President Joe Biden wants to destroy the economic thinking of his predecessor, Ronald Reagan. For example, during Biden’s first year in the White House, the power of the American workforce grew. The question is what is left of the substantial wage hikes as inflation rises. Victor Bach.
In 1981, President Ronald Reagan finally broke the power of the unions and their members in the United States. The Republican leader fired all striking air traffic controllers. The authorities took it a long way.
Strikes are rare in the United States
In the 1970s, private sector employees suffered during difficult economic times. Although government employees were better off, well-paid air traffic controllers went on strike demanding higher wages. Rücksichtslos, Reagan fired them and found public opinion on his side: Thousands applied to release these officers.
Since then, strikes have been rare in the United States. It Office of Labor Statistics (PSL) There were eight strikes last year, with fewer strikes, even if the numbers were distorted: only strikes by companies with more than a thousand employees refusing the full shift were included.
Officially, the Bureau of Statistics has counted 12 strikes this year, but according to an independent count Cornell University That number is very high: university researchers are down to 334 strikes this year. Incumbent President Joe Biden is pleased with the increased activity of workers.
Biden wants to boost economic growth through public investment
Biden wants to destroy Reagan’s economic thinking. He wants to stimulate economic growth with the stimulus of the state by paying more taxes to companies and the rich. Joe Sixpack (Jan Modaal) Thanks to economic growth, we should get better salaries and better marginal benefits.
Thanks to the turmoil in the US labor market, that plan is succeeding. Three million employees were permanently laid off during the Corona crisis. In the current tight labor market, employees talk a lot. They successfully monetized their demands.
Like inflation, labor wages continue to rise
The average hourly wage for private sector employees rose to 27.27 euros for the sixth consecutive month in October. Amazon, the second largest employer in the United States, also changed its employee policy under employee pressure. Founder Jeff Bezos accepted the theory that swallowing employees is okay: 3 percent of his employees go out every week. On average, the entire staff was changed every eight months.
But as the labor market currently exists, it is much more complicated. Amazon wants to become the best employer in the United States. The team does not expect to make a profit in this holiday-filled quarter because it wants to significantly improve the salaries and margin benefits of its employees. In some places, the company offers bonuses of over 2,600 euros to attract employees. Three times more than it was four months ago.
Americans are very worried about rising inflation
As with wages, concerns for American workers have risen sharply. The highest inflation in forty years is evaporating wage increases again. Nearly 90 percent of Americans are more or less concerned about rising inflation. It is difficult to pay for petrol and food as there is a shortage of more than half.
President Biden insists inflation is temporary. He will not take a different course, and for the third time this year wants to receive a billion-dollar package of government investments from the US Congress. The new set, is called Built Back Better, The economic machine must run even faster. The only question is what will ultimately benefit Biden’s voters from this.
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