That is how capitalism works.
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That is how capitalism works.
I didn’t realize Webster defined capitalism as less jobs.
Would you look to a dictionary to understand how capitalism works?Originally Posted by techman05
Let me just float another fact here that drives home your observation.
Since 1973, American productivity has increased by 77 percent, while hourly pay has grown by only 12 percent.
Capitalism favors the owners over the workers. Human capital is just one of the “costs” that owners profit from by making more efficient. For an owner it is the same as increasing the throughput of a machine or reducing its operating and/or capital expenses. It is all about productivity and cost.
We have seen a breakdown of the Phillips curve. We are seeing a widening of the rich-poor gap between owners and workers and that has manifested in the frustration that motivated much of Trump’s base to put this “owner” in power. The economic benefits of technology and globalization have been enjoyed predominantly by the owners (those possessing the capital) and significantly shifted the leverage to owners over workers.
Point being, under the current climate (and the foreseeable future short of some sort of socialist movement) wage growth probably won’t be the same as it was for previous generations. If you want to share in the economic gains, you want to be an owner and profit from human capital rather than letting others profit off of yours.
The Joe Scarborough of THE BBB ladies and gentlemen.
Low corporate taxes disincentivize hiring.
I don’t really follow him, so I had to look up what he has done recently to draw your admiration.
I assume it is this terrific piece he posted in WaPo a couple of days ago:
https://www.washingtonpost.com/opini...=.493e0647dc66
Hopefully more Republicans will “get it” before it is too late.
Wage growth is starting to happen. Latest number posted, just the other day, is 2.9% increase. Of course, this is a national average, and in places wages are doing better. In some sectors, wages are "locked" by other factors, other than GDP and general economic growth.
I posted about this a month ago. It is not surprising. If the economy is allowed to continue to grow, and if Trump's wonderful policies are allowed to fully blossom, we'll see much better, even substantial growth in wages. But...as soon as January, 2019, the whole thing could be hamstrung if the democraps overrun the House and turn it back into a socialist lair. Employers are watching the political landscape and waiting. Of course we'll know what that'll look like in November.
Meanwhile, most businesses are trying to recover EIGHT LOST YEARS we all suffered under obummer. So, yeah, many are still operating "lean and mean" and some have been slow to unilaterally raise wages. Can't really blame them.
One of the worst offenders is the oh-so-liberal Google.
HIGHEST EVER: MIDDLE-CLASS INCOME JUMPS TO $61,400
Poverty continues to decline as economy strengthens
Read more at https://www.wnd.com/#03LM1qB1dgYd2I81.99
Obama policies still working.
It grew at a faster rate in 2016 before Trump. 3.2% vs 1.8%.
Price gouging.
Once again as a storm approaches millions of people flood stores cleaning out inventories. Food stuffs, bottled water, generators, and lumber and other such materials. States have these anti-price gouging laws. Well...
First, I think it's pretty lousy to take advantage of people, but those are personal decisions. Legally...I don't see how any guvmint can tell private businesses what they can set prices at. As a purist! if XYZ Lumber Yard wants to mark up plywood 1,000% above normal market prices....well! that's the rub, ain't it? During such times what are "normal" market prices. When demand FAR exceeds supply...prices go up. Bottled water? If I have 1,000 bottles and put a price of $15 each on 'em, people i.e. "the market" will react to it. Maybe some guy is selling bottled water for $12 just down the street. After he sells out, those still in the market come to me...they can either buy, or not, or maybe offer me a deal, like 100 bottles for $1,300. I might take that.
Point is, either there is a FREE market, or there ain't. Now, I know most people will NOT stop and think about this rationally. Most will have a knee-jerk reaction, and scream How can you take advantage of people like this? You scoundrel! Okay. But, if the guvmint is allowed....and I say "allowed" because guvmint derives its power by those willing to turn over their rights to it, then what...? So, when the sky is blue and there is no storm just over the horizon, that same guvmint states it's against the law for....fill in the blank...to raise prices. Or! says prices have to be lowered....because those who will benefit will vote for us. This is a very slippery slope!!!
How should the "market" react to this scenario? Well, if XYZ Lumber took advantage of people during a crisis, said people should punish them by not buying from them when times are good. Knowing this will happen, and wanting to stay in business beyond next week, chances are pretty good that XYZ Lumber won't jack up prices!
The "market" is pure. It doesn't know who you are, and doesn't care. It is simply a measure, the scoreboard, for all combined market activity. We ALL, everyone of us, drives the market by the everyday decisions we make. We buy something....we don't buy something. Both decisions affect the market. I am very troubled when guvmint tampers with this purity.
For the record, if I owned XYZ Lumber I would keep my prices at what they were before the storm appeared. But, I would bring in my whole staff and announce we will have extra services available. You need plywood cut to fit your windows? When you come in, bring the measurements, and we'll cut it for you. Yeah, I will lose a little profit paying extra staff, but I think the "market" will react positively to the services and we'll benefit going forward. It's just GOOD business.
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