In this computerized age, labor has become more of an inanimate cost, like computers or office supplies. A business can determine its “core competency”—the main purpose for which it exists—and hire only those full time employees useful for developing that strength.
All other needs, like janitorial services, are contracted out. Unlike the full-time employees, contracted laborers are less likely to have health insurance or vacation time or even regular hours. This new efficiency has resulted in wealth creation for a few but wage loss for many others.
If this model continues, the two-tiered “have and have not” divisions promises to grow.
We could opt for a fairer system in several ways.
One, of course, is raising the minimum wage. Some say raising the minimum wage causes employers to hire fewer workers. Regardless, raising wages isn’t the only option. We could begin by asking what the wages are supposed to pay for.
Housing is a major expense for lower wage workers. A huge chunk of their salaries is spent on housing. We could consider a tax on wealth for a specific function: subsidized housing for the workers who contribute to that wealth.
In the past, public housing was built for “the poor.” The perception that it was for those who didn’t work, true or not, tarnished the image of subsidized housing.
A different kind of housing near job centers could be built or bought for workers to buy back at rates they could afford. Not rent—the workers have salaries, but house prices need to fit their wages.
The idea is to give workers decent housing and allow them to build up investment through ownership like workers did after World War II. The housing would be subsidized, but some of the costs would be recouped as workers bought the housing.
Some special regulations would need to be written into the deeds. Owners might be limited to modest increases in the amount for which they could sell their homes. Thus, this housing would continue to available at prices the working poor could afford.
If our job structure is changing toward high salaries for a few and inadequate salaries for many, we need to insure that even lower wage workers can meet basic needs. They then would have a stake in the system that so rewards the wealthy.