U.S. Wages Aren’t Keeping Up With U.S. Productivity, EPI Says
This is pretty clear evidence that America is not the “meritocracy” that conservatives claim. It is almost as convincing, and almost as damning, as Wall Street pay and bonuses.
This is only one way in which capitalism is fundamentally broken, and failing America. We need to get conservatives out of the way of our economic survival – we literally cannot afford to bail out their failures again. Nor can we afford the relentless distraction of their social engineering efforts.
“It is not evidence that capitalism is broken. It is evidence productivity can rise faster than wages.
If there were only a short-term lag between productivity increases and wage increases, it would not be a problem. Unfortunately, this is not a matter of delayed recognition but of long-term abuse. Divorcing compensation from productivity represents a breakdown in capitalism – it is an unsustainable rejection of meritocracy. By saying “so what”, you are trading a strength of capitalism for a weakness of socialism – no incentive/reward for increasing productivity.
Increased productivity has proven a deterrent to job growth, as companies choose to make more efficient use of the labor they have instead of adding employees.
Furthermore, 70% of the economy is consumer-driven. Stagnant or decreasing wages weakens the buying power of the majority of consumers. It is a trend that, if unchecked, can only end in economic failure.
What some call “legacy costs” is also known as “deferred compensation.” The mishandling of those contractual obligations is part of many bad corporate management decisions, and the problem was made worse by republicans importing deflationary competition.
Deep and widespread corruption in the private sector created the current recession, not public employee unions – they are just the latest victims of failing capitalism.
Read the Article at HuffingtonPost
- EPI on Lagging Wages, Rising Productivity. (rortybomb.wordpress.com)
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