Noble gave another attempt to redirect the conversation, this time more forcefully. “Clearly, there are a multitude of reasons why people are dropping out of the workforce or are not able to compete. Your statements only support the urgency for a laser-like focus on the goal of job creation. We need to move on!”
“But still keep in mind that job-killing government policies do fit into the mix and must be addressed,” Paolo advised.
“At the top of the list should be the issue of minimum wages,” Seymour added.
“I agree. I’ve made note of the immigration issues, along with the concerns from both sides.” Noble looked at the wall clock and noted the hour. “So I guess the battle on tomorrow’s docket is now minimum wage, a debate that has undoubtedly gripped not only Seymour, but the nation?”
From the reluctant nods of their heads, the next day’s topic had been decided.
“Good,” Noble asserted, but as he was about to adjourn he noticed Seymour signaling for their attention.
“If you guys can hang in for a few more minutes, I have an idea I want to bounce around.”
The others at the table sat back to listen, even though their appetites protested.
“I’ve been working on the Renaissance 2017 Project and I’ve put together a mock-up of the website’s Home page for you to ponder tonight. I’d like your input. Compliments are gladly accepted.” Seymour pulled up the site on his tablet and then swiped the screen from the left and displayed an image on the monitor.
The others perused the tabs on the menu bar that included JOBS, MINUMUM WAGE, IIMMIGRATION, and ENERGY. They all took note that the ‘minimum wage’ had been included.
“Aren’t we confident?” Paolo teased.
“I considered it a valid issue and was confident in your wisdom that you would as well,” Seymour grinned. “You’ll note by the tabs that other pages can be added easily if necessary. Each page will be set up to display a simple slideshow explaining the topic and the direct correlation to jobs, with real numbers and proposed solutions, as we arrive at a conclusion. There will also be links directing the user to various resources available for assistance. Of course, all topics will coincide with the president’s speech.”
“Whatever the message—it must be uplifting,” Noble urged. “Aside from solutions, one of our main goals is to instill confidence in the government. The people have to believe their plight will improve and the cloud over the country will lift.”
“Of course, that will be the main thrust.”
“You mentioned a media blitz?” Hank asked placidly, having exhausted his ire for the day.
“I’m also working on several thirty-second commercials to tackle each of the topics we cover in a massive YouTube video strategy. From the moment the president completes his speech, one of the videos will be blasted over all the outlets on the Internet and repeated throughout the day. Each day a different video will be transmitted. While each of the infomercials will focus on a different topic, they will all feature job creation and the economy.”
“How long will the campaign run?” Chase asked, looking more for an end date.
“The videos will be programmed to run consecutively for one month and will direct the listener to the website. After that we’ll have to reassess its effectiveness,” Seymour answered, and then he took a few more minutes to give a brief outline of each of the infomercials. He then sat back, looking for a reaction.
Noble was the first to respond. “It looks like it has potential to work. I like it!”
The others concurred and waved high-fives in the air to Seymour.
“Hey guys, we’ve got some homework tonight, so let’s limit the conversation over dinner and then get to work,” Noble suggested. “Keeping our shoulder to the wheel is the fastest way to get back to home-cooking.”
All but Noble stood and departed to their suites to freshen up before Jax arrived with their evening meal. He hung behind, running the issues of the day through his mind. He knew that everyone was working hard to come up with solutions, but as of yet, it looked like they were lagging. Everyone had been to bat but there were no runs on the scoreboard. The pressure was beginning to mount. Tomorrow they were heading into day fifteen. He knew he was not the only one sensing the burden that had been placed upon them.
23
WAGING THE WAGE DEBATE
Okay, who’s brave enough to tackle the minimum-wage hike?” Noble asked, suspecting that Seymour would take up the cudgel. “I will,” Paolo said, “because it fits exactly in with the immigration argument. The imposed increase in the minimum wage in 2015 did not close the floodgates. More immigrants flocked into this country, creating more competition for American workers, vying for the same jobs.”
Hank didn’t hesitate to take issue. “As I said before, there is no evidence that immigrants are taking jobs away from anyone. They’re filling the void where Americans won’t take the jobs. How many times do I have to make this point? Is anyone listening?”
“Obviously, you weren’t listening to the former president, the then senator’s own words. Tsk tsk,” Seymour scolded. “Hank, you can’t deny that over a half million jobs have already been lost since the hike went into effect. The higher wages cost small-to-medium businesses billions of dollars. Granted, a gradual increase would have little to no effect on unemployment, but not a forty percent increase. And let’s not forget the imposed wage hike on government jobs is estimated to increase the deficit over a billion dollars in the next several years.”
“It flies in the face of economic common reality,” Chase added and then elaborated. “Employers will hire less or cut basic benefits. That’s their answer to higher overhead expenses. We’ve already seen how the wage hike forced many small businesses to hire fewer workers at entry-level positions—jobs that are a starting point for young people to enter the workforce and to begin earning an income. And for other employers who also couldn’t absorb the increase, it was passed on to the consumer in the price of products. There’s already a disconnect in the job market between the highly skilled and the McDonald’s cashier before the rise in wages, by way of example. The fact is there are fewer employees working for minimum wages.”
“According to the BLS,” Noble pointed out, “there are three-point-six million workers at or below the minimum wage. Forty-four percent of those workers are in the food-service industry.”
Hank jumped back in. “You guys are in outer space! You’re missing an important point. I know firsthand, from the volunteers at the Chestnut Foundation, that many of the people in low-paying jobs are also receiving benefits from social programs to make ends meet. It’s likely that with increased income the need for government subsidies will be reduced. While, at the same time, families earning more money will generate more revenue for the government by way of payroll taxes to bolster our threatened Social Security system. It will certainly help to lift the poor out of poverty.”
“That’s a false premise,” Paolo countered. “Many in the welfare ranks have stipulated over and over again that they would only search for work if forced, if wages do not equal the government subsidies they receive, which is understandable. It’s a matter of simple arithmetic.”
“You’re making my case. If wages were higher, families could afford to go off welfare,” Hank postured.
“In this instance, Paolo’s correct. Your premise is inaccurate,” Chase noted, “but for another reason. You mentioned a positive effect of increased social security taxes. However, Social Security is not limited to retirees as originally designed. There are twenty million recipients under the age of sixty-five collecting benefits from our Social Security system under the Supplemental Security Income (SSI) or the Disability Insurance (SSDI) programs. Strangely enough, since the Great Recession, twice as many people have signed up for one or both of these benefits compared to the number of jobs being added to the system over the same period. So, even with an increase in minimum wage, the Social Security fund would not benefit and the threat r
emains. Fact is, we’re dishing out money faster than what we’re taking in.”
“Adding to that,” Seymour argued, “many of the low-paying jobs currently go to teenagers or to the elderly who are not considered poor, but are supplementing other sources of income. Some are second or third earners in their family’s household income, which defeats the argument that those low-wage earners are uniformly poor and struggling.”
Chase reaffirmed, “Hank, the people to whom you refer would not be able to boost their wages to a level to offset the government subsidies they are receiving, unless the minimum wage increased to fifteen or twenty dollars per hour, depending on where they live. And over sixty percent of the low-wage earners work less than a thirty-hour week.”
Seymour followed up. “Studies have also shown that two-thirds of minimum-wage employees end up earning more within the first year of employment through their company’s merit system. The myth that minimum-wage workers are doomed to remain at that level continues to be believed.”
“What are you all saying?” Hank asked, directing the question to the group. “That raising the minimum wage was just an attempt to preserve class warfare?”
“We weren’t in the administration at the time, but you were,” Chase shot back and then quickly apologized. “Sorry, we’re not here to question past motives. We are here to tackle the anemic job market. But a minimum-wage hike traditionally worsens the problem. Especially for small business employers and large companies managing low-wage jobs. I say, let the marketplace work it out.”
“He has a point,” Paolo concurred. “Companies like Walmart did just that by paying above-average minimum wages, a smart business decision for the largest U.S. employer, providing them huge returns, wouldn’t you say? After all, Walmart employees are also Walmart shoppers.”
“That wasn’t your stance when we worked together,” Hank resisted.
“At the time, I served at the pleasure of the president,” Paolo counterpunched with a grin.
Chase cut in. “To further the point, the wage hike also provided an incentive for employers to escalate their move into automation, replacing human resources with technology and machinery. McDonald’s is a prime example. Pressured by the union to raise the minimum wage backfired when McDonald’s began installing self-ordering kiosks to reduce employee payroll costs, thus reducing the number of jobs. The food-service industry experienced the same apocalyptic effect that the retail market felt when supplanted by ecommerce. That’s why the workforce needs to be retooled with updated skills.”
“Without question, to be competitive, workers will need the right skills for the available jobs. Perhaps, the money that was allocated for wage hikes should have been used for education and job training to help boost people out of minimum wage jobs,” Seymour proposed.
“You’re not proposing the government get involved? Granted, it’s another problem to add to the heap,” Paolo volunteered, “but let’s not forget that many graduates with a secondary education or college degree are unable to enter the workforce because they acquired skills for which there is no demand. Government training for the sake of training is a road to nowhere.”
“Good point,” Chase seconded, “but there’s another impediment—and I apologize—it inevitably brings us back to immigration. And that’s the professional worker with no job.”
“Oh, please,” Hank grumbled.
“Maybe this is a good place to call it a night,” Noble suggested, noting the time. “Let’s pick it up tomorrow for perhaps a less spirited debate.”
No further encouragement was necessary. None of them wasted time retrieving their tablets and other paraphernalia before scattering off to their suites.
Noble remained behind to review his notes. Then he stopped short. Shaking his head in dismay, he thought about how Baari had lit the torch on the minimum-wage debate that started a firestorm across the country—even with all the warnings. He also thought about how odd it was that throughout their discussions, no one had thus far invoked Simon’s name. “Clearly, he must have been part of the strategy, but they’ve manage to avoid his involvement, was a thought he could not put to rest. He would continue to take note.
Eighteen days had passed since they first embarked on their mission, and while, at times, the debates were testy, they continued to march on in good spirits. That morning was no different.
Now, after a quick break to grab some sandwiches from the kitchen, they once again settled back in their seats.
Noble picked up on the discussion. “We’ve been rehashing the minimum-wage debate all morning, but Chase, go back to the point you made a few days ago about the professional worker without a job. Will you elaborate?”
“I’d be happy to with Hank’s tolerant indulgence.”
“You have the floor,” he allowed with a cocky grin.
“Everyone in this room is aware that the prior administration adopted policies to encourage high-skilled foreign workers with STEM degrees, those possessing skills in science, technology, engineering, and math, to enter the country on the premise of attracting the best and the brightest. Looking south of the border is not the only issue.”
“What’s wrong with attracting talent? We’re just filling a recognized need.” Hank was genuinely curious as to his point. Then he admitted, “I was the one encouraging Baari to push that policy.”
“I think you’ve missed the point. There’s nothing wrong with attracting the best, as long as we first try to acquire talent within our borders.” Chase tapped on his tablet to retrieve a study that was conducted by the Economic Policy Institute. He then swiped the tablet to display the information on the monitor. “According to the EPI,
‘Immigration bills proposed in Congress included various provisions to increase the supply of guestworkers for STEM employers. Proposals included expanding the current temporary visa programs by increasing the H-1B visa cap and providing permanent residency to nonresident foreign students who graduate from a U.S. college in a STEM field.’”
“What’s the justification?” Noble inquired
“Basically, there aren’t enough STEM workers in the domestic workforce. Hold on.” He paged up on his tablet as the others in the group watched the motion on the monitor. Chase continued, “Here it is. This analysis is by the Center for Immigration Studies, another non-profit research organization. They indicated that the country has two-point-five times more STEM workers than STEM jobs. In this case, Americans are subtly being forced out of high-skilled jobs as well. All because employers prefer to hire immigrant workers for lower wages. There’s a fundamental unfairness here. CIS reports that one-third of Americans graduating with STEM degrees take STEM jobs. This practice will continue to hold down wages for these high-skilled professional positions and at the same time, crowd out American graduates.”
“So it’s easier to hire foreign workers than to increase salaries to attract American citizens residing in the U.S.?” Paolo asked.
“Yes.” Chase swiped the left side of his screen again. “As you can see, the EPI concluded from their study,
‘that current U.S. immigration policies that facilitate large flows of guestworkers appear to provide firms with access to labor that will be in plentiful supply at wages that are too low to induce a significantly increased supply from the domestic workforce.’”
“All of this is quite scintillating,” Hank postured, feigning a yawn, “but you’ve made the case that those holding STEM degrees don’t want the STEM jobs, so we have no recourse but to import foreign workers. And let’s not forget that there are many other occupations available for American workers. In fact, the strongest current job growth areas are in the healthcare and construction industries.”
Paolo ignored Hank for the moment and pointed back to Chase’s earlier comment. “You mentioned that the men and women made redundant, the ones too young to retire, but too old to hire, were edged out of the workforce. Reportedly, twenty percent of them had degrees but still couldn’t find jobs. Somew
here there is a disconnect, between domestic talent and available jobs.”
“Quite correct,” Chase replied, “but according to the BLS they project that the labor force will only increase point-zero-five percent over the next decade, slightly below previous forecasts. Here’s the crux. They also project that more than half of the new jobs created will require a high-school diploma or less. That’s a clear dumbing down of the workforce.”
“Be careful, Chase; you’re cheerleading to make my case.” Hank chuckled.
Noble sat back and continued to observe the debate, chiming in when necessary to keep them on track or to follow the agenda. But he couldn’t help marvel at how each member still ran true to form. Hank was still the staunch liberal of old. Chase was still the mossback, although his conservative values tended to outweigh his political stripe. Paolo continued to enjoy the devil’s advocate role and to goad Hank. A complete surprise was Paolo’s shift from apolitical to center-right. Noble surmised it might have been Natalie’s influence. Most shocking was Seymour’s swing from political agnostic to center left. His newly adopted liberal mentality most likely came from the Hollywood set with whom he hobnobbed. Suddenly, Noble noted that the din in the room had quieted. On instinct, he glanced at the wall clock; they had worked right up to the dinner hour once again.
“This has been a particularly fun debate,” Noble quipped. “I’ve enjoyed it, especially the dueling between Hank and company. But while listening, it became clear that the answers to the job-creation problem will more likely be addressed as we examine the other subject areas we’ve identified. Thus far, nothing quite fits into our quick-fix scenario.”
All agreed that it was time to move forward.
Hank was most pleased that they had finally finished beating his horse.
Everyone was pleased to see the flashing red light above the door.
“Good evening fellas,” Jax announced as he pushed the large metal cart through the door.
Redemption Page 13
