They agreed to those lower wages. The signed a Job Application agreeing to work for those wages. Why complain when you agreed to it? They knew what they were getting into.
This is a fallacy. If this ultimately drives all your concerns then a genuine discussion is unobtainable. There are some workers who have a set of skills who have more negotiating power than others. There are some who work in industries due to either civil service or jobs whose corporations ban any union formation. Your argument is equivalent to saying this is the status quo, accept it and don't ask for change. At the time of hire most upperclass workers do have options to ensure proper wage growth. Lowerclass and middleclass do not, unions are one of the major pressures available to address this. Let's avoid blaming less affluent people for systemic economic issues and focus on solutions.
Why would workers get the benefits of a very successful business when their work is based on Salaries not Investments or Sales. Of course the top 1% incomes grow 3 times faster then the rest of the country during a successful event.
You state the status quo but ignore what would happen if unions were present in ever industry. It should be standard that each worker receives quarterly and yearly bonuses just as the Managers, Directors, VPs, and CEOs do in any large corporation. The lack of negotiation is what is at fault.
Since their earnings are based on Investments and Sales it makes their incomes more volatile compared to the lower classes. Lower Class salary workers $50,000 or less during the recession in 2007-2009 incomes fell by 2%, incomes of the top 5% incomes fell by 50%. Less people are buying stuff during a recession so business owners are hit the hardest.
https://www.wsj.com/articles/SB10001424052970204346104576638981631627402
Your article is behind a paywall, if it's not able to be viewed by all I won't discuss it, that's my policy. Even if the top 5% incomes fell by 50%, it is confirmation that the importance of lowerclass and middleclass wage growth should be prioritized much more than it is currently. Over 80% of Americans fall within those brackets. Their discretionary income is the lifeblood of any small business and impacts the bottom line for virtually all other industries directly or indirectly.
Worker output and Wages have been keeping pretty much in line with each other. Your chart doesn't include health care and social security. These things have increased faster then wages. When you take hourly pay and all the benefits into account, then wages have kept up. The stagnant wages is because you are getting it instead from your health care and social security.
So I've seen compensation being used instead of wages but it's not a universally defined criteria. I can find multiple authors than use different evaluations for compensation. This one above is just one of the examples. While SS is constantly applied, the compensation for healthcare has been another variable that is being interpreted differently by different authors. I have to point out something else. The amount the employer pays vs the employee - that rate has been pushing more on the employee over time. I would expect higher wages to compensate this but they aren't.
Forgive me for yet another shameless plug for the need of medicare for all. If the projection of tax increase on average is less than the 6k for family coverage then it is a direct savings for families and will again increase discretionary income. As far as business expenses would the % they pay for medicare for all be cheaper than what they are paying as well? The projections I saw say yes, a huge weight off of small businesses that can't afford to supply group benefits and allows them to more effectively compete in the market. I know this isn't the discussion so I'll stop. I've been invested in this since the 90s when a long brutal discussion w/ an economics professor I met while skiing and changed my mind to support it.
While I trust that you can do the math, to drive home a point I'll go ahead and supply the delta.
26% Employee paying 26% in 1999 but now is paying 29% in 2019
That was family, what about single coverage?
the employee paying 17% or $1,242 (up from 14% in 1999)
A quick conclusion statement to insure the point is made: If the % of the share of costs of these benefits are increasing for employees and decreasing for employers, where is the wage growth to offset that change? Again, take away unions that negotiate for workers and what you are left with are employers will continue to shift the cost (a huge and growing cost) of healthcare benefits on to the employees.
Other figures are below. This graphic is 2008-2017
A quick question how are you looking at SS as a benefit. Are you looking at the consumption or the amount each worker is paying per paycheck in payroll taxes? The former is not something drawn out until retirement and is not the focus of this discussion. The later is noteworthy. This is something that you may find interesting. We have been paying the same % base of SS for 30 years. Employee and Employer splits this 6.2% each. The same is done for 2.9% medicare tax - 1.45% for each. So if these are constant %'s how can they attribute to wage stagnation? In the .com boom no less? The answer is this is a farce to suggest it has any culpability. Let's move on to the next point now shall we.
It wasn't until after 2003 that workers weren't being compensated for their output. This could be because a relative raise in price of goods and services like housing and education, not a decrease in worker bargaining power, and rising Health Care costs and benefits costs which is the fault of the medical industry and not Business Owners. Why should business owners pay higher wages to pay for the corrupt shit other industries are doing? Go after the housing industry and not Business owners selling products.
https://www.piie.com/blogs/realtime...gap-between-real-wages-and-labor-productivity
You still appear to have such a limited perspective on the actual issue. Even so, I appreciate you bringing sources instead of just questions. How does the housing industry effect the wages of employees unless they are being zoned out of the districts that they work and are forced to relocate due to commute? I'm not sure. I'm really overreaching to understand what you mean. I agree it can affect discretionary income and I want it addressed through regulations (the free market purists are dying inside when they read this). But just remember we are talking about wages and income not living costs. Don't confuse the two.
"But when the numbers are measured more comprehensively—when wages are broadly defined as compensation to include benefits, comparable price indexes are used to calculate differences in wage and output growth in constant dollars, and the output is measured net of depreciation—the puzzle of lagging wages disappears, at least for 1970–2000."
Do you understand that only a small minority of workers get healthcare benefits without it deducting their pay? Most will pay a share with their employer, this impacts each worker to a various degree. Have you actually read the entire article of what you posted from piie.com
"The explanation for the sluggish rise in real wages over the long run—1970 through 2000—may lie not with something that weakened labor's bargaining power but instead in changes in the relative prices of the goods and services that workers consume and those that they produce. In particular, in thinking about policies to raise middle-class incomes, we should be concerned about (a) the rising relative prices of goods and services that workers consume such as housing and education; (b) the rising costs of benefits, especially health care, and (c) the slow productivity growth in services as compared with the rapid productivity growth in investment goods. In the period after 2000, the declining share of labor (and rising share of profits) does warrant further explanation (in a
recent working paper, I argue this growing gap reflects a particular type of technical change), but prior to that, simplistic comparisons of "real" output per worker and "real" wages are likely to lead analysts to draw the wrong conclusions."
While I appreciate his view as he validates a few significant issues, he has some questionable conclusions. I concede there isn't one sole contributor to this crisis and perhaps I could be more clear. The issue we face is the amount of depth of economic policy required to discuss vs the amount of effort we are willing to provide to discuss. You've shown willingness to bring sources and analysis as requested so I will continue in good faith. So let's start here and move forward.
(a) The rising relative prices of goods/services that workers consume - does this impact wages that workers receive? take home pay? housing impacts the remaining discretionary income, education is a mixed bag. It can influence pay if you were talking about the level of education/training, however, if you are talking about the payment of education well then student loan debt would be a factor worth examining and I bring it up to show how it hurts discretionary income but to get back on topic... The author is disingenuously confusing shrinking discretionary income w/ stagnant wages. The problems compound each-other sure but stating that one is the cause of the other is... well laughable and absurd. Even if I was being the most generous and he is alluding to job training, that's not a real factor, HR weeds out unqualified workers and qualified vs over qualified workers that don't require training are abundant in the workforce yet their wage growth is not observable. This would fall into another snapshot argument and not something that would actually impact generational growth. So I'll throw that out as well. Yea, I'm sorry no ground here.
https://www.nytimes.com/2018/07/11/your-money/student-loan-debt-parents.html
So we identified that student debt is out of control. I've seen CPI vs student loan and its rough. I made a previous post within the past day or two about my presumptions on addressing student loan debt in a fiscal manner through student loan forgiveness. I don't write policy so take it with a grain of salt. Just a off the cuff suggestion of a potential compromise to the proposal for tuition-free higher education. Both a loan forgiveness route and tuition free would probably be funded through the proposed taxation methods if this ever was taken up in congress. But this is off topic again so I'm going to move on.
(b) the rising costs of benefits, especially health care,
See chart above. I want to reiterate that only a small, very small minority of workers get healthcare benefits without it deducting their take-home pay. Most will pay a share of the premiums with their employer, this impacts each worker to a various degree. I concede to his point this both affects the real wages of workers and impacts discretionary income. All the more reason to pass medicare for all.
(c) the slow productivity growth in services as compared with the rapid productivity growth in investment goods. In the period after 2000, the declining share of labor (and rising share of profits) does warrant further explanation (in a
recent working paper, I argue this growing gap reflects a particular type of technical change), but prior to that, simplistic comparisons of "real" output per worker and "real" wages are likely to lead analysts to draw the wrong conclusions."
Or people would realize sometimes simplistic comparisons give correct conclusions. He concedes that there is a gap. I read his recent working paper, a line struck out that seemed pertinent to mention, I encourage you to read it as well:
"Several papers have explained the recent decline in labor's share in income by claiming that capital has been substituted for labor."
This is another instance of observing an effect and incorrectly conflating it with the cause. The cause is the removal of union pressure that fought for an adequate labor share. The effect is when that pressure is removed, a decrease in labor share is replaced by capital investments. It merely filled the void and has a higher yield of profits to the status quo, ie CEOs and share holders. This best explains the growth of the investors and CEOs as well as the stagnation of the labor force's wages.
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Education is free. Internet with all the worlds knowledge at my finger tips. Its better now, fuck the past. Learn on your own, start up your own business, fuck college. Getting a device with internet is a Hell a lot cheaper then going to college.
Except you need a foundation to ensure you are learning accurate information. We do live in an information age, but the last thing we need to deal with are people who read web MD and tell doctors who went through accredited institutions how to practice medicine. I know what you are saying and to a large degree I agree with you, just giving a bit of devil's advocate that not everyone is willing to multi source information to ensure it has validity. We need accreditation and standards so we can expect quality goods/services. Things that I'm referring to are licenses, degrees, or certifications and they need to be provisioned by accredited institutions to have worth/credibility.
There might be other examples that would suite better but it's the first one that came to mind. There are some things that formal institutions can't teach or keep up with. Those would benefit from self-learning and given a proper foundation, the internet can be a good source of information.