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Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
11–20 of 37 posts
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#12Ah the fixed-pie fallacy... A foundational pillar for so much of today's political rhetoric (on the right and left).
Can you elaborate what this has to do with fixed pie?
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#13Maybe I am cynical or naive but if more automation and other things are causing fewer jobs. And then the remaining employees are getting paid more but there are fewer paid workers overall. But that'd cause a rise in compensation of those employeed.
Shouldn't this be done differently?
Tl;dr; let's fire/automate half the workers. Pay the rest more. And worker Compensation will skyrocket!
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#14Earlier quoted context omitted.
It isn't a fallacy if you have even a basic understanding of economics. Unfortunately, most of the layman discourse on the internet seems to blindly follow the mantra of an infinitely expanding economy. While that may be true on an infinite timescale, in the short and medium runs (scale of economic cycles), the pie is indeed fixed.
I'm a fellow at one of the largest economic think tanks in the world. I've been studying various schools for 25+ years. I have a basic understanding. "On an infinite timescale"? That is literally meaningless. Show me ANY time scale where the pie has been fixed and I'll go away.
To two digit accuracy: Today, May 3rd 2016.
This is relevant in the case of disasters as you don't have time to meaningfully increase the number of Generators available etc.
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#15Maybe I am cynical or naive but if more automation and other things are causing fewer jobs. And then the remaining employees are getting paid more but there are fewer paid workers overall. But that'd cause a rise in compensation of those employeed. Shouldn't this be done differently? Tl;dr; let's fire/automate half the workers. Pay the rest more. And worker Compensation will skyrocket!
The article cited total pay and compensation as a proportion of the economic output. It does not mention median pay increasing for workers, so the situation you're describing may very well be the case.
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#16There are no error bars on this chart, and the deviation is so small as a percentage of the total change, that we have no way of knowing if this is signal or noise, so the article is somewhat pointless.
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#17Isn't this phenomenon consistent this this?[0]
[0] http://www.ibtimes.com/ceo-pay-corporate-executives-got-rais...
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#18The article notes that a greater percentage of national income is going to workers now, which may very well be true according to how the accounting is done. However, how much of that is because many large corporations are booking a great deal of their profits outside of the US, reducing the denominator in kind of an artificial way? I didn't see anything in the article that mentioned the potential effects of corporati…
Another possibility is to look at the compensation for upper management. C-level officers are usually paid in stock as well as cash, but the staff reporting directly to them are salaried employees. If you actually look at the graph (presented in the same article) it does not look like "the trend is reversing" at all. It rather looks like a very clear downwards trend with a strong cyclic component. So, when the times…
Exactly, take away the cyclical component of the wage graph and it's still trending down.
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#19Ah the fixed-pie fallacy... A foundational pillar for so much of today's political rhetoric (on the right and left).
This has nothing to do with the fixed-pie fallacy. Of course both worker's incomes and shareholder gains can both increase by growing the pie. But at any given point in time there absolutely is a "piece" that goes to one and a piece that goes to the other. And it's interesting to look at how the relative sizes of those pieces change over time and what forces can drive those changes.
Re: Workers Are Getting a Bit More of the Economic Pie (and Shareholders Less)
#20Maybe I am cynical or naive but if more automation and other things are causing fewer jobs. And then the remaining employees are getting paid more but there are fewer paid workers overall. But that'd cause a rise in compensation of those employeed. Shouldn't this be done differently? Tl;dr; let's fire/automate half the workers. Pay the rest more. And worker Compensation will skyrocket!
What work has actually been automated away? There is lots of talk about it but I don't see any real evidence of it.
As a developer, I can use a decent framework and modern tooling, and I can do what a team of 5 was capable of 10 -15 years ago. My work isn't vanishing. There is more of it if anything.