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cthulu2016

(10,960 posts)
Sat Apr 28, 2012, 03:01 PM Apr 2012

You should be making 35% more.

Larry Mishel has a systematic breakdown of the reasons for worker income stagnation since 1973. He starts with the familiar divergence: productivity up 80 percent, the compensation (including benefits) of the median worker up only 11 percent. Where did the productivity go?



The answer is, it’s 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 hadn’t soared.

http://www.epi.org/publication/ib330-productivity-vs-compensation/

http://krugman.blogs.nytimes.com/2012/04/28/where-the-productivity-went/
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You should be making 35% more. (Original Post) cthulu2016 Apr 2012 OP
and I wouldn't have a penny of debt if my income had risen properly! hedgehog Apr 2012 #1
given the costs of insurance sabbat hunter Apr 2012 #2
I believe Sherman A1 Apr 2012 #3
Workers negotiated for insurance and kept raises down julian09 Apr 2012 #4
"the compensation (including benefits)" cthulu2016 Apr 2012 #5
And, if the many were churning that 35% rather than the few, there would be more than 35%. Festivito Apr 2012 #6
+1 HiPointDem Apr 2012 #7
So what are we going to do about this? Zalatix Apr 2012 #8
The line goes "increased wages reduce profits" quaker bill Apr 2012 #9
rec SammyWinstonJack Apr 2012 #10
Actually, I think that graph understates the problem... kentuck Apr 2012 #11

sabbat hunter

(6,831 posts)
2. given the costs of insurance
Sat Apr 28, 2012, 05:40 PM
Apr 2012

both paid (At least partially) by the company one works for, I wonder how that graph would be affected.

Sherman A1

(38,958 posts)
3. I believe
Sat Apr 28, 2012, 06:10 PM
Apr 2012

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.

cthulu2016

(10,960 posts)
5. "the compensation (including benefits)"
Sat Apr 28, 2012, 09:32 PM
Apr 2012

If the chart dealt with on;y cash wages it would probably be grimmer.

Festivito

(13,452 posts)
6. And, if the many were churning that 35% rather than the few, there would be more than 35%.
Sun Apr 29, 2012, 06:56 AM
Apr 2012

I bet we could double wages and halve work times.

quaker bill

(8,224 posts)
9. The line goes "increased wages reduce profits"
Sun Apr 29, 2012, 07:10 AM
Apr 2012

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.

kentuck

(111,106 posts)
11. Actually, I think that graph understates the problem...
Sun Apr 29, 2012, 07:12 AM
Apr 2012

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.

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