Page 68 - Šolsko polje, XXVIII, 2017, no. 3-4: Education and the American Dream, ed. Mitja Sardoč
P. 68
šolsko polje, letnik xxviii, številka 3–4
Atypical restraint on compensation increases has been evident for a few
years now and appears to be mainly the consequence of greater worker
insecurity. The willingness of workers in recent years to trade off smaller
increases in wages for greater job security seems to be reasonably well
documented.
In 1991, at the bottom of the recession, a survey of workers at large firms
by International Survey Research Corporation indicated that 25 percent
feared being laid off. In 1996, despite the sharply lower unemployment
rate and the tighter labor market, the same survey organization found
that 46 percent were fearful of a job layoff.
Basically, Greenspan appears to be saying that the success of the
economy depends, at least in part, upon the insecurity of the worker.
As Chomsky noted, keeping workers insecure is a way to control them.
When you speak out against the exploitation of labor in the U.S. you are
often called “anti-American.” Only a totalitarian society would use that
term to describe activists who are trying to improve the social and eco-
nomic conditions of workers, and of the poor. In the 1950s and 1960s the
U.S., Americans saw the greatest period of economic growth in its histo-
ry. So, yes, the idea of the American Dream—owning a house, paid vaca-
tions, perhaps affording a cottage near a lake—was true to a certain ex-
tent during this period of capitalist growth, but in the 1970s the myth of
the American Dream persisted even though the objective conditions were
no longer there to support it. Public schools, which Chomsky describes
as the “jewels of American society” are disappearing, as most funds now
in universities come from tuition and not from the state—and this is also
true of so-called public universities. We have in the world of business what
Chomsky referred to as “regulatory capture” where the businesses that are
being regulated have control over the regulators. In other words, regulat-
ing agencies become dominated by the industries they were charged with
regulating. But the biggest complaint about the erosion of the American
Dream is the crippling costs of medical insurance, and even a good insur-
ance policy can lead you into bankruptcy if you have a serious illness.
I grew up in Canada under a partly socialized medical system and
am pretty horrified by the system we have here in the U.S. Canada’s sys-
tem is very much like Medicare, but for the entire population, which is ap-
proximately 30 million people. Medical care is free, but not prescription
drugs, glasses, and dental care. Most Canadians that I know have supple-
mentary insurance to cover what the Canada Health Care Act does not,
or they pay out-of-pocket, but overall the Canadian system is, in my view,
66
Atypical restraint on compensation increases has been evident for a few
years now and appears to be mainly the consequence of greater worker
insecurity. The willingness of workers in recent years to trade off smaller
increases in wages for greater job security seems to be reasonably well
documented.
In 1991, at the bottom of the recession, a survey of workers at large firms
by International Survey Research Corporation indicated that 25 percent
feared being laid off. In 1996, despite the sharply lower unemployment
rate and the tighter labor market, the same survey organization found
that 46 percent were fearful of a job layoff.
Basically, Greenspan appears to be saying that the success of the
economy depends, at least in part, upon the insecurity of the worker.
As Chomsky noted, keeping workers insecure is a way to control them.
When you speak out against the exploitation of labor in the U.S. you are
often called “anti-American.” Only a totalitarian society would use that
term to describe activists who are trying to improve the social and eco-
nomic conditions of workers, and of the poor. In the 1950s and 1960s the
U.S., Americans saw the greatest period of economic growth in its histo-
ry. So, yes, the idea of the American Dream—owning a house, paid vaca-
tions, perhaps affording a cottage near a lake—was true to a certain ex-
tent during this period of capitalist growth, but in the 1970s the myth of
the American Dream persisted even though the objective conditions were
no longer there to support it. Public schools, which Chomsky describes
as the “jewels of American society” are disappearing, as most funds now
in universities come from tuition and not from the state—and this is also
true of so-called public universities. We have in the world of business what
Chomsky referred to as “regulatory capture” where the businesses that are
being regulated have control over the regulators. In other words, regulat-
ing agencies become dominated by the industries they were charged with
regulating. But the biggest complaint about the erosion of the American
Dream is the crippling costs of medical insurance, and even a good insur-
ance policy can lead you into bankruptcy if you have a serious illness.
I grew up in Canada under a partly socialized medical system and
am pretty horrified by the system we have here in the U.S. Canada’s sys-
tem is very much like Medicare, but for the entire population, which is ap-
proximately 30 million people. Medical care is free, but not prescription
drugs, glasses, and dental care. Most Canadians that I know have supple-
mentary insurance to cover what the Canada Health Care Act does not,
or they pay out-of-pocket, but overall the Canadian system is, in my view,
66
