I dont believe in trickle down economics. So stop talking to me like i do I wrote what i posted earlier from experience. I worked in Finance. I don't claim to be an expert in economics but i understand supply and demand Im not posting a narrative
All kind of factors on wages. Oil costs the same price it did right before Katrina. That was 14 years ago. No increase in oil price no increase in wage
So you are saying your personal experience can be extrapolated to the macro level? I'd think if you worked in finance you'd have a solid understanding of macroeconomics and what drives things such as interest rates and inflation. Also, the Finance industry really is as sensitive to jobs being moved overseas. It's not like you can replace a bond analyst with cheap labor in Mexico.
Your statement about wages being a percentage of earnings being makes no sense. Thats not a measurement of anything I worked in commercial credit evaluating all kinds of companies and that evaluation involved understanding the economic variables
Payroll to grosd procit is a real thing lookimg at individual companies Not a macroeconomic measurement
Still this has been discussed by economics a great deal. Globalization is seen as one factor but not the primary - instead it's a shift where labor unions have lost power and there is a hyper focus across the board on shareholder value.
Pay disparity is an overrated issue. There are a few CEOs. Whats happening with wealth disparity in general is the wealthy get there income from investments and the stock market has done really well. When the auto companies needed bailouts all their debt was obligations to retired workers. GM for example had no bank debt. Wages growth is slow but we are experiencing low inflation .
kudos to Sweet Lou for being so patient, doing his best to educate the under-informed one, who continues to provide vivid eg of better to remain silence and be thought a fool than to speak to remove all doubts.
Yes you are now agreeing with me without realizing. Wealthy are getting rich off of shareholder value - that's exactly what I just said. CEO and companies are maximizing shareholder value instead of paying employees more. And yes, executive pay does matter. It's not just the CEO but also anyone VP or above. CEO's now make close to a billion dollars - those are dollars that would have once gone to the employees. Companies don't care about failing - because the owners have gotten filthy rich by the time they fail. Do you think the rich shareholders of major corporations lost much when their companies collapsed? No! They already were rich from the past success. In fact, the way the laws are now written due to deregulation, you are encouraged not to make a successful company that won't fail, but rather one that will have a high shareholder value for any period of time where you can exit and make a killing before the company collapses. I am surprised you don't realize this if you work in finance.
You cant have it both ways. People want the company to make a lot of money or don't care it goes out of business Corporate profits have soared the last decade but i.dont think its at the cost of workers. Pay at the bottom scale is lagging but i think the American worker does fine. US median household income ranks sixth in the world behind countries whose workforce maybe considered more educated Luxemburg Norway Sweden Australia Denmark
It actually is, it's the market equilibrium model, where the producer is labor share, and the consumer is capital (except there's very little belief that DWL is much of a thing in labor markets, especially the US one). In a historical sense, post ww2 the size of labor's share was become increasingly high, until really it reached an apex point of taking almost all of it, at that point, capital basically went on strike (i dont mean picketing, i mean refusing to do its job, ergo investing), so we created the neo liberal consensus per se, which has squeezed that share down ever since through a variety of policies. There are some philosophical arguments to be made about just how this split should go, but the extremes pose risks that aren't really just economic.
I dont have a negative opinion of unions However the unions in the auto industry were the cause of those companies heading for bankruptcy. Auto manufacturers wete in debt to retiree pensions and healthcare. No bank debt I worked at a coffee plant with a union. Salaries drove it out of business. Management was very open about it and they were still fighting for more money
