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FRIDAY, NOVEMBER 27, 2009
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20

Pay Cuts: America's New Norm

Nine straight months of declining pay sets new record

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(Newser) – In previous recessions, layoffs were the principal way for employers to cut costs—pay cuts were seen as demoralizing and a sure-fire way to lose workers to other jobs. But now pay cuts, sometimes in the form of demotions or shortened workweeks, are more common than at any time since the 1930s. Production workers, who represent 80% of the work force, have seen their weekly pay decline for nine straight months, setting a new record; the previous record was a two-month fall in 1981-82.

The New York Times profiles one Virginia pilot who was downgraded from captain to first officer, cutting his wages by about 50% and bringing his pay below that of his wife, an elementary school teacher. His pay cut came just as the couple closed on their house, and now their savings are dwindling and they are relying on family members for help. A father of four, he underwent a vasectomy after his demotion: "We could not take the risk of having another child."

A customer pays for clothes at a Gap store in Palo Alto, Calif.
A customer pays for clothes at a Gap store in Palo Alto, Calif.   (AP Photo/Paul Sakuma)
Diane Greagor, who works for the Department of Corrections in Rancho Cucamonga, at a demonstration against pay cuts and furloughs at the Capitol in Sacramento, Calif., Wednesday, July 1, 2009.
Diane Greagor, who works for the Department of Corrections in Rancho Cucamonga, at a demonstration against pay cuts and furloughs at the Capitol in Sacramento, Calif., Wednesday, July 1, 2009.   (AP Photo/Rich Pedroncelli)
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What this means is that the amount of money people are paid has taken a big hit; not just those who have lost their jobs, but those who are still employed. - Thomas Nardone, an official at the Bureau of Labor Statistics, on the nine-month decline in production worker pay

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20 comments
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Face-Of-RNC
Oct 14, 09 7:59 AM CDT
Thank you George Bush, and your predatory capitalism. Reply
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+9
IN RESPONSE:
Janniel
Oct 14, 09 8:06 AM CDT
You forgot to thank Ronald Reagan and his 'trickle down ( plss on you ) theory".
Vote up! Vote down!
+11
IN RESPONSE:
schmidtkoff
Oct 14, 09 8:43 AM CDT
and a barely perceptible trickle it was! i didn't even get wet! lol.
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+3
IN RESPONSE:
NovThird2010
Oct 14, 09 8:47 AM CDT
Try giving a tip of the hat to Reid, Rangel, Pelosi, Dodd, Jimmy Carter, Acorn, Fannie Mae, Freddie Mac, and the Community Reinvestment Act (aka ACORN fund). It's not "predatory capitalism", it's predatory socialism. And GWB had no balls in his last months as POTUS and let the democrat nitwits ram through the insane "stimulus" bill. @Janniel, you should look up the statistics and compare economies under Reagan to those of all democrat POTUS in the 20th century. Under Reagan's policies (very similar to JFK's), we experienced the longest peacetime economic growth in US history.
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-3
IN RESPONSE:
Face-Of-RNC
Oct 14, 09 9:30 AM CDT
NovTurd - Reid and Rangel have never had the power to reduce my pay, Freddie and Fanny made it possible for me to own my house. Acorn helped people register to vote, contrary to republican wishes to keep democracy to a minimum by reducing the number of voters. Reagan unleashed corporate power via de-regulation, and yes the corporations enjoyed great freedom to reduce my pay, and benefits and steal my retirement fund. Thank you Ronald Reagan. PS - Constellation Energy in Baltimore just merged with Electricitie De France, so a bastion of American capitalism has merged with an arm of the 'socialist' French government. These predatory capitalist cry "UNAMERICAN' when socialism harms their profits, and then jump right into bed with it when it means more profits. Your grasp of these matters is slight.
Vote up! Vote down!
+2

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