Confused about the future of our economy? It's all very simple, really:
- Your taxes are bound to go up.
- Minimum wage will rise, which will lead to layoffs among low-skilled workers, at a time when there are five unemployed workers for every available job.
- Average pay raises next year for workers will be 3%. Inflation is close to 4%. But executive pay raises average 11%. Trying to rein in executive pay is useless.
- In a couple of years, corporate America will hit its very own "debt ceiling," pulling cash into debt repayment and evaporating jobs for, yes, the lowest-skilled workers.
So you, the average American, are faced with two choices: 1) Put off raising taxes as long as possible, take your minimum wage increase, then be laid off and out of work for years as the government and corporate debt crises converge in a single nightmare. Or, 2) Take your medicine, pay your higher taxes, take your lower wages, and then be laid off as the corporate debt crisis converges with a paltry and too-late government response that did nothing but take a few extra dollars out of your pocket. Either way, the executives will be just fine.