The "New Economy"

The Fed, bowing to pressure from banking interests has finally raised the benchmark interest rate it charges member banks.  From near 0 to at least a quarter per cent, the raise is not expected to tighten the screws on the economy too much, but an article about a union settlement in Kohler, Wisconsin yesterday caught my eye and vividly contradicted Janet Yellin's rosy predictions.  The union in Kohler voted to ratify a new contract with the Kohler Corporation, best known for high end plumbing fixtures.   The contract solidifies and two tier wage system.  Veteran employees make up to $23.00/hr., while new hires, doing the same jobs make about half that wage.   Many on both sides of the divide agree the newer employees can't possibly raise families on that kind of wage.  Despite the continued profitability of Kohler, whose chairman is worth $7.4 billion, the company threatened to move jobs to factories in the southern US or overseas if the union insisted on wage parity.  So instead of a new generation starting families and building homes, you have an underclass, living with their parents and failing to start their American Dream.  According to the Fed, we might as well get used to it as the new economic normal.  Thanks Janet, but maybe you should get out more and stop listening to the $5000.00 suits who keep telling you everything is coming up roses.