gotten into, and ways that things could work that I have not gotten into, but my short point here is to point out the real enemy. And this is already long, so I will save my other two points on that for Monday.

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