Sunday, April 15, 2018

Why are Wages Not Growing with the Economy?

It would seem from a traditional economics approach that as economic activity speeds up, and unemployment lowers, that wages should rise. This is true in theory but it isn't true in today's world. Productivity rises but wages rise much less. People who are working hard and worth a lot are paid much lower for their labor. As a matter of point, peoples wages are generally declining over time and being eaten up by inflation. So there is something wrong....but it may not be easy to explain.

Corporate profits are up so this doesn't make a lot sense that workers wages are not also up. Sometimes companies make so much money they take it and invest it overseas in order to avoid paying taxes. Of course, those companies have no moral qualms about leaving the country and ditching their loyalties when the accountants can shave another percentage or two of profit by doing so.

.....kind of makes you wonder about the type of people donating to political campaigns and what they are expecting that money will buy them.

I read this article that was thought provoking. I'm not pro labor, or pro corporate, as much as I am pro-American. Businesses and employees should profit together and when they don't there is misalignment of values. Someone feels more entitled and doesn't see the rest of Americans as worthy as they see themselves. I have seen time and time again inner circles of executives enrich each other and create opportunities that more deserving people don't have access to.

Many times companies would rather destroy themselves than allow new blood with new ideas.

You make your own judgement about the article.....How the American economy conspires to keep wages down

No comments:

Post a Comment