@JLeslie Very interesting! :) We certainly have a distance between us. Let’s see if I can get closer. Nothing I say below refers to your specific example.
I hate businesses that take advantage of employees. I really really do. The employer is an ongoing business with a revenue stream. Too many people who are looking for jobs are out of work and have no revenue stream. This creates a predator/prey relationship. It’s grossly unfair to the potential employee. There’s a whole field called ‘game theory’ that predicts what will happen.
I applaud companies that publish wages. It makes the game a great deal fairer and avoids taking advantage of the disadvantaged. For the same reason, I am pro-union. Currently, in America, the minimum wage is so low that it keeps people in poverty. That is blatantly wrong. A social economy should make it possible for people to have a dignified level of income.
On to the mortgage crisis: I think we might be in agreement although I am going to say something totally unlike what you said. Here’s hoping. :)
The mortgage crisis was created by the banks. They were in a position to know that the mortgages could be paid only if the economy was solid and growing. There were more than enough indicators that the economy was anything but. When the economy tanked, the banks failed.
The banks then got Congress, who was in their pockets, to do something amazing and totally disgusting. They gave – gave – the banks money with no stipulation on how to use the money. We are all too familiar with the outrageous stories of the bonuses given to the very people that created the crisis.
Since then, there have been myriad stories of banks not only illegally foreclosing on mortgages but continuing to do so long after this illegal practice was discovered. Bankers are malign, greedy thugs.
Imagine how much better it would have been to say: OK, we’ll give you the money but you have to pay for that money. For the benefit for the millions of people who were suckered into your bad mortgages, the banks had to remove $1 from their pool of mortgages due for every $.80 we give you (the difference is the interest on the money). So, we give you a trillion dollars and you have to remove a trillion dollars from the pool of mortgages you have.
Although my interest calculation might be wrong, the point remains. We simply gave a ruinous amount of money without expect anything in return. Banks did not deserve it. Especially when you consider that the banks were ready to let Chrysler fail and sell off its assets.
Finally, yes: everything is negotiable. It always has been. Whenever I hear ‘but you agreed!’, I almost always hear the ‘upper hand’ negotiator saying it. There are lots of examples to draw from. Famously, professional sports players, after a great year, will attempt to renegotiate. Almost every professional – not just athletes do the same.
And so do employers. Companies often say: ‘We had a bad year. We need to reduce pay by 20% or we close our doors.’ In my experience, small companies never publish their revenue stream or whether the executives were going to take a similar hit. They are in power, the employees are not.