Worsening Wage-Productivity Gap

[unlawflcombatnt]

WORSENING WAGE-PRODUCTIVITY GAP

Today's economic report shows a much larger increase in 3rd quarter productivity than predicted. Productivity, measured in $ value of production per hour of labor increased 4.1%. (This information can be found at: EconomicCalendar) This is in stark contrast to the 2% DECLINE in real hourly wages in the 3rd quarter. (Wage information can be found at: Wages) (The full productivity report from the Bureau of Labor Statistics can found at: Productivity)

The gap between the value of American workers' production and how much they're paid continues to increase. It appears that the more American workers produce, the less they are paid. Needless to say, this gap explains why Corporate profits are soaring. The value of the increased production is simply being siphoned off as Corporate profits, stockholder dividends, and CEO salaries and bonuses.

Meanwhile, the money to purchase the increased production is coming from increased borrowing, not increased wages. This is not a sustainable situation.

Can increased investment make up for lack of consumer income? No. So will increased "investment" capital correct this problem? No. Is there any "shortage" of investment capital? None whatsoever. So are high-end tax cuts, which are touted to increase investment capital, going to help this problem any? No, none whatsoever.


unlawflcombatnt
EconomicPopulistCommentary
___________
The economy needs balance between the "means of production" & "means of consumption."

[AX10]

1. kick

[Angry Girl]

2. fix the bottom link please

[salvorhardin]

3. Working link

http://unlawflcombatnt.blogspot.com/2005/10/wage-productivity-gap-most-damaging.html

[Angry Girl]

4. thanks!

URGENT! Timing is critical to save earthquake victims before winter!

[unlawflcombatnt]

5. Thanks for fixing the link

I updated the post post which changed the date. Changing the date also changed the necessary symbols in the link. I'm glad someone figured it out before I did. Thanks again.

EconomicPopulistCommentary

[nashville_brook]

6. here's what this feels like to the worker/person:

you're hired as the company went thru it's last round of cost-cutting consultants to head their on-site creative team. the pay is great because they are flush with cash saved from the completely INSANE amount their AGENCY was charging. Give it a couple years; tops. You WILL leave after the next round of consultants convinces the new owners that your job can be outsourced cheaper.

wash, rinse, repeat.

it's why no one takes their job seriously. it's why shit sucks. service sucks. why i won't fly. Zeno's Paradox can't be applied to labor any longer.

[unlawflcombatnt]

7. Johnson City Forum

Thanks for the link to your blog. It looks interesting.

unlawflcombatnt
EconomicPopulistCommentary
___________
The economy needs balance between the "means of production" & "means of consumption."

[PsycheCC]

8. Great stuff, as usual. I wonder when voters will give Democrats

control of congress again so we can get rid of these ridiculous tax cuts for the rich. Rep. English, from PA, oily sleazebag that he is, is already talking of the expiring of these horrific cuts as "in effect, a tax increase." What nonsense!

[unlawflcombatnt]

9. I saw English and Greed-span on C-SPAN

I may have seen the same program. Last night Republican Congressman English was pushing Greed-span about supporting an early extension of the high-end tax cuts. English is just a disgusting dirtball who represents no one except the rich and Corporate America. He's "concerned" that the rich won't continue to get richer.

At least Greed-span didn't immediately jump on English's bandwagon.

unlawflcombatnt
EconomicPopulistCommentary

[unlawflcombatnt]

10. Wage-Productivity Graph

This thread wouldn't be complete without a graph. Here's the graph from the New York Times showing the widening Wage-Productivity Gap.



unlawflcombatnt
Wage-Productivity Gap
_________________
The economy needs balance between the "means of production" & "means of consumption."

[AirAmFan]

11. How much of that "increased productivity" comes from offshoring of jobs?

Sometime during the past few weeks, I saw a TV or cable report (most likely on PBS) about downsizing of the workforce at one US broom/mop factory due to offshoring of the skilled work to China. People who once used machines to turn raw materials into brooms and mops now mainly just assemble mops and brooms, by screwing pre-built heads onto the wooden handles. The heads and handles are shipped separately from China, because more handles and more heads can be fit into seaborne container space that way than as completely assesmbled brooms and mops.

The skill level required for just assembling finished pieces is much less than the skill level required for actually working with raw materials. Therefore wages at the US location have declined sharply, as well as employment.

How often has this same kind of scenario been played out in other industries?