Vermont s Independent Congressman points out that the richest 1 percent of the population now own as much wealth as the bottom 95 percent of all Americans combined. Even more alarming is that young entry-level workers without a college education saw their real wage fall by more than 20 percent between 1979 and 1997. Chairman Greenspan, on the other hand, is dead-set against any increase in the minimum wage. Instead, it seems to make him positively nervous. And that s because he sees rising wage levels as the greatest threat to the economy.
Low unemployment enhances workers bargaining power.
Recent Federal Reserve moves to increase interest rates have been aimed at throttling any real improvement in workers paychecks. It increases the leverage of labor unions. Houseman, who teaches at Indiana University, thinks it s time for Greenspan to go, for these and other reasons. In the near future, the Fed chairman s tight money policy could lead to a slowing economy, Houseman suggests. Once again, Greenspan is afraid the economy is growing too quickly.