4 ms·

Now include profit (surplus) in your analysis. Wage grow has not kept pace with corporate profitability. Why?

• WalterBright 1y ago
  Because the correct comparison would be with total compensation, of which wages are only a portion. Total compensation is the costs to an employer to hire some one. It includes: 1. contributions to retirement plans 2. so-called "employer paid" social security contributions 3. sick and paid vacation days 4. employer paid health insurance 5. stock plans 6. 401k plans 7. other payroll taxes Last time I checked, these often added 40% or more over the takehome pay. Also, the pay is based on the value the employee as an individual provides, not the value the company as a whole created. Just like the compensation for pro football players varies in a single team.
  • gamblor956 1y ago
    Beyond Social Security contributions, which is legally mandated, most workers don't get the remaining items on your list. (And #7 is just double-counting #2.) It's like saying, a CEO gets a housing allowance and travel allowance and can expense most of their meals, so the entry level worker is doing okay.
  • specialist 1y ago
    Am corrected. Updated question: Now include profit (surplus) in your analysis. Total compensation has not kept pace with corporate profitability. Why? -- > Just like the compensation for pro football players varies in a single team. Then why do professional athletes have unions?