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

latimes.com

161–170 of 289 posts

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

#161

Earlier quoted context omitted.

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.

People working two or three jobs don't usually have the time to educate themselves. Moreover, the job market is generally against people without a degree.

Understand, there are people in this country who have been working since 16 to provide for themselves, they work for less than 9 dollars an hour, and still pay rent, utilities, medical bills, car payments and more. They didn't have hours during summer to sit around and play video games that they could have spent watching MIT courses instead. They today, still don't have the time to game the system and get ahead that others have.

The ability to get ahead by shear will is far beyond the will and patience most people who write medium posts about coder burnout have to contend with, the difference is instead of possibly not becoming a more well off person with higher net worth, the possibility is dying or incurring more debt.

Regardless, even if single individuals can get ahead, that's fine and commendable in some sense, but there will be many more who won't, the shear majority won't because the system itself produces these circumstances, and in fact, profits off it. What we see is the function of the way we set up companies and society in general.

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

#162
post #52

40-50 years ago, a young person fresh out of high school could get a job that allowed them to live the middle class life -- own a house and support a family with only one spouse needing to work. Nowadays even college graduates struggle to achieve "liftoff." Globalization has led to a race-to-the-bottom situation where jobs flow across borders, to the places where desperate poverty allows wages to be as low as possibl…

I agree. I remember those days. At 50, I've been in IT now for 3 decades. The pay in IT has decreased as well. My dad pulled a family of four along on his salary and we were comfortable, but not rich. I lacked nothing. However... when I turned 10, I came home one day from school and there was a brand new mower sitting in the driveway with a gas can and a rope. My dad said, "Son, canvas the neighborhood and charge $5-…

"Sadly, this young generation has embraced the notion of entitlement"

An older person talking about how the younger generation is "entitled" is the quickest way to say that you don't actually know what's going on.

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

#163
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 are you suggesting these people invest?

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

#164
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.

Investing is very close to being a legal ponzi scheme.

If everyone invested as much as they could, people wouldn't buy enough to drive company profits like you see today, or to be the last people holding the bags when a recession occurs.

Also stock markets don't go up forever, Japan's Nikkei topped in 1989, and as of now, has barely recovered half the value. Do you really think even index funds are risk free when you can have a 50% loss for 30 years?

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

#165
post #116

Earlier quoted context omitted.

The post was meant to state that there are paths that do not require going into mounting debt. The military is a fine path for those who are wired that way. It teaches discipline, team work, being a part of something bigger than yourself, and in return you basically live for free, largely pocketing the lion's share of your income. A young person can get a degree at night in the military (free) and if they like the mi…

The fact that _anyone_ can go down this path does not mean that _everyone_ can. The military would simply stop recruiting people or offering as nice benefits if everyone did this. The issue in our country is that we are increasingly making the default way of life for average Americans be one of more anguish and stress when we do not have to. None of the options for success in the US that we currently have are going t…

There is no single path to prosperity that everyone can follow. That's why I value people that share their story or the path they took, even if it doesn't apply to me.

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

#166

Earlier quoted context omitted.

The post was meant to state that there are paths that do not require going into mounting debt. The military is a fine path for those who are wired that way. It teaches discipline, team work, being a part of something bigger than yourself, and in return you basically live for free, largely pocketing the lion's share of your income. A young person can get a degree at night in the military (free) and if they like the mi…

I'm a veteran that had to enlist so I could get out of poverty. I also lean left. Let me say this out of a little spite since you decided to get political: If you and your daughter's mother made the "right" decisions, your daughter wouldn't have to enlist in the military to have a chance at a good life. I'll show myself out now.

Fair enough, but it's her choice. She is choosing this path largely because she doesn't want to attend college in a traditional setting and deal with the kinds of BS that plague colleges now. My daughter leans hard right, again her choice, and in many ways she is further right than me or her mother. My daughter wants to do things her own way, and the Air Force is the way she wants to do it. Who am I to stop her? She's always been a willful kid and she's always been academically on point. The Air Force way benefits her in numerous ways, not least of which is she keeps her money in her pocket.

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

#167

Earlier quoted context omitted.

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.

If you took all the money a person on a limited income spends on Netflix, restaurants and games they could scrounge up enough money to buy a trailer home in the middle of Nebraska just before they die of old age. The reason people don't save every penny is because pennies don't matter any more. The price of housing, medical care, and education is becoming so overwhelming that everything else pales in comparison. This…

If you add up all that money, most people could save $100+ per month. Add in an employer match for 401k and you're saving $200 per month. With 5% real return in the stock market, most people could have $400k saved up by the time they hit 70. That's nothing to sneeze at, and anybody can achieve it if they're prudent.

Maybe if you were working instead of squandering your money and time on videogames, your reality wouldn't be so brutal.

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

#168

Shocking. SHOCKING, I say. The recent tax cuts were touted to generate big raises for American workers. A few companies made some news with one-time payouts, but then the rest of that is just being funneled to shareholders. If a government creates laws that incent shareholder givebacks, you wonder why workers' share of profits aren't increasing?

The recent tax cuts will take a few years to filter though the economy to workers - at best. Thus it is incorrect use results to judge any policy until many years have passed. This is the nature of most things that the government does, and why it is really hard to figure out what is best.

There are ways to make judgement that are not based on results, but they always subject to their own biases.

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

#169
post #97

Earlier quoted context omitted.

>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. We know they don't have enough money to invest. Average income + average cost of living We've quite literally known about if for years on a national scale. He doesn't have to show anything.

I am not victim blaming, I am pointing out a way that the "broken system" has failed to educate people about the problem. You also can't just cite the average cost of living as if that it is a standard that has no waste in it. We need to do a better job of framing things like "if you switch to a worse phone plan and save $10 per month to invest, you will probably have something around $30,000 in 30 years while only i…

"We need to do a better job of framing things like "if you switch to a worse phone plan and save $10 per month to invest, you will probably have something around $30,000 in 30 years while only investing $3,600."."

Prove that is possible. Find an investment that will do that.

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

#170

Shocking. SHOCKING, I say. The recent tax cuts were touted to generate big raises for American workers. A few companies made some news with one-time payouts, but then the rest of that is just being funneled to shareholders. If a government creates laws that incent shareholder givebacks, you wonder why workers' share of profits aren't increasing?

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