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Federal Reserve chair says decline in workers' share of profits 'very troubling'

latimes.com

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Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#21

Post by Shivetya »

ams6110 wrote: post #5

People need to be taught about investing and the time value of money from an early age. If you invest in some low-cost index funds, you share in the profits. And if you start early, it doesn't have to be a big sacrifice.

What Americans need is more emphasis on creating and sticking to budgets, recognizing true needs versus wants, and how to save. Investing can come later after the budget which includes some attempt at savings.

Many people who enter a program to learn how to budget quickly learn how all the monthly bills in their life add up quickly to consume their income. Examples are spending too much on cell and internet service plans, too many subscriber entertainment services, gym memberships, eating out wastefully, and more. Even the knowledge the buying a car with a term over 42 months is too much car is important to know.

Yes there are some in society who truly are at limits but we have to follow a different means to get them back to functional levels. It still benefits them immensely to learn strict budgeting that they can take forward when their income stabilizes.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#22

Post by patagonia »

knuththetruth wrote: post #20
patagonia wrote: post #16

Unfortunately the laws and regulations in place facilitating this trend are put in place, for the most part, by elected representatives. For one thing, we need to change “first past the post” election results to decrease the polarizing results that have been shaping our politics as of late. I’m just saying, this isn’t a conspiracy by one party or group. To an extent, it’s the country we voted for.

This is a strange take when the wealthy actively conspire through bought-and-sold politicians to discredit, undermine, and destroy labor organization, the only thing in history with a proven track record of winning concessions for workers(in aggregate). Maybe there’s not a “conspiracy,” but there’s certainly a class war.

I agree class issues are at play. But our “class system” is not determined by blood lines. The constituents of a a given class are fluid. Which leads me to believe it is a combination of human nature and relative participation of the various classes. Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#23

Post by Carlton87 »

ams6110 wrote: post #5

People need to be taught about investing and the time value of money from an early age. If you invest in some low-cost index funds, you share in the profits. And if you start early, it doesn't have to be a big sacrifice.

I agree 100% with you. I will never understand the argument that lack of personal responsibility deserves to be rewarded.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#24

Post by walru »

TAForObvReasons wrote: post #3
sharemywin wrote: post #2

you erode worker bargaining power for 30 years and you wonder why they're share of profits is going down. go figure.

To be fair, the Federal Reserve is not responsible for labor law and the like. They are clearly very late in their response, but it's notable that a non-political organization felt the need to comment.

The Fed is responsible for the savings rate of the average American, which is to say, it's absolutely worthless to stick your money in the bank and watch it grow, which would help starve off what they're talking about here.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#25

Post by sharemywin »

ams6110 wrote: post #5

People need to be taught about investing and the time value of money from an early age. If you invest in some low-cost index funds, you share in the profits. And if you start early, it doesn't have to be a big sacrifice.

low-cost index funds are a parasitic investment strategy that's leading to a huge overvaluation of tech stocks.

What could go wrong with millions of people believing in a simplistic investment strategy that always works. Kinda like buy a house real estate prices always go up. Well, for all the private equity funds that picked up real estate and banks at pennies on the dollar.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#27

Post by legitster »

To me it is pretty ridiculous how much labor is taxed, and how little capital is taxed. Especially if we are worried about automation and lack of productivity growth, it seems so counter-intuitive that we are completely stuck to a tax system that devalues workers.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#29

Post by Y_Y »

walru wrote: post #24
TAForObvReasons wrote: post #3

Earlier quoted context omitted.

To be fair, the Federal Reserve is not responsible for labor law and the like. They are clearly very late in their response, but it's notable that a non-political organization felt the need to comment.

The Fed is responsible for the savings rate of the average American, which is to say, it's absolutely worthless to stick your money in the bank and watch it grow, which would help starve off what they're talking about here.

I think "starving off" might be exactly what they have in mind.

Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'

#30

Post by lovich »

patagonia wrote: post #22
knuththetruth wrote: post #20

Earlier quoted context omitted.

This is a strange take when the wealthy actively conspire through bought-and-sold politicians to discredit, undermine, and destroy labor organization, the only thing in history with a proven track record of winning concessions for workers(in aggregate). Maybe there’s not a “conspiracy,” but there’s certainly a class war.

I agree class issues are at play. But our “class system” is not determined by blood lines. The constituents of a a given class are fluid. Which leads me to believe it is a combination of human nature and relative participation of the various classes. Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

Social mobility exists but is low in the US and has been on the decline. There's no hard and fast rules on class in the US but for all practical purposes most people are going to be the same class as their parents
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