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In a speech last July, President Obama vowed that “whatever executive authority I have to help the middle class, I’ll use it.” On Wednesday, an estimated 175 workers who serve food, sell mementos or do maintenance work in federal buildings in Washington D.C. went on strike for the day. Instead of showing up at their jobs, they showed up in front of the White House, where they urged President Obama to live up to his word.
Americans are coming to face the hard reality that they live in a new Gilded Age, with inequality at levels not seen since before the Great Depression. Even worse: Uncle Sam is subsidizing this lopsided economy.
Courtney Shackleford is one of two entry-level employees at the Ben and Jerry’s in Washington, D.C.,’s Union Station, where she makes $8.25 an hour. Like many workers in America’s growing low-wage economy, she struggles to make ends meet: Between her pregnancy and her tuition fees at Trinity Washington University, Shackleford doesn’t make enough to cover basic expenses.
America's huge income gaps are routinely described as inavoidable, thanks to large structural forces like globalization and technological change. Skilled labor has become worth more, unskilled labor is worth less, and that's that.
Of course, though, we know that story is incomplete. Any number of public policies have also fanned inequality, like giving big tax breaks to the rich, and any number of policies could help close the income gap.
It’s their fifth strike in five months, but the workers of Good Jobs Nation didn’t seem the least bit tired this morning. Low-paid employees from the food courts of federal buildings, the gift shops of the Smithsonian, and others employed under federal contracts, concessions, and lease agreements donned matching t-shirts, picked up signs and marched to the White House.
Here’s an easy way for the government to save about $7 billion a year: Tighten the cap on the lavish salaries paid to executives at government contractors.
The cap is currently at $760,000 per contract per executive per year. That’s almost 15 times greater than the average household income – meaning that the federal government is helping to worsen the same income inequality President Obama has decried.
Progressives both in and outside New York City are super excited about Bill de Blasio running City Hall. President Obama summed up those feelings in his endorsement yesterday of de Blasio, saying that his ideas for universal pre-K and affordable housing could make him a "great mayor."