3 ms·
Perhaps partially, but that's not a reason for wages to stay mostly stagnant for decades
by jameslk 5y ago
Perhaps partially, but that's not a reason for wages to stay mostly stagnant for decades
- sokoloff 5y agoIt’s not at all obvious to me that wages should increase faster than inflation over a long period of time.
- wildrhythms 5y agoKindly refer yourself to The Productivity-Pay Gap: https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/
- jumelles 5y agoShould profits?
- sokoloff 5y agoGreat question! Profits of the most successful companies (the ones most skilled at making strategic, marketing, investment, and other business decisions) probably should (at least “will” and I’m fine with “should”) rise faster than inflation while profits of companies who are not good at these decisions should rise less quickly than inflation (or even fall or become negative). I’d expect there to be a subset of companies who have grown their profits faster than inflation and for survivorship bias to mean that appears very common in a backward-looking point-in-time snapshot.
- refurb 5y agoWages aren’t stagnant. https://www.census.gov/library/publications/2020/demo/p60-27 https://www.census.gov/library/publications/2020/demo/p60-27... The 2019 real median incomes of White, Black, Asian, and Hispanic households all increased from their 2018 medians [between 5.7% (Blacks) and 10.6% (Asians)] Percentage change in share of aggregate income was highest for the lowest income quintile (+1.8%). High income quintile saw decrease in share of aggregate income (-0.6%)