Instead, let’s focus on the type of jobs that Staples, Domino’s et al. produce for the American middle-class. While these jobs are not as slavish as those sought after by Apple in China, most Bain companies pay so little and have so few benefits that it is impossible to support a middle-class existence from the jobs they create.
Since Romney likes to brag about Staples, we took a closer look at its average hourly pay (as reported on Glassdoor.com). Out of 61 job classifications listed, only three provide starting salaries of $20 or more per hour. The vast majority of those 61 jobs categories have pay scales that begin at $7 and $8 per hour and scale up over time to $13 or $14 an hour. I’d like to see Mitt raise his dog on that.
Here’s the argument one bailed-out company used to claim a “hardship” exemption so the employee could receive at least $1 million in cash: “This individual is in their early 40s, with two kids in private school, who is now considered cash-poor.” Such people “would not meet their monthly expenses” if the $500,000 a year cap were applied to him. Ouch!
So while the Apple workers in China get up in the middle of the night from their company dorms to assemble phones, and while Staples workers try to live on $8 an hour, we the taxpayers are supporting financial executives who can’t make ends meet on $500,000 a year?
In total, the unfunded wars, the tax cuts and the economic crash account for the entire deficit problem. Let me repeat, there would be no deficit at all were it not for the Bush tax cuts, the two unfunded wars and the Wall Street crash.
Neither Apple, nor Bain-Staples, nor Wall Street, nor deficit reduction will get us there. By the way, neither will small business.
We need to recognize that modern financialized capitalism is deeply flawed. Without enormous government support, it cannot function. Without enormous government support, there will be no sizable middle-class.