Looking Ahead

LOOKING AHEAD by Wally Dobelis Watching President Barack Obama’s eulogy for the 29 coal miners killed in the methane gas explosion at the Upper Big Branch of Massey Energy Company's Montcoal W. V. operation, one was most `forcibly reminded of the callousness with which the operators had disregarded citations for hundreds of violations (thousands, over several years), by fighting them in court. Secondly, though, this watcher remembered the cautious manner in which Mine Safety and Health Administration and Environmental Protection Agony officials discussed their findings and inability to act on them. "The people hate us, we hurt their ability to make a living" admitted an EPA man, reluctantly. Coal mining has been since 1890 fraught with strife between unions and owners. In 1950 some 130,000 miners brought out 160 million tons of coal, by using the ancient method of tunneling into mountains and manually bringing out the black rock treasure. As time went on, coal became scarcer, and open pit mining, then strip mining, then blasting off mountaintops with explosives became the more economic procedures used. Technology became prevalent, the cost of labor was shrunk, and in 2000 some 20,000 miners brought out 180 million tons of coal, with the aid of huge machines that follow seams, extract and transport the coal by almost fully automated trolleys through a huge network of tunnels and elevators, with sensors throughout the route detecting the methane gas and other dangers, and ventilators and air shafts to remove them. The miners, now technicians, earn around $70K/yr, with health benefits, rivaling union pay, with no checkoff for dues. Also, no careful watch on safety violations and no enforcement for repairs of safety problems, of defunct ventilators and reversed extract fans. Workers were careful not to disclose all findings, for fear of work stoppages and management reprisals, and no pay, worst of all. Also, with a management of global warming deniers, tax shrinkers and large government fighters, a fertile ground for the worst tea party connections. This is not an unusual workingmen’s attitude, unfortunately, I have seen it also traveling through St. Mary's, a pretty but smoke -filled town on Georgia -Florida border, where people cough and wheeze all day but do not attempt to correct the health violations, not too actively. "We live off that plant," is the answer when the visitor complains. Also, think of Love Canal. Whether that worker attitude also applies at Toyota, another negligent company exposed, I will not guess. Look, America is not an easy place to make a living, our generation has had the best of it, and our children will suffer for it. In this service type economy with negative export balances and rising longevity to go with increasing population, making a living is getting harder, as it is all throughout the world. In 1935 when FDR installed Social Security, paying retirement benefits at age 65, the overall longevity averaged out at 63 years of age, in 2010 it averages at 78 years, and the trend is upwards. Even by raising full retirement age to 67 (for non-hazardous jobs) and indexing it to longevity, the Social Security tax rate will still need be increased, and the benefit indexed to overall taxable income more than it is now. It makes sense, since the population share of heavy industry workers has dwindled from 50% to 20% in the same 70 years, and the service industries employ more desk workers, who can remain working for longer years (Greenspan likes 72). Even Europe has recognized this, and Germany has raised the full benefit age to 67, with others following. The notable exception is Greece, where shaky governments much indebted to powerful unions for national stability have permitted to lower the retirement ages for dozens of employment codes, to age 50, including such hazardous jobs as those of hairdressers, exposed to fumes of noxious chemicals. Meanwhile the Greek public debt has risen to 124% of GDP, highest in European Union, and Greece, world's 27th largest economy and the second-busiest country in EU (1800 work hrs per person, after Spain with 1900 ) , has been cautioned by the European Commission to reduce the deficit (they promise 8.7% in 2010) with cuts in pension payments, government employment. Greek government bond ratings by Fitch and S&P have dropped below A-, and the bond interest rates are nearly 300 basis points above those of Germany, the EU standard. Looking at this picture, one asks how we (US and EU) got there. I sometimes follow the spend-spend-spend Nobelist Paul Krugman’s acolytes, and it seems it started way back, with the three hour lunch break in Italy and France, with kids coming home for the day’s most important meal, and a siesta for Dad. The two hour midday store closure in many European cities also continued until not that long ago. along with the six week vacations. While American women had a 38 and 40 hour work week, the French had 34; Germans had 30 and Dutch a restful 24. American women spent 10 hrs a week less on the EU traditional home chores (Kinder, Kleider, Kueche), and paid others; the Euros fell into the leisure trap, with less good jobs for both the well educated and the less educated. It may be that the Europeans had the best of it, but then we can point to our houses, condos, cars and electronic living rooms to argue otherwise, discounting the fear for our jobs. Or should we? Robert Reich thinks we should have the Europeans’ vacations and George Will believes the EU nations should adapt the American work ethic. I know where I’d like my country to be, but can that work for my progeny?