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The labor share of income in the US is at its lowest post-war level

libertystreeteconomics.newyorkfed.org

441–450 of 573 posts

Re: The labor share of income in the US is at its lowest post-war level

#441
post #397

Earlier quoted context omitted.

As a gulf state resident, a whole lot of us live in shitty old shotgun houses that have been patched up hundreds of times just waiting for the next hurricane to wipe us out finally. I would assume this doesn't account for Germans having different healthcare costs which will aboslutely wreck the average American household with how fucked our system has become.

Do you believe about 50% of Mississippians live in abject poverty as put forth by GGP poster? The kind of poverty you saw in Dust Bowl era workers or Weimar era Germany or 3rd would today? Sure people may not be middle class but they are not in abject poverty where they steal chickens, shit on the street, sell their relatives into servitude and barely have two changes of clothing. At least I don’t think so. What thos…

I find it hard to believe 50%, but we are not doing well down here. Homeless populations have increased massively and the average cost of a single bedroom apartment has gone from $500-1150 in my area since I moved here in 2008. Meanwhile the minimum wage is still $7.25/hour up from $5.50/hour in the 2000's.

Gentrification has also bought up a lot of the older areas and created what feels like faux poverty aesthetic gated apartments and over priced eateries with random shit sprinkled in like Axe throwing places. (Please someone where did all of these axe throwing places come from)

Things are also different down here because you see a massive loss in land/homes lasting families for generations due to petro-chemical and now data center companies buying up whole towns to bulldoze and built into pollution centers.

I'm seeing a lot more cars with doors, bumpers and windows missing because people just need their scrap heap of a car to continue to get them to work across town. We don't have walkable cities and even homeless people sometimes have cheap bicycles with scrap weedwacker motors bolted on because they can't afford a car or the time to get a license.

Someone else brought up the real truth, a lot of us are living paycheck to paycheck and entirely beholden to how much room we still have on various credit cards to buy food after paying bills. Eternal debt slavery is becoming extremely common.

It's not abject poverty, its just dire circumstances for a huge number of everyday folk.

Re: The labor share of income in the US is at its lowest post-war level

#442

Earlier quoted context omitted.

Every discussion about the 'top 10%' seems to make the underlying assumption that the set of people who fall under that category are consistent. While there are certainly individuals who enter the top 10% (or top 1%) and stay there; there are large numbers of people who move in and out of those categories. For me personally, I am in the top 10%; but a few decades ago, I was not.

The statistical evidence for your claim is not good. There is certainly a generational effect in that 5 year olds are typically not in the upper decile, simply because they generally have little to no individual wealth or income. But in the USA at least, most people die in the same decile they were born into.

Exactly! And while a well off person may have a memory of a time in their life when they were not doing well (like in school, starting their career etc.) that can be misleading. You tend to end up like your parents more then was true three or four generations ago for many reasons: tax policy, less physical mobility, people tending more to marry with similar levels of education or income.

People debate how much social mobility there is in the US, but it seems pretty clear that the trend has been toward less mobility. The founding fathers of the US did not want to replace one aristocracy with another. Obviously there are some who think the change makes sense-- not me.

Re: The labor share of income in the US is at its lowest post-war level

#443
post #112

Earlier quoted context omitted.

> half of the US is living in abject poverty Anyone who believes this has absolutely no concept of what abject poverty looks like.

If you’re only complaint is the word “abject”, I encourage you to try to live on anywhere from $7 to $15 an hour, in a part-time job that doesn’t guarantee week to week how many hours you’ll get. That is a very common reality.

If you remove the word abject, the argument is:

> half of the US is living in poverty

This statement is also false.

> I encourage you to try to live on anywhere from $7 to $15 an hour

That's the bottom quintile, not the bottom half. The Median household income is $83,730, which would be more like $41.50.

Re: The labor share of income in the US is at its lowest post-war level

#444

Earlier quoted context omitted.

It's not naive, it's near optimal. The system rewards people who've done well at capital allocation with more capital to allocate, and takes capital away from those who've done poorly at it. And there's no better predict of future performance at allocating capital than past performance.

Well my point was that it might be optimal for the one doing the allocation and maximize their returns. That does not mean its optimal for the economy and society on the whole.

Actually it does mean it is optimal for the economy as opposed to a central planner who somehow has all the information and does planning with precision. These are mainstream views in economics.

Re: The labor share of income in the US is at its lowest post-war level

#445
post #402

Earlier quoted context omitted.

Most tech workers do not get compensated with stock. A fraction of the best compensated get stock. The next tier down get options with so many caveats that they are effectively worthless, and the tier below them are straight salary with no equity even entering the horizon for them. And yea, once you start getting actual capital and start reaping the benefits of that wealth you start being identified as a capitalist i…

Eh? Which tech company doesn't give RSUs to fresh grads? Startups of course give options. And how many american middle class+ (generalizing beyond tech workers) don't own equity?

Our corporation gives us worthless certificates for "money", that only pay out conditionally based on if the company gets re-evaluated for worth.

Our 401K match maxes out at $50 per paycheck.

Re: The labor share of income in the US is at its lowest post-war level

#446

Earlier quoted context omitted.

Because capital gains taxes really discourage selling which gums up the economy

Wouldn't prices of assets just rise to compensate? People still need liquidity.

From what I understand, this lack of liquidity is not an issue in ‘financial markets’, but can be a problem for other assets such as housing.

Re: The labor share of income in the US is at its lowest post-war level

#447

Earlier quoted context omitted.

The chart you're showing, absolutely reflects the reality of some of the most productive segments of our economy. Ford now makes more cars, with fewer people. Sears used to have people who took photos, laid out catalogs, opened envelopes (with checks in them).... Amazon has none of that. We replaced switch board operators, with mechanical, then digital switching. More calls routed, fewer people required. go back 45 y…

Construction notably has had productivity losses since the 80s afaik.

Good call out, and an interesting case I was unaware of.

It looks like this is another facet of the "bitter medicine" that we're seeing around housing in general.

The first article that I saw pointed out that there is a correlation between productivity and regulation (of construction permitting etc). I would believe that because it has a corollary with "housing starts" (a measure of new construction) and its regional strength in the red/south portion of the country.

Re: The labor share of income in the US is at its lowest post-war level

#448

Earlier quoted context omitted.

being born into money is not a requirement to own several houses before 30. Do tell.

So “ landlord ” and “ commercial landlord living entirely off of passive income ” are worlds apart. Buying a fixer-upper outside of town with high-school and early 20s grinding, renting out 3+ rooms to cover the mortgage for painful years, working 80 hour weeks, refinancing against that first house into another under-maintained property where you live in half while upgrading the other, ending up with a rental duplex…

    owning property young is achievable for electricians, security guards, and janitors.
The comment wasn't about buying your first house, it was "owning several properties by the time you're 30" which a janitor of all things absolutely cannot do.

Re: The labor share of income in the US is at its lowest post-war level

#449

Earlier quoted context omitted.

Well my point was that it might be optimal for the one doing the allocation and maximize their returns. That does not mean its optimal for the economy and society on the whole.

Actually it does mean it is optimal for the economy as opposed to a central planner who somehow has all the information and does planning with precision. These are mainstream views in economics.

Actually markets are always rational, perfectly efficient and there are no speculative bubbles? Of course not.

So its obviously suboptimal, only question if there is a more optimal system.

> central planner who somehow has all the information

Every developed country is balancing that with free markets and its the mainstream view that a balanced system is optimal (the exact ratio is of course something’s that not quite settled).

Re: The labor share of income in the US is at its lowest post-war level

#450

Earlier quoted context omitted.

>That's you. but nobody In Sweden drives to work? A smaller fraction than in the US. I think most people I know drive. >I see walking to work as an relative to each individual and their job lcoatiopna dn circumstance of where they live, not a country related thing. Well, it isn't. It's about how walkable environments are. >GDP growth "experts" would disagree. It's the reason we don't have mandatory WFH for white coll…

>but the whole point is the goal of society isn't GDP Then why are people(westerners mostly) bullying Japan for stagnant GPD growth and refusing mass migration to boost their GDP?

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