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Declining worker power vs. rising monopoly power: explaining recent macro trends

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Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#51

Post by nicoburns »

RcouF1uZ4gsC wrote: post #27

The big issue is supply and demand. With increasing automation and global supply chains, there is a huge amount of labor available relative to the need. In the past, a union strike at a plant would see a generous long-term contract and benefits for the workers. Now, it is likely for the plant to be moved or workers replaced with automation.

I'd argue the underlying cause is poor wealth distribution. There's lots of demand for labour, just not from people/companies/industries that have the means to the pay for it.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#53

Post by zozbot234 »

specialist wrote: post #19

+1 Comparing wages to corporate profitability, valuations. Drives me nuts when these aspects are treated as completely unrelated. I'm still deeply ambivalent about redistribution, cashectomies, etc. But it'd a lot easier to remain neutral if there was (a lot) more profit sharing. Also, I have a hunch that gross inequity is related to the "missing productivity". I'm hoping someone is researching this.

AIUI, profits do not really explain inequality. It's a wages dynamic, where the premium that's paid for highly-skilled work tends to grow over time. Separately, wages in highly-regulated sectors (such as law and healthcare) also show significant growth, even though skill requirements haven't changed all that much in these occupations.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#54

Post by harpratap »

lotsofpulp wrote: post #20
zwaps wrote: post #7

One thought: US centric.

Economies of scale from computing power and reduced demand for labor due to automation is not US specific.

> But the decline in the labour share has been much more pronounced in the US than in other industrialised economies which are arguably similarly exposed to globalisation and technological change

From the linked article

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#55

Post by BurningFrog »

pydry wrote: post #5
brenden2 wrote: post #2

I think this plays into the current social unrest as well. People have been trying to separate the looters and protestors, but they seem to completely ignore the extreme inequality that exists throughout the US, especially in this period of high unemployment. People at the bottom have it bad, very bad. Being ignorant of that problem is just going to make it worse. Lashing out at fancy retailers in fancy neighbourhood…

In all likelihood lashing out at fancy retailers will be effective. Additional police powers and crackdowns will be paired with throwing the rioters a few bones (e.g. greater checks on police powers and throwing the book at George Floyd's murderers). Of course, the elites will pretend that they meant to throw that bone all along and will vehemently deny it has anything to do with a smashed up Gucci store in Beverly H…

This is really wrong.

Destroying retail will just destroy retail. When it's gone it's gone.

If you think shopkeepers control the Police, you are hopelessly confused.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#56

Post by staticautomatic »

RcouF1uZ4gsC wrote: post #27

The big issue is supply and demand. With increasing automation and global supply chains, there is a huge amount of labor available relative to the need. In the past, a union strike at a plant would see a generous long-term contract and benefits for the workers. Now, it is likely for the plant to be moved or workers replaced with automation.

"In the past, a union strike at a plant would see a generous long-term contract and benefits for the workers."

Based on what I've read about the history of blue collar strikes in America, this scenario is far more often the exception than the rule.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#57

Post by cheez »

brenden2 wrote: post #48
cheez wrote: post #12

Earlier quoted context omitted.

Not exactly. They know, but don't care. They believe they are disconnected from the consequences.

That may be true, but as someone who has been actually poor before, and have also known many people who were born into money, I don't think rich people really understand what it means to be poor, hopeless, and also discriminated against.

They can sympathize (intellectually) or empathize (having been poor before). The rich are not even sympathizing at this point.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#58

Post by danans »

nicoburns wrote: post #51
RcouF1uZ4gsC wrote: post #27

The big issue is supply and demand. With increasing automation and global supply chains, there is a huge amount of labor available relative to the need. In the past, a union strike at a plant would see a generous long-term contract and benefits for the workers. Now, it is likely for the plant to be moved or workers replaced with automation.

I'd argue the underlying cause is poor wealth distribution. There's lots of demand for labour, just not from people/companies/industries that have the means to the pay for it.

> There's lots of demand for labour, just not from people/companies/industries that have the means to the pay for it.

I agree, but I think you mean income distribution and latent demand. The idea is that a lot of people would be consuming more goods and services if they weren't so cash strapped. Some of this is also affected by wealth distribution also, though.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#59

Post by lanevorockz »

Trying to break the conditioning here but government should always tax in a way that it incentive WORK. The way things are Wealth is no longer being produced, so those who have it will be on top because income will never be enough to prop you up.

Therefore we should want a Growth market so that more wealth is produced and risk averse people will still be rich but more people will become as rich as them.

To resolve Inequality we can't just have the mindset of punish the rich for creating wealth. We need to grease up our economy so that everyone else can be rich as well.

Different mindset but this problem is super hard to solve and I don't think anyone has a decent solution for it.

Re: Declining worker power vs. rising monopoly power: explaining recent macro trends

#60

Post by hansjorg »

rapsey wrote: post #37
RcouF1uZ4gsC wrote: post #27

The big issue is supply and demand. With increasing automation and global supply chains, there is a huge amount of labor available relative to the need. In the past, a union strike at a plant would see a generous long-term contract and benefits for the workers. Now, it is likely for the plant to be moved or workers replaced with automation.

Automation is a drop in the ocean compared to the effects of trade agreements that resulted in jobs being exported.

Jobs exported to countries where the violent suppression of workers rights and of any kind of actual democracy wouldn't cause a fuss at home.

What the US establishment refers to as keeping a country 'business-friendly'.

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