What happened to our "wages" in the west?

My father was the only "breadwinner". My mother was a housewife. We never lacked anything. Summer holidays in Italy, Spain, Yugoslavia. Father able to buy 2 houses over time.

And today? Wife has to have a job and husband has to work 2 to 3 jobs (in certain countries) just to make ends meet.

All this during a phase of massive "economic growth" lasting for decades.

Clearly, the ones that were able to qualify as "stockholders" were the winners. All others (the weakest part of society) were left out of the economic growth as far as "wage growth" is concerned. = Wife MUST work and daddy needs 2 jobs. Progress for whom, I ask?

Is it any wonder that the youth in the west is getting a bit "discrunteled", realising that "something went wrong", critisising the Democratic/Capitalistic system incrasingly?

Compared to today, we were "well off". With only 1 "breadwinner", well understood.

So again, what happened to our "wages" in the west?

It's very true, a friend of mine was telling me that his father was a blue collar worker, and his mother did not work and yet they saved enough money to buy a duplex every two years when he was growing up, and by the time he was in college his father was a real estate mogul!

These days a lot of Americans can't even afford to buy a house and have given up on that dream. It's a completely broken economic system and everything is overinflated to a ridiculous degree. At least within the US. And the government has the audacity to tell us that inflation is down to 2.5%, that would be amusing if it wasn't so sad, fake, and pathetic.

This bubble will burst and the correction is going to be quite horrific.

14 minutes ago, swissie said:

What happened to our "wages" in the west?

My father was the only "breadwinner". My mother was a housewife. We never lacked anything. Summer holidays in Italy, Spain, Yugoslavia. Father able to buy 2 houses over time.

And today? Wife has to have a job and husband has to work 2 to 3 jobs (in certain countries) just to make ends meet.

All this during a phase of massive "economic growth" lasting for decades.

Clearly, the ones that were able to qualify as "stockholders" were the winners. All others (the weakest part of society) were left out of the economic growth as far as "wage growth" is concerned. = Wife MUST work and daddy needs 2 jobs. Progress for whom, I ask?

Is it any wonder that the youth in the west is getting a bit "discrunteled", realising that "something went wrong", critisising the Democratic/Capitalistic system incrasingly?

Compared to today, we were "well off". With only 1 "breadwinner", well understood.

So again, what happened to our "wages" in the west?

1) Globalization

2) Currency devaluation.

8 minutes ago, Fact said:

1) Globalization

2) Currency devaluation.

At the beginning of "globalization" we were told that "everybody" would profit. A lie that has "long legs". Since the 1980ties up to today.

28 minutes ago, spidermike007 said:

It's very true, a friend of mine was telling me that his father was a blue collar worker, and his mother did not work and yet they saved enough money to buy a duplex every two years when he was growing up, and by the time he was in college his father was a real estate mogul!

These days a lot of Americans can't even afford to buy a house and have given up on that dream. It's a completely broken economic system and everything is overinflated to a ridiculous degree. At least within the US. And the government has the audacity to tell us that inflation is down to 2.5%, that would be amusing if it wasn't so sad, fake, and pathetic.

This bubble will burst and the correction is going to be quite horrific.

Unfortunately, I must agree. The historical 75 to 80 year "credit cycle" is at it's peak.

Sad to say, the "little people" will suffer the most. As usual.

10 minutes ago, swissie said:

At the beginning of "globalization" we were told that "everybody" would profit. A lie that has "long legs". Since the 1980ties up to today.

The turning point in the USA occurred in the 2000s when China was granted favored-nation status. In a short period, 3 million jobs vanished. It heavily impacted middle- and lower-class jobs, which hollowed out many parts of the country. Plus, Western nations struggled to compete with the labor costs and practices of developing countries. In the 2010s, housing prices surged amid extremely low interest rates, a trend that persisted until the COVID-19 pandemic. This increase was exacerbated by a lack of housing supply to meet the demands of a growing population, coupled with the burden of expansive social welfare programs that raise taxes.

22 minutes ago, Fact said:

The turning point in the USA occurred in the 2000s when China was granted favored-nation status. In a short period, 3 million jobs vanished. It heavily impacted middle- and lower-class jobs, which hollowed out many parts of the country. Plus, Western nations struggled to compete with the labor costs and practices of developing countries. In the 2010s, housing prices surged amid extremely low interest rates, a trend that persisted until the COVID-19 pandemic. This increase was exacerbated by a lack of housing supply to meet the demands of a growing population, coupled with the burden of expansive social welfare programs that raise taxes.

Yes, it was clear from the beginning, that Western wages could not compete with Chinese wages. We were told that vaccum cleaners from China would be 30% cheaper for us. Great!

But how many times per year do we need to buy a vaccum cleaner? How many times do we need a monthly wage per year? The root of the problem.

28 minutes ago, Fact said:

The turning point in the USA occurred in the 2000s when China was granted favored-nation status. In a short period, 3 million jobs vanished. It heavily impacted middle- and lower-class jobs, which hollowed out many parts of the country. Plus, Western nations struggled to compete with the labor costs and practices of developing countries. In the 2010s, housing prices surged amid extremely low interest rates, a trend that persisted until the COVID-19 pandemic. This increase was exacerbated by a lack of housing supply to meet the demands of a growing population, coupled with the burden of expansive social welfare programs that raise taxes.

Wasn't it started in 1980 and renewed yearly until it was made permanent in 2001 after China joined the WTO ?

Would mean the decline you detailed out has been happening for 40 years. Which would be a better starting point to measure the job losses etc.

Was the same in the UK in the 1960s. Man's wage was enough and wife could stay at home as a full time housewife. Fall out with your boss? Could leave and walk straight into another job. Where did it all go wrong?

3 minutes ago, nexus7 said:

Fall out with your boss? Could leave and walk straight into another job.

People underestimate how powerful this to quality of life, which spills over to how you treat your family and community. I worked in IT during the dot com boom and it was amazing how well we were treated. No need for unions, government regulations or butt-kissing - they knew we could easily find another job, which was expensive for them, so basically had no choice but to be decent.

But, but, but - the Dow Jones is at over...

23 minutes ago, nexus7 said:

Was the same in the UK in the 1960s. Man's wage was enough and wife could stay at home as a full time housewife. Fall out with your boss? Could leave and walk straight into another job. Where did it all go wrong?

Yes very true but there were thousands of

other small /medium businesses you could apply for

...is this the case today?

8 hours ago, swissie said:

Is it any wonder that the youth in the west is getting a bit "discrunteled", realising that "something went wrong", critisising the Democratic/Capitalistic system incrasingly?

Democratic/Socialism is the governments running the EU.

So there's your explanation.

The EU socialist governments (under German rule) have taken money from white folk and given it in welfare to the 3rd world.

Life before the EU Vs life under the EU

IYour tax money is going to Nato, to pay for the ukrainian refugees that benefit with all inclusive sojurn in most western natons, to the military, to Ukraine and to be part of the club of the European Union in Brussels. It's not the wages that are a the issue. It's how the governments are scamming their own citizens with over high tax and decreased or inadapted pensions. And that's where the money is going.

Yes life has gotten harder for today's working family but you also have to admit people require more luxuries today. As a society we've become soft.

We never ate out, certainly no take out. I didn't know a steak could be delicious till I was older and on my own. Never occurred to me that it was possible to have more than one bathroom or A/C. Oh and let's not forget the 15% interest rates on buying a house.

8 hours ago, swissie said:

What happened to our "wages" in the west?

My father was the only "breadwinner". My mother was a housewife. We never lacked anything. Summer holidays in Italy, Spain, Yugoslavia. Father able to buy 2 houses over time.

And today? Wife has to have a job and husband has to work 2 to 3 jobs (in certain countries) just to make ends meet.

All this during a phase of massive "economic growth" lasting for decades.

Clearly, the ones that were able to qualify as "stockholders" were the winners. All others (the weakest part of society) were left out of the economic growth as far as "wage growth" is concerned. = Wife MUST work and daddy needs 2 jobs. Progress for whom, I ask?

Is it any wonder that the youth in the west is getting a bit "discrunteled", realising that "something went wrong", critisising the Democratic/Capitalistic system incrasingly?

Compared to today, we were "well off". With only 1 "breadwinner", well understood.

So again, what happened to our "wages" in the west?

Simple solutions, 2 actually ...

... develop skills that demand higher wages

... stop being an employee, become self employed, or simply supplement your income with different cash stream.

9 hours ago, Fact said:

The turning point in the USA occurred in the 2000s when China was granted favored-nation status. In a short period, 3 million jobs vanished. It heavily impacted middle- and lower-class jobs, which hollowed out many parts of the country. Plus, Western nations struggled to compete with the labor costs and practices of developing countries. In the 2010s, housing prices surged amid extremely low interest rates, a trend that persisted until the COVID-19 pandemic. This increase was exacerbated by a lack of housing supply to meet the demands of a growing population, coupled with the burden of expansive social welfare programs that raise taxes.

China was first granted MFN status in 1980...

13 hours ago, Fact said:

1) Globalization

2) Currency devaluation.

Neo liberalism.

4 hours ago, KhunLA said:

Simple solutions, 2 actually ...

... develop skills that demand higher wages

... stop being an employee, become self employed, or simply supplement your income with different cash stream.

Even simpler.

Join a union and don’t vote for political parties that reduce workers rights.

17 minutes ago, Chomper Higgot said:

Even simpler.

Join a union and don’t vote for political parties that reduce workers rights.

I can't think of any UK political party which doesn't reduce workers rights.

Obviously Reform, never being in power haven't, but they would if they ever get the chance.

13 hours ago, swissie said:

So again, what happened to our "wages" in the west?

Wives go out to work. Society thinks Hmmm. Employers think if wifey is working as well then we don't have to pay hubby as much?

16 minutes ago, BritManToo said:

I can't think of any UK political party which doesn't reduce workers rights.

Obviously Reform, never being in power haven't, but they would if they ever get the chance.

Maybe you can’t.

1 hour ago, Chomper Higgot said:

Even simpler.

Join a union and don’t vote for political parties that reduce workers rights.

Unions don't care about the workers, just their dues. Although, they do negotiate a better contract, sometimes, for the good, and not so good.

When push comes to shove, they'll sell you out. Been there, no t-shirt.

It's also related to the growth life cycle of Western countries.

The golden age described by some posters was a high growth period, characterised by the so-called "Fordism" model. Now Western countries are at a maturity stage, characterised by low growth.

When the added value is significantly growing, it's easy to give a fair share of it to workers. When it's growing only slowly, economic actors compete to get a share of it, and the weakest ones get only peanuts.

7 hours ago, Chomper Higgot said:

Neo liberalism.

Define it.

7 hours ago, Chomper Higgot said:

Even simpler.

Join a union and don’t vote for political parties that reduce workers rights.

How does this solve the problem? Not all jobs have high wage potential. One reason jobs moved offshore was due to high wages. Globalization makes the products less competitive due to high labor costs.

1 hour ago, Fact said:

How does this solve the problem? Not all jobs have high wage potential. One reason jobs moved offshore was due to high wages. Globalization makes the products less competitive due to high labor costs.

Jobs moved offshore because neoliberalism removed the barriers that were preventing corporations offshoring production.

Privatized profits, socialized consequences.

2 hours ago, Fact said:

Define it.

If you are in need of a definition of neoliberalism, then you perhaps ought to consider staying away from discussing economics.

8 hours ago, candide said:

It's also related to the growth life cycle of Western countries.

The golden age described by some posters was a high growth period, characterised by the so-called "Fordism" model. Now Western countries are at a maturity stage, characterised by low growth.

When the added value is significantly growing, it's easy to give a fair share of it to workers. When it's growing only slowly, economic actors compete to get a share of it, and the weakest ones get only peanuts.

Except corporate profits have skyrocketed.

In no small part by hollowing out worker compensation.

30 minutes ago, Chomper Higgot said:

Jobs moved offshore because neoliberalism removed the barriers that were preventing corporations offshoring production.

Privatized profits, socialized consequences.

Go live in North Korea or Russia then.