Sunday, March 30, 2014

NO, A RISING TIDE DOES NOT LIFT ALL BOATS

Thomas G. Clark does a pretty good job of explaining wage repression here. In a few words wage repression occurs when employers unnecessarily keep wages low and use any excuse to justify doing so. Currently employers are using the Wall Street induced 2007-08 market collapse, and the subsequent economic crisis, to justify wage repression.

This is significant because while wages are repressed corporations are making record profits while stock markets around the world are soaring. Worse, corporations have made so much money that they're hoarding trillions of dollars while paying executives outrageous bonuses that cumulatively add up to tens of billions of dollars.


So, no, a rising tide doesn't lift all boats, and the wealth doesn't automatically trickle down.

- Mark 

No comments: