Which of the following statements is NOT true A. White-collar workers are also fired in large numbers. B. Last year’s U. S. economical growth was very impressive. C. Companies with rising productivity used to raise wages to keep labor. D. Self-employment was a way out for the American economy.
Americans have so far responded to their failing fortunes by working harder. American males now toil about a week and a half longer than they did in 1973, the first time this century working hours have increased over an extended period of time. Women, particularly in poorer families, are working harder, too. Two-worker families rose by more than 20 percent in the 1980s. Seven million workers hold at least two jobs, the highest proportion in half a century.America is simply not growing fast enough to tighten the labor market and push up real wages. The danger of the information age is that while in the short run it may be cheaper to replace workers with technology, in the long run it is potentially self-destructive because there will not be enough purchasing power to grow the economy.
To avoid this dismal prospect, we must get on the virtuous cycle of higher growth and avoid the vicious cycle of retrenchment. Otherwise, an angry, disillusioned and frustrated population—whose rage today is focused on big government, excess taxes, immigration, welfare and affirmative action--may someday be brought together by its sense of diminished hopes. Then we will all be in for a very difficult time.