Life in the Real Economy – Two new studies—one on poverty wages, one on the declining share of revenues going to workers—are at once authoritative and mind-boggling.

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A system where the ownership of capital is a condition to the acquisition of additional capital can’t be fair. The only production for which people are personally responsible for that merits a compensation is their own labor. There can’t be other factors that determine the distribution of unequal wealth. If there are capital that doesn’t require labor, then its ownership should be equal. The implications of having idle earners is more than just an ethical problem. The incentivization of the subtraction of existing capital and goods reduces the efficiency of production. It forces the production of redundant capital to avoid price gouged markets and disincentivizes labor activity. We find ourselves in this bad situation because economists have avoided doing anything normative. Economic rule serves the purpose of regulating human economic activity. It’s of the greatest importance that these rules are fair and achieve planned results.

Holos620

> But the fact that practically nobody advances enough to get a raise over the $20 level shows that the Amazon business model is structured to attract entry-level workers with pay, burn them out with the pace and difficulty of the work (yearly turnover is 150 percent of the workforce) I suspect this employee-management philosophy bleeds over into some of Amazon’s higher-paying jobs too: A significantly a back-loaded vesting schedule for Restricted Stock Units reduces the costs to the company of hire+burnout cycles.

Terr_

The world is one big monopoly game. The rice getting richer day by day, it’s getting harder and harder to join the club, more and more are hardly making a living, something needs to be different. The next generation will have a hard time surviving if the ruler makers don’t act now, there are so many things wrong with modern society, it’s not too late to fix it, but it’s getting harder.

GongTzu

In regards to the sharing of revenue paper referenced in this article…It makes sense to me that as a company scales and as automation is implemented that: 1. There is need for less employees over time as compared to revenue. 2. That average wages of those employees will go up as they can be more productive by leveraging capital equipment, etc. I got Excel out and did some calculations on the AmEx example…. Average employees in 1960 made 218% above poverty line vs in 2019 they made 682% above. Poverty line is not a great metric always so also adjusted for inflation and compared…Average wages at AmEx increased 2518% over that period where inflation was just 764%. The amount of revenue per employee increased 8854% which shows that capital expenditures made by shareholders were making employees more productive. More than a quarter of the increased revenue went back to the employees which seems fair to me considering the shareholders made 100% of the investment to get the increase in productivity. But who knows…you can make statistics support any position usually. The position I’m trying to make is that as automation and AI do more and more of the work doesn’t it make logical sense that the owners of that equipment/software will take a bigger portion of the profits? And it’s seems the owners are still sharing some of it with the workers that are left.

rpow813

Yet another time when the lack financial education shows itself. If you don’t understand the rules of money you will lose out to those who do. I could address the tired old minimum wage debate but one thing that leaders to more questions abd isn’t just an easy “that’s bad” is the percentage of wages to employees. Think about any big changes since the 60s. Anything come to mind? With automation and innovation costs decrease. And for those who took accounting classes you know the biggest variable cost is employees. It takes fewer people to do the same job today. It would be interesting to see other metrics in conjunction like the value produced by employee.

a-a-ron1776