Here’s where all those middle-class jobs went

[dmcowen674]

6-5-2014

http://finance.yahoo.com/blogs/dail...l-those-middle-class-jobs-went-113102720.html

Here’s where all those middle-class jobs went



A new study by the Federal Reserve Bank of Dallas details the types of jobs that have been disappearing and validates the job stress many workers have been feeling. Between 2001 and 2011, both low-skill and high-skill jobs rose as a percentage of the total labor market, while the percentage of middle-skill jobs fell by about 10%. Middle-skills jobs have been in decline for about 20 years, according to the study, although the early part of the trend, in the 1990s, was barely noticeable.



During the past 10 years, however, the loss of middle-skill jobs has intensified to the point that it now threatens the prosperity of the entire middle class.

This is the “barbell economy” some analysts have been talking about, which is characterized by swelling employment at the bottom and top of the income ladder, while the middle gets hollowed out.

 

[dmcowen674]

How much did they waste on this No Shit Sherlock study?

Who has an over $12,000 balance in their checking account like they show in the picture on the article?

 

[brianmanahan]

what counts as middle class?

i assume i am middle class... not even making 100$k per year, as required by ATOT standards

 

[dmcowen674]

Meanwhile:

http://deadspin.com/colin-kaepernicks-126-million-contract-is-remarkably-1586520353

Colin Kaepernick's "$126 Million Contract



From 2015 on: $12.4M, $13.9M, $16.5M, $17M, $18.8M

 

[1prophet]

Meanwhile:

http://deadspin.com/colin-kaepernicks-126-million-contract-is-remarkably-1586520353

Colin Kaepernick's "$126 Million Contract



From 2015 on: $12.4M, $13.9M, $16.5M, $17M, $18.8M

We've learned long ago that the reported figures for big NFL deals should be ignored until the actual details emerge. So when Colin Kaepernick signed a contract that "could be worth $126 million through 2020," I hope you didn't believe either of those numbers. This is a below-market deal that ends whenever the 49ers want it to.


Pro Football Talk has the contract language, and it's a unique deal in two ways. First, since the initial five years are guaranteed for injury only, the Niners can cut Kaepernick at any time and not owe him a thing—it's pay-as-you-go. Second, instead of bonuses, the deal contains a de-escalator clause that requires Kaepernick to be wildly successful, or his payout drops each year.


Kaepernick's signing bonus is a relatively small $12.3 million. Spread out over the life of the deal, that's just $2 million a year in guaranteed cap hit. "Part of the way the contract is written," Kaepernick said, "was so [the 49ers] would be able to sign other players." Fine. That's standard.



The non-guarantees aren't. With his base salary going up every year (From 2015 on: $12.4M, $13.9M, $16.5M, $17M, $18.8M), Kaepernick is relatively cheap early on. And if he becomes ineffective—or just too expensive—the Niners can cut him at any time and be off the hook. Jason La Canfora has a good way to look at the deal from San Francisco's perspective:


That's much less that the effective salary for, say, Joe Flacco, even though the Ravens are touting Kaepernick's ascension on an arbitrary "most overpaid list."


If Kaepernick does get hurt, his money through 2018 is guaranteed for injury. The Niners thought of that too. The contract requires Kaepernick to buy his own insurance policy that will pay the 49ers $20 million after-tax in the case of a career-ending injury.


Now, the de-escalators. Starting in 2015, Kaepernick's promised base salary will decrease by $2 million each year unless he does one of two things, and neither is easy. To regain that two million in any given season, he must QB the 49ers to the Super Bowl, or be named first or second team All-Pro.


Kaepernick's contract will never pay him $126 million, and he'll likely need to play for five years to reach the $61 million that's "guaranteed." If he falls off the face of the earth tomorrow, he'll get $13 million for one year and that's it. If he remains elite, the 49ers will have him at very manageable rates—even as the leaguewide salary cap goes up—until they decide to stop paying. A franchise QB has never been so disposable.

Sounds like a good template for CEO pay, if you can't produce you don't get paid with minimal to no golden parachutes.

None of that guaranteed payout that their buddies on board give them even when the company is tanking and all the peons are losing their jobs.

 

[Matt1970]

20 years? Try 40.

 

[pete6032]

How much did they waste on this No Shit Sherlock study?

Just because we might have known something to be anecdotally true does not mean that we know everything about it. Empirical research like that performed in the study will be a spring board for more in-depth analysis of the issue. I hope you understand that.

 

[moonbogg]

what counts as middle class?

i assume i am middle class... not even making 100$k per year, as required by ATOT standards

Anything under 100k in Orange County, CA is absolute poverty. So yeah, middle class is something like 150k and up.