Marx, Marglin - the stages of capitalism, the separation of workers from the production process, productive knowledge, and productive means.
The extent of wage work
In the US, about 93% of employed persons are wage or salary workers (which includes incorporated self-employed persons)
| HOUSEHOLD DATA ANNUAL AVERAGES 12. Employed persons by sex, occupation, class of worker, full- or part-time status, and race [In thousands] |
2012 | 2013 |
| Total Employed Persons | 142,469 | 143,929 |
| Wage and Salary Workers | 132829 | 134421 |
| Percentage of Wage and Salary Workers | 93.23% | 93.39% |
| Source: BLS http://www.bls.gov/cps/cpsaat12.htm |
If we take incorporated self-employed people into account, the self-employment rate goes up to about 10%.
Source: BLS
http://www.bls.gov/webapps/legacy/cpsatab9.htm
Looking at similar countries, the world bank has estimated wage and salary workers make up high 80% to low 90% of employed persons for developed countries (World Bank, http://data.worldbank.org/indicator/SL.EMP.WORK.ZS)
In developing countries, land used to sustain subsistance farming and families that depend on it, is not valued and therefore being sold for companies to build (Waring).
Interestingly, a BLS report indicates self-employed people are likely to be either White or Asian men (Hipple, 2010).
Firm Power
Realizing survival is based off of the ability to get and hold a job makes me feel like a crazy person. It isn't the survival of the fittest anymore, it is survival of who can conform and take orders the best.
Firms have an incredible amount of power. They get to decide how many jobs to offer and how much to pay each employee. The only check on them, in terms of wages and number of jobs to offer, is the minimum wage. The theory is that firms have knowledge the government couldn't possibly have and are supposed to be the optimizers of these choices. Of course, many believe the firm really isn't making these choices - it is the market forcing them to certain choices, whether through supply and demand or competition.
I think firms, especially small ones, do work with constraints and are limited in what types of wages they can offer. I think firms want their firm to continue and try to make decisions that will sustain their company. However, I think beyond those constraints, there is menu of options most firms have (more or less jobs, better or worse wages) and use them as leverage to advocate for policies that benefit them.
With firms always holding jobs over everyone's head and a job being the only option for survival, how is any progress supposed to be made?
Alternatives
It seems ideal reforms like the great era of the 50's marginal tax rates of 90%, a maximum wage tied to a ratio of the minimum wage, increases in capital gains and estate taxes, enacting the Volcker rule, etc. don't rid capitalism of the disease of inequality of power, but effectively deal with the symptoms. But once the power starts accumulating, the accumulators leverage it to make sure they don't lose it and can accumulate more.
Alternatives that change the structure of capitalism into something different seem to me, the best sustainable alternative.
Strengthening worker's power by nullifying the job/survival threat would mean finding jobs elsewhere.
Alternative forms of ownership is one way- I frequently allude to Gar Alperovitz's America Beyond Capitalism.
I read something recently about a "employer" of last resort, by Randy Wray. He was speaking of the government, but I think the government has proven to be tainted by this imbalance of power and not the best potential candidate of employer of last resort. Perhaps community employer of last resort. Pooling funds to do community work, getting away from corporate chains, developing jobs that have a stake in the community.
Hipple, S. (2010). Self Employment in the United States. Bureau of Labor Statistics.
http://www.bls.gov/opub/mlr/2010/09/art2full.pdf
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