The Parasite Economy

[Sunstone]

There are two types of businesses in America today: those that pay their workers a living wage—the real economy—and those that don’t—the parasite economy. And all of us who live and work in the real economy should be royally pissed at the way the parasite economy is sucking us dry.

Here in the real economy, we solve the problems, build the things, and pay the wages that make America great. When politicians of both parties promise to attract “good jobs” to their districts or states, they’re talking about the kind of real-economy jobs that pay a decent middle-class wage—jobs that provide the income, benefits, and security necessary to participate robustly in the economy as a consumer and taxpayer. It is the real economy that drives both production and demand, and that fills our tax coffers with the money needed to educate our children, maintain our infrastructure, invest in research and development, fund our social safety net, and provide for the national defense.

But in the parasite economy—where companies large and small cling to low-wage business models out of ignorance or habit or simple greed—“good jobs,” and the economic dynamism they produce, are in short supply. This is the economy in which tens of millions of Americans work for poverty wages with few if any benefits, often in the face of abusive scheduling practices that make it impossible to plan their life from day to day, let alone month to month.

The difference between these two economies is stark. The real economy pays the wages that drive consumer demand, while the parasite economy erodes it. The real economy generates about $5 trillion a year in local, state, and federal tax revenue, while the parasite economy is subsidized by taxes. The real economy provides our children the education and opportunity necessary to grow into the next generation of innovators, entrepreneurs, and civic leaders, while the parasite economy traps them in a cycle of intergenerational poverty.

The real economy delivers on the promise of capitalism.

The parasite economy relentlessly undermines it.

[Source: An article by venture capitalist Nick Hanauer that is well worth reading in its entirety]

What do you make of Hanauer's article?

 

[bobhikes]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

 

[beenherebeforeagain]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

Definitely a multiple-option approach is better than one-size fits all.

 

[Underhill]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

Temp agencies would love it.

 

[serp777]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

Meh, college students need a higher wage than people who aren't in college; college is becoming more and more expensive and college students can only work part time.

 

[bobhikes]

Meh, college students need a higher wage than people who aren't in college; college is becoming more and more expensive and college students can only work part time.

Minimum wage is the minimum you can get not the maximum. You can always find a better job. I worked in a warehouse through college so that I could get ahead I was paid twice minimum wage at the time.

 

[Sunstone]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

I don't think hiring people at below a livable wage is going to do much to boost the economy nor do much to end the parasitism of some businesses.

 

[Thief]

The article is nothing new for me but I have been thinking about min wage because NJ is in the process of increasing again.

There should be 3 minimum wages.
The lowest would be for people aged 16-22. This would be mainly to allow companies to higher kids and students while in school as temp help or for internship.
The next minimum wage would be for 22 and above. This should be a starter wage where the person is employed and the company can still train and evaluate.
The final minimum wage would be for 22 and above and 3 years at the company. This should be a livable wage. The company should be finished with training and evaluation and has decided to keep the individual. The individual should be payed so that they can survive working at the company.

There would of course have to be checks and balances so companies don't abuse the system but in my opinion it would be better than the 1 size fits all minimum wage and lets congress fight over which of the 3 wages they want to increase.

so business would favor the younger hires and find ways to dump the serious long term intenders...

 

[Thief]

[Source: An article by venture capitalist Nick Hanauer that is well worth reading in its entirety]

What do you make of Hanauer's article?

yeah ....and would love to agree....
I labor for my dollar

but the product itself is the item.
if all you produce is a sandwich.....then you gotta do it fast .....and cheap

if all you produce is aircraft parts.....better go slow and be sure
but I know a guy that makes aircraft parts.....and he is just above minimum wage

how then to justify low income?....you don't

you confront the top 5% of the money holders and tell them....
you are in excess and there are penalties

 

[bobhikes]

so business would favor the younger hires and find ways to dump the serious long term intenders...

So we agree the real problem is Business.

 

[bobhikes]

I don't think hiring people at below a livable wage is going to do much to boost the economy nor do much to end the parasitism of some businesses.

I'm not trying to boost the economy, I am trying to address business concerns and social concerns. Its really all about the regulations and enforcement behind the numbers.

 

[Thief]

So we agree the real problem is Business.

yeah....how we do business...

the article at op offers a perspective of employer/employee...

I think the problem is much further up the line.
when you get to the point that you take your yacht to Europe.....
with another yacht towed behind to bring your sports car...
so you can sport around European roads......
just for fun.....
that's excess

When upper management consider employees as expendable....
that's excess
(just attended a safety meeting with recent historical events.....that led to death....)
that's excess

and believe it or not....I had 'warm' discussion with a fellow employee....who believes....
he can LABOR his way to wealth

I hope he comes to his senses
or his life will be a struggle for a carrot he will never eat

 

[icehorse]

[Source: An article by venture capitalist Nick Hanauer that is well worth reading in its entirety]

What do you make of Hanauer's article?

This is the second thing I've seen from Hanauer, he appears to be spot on. His TED talk is also great. I think his phrase "parasite economy" is some really brilliant positioning. Concise, memorable, evocative, honest.