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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'

#261

Post by dragonwriter »

kolpa wrote: post #203
vturner wrote: post #129

Why doesn't the stock market act as a balancing system to low wages? Lowering wages implies higher efficiency thus resulting in higher profits which ultimately end up in "investors" pockets. Why are these "investors" not the common American "worker" whose wages are low? Why has the market not created such an instrument to supplement the "worker" who has low wages but could ultimately profit from the ever-increasingly…

If you don't have high wages you can't buy stock.

If you don't have high wages, you can't invest enough to expect more than a very modest retirement. You can buy some stock, and lots of people do—America has a fairly large number of people who own some stock, just very few who have accumulated enough to live off their investments while still growing them.

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

#262

Post by dragonwriter »

vturner wrote: post #196
germinalphrase wrote: post #159

Earlier quoted context omitted.

Are you suggesting some kind of "American Dividend" for all citizens?

Yes, why hasn't this arisen naturally? Are the potential profits too low to collect the meager income of many low-wage Americans and then redistribute the gains over time?

> Yes, why hasn't this arisen naturally?

Why would it arise naturally?

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

#263

Post by isostatic »

israelisreal wrote: post #76
isostatic wrote: post #66

Earlier quoted context omitted.

All paid for by those who don't go into the military–industrial complex, but instead pay enormous taxes to fund it. The kid fixing broken windows does well too. The U.S. accounts for 35% of the world's defence spending, more than twice that of Russia and China together.

You are paying for it by your service, which only 1% of the population serves. I have nothing but respect for the military and those who serve. People need to stand behind the troops or in front of them. People sleep well at night because of the military and their sacrifice.

And logger, or fishermen, or oil rig workers, or drivers, who app work far more dangerous jobs, don't "sacrifice"

I sleep well at night because of a roofer who risked his life to fix a hole, not because the US spend an obscene amount of money on its military.

P.S the military isn't that dangerous. The largest killer is suicide, then transport accidents, then other accidents. Truckers are in a far more risky job, because of the danger of driving, and because of the sedantary lifestyle. Next time you see a trucker at the gas station remember to applaud him and thank him for his service.

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

#264

Post by ladon86 »

dunpeal wrote: post #251
methodover wrote: post #239

Earlier quoted context omitted.

Yeah, I mean you're absolutely right. I'm in an incredible position, and yet, it still feels unfair. I'm 90% sure that it's just that I'm petty and greedy. And yet, like, at the end of the day the engine that drives the economy forward -- and humanity forward -- isn't cash. It's individual human beings sitting down and putting in the hard work in creating something new and nurturing it for years. It feels like our ec…

> I'm in an incredible position Why? Because the founders gave you 1.8% pre-dillution equity, vesting over 8 years, and told you that's "very generous"? You're an engineer in a market where engineers are in high demand and short supply. Being one of 3 engineers developing a product and getting just 1.8% of the equity - coupled with high demands and (I would bet) under-market pay isn't such a great deal. You're should…

He basically agreed with your skepticism in his first comment, but he also believes that his situation is comparatively very fortunate, when looking at many other people in this country.

Both things can be true - your comment is comparing up, as he did in his first comment, while his second comment compares down.

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

#265

Post by Crontab »

I think one of the biggest issues in Corporate America is that the pay of upper management is totally divorced from the pay of the common worker. Furthermore, upper manager is often incentivized to fuck over workers because of their preferred stock options.

I am sure it has always been this way but I don't know if it has always been this unbalanced.

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

#266

Post by lovich »

test6554 wrote: post #165
lovich wrote: post #116

Earlier quoted context omitted.

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.

That doesn't make it an answer to a systemic issue though, regardless of the benefits of the story being told

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

#267

Post by closeparen »

codexon wrote: post #138
oflannabhra wrote: post #18

Powell also spoke to this in a recent interview with Marketplace[0] >Ryssdal: I want to get to the regulatory part of your job, which you address right there in a second, but I want to first talk about some of the things that came out of the financial crisis that we're still dealing with. And maybe the most relevant for consumers in this economy is the idea that wages now for a decade or more really have been stuck.…

The answer is so obvious I find it strange that Powell is confused. Globalization. No one is going to pay workers here more when they know that workers are getting paid $2/hr in China or Cambodia.

The effect isn’t isolated to low-skill manufacturing.

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

#268

Post by closeparen »

vturner wrote: post #129

Why doesn't the stock market act as a balancing system to low wages? Lowering wages implies higher efficiency thus resulting in higher profits which ultimately end up in "investors" pockets. Why are these "investors" not the common American "worker" whose wages are low? Why has the market not created such an instrument to supplement the "worker" who has low wages but could ultimately profit from the ever-increasingly…

It does. Around half of all financial asset wealth is ordinary people’s retirement savings. And that’s nothing compared to the wealth the American middle class holds in home equity.

High-flying Wall Street types are ultimately dealing with regular people’s money (often through indirections like pension funds).

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

#269

Post by knuththetruth »

yardie wrote: post #235
knuththetruth wrote: post #51

Earlier quoted context omitted.

Laws designed to protect workers are pretty rarely enforced, or only through costly legal proceedings that most working class people can’t afford.

Labor disputes are handled through state and federal labor relations boards. You file a complaint, an investigation is started, and eventually a ruling is made. Lawyers are not a requirement but the employer will probably send one anyway.

>Labor disputes are handled through state and federal labor relations boards.

...which are toothless, especially in Republican-controlled states.

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

#270

Post by codexon »

closeparen wrote: post #267
codexon wrote: post #138

Earlier quoted context omitted.

The answer is so obvious I find it strange that Powell is confused. Globalization. No one is going to pay workers here more when they know that workers are getting paid $2/hr in China or Cambodia.

The effect isn’t isolated to low-skill manufacturing.

I agree.

It is harder for people to argue against the logic for manufacturing which is why I only mentioned that.

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