DucatiMonster696
Diamond Member
- Aug 13, 2009
- 4,269
- 1
- 71
Do you know how I know that claim is bullshit? Because workers wages have stagnated and not kept up with inflation, despite increased productivity, increased profits, increased corporate savings, and yet companies have been doing what you claim they will be doing even more for decades!
Your claim is BS and not supported by any facts, sorry.
I'll do my best Paul Krugman impersonation "What inflation???".
Anyways, wages have not kept up with inflation because the rate of the unemployed has been way higher than has been reported by U3 numbers which mask the underlying effects of an increase of part-time labor force that has arisen via government acts like Obamacare. I.e. you have more McJobs being created and most of those are part-time jobs. Second increased profits does not translate into expansion until businesses see the economy firming up and government becoming less hostile toward the private sector. Increased corporate savings go hand, in hand with the wait and see approach of most businesses who stockpile cash to secure their future earnings and build up for future expansion when and if they believe it is possible and advantagous to do so in the future.
Furthermore the glut of workers in non-STEM related jobs in the labor market has played a large role in keeping wages down alongside other contributing factors. Then you have the fact that productivity gains have basically been pushed along with the use of and expansion of technology filtering through and permeating throughout the economy. However that expansion has plateaued in our economy as of late.
http://www.frbsf.org/economic-resea...h-information-technology-factor-productivity/
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