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Wednesday, November 30, 2011

Robert Reich on the Disequilibrium of Employee Wages vs. Corporate Profits in Share of the Economy

Robert Bernard Reich, American politician, aca...                         Image via WikipediaOn American Public Media's Marketplace today, Robert Reich cited a statistic that may be the most stunning I have heard since the financial crisis of 2008: currently, the share of the economy represented by employee wages is the smallest it has ever been since measurements were first taken (in 1939, I think). And the share of the economy represented by corporate profits is the LARGEST it has ever been since measurements were first taken.

So much for the "rising tide lifts all boats" theory! And is it REALLY class warfare, Marxism, socialism, etc., to assert that this extraordinarily unbalanced situation is objectionable and needs to be corrected?

Remember: Free markets tend toward equilibrium. So this level of disequilibrium cannot be the result of an unmanipulated market. The next question: has the greater level of manipulation taken place from "the right," or "the left," for lack of better words? Again, I suggest: follow the money, and see who has received the greatest benefit from the current situation.

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1 comment:

  1. I don’t know how should I give you thanks! I am totally stunned by your article. You saved my time. Thanks a million for sharing this article.


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