11-14-2015, 07:04 PM
(11-14-2015, 06:43 PM)Nately120 Wrote: My problem with this debate is that people are always comparing wages to each other when the real comparison (in my mind) is the wage vs. inflation. Saying CEO's should make X number what average schmos make and that fast food workers should make a paramedic's wage minus X doesn't really address the economic issue.
But with anything people are more inclined to just start attacking each other rather than look at the underlying issues.
You're exactly right. There's competition to pay CEO's, that's why they (and other mid/top managers) are getting increases. Whether they deserve that or it's shareholders are getting what they pay for is another debate, but all it really illustrates is the too many global workers for too few global jobs (i.e. the lack of superior competitiveness of the American worker). CEO pay really has nothing to do with wages of the average worker stagnating.
The main factors behind stagnant wages, in no particular order, as I see it are:
1) rising healthcare costs
2) globalization
3) lack of job creation (good jobs) in the US, and really all developed economies...significantly related to both #2 & #4
4) slowing population growth combined with aging demographics
5) mechanization/internet/disruptive technology
#2, #4 and #5 are the real culprits. And you won't hear anyone talk about those much because no one has solutions. I'm obviously a staunch supporter of free trade, but I think the reality is globalization has been a much greater shock and transition than anticipated. We really need to look at doing more to manage globalization, and that's likely beneficial to developing countries, as well.
And I think another area worth exploring is equity for the average worker. The bulk of productivity gains are going to the shareholder because wages are competitive. But that doesn't get us where we want. I'm not sure what you do about #4, but the issue with #2 is we are importing a lot of goods (exporting our jobs and dollars in the process) and those developing countries simply don't have the buying power (yet) to balance that out with imported US goods and services.
#5 is the 800lb gorilla in the room. I don't see any way for good job creation to keep pace with the efficiencies being created - one accountant today with Excel and database software is doing the work 20 did in the 70's. Or look at payroll - used to be very large departments to check all those timecards and cut all those checks, and it's now almost completely automated for many companies.
I'm sorry if that reality is depressing. It is. But progress would be to stop falling for the bullshit and start demanding real solutions to the real problems.
