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I would bet for most people, employee stock programs or company stock will provide far lower and more volatile return than an SP500 index fund. The US public h
by lotsofpulp 2mo ago
I would bet for most people, employee stock programs or company stock will provide far lower and more volatile return than an SP500 index fund. The US public has long been able to benefit from profit sharing, all they have to do is by a low cost broad market index fund.
The root of the problem is that the labor that most people in the US sell is not in sufficiently high demand to afford them the compensation to be able to afford the lifestyle they expect, since they are competing with the rest of the world willing to do it for less.
- ocius 2mo agoRegarding the first point: owners typically pay themselves a salary in addition to owning the company and thus benefit from both. Employees do not have this advantage. The two problems are not mutually exclusive, and certainly unskilled labour is a significant problem for a good fraction of the population; but if this were the only problem, then we wouldn't see the amount of wealth concentration and decoupling of productivity from income that we observe.
- lotsofpulp 2mo agoThere is no guarantee in both the owners salary or equity growing (just like an employee has no guarantee of having their job tomorrow). The wealth concentration is a combination of government policy rewarding asset owners and automation and communication and transportation technologies increasing competition for labor sellers. The automation also allows enormous economies of scale such that fewer businesses can do it all, which is also why you see wealth concentration.