No Affluence without

Low-paid Jobs

 1. Certain Facts

          The simple truth is that education has no financial value without workers in low-paying jobs providing the income of funds.  Suggesting that education, by itself, is the road to 'success' is not the entire truth.

          Money doesn't fall from the sky simply because a person is educated.  Aside from starting a business, an educated person will join an organization, perhaps in the private sector, government or non-profit.  The organization will have a method of acquiring money that will, very likely, involve the work of low-paid employees or even volunteers.

2. Examples

          In certain business sectors, the dependence on cheap labor is direct and obvious.  An easy illustration is the business model of a fast food company such as McDonald's.  For several decades, the company has raised the bulk of its income by selling product through its many retail stores (restaurants).  Other than management, these stores are staffed by thousands of low-paid workers who assemble and sell the product.

          In a similar light, companies that do not directly employ low-paid workers are still greatly dependent on them.  The business model of a company like Procter and Gamble is a fine example.  The company is known for its consumer products sold in retail stores.  From the factory, these products are shipped to large outlets such as Walmart, Kroger, Walgreens and many others.  These stores serve as the real consumer 'interface'; meaning that this is where the company actually makes its money because the consumer does not resell the product.  Collectively, like the fast food business, these retail stores employ thousands of low-paid clerks who unload the trucks, stock the shelves and monitor the cash registers.

          Closer to the top of such companies are executives and upper-level management who expect to be well paid.  This idea is generally based on criteria such as education, experience and organizational skills.  The examples show how these salaries can only be made possible by the work of thousands of low-paid employees.  After all, the executives and managers cannot run all the company operations by themselves.  To the heart of the matter, without these thousands of employees on the job everyday, companies such as McDonald's and Proctor and Gamble would make no money at all.  These are clear and simple examples of how education, by itself, does not produce income unless low-paid employees do the needed work.

3. Extensions

          This same idea extends into other areas of company business.  Anytime these companies pay for legal fees, property taxes or raw materials, those funds are also provided by the activity of low-paid workers.  This shows how the economic chain also includes many other companies which do not employ low-paid workers at all.  Any company accepting these payments would use the funds to pay its own expenses.  As can be easily seen, all of this business activity is greatly dependent on low-paid workers.

          Playing an even more fundamental role in these patterns is the consumer, whether the consumer is employed or not.  On a daily basis, consumers greatly rely on low-cost labor, mostly in the form of retail sales clerks and foodservice workers.  There would be no paychecks for educated people without this type of consumer interface.  For most consumers, however, the reliance on low-cost labor goes far beyond this daily contact.  Businesses increase profits by sending jobs overseas in search of cheap labor.  Consumers greatly depend on this process for such common items as clothing and home appliances.  The connection to low-paid workers is everywhere in the economic pattern and there would be no sense of affluence without them.

4. Possible Solution

          While this economic activity is very common, the idea is rarely discussed in current education.  Instead, students are encouraged to pursue a 'good' job without asking how the funds are acquired to pay the people with 'good' jobs.  Providing students with a broad understanding of these patterns would be a wise addition for today's education.

          As a way of showing how much these economic patterns affect everyone, the language used to describe them should be fairly simple and general.  The kind of numbers needed for examples either exists or can be estimated.  From there, data can be arranged to show how the affluent are directly and heavily dependent on low-paid employees.  Some examples might show how various occupations require a certain number of low-paid workers to provide the proper income.  Another example could show how many low-paid employees are needed for the annual pay of a corporate CEO.  Even broader examples might show how many low-paid workers are needed to support an affluent society at various levels of overall income and wealth.

          Placing these ideas in education is meant to enlighten people across the entire economic spectrum.  Among the affluent, there are those who feel, "If everyone worked as hard as I do, they'd all be successful."  Since other workers provide the income, this idea cannot be true.  Low-paid workers could have a better understanding of the enormous contribution they make to the system.  Even the wealthy might have a clearer concept of how their own lifestyles are subsidized with 'unearned' income.

5. Wrap-up Views

          Given that these patterns can't be disproven, the idea of educating 'everyone' out of poverty is not very practical.  Low-income workers provide many essential services, as well as income, for those who are affluent.  In contrast to everyday thought, it might be wiser to stop blaming the poor people for being poor and, instead, recognize their enormous contribution to the overall economic system.  A certain amount of impoverishment may be needed for a society which chooses to judge its 'success' almost solely on affluence.

          In spite of common beliefs, these examples clearly show that an education has no financial value solely on its own.  In very simple terms, there are no salaries for people with 'better' jobs unless low-paid workers create the economic activity.  Any cutting of low-paying jobs would deprive society of too many services it now enjoys.  Among those who believe that all people can be raised from poverty, no one has ever laid out a practical plan as to how this might be done; and that would be the simplest way to prove these economic patterns are wrong.