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Postive Spin on Data
March 24, 2015 | Leave a Comment
While the economy has been recovering since the recession, this is only a positive spin that hides the truth. Yes, data does show that the number of available jobs is increasing, the level of unemployment is decreasing, and the overall health of the economy is increasing through metrics such as GDP. However, the background of this data shows that these positive numbers are a result of negative factors. More people are in jobs, but they are being paid less than they were in the same job prior to the recession. The unemployment rate has fallen, not simply because of more people finding jobs, but because people are dropping out. During this post recession, the country still is unable to enforce higher standards for worker salaries. All of these factors continue to feed into the inequality that exists in society.
The difference in pay pre and post recession affected the middle and lower classes the most. While, the CEO and more senior people may have seen a slight cut in their year-end bonuses, or their salary, the amount they earn still dwarfs the salaries of the majority. While their living conditions may have had to accommodate with one less vacation house, those in the middle and lower classes had to make concessions that had more dramatic impacts. The children in these impacted families may not have had the savings to attend the top college in order to compete in the job market. They may not have had the cushion to make riskier investments to found a company that could have been the next Google. They may not have had the chance to volunteer in Africa to appeal more to colleges during the admissions process. The truth is, those in the middle and lower classes, as a whole, likely became less competitive to colleges and jobs post recession, and will have a harder time to move up the economic ladder.
The people that were affected most by the recession and recovered the least are those who take on minimum wage jobs. In most cities, especially New York City, the amount earned can barely sustain a minimalist lifestyle. The quickest temporary solution is to increase the minimum wage, which is a tactic many politicians are against. However, the increase in minimum wage in 13 states proved to actually help improve the economy as a whole. This improvement has led to increases in employment, while paying workers more. Rather than proving the politicians fears of a contracting economy from higher minimum wages, it actually proved to be an improved economy. While this may not be the long-term solution, it will spark higher wages and close the inequality gap slightly. Besides, current programs and ideas are not working very well anyways so why not try something new?
Decreases in the unemployment rate are not strictly due a healthy economy. Rather, it is the result of people giving up and dropping out of the labor force. This means there are more people who are simply not making an income. This means they cannot contribute as meaningfully to the economy as they could with an income, risking a contraction in the economy. It also means that the standard of living for this group is lower despite the improving economy. The gap between the rich and the poor continues to grow because of these factors despite positive numbers shown by the most trusted sources.
Reports claiming the economy is improving are only a technicality. The state of the economy should not only be rated based on some quantifiable data. People need to focus on qualitative aspects such as the quality of life. Although subjective, it gives deeper insight into what is actually going on. Without this kind of data reported, people will be unknowingly ignore the truths hidden by positive data, such as the lower salaries and labor force drop outs.
