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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsYou should be making 35% more.
The answer is, its two-thirds the inequality, stupid. One third of the difference is due to a technical issue involving price indexes. The rest, however, reflects a shift of income from labor to capital and, within that, a shift of labor income to the top and away from the middle.
What this says is that widening inequality makes a huge difference. Income stagnation does not reflect overall economic stagnation; the incomes of typical workers would be 30 or 40 percent higher than they are if inequality hadnt soared.
http://www.epi.org/publication/ib330-productivity-vs-compensation/
http://krugman.blogs.nytimes.com/2012/04/28/where-the-productivity-went/
hedgehog
(36,286 posts)sabbat hunter
(6,831 posts)both paid (At least partially) by the company one works for, I wonder how that graph would be affected.
Sherman A1
(38,958 posts)that many a company hides behind the "cost of health benefits" as a reason to hold down wages. Certainly they have gone up, there is no doubt of that point. However the gap in compensation and productivity still exists as does the staggering percentage increases in the compensation that has gone to the top vs what the working class has received.
julian09
(1,435 posts)ceo got raises on the back of workers.
cthulu2016
(10,960 posts)If the chart dealt with on;y cash wages it would probably be grimmer.
Festivito
(13,452 posts)I bet we could double wages and halve work times.
Zalatix
(8,994 posts)quaker bill
(8,224 posts)and it is true at some level. However when you hear the line you need to do a bit of translation. The !% lives on profits, the vast sea of us live on wages. When they say this line, what they are saying in fact is "giving you a raise will decrease my paycheck".
In fact it will reduce their paycheck. They will still get quite rich, but not as fast as they want to.
Trickle down eceonomics is an elaborate rationalization designed to make their greed sound like a service to the community.
SammyWinstonJack
(44,130 posts)kentuck
(111,106 posts)If we take into account the cost of housing and necessities, including food, and inflation, I think the situation is much more dire than the graph indicates.