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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'

#31

Post by joyeuse6701 »

noobermin wrote: post #15
pradn wrote: post #6

Earlier quoted context omitted.

Many people barely have enough to live on, let alone invest. If wages were higher in real terms, they're lives would be better. Plus, investing is risky. Not everyone has the ability to weather business downturns without tapping into savings.

BTW, this isn't a moral argument (at least it need not be), practically people cannot invest in anything and yield an actually substantial return. Almost half(E) people in the US cannot weather a $400 emergency without going into debt, how could they possibly have enough money to invest for either themselves or their children? This arguably would be only valuable for people in the middle class to upper middle class.…

If one has internet, one can invest in oneself through education in very tangible lucrative ways. Never before has access to so much knowledge been available from MIT courses to marketing books, much of which is free.

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

#32

Post by wavefunction »

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.

It's hard for working-class people to get away from their jobs to vote.

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

#33

Post by anon12341234 »

AlimJaffer wrote: post #9
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.

With what money? Between student debt, stagnant wages, the 'gig' economy, and limited mobility - how is anyone supposed to save a reasonable sum to invest in even when taking into account the joys of compound interest?

With the money they use to go to bars, pay for netflix, eat out at restaurants, go to concerts, buy video games, etcetera etcetera. Almost every person who claims to have no money to invest actually has plenty of money; they just squander it on immediate gratification.

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

#34

Post by [deleted] »

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.

[deleted]

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

#35

Post by gboudrias »

Who could've seen it coming except all social sciences and literally mathematics...

What I'm saying is, how are they just now "troubled"? This is all but inevitable barring drastic measures to enforce the opposite trend, at which point it's no longer any recognizable sort of capitalism. Honestly it just seems like a bunch of people receiving numbers they expected and pretending to be surprised.

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

#36

Post by slg »

noobermin wrote: post #15
pradn wrote: post #6

Earlier quoted context omitted.

Many people barely have enough to live on, let alone invest. If wages were higher in real terms, they're lives would be better. Plus, investing is risky. Not everyone has the ability to weather business downturns without tapping into savings.

BTW, this isn't a moral argument (at least it need not be), practically people cannot invest in anything and yield an actually substantial return. Almost half(E) people in the US cannot weather a $400 emergency without going into debt, how could they possibly have enough money to invest for either themselves or their children? This arguably would be only valuable for people in the middle class to upper middle class.…

I don't disagree with you, but the obvious counter is that you are mixing causation and correlation. You would have to show that people are not investing because they have no extra money and not that they are choosing to use their money now instead of investing. Realistically it is likely a combination of those two and therefore the comment that started this thread has a point that teaching people about investing can help motivate a shift in priorities which is better than nothing.

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

#37

Post by arblegobblebrbl »

pradn wrote: post #6
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.

Many people barely have enough to live on, let alone invest. If wages were higher in real terms, they're lives would be better. Plus, investing is risky. Not everyone has the ability to weather business downturns without tapping into savings.

Why does this have to be the case? There is so much opportunity in this country.

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

#38

Post by jiveturkey »

legitster wrote: post #27

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.

define "we".

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

#39

Post by israelisreal »

My daughter is going into the Air Force, getting her degree at night for nothing in 2.5 years, going back in as an officer, effectively doubling her income all the while not paying for food, lodging, medical/dental. She plans on doing 20. She'll likely marry an Air Force officer, and two people retiring at 39/40 YO will have a combined retirement of just under 100k (today's money), all the while not wasting precious money on medical/dental. She'll be young enough to have a second career in her chosen field and if the legislators don't screw up SS, she'll have three retirement incomes.

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

#40

Post by arblegobblebrbl »

wavefunction wrote: post #32
patagonia wrote: post #22

Earlier quoted context omitted.

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.

It's hard for working-class people to get away from their jobs to vote.

Its the law that you must be given time away from your job to vote.
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