Federal Reserve chair says decline in workers' share of profits 'very troubling' • Hacker News Board

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

#41

Post by arblegobblebrbl » Tue, Jul 17, 2018, 8:04 PM UTC

AlimJaffer wrote: post #9

ams6110 wrote: 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? 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?

Well, for starters, you could stop with all the avocado toast.

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

#42

Post by hammock » Tue, Jul 17, 2018, 8:04 PM UTC

legitster wrote: post #27

To me it is pretty ridiculous how much labor is taxed, and how little capital is taxed. Especially if we are worried about automation and lack of productivity growth, it seems so counter-intuitive that we are completely stuck to a tax system that devalues workers.

Who is worried about automation and lack of productivity growth? Seems like the worry is over inequality.

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

#43

Post by vkou » Tue, Jul 17, 2018, 8:04 PM UTC

wavefunction wrote: post #32

patagonia wrote: post #22

Earlier quoted context omitted.

I agree class issues are at play. But our “class system” is not determined by blood lines. The constituents of a a given class are fluid. Which leads me to believe it is a combination of human nature and relative participation of the various classes. Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

It's hard for working-class people to get away from their jobs to vote.

Voting is also only the last step in a representative democracy, and is the only free one. They don't have the time or money to fund the preceeding steps.

Which is necessary to avoid having to vote for one of two shitty options.

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

#44

Post by munk-a » Tue, Jul 17, 2018, 8:05 PM UTC

Buttons840 wrote: post #19

patagonia wrote: post #16

Unfortunately the laws and regulations in place facilitating this trend are put in place, for the most part, by elected representatives. For one thing, we need to change “first past the post” election results to decrease the polarizing results that have been shaping our politics as of late. I’m just saying, this isn’t a conspiracy by one party or group. To an extent, it’s the country we voted for.

I donate to http://www.fairvote.org . If anyone knows of other activist groups supporting better voting systems, I'd like to know about them.

I don't know a better one but I'm sad to see the organization doesn't support leveling seats for volume positions (i.e. house members & senators) there are some complex voting systems that appear to be theoretically more representative than IRV but for single position elections (governor, president, DA, etc...) IRV seems like a good balance between complexity and fairness.

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

#45

Post by knuththetruth » Tue, Jul 17, 2018, 8:05 PM UTC

patagonia wrote: post #22

knuththetruth wrote: post #20

Earlier quoted context omitted.

This is a strange take when the wealthy actively conspire through bought-and-sold politicians to discredit, undermine, and destroy labor organization, the only thing in history with a proven track record of winning concessions for workers(in aggregate). Maybe there’s not a “conspiracy,” but there’s certainly a class war.

I agree class issues are at play. But our “class system” is not determined by blood lines. The constituents of a a given class are fluid. Which leads me to believe it is a combination of human nature and relative participation of the various classes. Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

>Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

A big part of the Republican electoral strategy is disenfranchising working-class voters through any number of tactics, especially those subcategories of working-class people who they expect won’t vote for them. And that doesn’t even begin to address the structural and intentional hurdles to working class people’s participation in American democracy, from disenfranchisement via mass incarceration to fear of losing their jobs if they leave to vote.

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

#46

Post by arblegobblebrbl » Tue, Jul 17, 2018, 8:06 PM UTC

dredmorbius wrote: post #7

ams6110 wrote: 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.

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.

Nope, it will be inflated away

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

#47

Post by [deleted] » Tue, Jul 17, 2018, 8:06 PM UTC

legitster wrote: post #27

To me it is pretty ridiculous how much labor is taxed, and how little capital is taxed. Especially if we are worried about automation and lack of productivity growth, it seems so counter-intuitive that we are completely stuck to a tax system that devalues workers.

[deleted]

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

#48

Post by toomuchtodo » Tue, Jul 17, 2018, 8:06 PM UTC

jiveturkey wrote: post #38

legitster wrote: post #27

To me it is pretty ridiculous how much labor is taxed, and how little capital is taxed. Especially if we are worried about automation and lack of productivity growth, it seems so counter-intuitive that we are completely stuck to a tax system that devalues workers.

define "we".

> define "we".

People who want to avoid violent revolution, which historically has occurred when inequality has reached a certain threshold.

https://www.marketwatch.com/story/want-to-level-income-inequ...

https://www.economist.com/books-and-arts/2017/03/02/the-less...

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

#49

Post by sbov » Tue, Jul 17, 2018, 8:06 PM UTC

legitster wrote: post #27

To me it is pretty ridiculous how much labor is taxed, and how little capital is taxed. Especially if we are worried about automation and lack of productivity growth, it seems so counter-intuitive that we are completely stuck to a tax system that devalues workers.

The reason is simple: labor has less options. Capital can mostly go where it pleases - if it is taxed too much it might flee the country. But your 160 million workers aren't going to uproot themselves and move to another country because they're too heavily taxed.

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

#50

Post by justaguyhere » Tue, Jul 17, 2018, 8:06 PM UTC

lovich wrote: post #30

patagonia wrote: post #22

Earlier quoted context omitted.

I agree class issues are at play. But our “class system” is not determined by blood lines. The constituents of a a given class are fluid. Which leads me to believe it is a combination of human nature and relative participation of the various classes. Blaming “the rich” when voting turnout is so low and election participation is low is a non starter for me.

Social mobility exists but is low in the US and has been on the decline. There's no hard and fast rules on class in the US but for all practical purposes most people are going to be the same class as their parents

same class as their parents

Or maybe worse, if they are from middle class or lower.

I worked for a couple of NY financial services firms and saw first hand how easy it was to get internships, interviews and jobs for kids with connected parents while the rest of them struggled.

I think the worst result of this is, people might (maybe they already have?) just stop trying. Very few people are gonna put up with years and years of crap just to get ahead a little bit, most people aren't just built that way.