This is why capitalism is broken

georgephillip

Platinum Member
Joined
Dec 27, 2009
Messages
37,899
Reaction score
2,996
Points
1,125
Location
Los Angeles, California
Why wages instead of compensation?
How are you measuring inflation?

Real wages - Wikipedia

"The Economic Policy Institute stated wages have stagnated in the United States since the mid 1970s, failing to keep up with productivity.

"According to them, between 1973 and 2013, productivity grew 74.4% and hourly compensation grew 9.2%,[10] contradicting the neoclassical economic theory that those two should rise equally together.[11]

"However, the Heritage Foundation says these claims rest on misinterpreted economic statistics.

"According to them, productivity grew 100% between 1973 and 2012 while employee compensation, which accounts for worker benefits as well as wages, grew 77%.[12]

"The Economic Policy Institute and the Heritage Foundation used different inflation adjusting methods in their studies."
 

georgephillip

Platinum Member
Joined
Dec 27, 2009
Messages
37,899
Reaction score
2,996
Points
1,125
Location
Los Angeles, California
...we are not solving for actual economic phenomena in a market friendly manner. It really is that simple.
Sometimes markets aren't the most efficient economic coordination mechanism.

MR Online | The planning and politics of conversion: World War II lessons for a Green New Deal—Part 1

"This is the first in a series of posts that aim to describe and evaluate the World War II mobilization experience in the United States in order to illuminate some of the economic and political challenges we can expect to face as we work for a Green New Deal."
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
63,334
Reaction score
11,933
Points
2,030
Location
Chicago
Why wages instead of compensation?
How are you measuring inflation?

Real wages - Wikipedia

"The Economic Policy Institute stated wages have stagnated in the United States since the mid 1970s, failing to keep up with productivity.

"According to them, between 1973 and 2013, productivity grew 74.4% and hourly compensation grew 9.2%,[10] contradicting the neoclassical economic theory that those two should rise equally together.[11]

"However, the Heritage Foundation says these claims rest on misinterpreted economic statistics.

"According to them, productivity grew 100% between 1973 and 2012 while employee compensation, which accounts for worker benefits as well as wages, grew 77%.[12]

"The Economic Policy Institute and the Heritage Foundation used different inflation adjusting methods in their studies."
How are you measuring inflation?

Take your pick.
 

dblack

Platinum Member
Joined
May 21, 2011
Messages
37,052
Reaction score
4,889
Points
1,130
Sometimes markets aren't the most efficient economic coordination mechanism.
This is something I totally agree with. If we ignore things like individual rights, many forms of organization are more efficient than freedom - slavery for example.
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
63,334
Reaction score
11,933
Points
2,030
Location
Chicago
Sometimes markets aren't the most efficient economic coordination mechanism.
This is something I totally agree with. If we ignore things like individual rights, many forms of organization are more efficient than freedom - slavery for example.
East Germany was efficient as a mother fucker.

And their cars were awesome!!!
 

danielpalos

Diamond Member
Joined
Jan 24, 2015
Messages
63,011
Reaction score
2,869
Points
1,855
Location
Alta California, federalist.
...we are not solving for actual economic phenomena in a market friendly manner. It really is that simple.
Sometimes markets aren't the most efficient economic coordination mechanism.

MR Online | The planning and politics of conversion: World War II lessons for a Green New Deal—Part 1

"This is the first in a series of posts that aim to describe and evaluate the World War II mobilization experience in the United States in order to illuminate some of the economic and political challenges we can expect to face as we work for a Green New Deal."
I agree to disagree. There is no provision for excuses in our federal doctrine and our welfare clause is General. Solutions merely need to promote the general welfare.
 

georgephillip

Platinum Member
Joined
Dec 27, 2009
Messages
37,899
Reaction score
2,996
Points
1,125
Location
Los Angeles, California
This is something I totally agree with. If we ignore things like individual rights, many forms of organization are more efficient than freedom - slavery for example.
Slaves were sold in markets, remember?
Markets can be inefficient in a variety of ways:


"Definition of Market Failure – This occurs when there is an inefficient allocation of resources in a free market. Market failure can occur due to a variety of reasons, such as monopoly (higher prices and less output), negative externalities (over-consumed and costs to third party) and public goods (usually not provided in a free market)

"Types of market failure..."

Market Failure - Economics Help
 

Pappadave1

VIP Member
Joined
Jul 12, 2020
Messages
142
Reaction score
146
Points
68
Location
Oklahoma City

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
63,334
Reaction score
11,933
Points
2,030
Location
Chicago
Sometimes markets aren't the most efficient economic coordination mechanism.
This is something I totally agree with. If we ignore things like individual rights, many forms of organization are more efficient than freedom - slavery for example.
East Germany was efficient as a mother fucker.

And their cars were awesome!!!
Except it wasn't "EAST" Germany that was producing those cars.
It sure was........just look at the workmanship.

1608133050032.png


And only a 10 year waiting list!!!
 

danielpalos

Diamond Member
Joined
Jan 24, 2015
Messages
63,011
Reaction score
2,869
Points
1,855
Location
Alta California, federalist.
From 1978 to 2018, CEO compensation grew by 1,007.5% (940.3% under the options-realized measure), far outstripping S&P stock market growth (706.7%) and the wage growth of very high earners (339.2%). In contrast, wages for the typical worker grew by just 11.9%.--https://www.epi.org/publication/ceo-compensation-2018/
 

Toddsterpatriot

Diamond Member
Joined
May 3, 2011
Messages
63,334
Reaction score
11,933
Points
2,030
Location
Chicago
From 1978 to 2018, CEO compensation grew by 1,007.5% (940.3% under the options-realized measure), far outstripping S&P stock market growth (706.7%) and the wage growth of very high earners (339.2%). In contrast, wages for the typical worker grew by just 11.9%.--https://www.epi.org/publication/ceo-compensation-2018/

From 1978 to 2018, CEO compensation grew by 1,007.5%


I don't care about the CEOs of the 350 biggest corporations.

In contrast, wages for the typical worker grew by just 11.9%.--

Don't tell Georgie.
 

danielpalos

Diamond Member
Joined
Jan 24, 2015
Messages
63,011
Reaction score
2,869
Points
1,855
Location
Alta California, federalist.
...we are not solving for economic phenomena like Capitalism's natural rate of unemployment.

Solving simple poverty in a market friendly manner promotes the general welfare.
 

dblack

Platinum Member
Joined
May 21, 2011
Messages
37,052
Reaction score
4,889
Points
1,130
And? Do you have a point?
Slave markets were highly efficient.
Do you believe such economic redistribution institutions fostered individual rights or freedom?
No.

You seem to be confused, or perhaps deliberately obfuscating. My point is that efficiency isn't the only, nor the most important, concern. I value free markets because of the freedom they imply. Their efficiency is secondary. Though you probably don't want to talk about that. Is efficiency so important to you that you would support slavery?
 
Last edited:

Most reactions - Past 7 days

Forum List

Top