The Erosion of Wages and Salaries: A Deeper Dive into Invisible Forces

In recent decades, many individuals and policymakers have lamented the stagnation of wages and salaries, attributing this trend to various factors. However, a closer examination reveals that the root causes are more complex and largely traceable to economic and political systems that often prioritize wealth redistribution in favor of the elite. This article delves into the underlying factors that have contributed to this phenomenon and explores potential solutions and implications.

Why Wages Have Not Truly Stagnated

Contrary to popular belief, nominal wages and salaries have indeed increased in line with productivity over the decades. However, the impact of inflation on these increases has often been underestimated. Inflation, a monetary policy, has eroded the buying power of wages, leading to a real decrease in the standard of living for many individuals. This erosion has not been a mere coincidence; it is a deliberate strategy employed by central banks and governments.

The Fiat Money System and Its Impact

The shift from a gold-backed monetary system to a fiat money system, primarily facilitated by central banks like the Federal Reserve, has allowed for more flexible monetary policies. This transition was driven by the desire to increase the transfer of wealth to the rich elites, making monetary strategy a pivotal tool in wealth redistribution. The lack of tangible backing has made it easier to adjust interest rates, currency values, and inflation rates to cater to the interests of the wealthy and powerful.

The Role of Inflation

Thank the Fiat money system and the Federal Reserve for the unintended consequences of inflation. Inflation is not merely a byproduct of economic activities; it is a monetary policy tool, often used to control the velocity of money, manage debt levels, and redistribute wealth. The pushed-inflation strategy has inadvertently led to stagnant or falling real wages, contributing to the sense of economic stagnation and anxiety among the working class.

Education and Labor Rights: The Achilles' Heel?

The post-WWII era saw a significant shift in access to education, with increased opportunities for many to obtain college degrees. However, the education system was designed to ensure that wealth and power remained concentrated, as more educated individuals began to demand wealth and power for themselves. Over the decades, unionization efforts, which once aimed to improve wages and working conditions, became undermined by corporate strategies to maintain control.

The rich elites, fearing the dissolution of their power, employed various tactics to weaken the labor force and public education. Unions became less powerful, and wages stagnated as a means to "starve the people into submission." By reducing living standards and increasing reliance on jobs as a form of control, employers tied healthcare to employment, creating another carrot at the end of the stick. The lack of critical thinking skills among less educated individuals further perpetuated this dynamic, leaving them more susceptible to authoritative control.

The Post-COVID-19 Era: A Wake-Up Call and a New Dawn?

The COVID-19 pandemic served as a significant wake-up call for many, highlighting the urgent need for change. The shift towards remote work and the newfound flexibility it offered resonated with workers who sought a better balance between work and life. However, corporate overlords have attempted to roll back these gains, restoring pre-pandemic power dynamics.

The struggle continues, with workers having to unite to achieve higher wages, a better standard of living, and a higher quality of life for all. The current polarization, driven by oligarchs, further hinders this unity, as workers are divided by ideologies and interests. The path forward lies in researching and understanding this issue to better identify and challenge these systemic effects.

Conclusion

The stagnation of wages and salaries is a complex issue with deep roots in economic and political systems. Understanding the role of inflation, the fiat money system, and the manipulation of labor and education systems is crucial for addressing this issue. As more people wake up to these realities, the potential for meaningful change increases. Unity and informed action are the keys to overcoming systemic barriers and achieving a fairer distribution of wealth and power.