Experience demands that man is the only animal which devours his own kind, for I can apply no milder term to the general prey of the rich on the poor.
~~ Thomas Jefferson ~~
This is even more true today than at the times of Thomas Jefferson. It appears that many rich people take delight in ripping off the working class poor. It may be because the poor are an easy target and rich feel secure in the knowledge that
- Most of the working class poor people don’t know their legal rights.
- Most poor people, even if they knew their rights, don’t have the economic wherewithal to seek a redress in the Courts.
- Even if a poor person were to seek a redress in the Courts, the rich can lengthen the process to many years or even decades through legal maneuvering and appeals.
A classic example of the rich preying on the poor, at least in Canada, is happening right now. Many businesses, some of them fairly large businesses reporting millions of dollars in annual profits, whenever they need to hire new employees, do not advertise for the job openings they have in their organization. Instead they team up with an Employment Agency to do the hiring for them. Now there would be nothing wrong if a business or employer were to hire an Employment Agency to do the screening and hiring for them and pay the Agency for its services. But that is not what they do!
Instead, the Employment Agency holds itself out as the “Employer”, recruits employees and sends them to work for the “Real Employer” - the business which teamed up with the Employment Agency, at the Real Employer’s place of business as a “Temporary Employee”. What is wrong with this arrangement, you may ask? Let me explain.
Suppose the Real Employer’s normal rate for the job is $12 per hour (This is the usual rate of semi-skilled type of factory jobs in Canada right now). So if the Real Employer were to hire you directly for this job, you’ll be paid $12 per hour plus, after 3 months of employment, you become eligible for other benefits like health insurance etc, if any. Since you are the employee of the Employment Agency and legally not the employee of the Real Employer even though in reality you work for the Real Employer, the Agency will pay you anywhere between 20% to 30% less than the going rate of the Real Employer. That is, your rate of pay will be somewhere between $8.50 to $10 per hour. The difference between what the Agency charges the Real Employer (e.g. $12 per hour) and what it pays you (e.g. $8.50 an hour) is how the Agency makes its money.
By this legal acrobatics, the Real Employer has downloaded its recruiting costs on to the working poor who end up earning 20% to 30% less than the going rate and the Real Employer has made the working poor a de facto economic slave as legally not being an employee of the Real Employer you have virtually no legal rights against the Real Employer.
Even though the above arrangement may be legal, in my view, it’s highly immoral and unethical - a classic case of the rich preying on the poor.