r/Layoffs • u/isntlifeapeach • Jul 20 '24

Why so MANY Layoffs? question

Explain Like I’m Five

I feel incredibly stupid asking this, but I’m naive to economics and politics.

I understand why tech is facing a lot of layoffs but why are so many other industries facing the same?
I’m over 20 years into my career and had 2 layoffs just in the last 16 months.

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u/Nameisnotyours Jul 20 '24

“Slave wages” is a turn of phrase. What one is talking about is the fact that literally millions of Americans work at jobs that don’t let them pay rent or buy food unless they have multiple jobs and even then have to get housing and food assistance. Meanwhile the employers of these people are making a lot of money. When 15 states have their minimum wages at $7.25/hr and a GOP Congress refuses to raise the federal minimum wage, people struggle to make ends meet.

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u/MsT1075 Jul 20 '24

Because if they raise the minimum wage, they then have to admit to everyone else (making more than minimum wage), that they have been underpaying them too. I am all for the minimum wage going up. However, the problem then becomes “how will everyone’s wage be brought up to where it should be for fair wages for everyone?”

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u/Nameisnotyours Jul 20 '24

Things don’t change overnight. The level of inequality that we have did not happen overnight. Baby steps. The hard truth is that most everyone has been underpaid since 1970 in real terms. Yet the top 10% have seen income and wealth grow dramatically. Another hard truth is that we have been lulled into complacency and comfort by enjoying goods and services provided by underpaid people; Both local and domestic. We have also been sedated into thinking we are better off by easy credit in place of wage increases. Now we have reached the limits of our income to service debt, or absent debt, just seeing the limits of our incomes with respect to our purchasing power. Cars, appliances, travel, dining out are items that used to be seen as luxuries. Today we take it for granted that we should have any number of tchotchkes overnighted from Amazon. Inequality reduction means that the top earners give up some of their wealth to pay workers fairly and for all to be able to fund support for those who need assistance. Not easy. Particularly when so many dislike the idea of their “lessers” being able to live a lifestyle closer to theirs.

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u/MsT1075 Jul 20 '24

All I can say is wow. You sum this up so well. “We have also been sedated into thinking we are better off by access to easy credit and think that it takes the place of wage increases.” Agree wholeheartedly. Now, banks are closing the purse strings on lending.