Why has pay not risen at the same rate as company profits? | Forex Factory

  • Why has pay not risen at the same rate as company profits?

    From bbc.co.uk

    Pay for ordinary workers has not kept up with economic growth and rising company profits - and there are several reasons why writes Duncan Weldon, senior economist at the Trades Union Congress. Have you noticed how your boss seems to be doing quite well, but your own pay is stagnating? The cost of living is going up, but your wages are not keeping pace? It is easy to blame the recession, but you may be surprised to hear that the trend for weak wage growth predates it. Pay for ordinary workers had flatlined before the the current global financial crisis began. Research by the think tank The Resolution Foundation, ... (full story)

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wlarimer
Feb 20, 2012 12:28am
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As a machinist in the US, I make between 20 and 25 percent of what I made during the late 1970's. I've been toast since the politicians "fixed the "broken" economy in the early 1980's. "Well... we all have to make sacrifices."
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ultra_knight
Feb 19, 2012 10:40pm
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Balance of economy of 2007 is lost.... stagflation is already in....

Fed has two choices.

1) get into deflation mode and regain dollar value
2) get into hyperinflation mode and destroy dollar

Ppl are now worried whether they will ever repay debts of morgages given that inflation is kicking in...

Matter of time before interest rates in US skyrocket...
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krisware
Feb 20, 2012 1:36am
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This quite easy to explain ... blame the growth of China and growing population. This is all about competition - more mouths need feeding, so more are forced to compete to each other. It won't stop before THE BIG get some competiton.
Another problem is, that all we manufacture are consumers like us (ipad, iphone, led tv ... all those things are consumers and they are manufactured, because TH BIG need us to consume without thinking) ... all man made things take energy and give nothing in return. While all the energy comes from THE BIG, so they can take everything away from us and we have nothing to do. As long as we consume more and more, we are doomed.
There are two ways out of it - we must consume less or start producing energy (wind, solar etc.) ourselves ... we should find a way out of oil
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