Federal Reserve chair says decline in workers' share of profits 'very troubling'
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Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#2you erode worker bargaining power for 30 years and you wonder why they're share of profits is going down. go figure.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#3you 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.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#4you 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.
I don't think that the person you're replying to is implying its the Fed's fault as an organization. It is the function of people in power (both politically and in the economy) since the 80s having eroded worker's abilities to push back, so it's more an indictment of the system, not individuals strictly.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#5People 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.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#6People 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.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#7People 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.
Lack of surplus income to invest, and/or mid-career wipe-outs of any accumulated funds (divorce, illness, disability, natural disaster, lawsuit, legal defence, market crash) and that plan utterly fails.
Retirement isn't something to leave to chance. Social insurance applies the law of large numbers to eliminating much of that.
The US pensions crisis is going to be devastating beyond all belief.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#8People 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 a luxury many Americans cannot afford, particularly at an early age.
You could teach them the "value of money" all day long, but if they don't have money to save it won't do them any good.
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#9People 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?
Re: Federal Reserve chair says decline in workers' share of profits 'very troubling'
#10Earlier 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.
I don't think that the person you're replying to is implying its the Fed's fault as an organization. It is the function of people in power (both politically and in the economy) since the 80s having eroded worker's abilities to push back, so it's more an indictment of the system, not individuals strictly.
The comment was massively down voted when I saw it, so I have to assume the reason was because people interpreted the comment as I laid it out. Though now it is out of the light grey