A Blank Spot on the Map

Thursday, May 05, 2011

The economy in one graph

If all the gains in productivity are not passed along in wages then clearly inequality will rise. Flat wages lead to more moms working and dads working longer hours to make up the difference. When that isn't enough then they borrow. But who to borrow from...maybe those guys who profited from extra productivity. Instead of giving you a raise they gave you a loan with the money that should have been yours except for the fact that our economy is set up more like a casino than a competitive meritocracy.

The graph that explains 99% of our current economic situation...

http://www.irle.berkeley.edu/events/spring08/feller/productivity_wages_graph.gif

Until the trends become congruent the economy will not improve.

Then since demand continued to drop the best way for the wealthy to make money is to speculate. Speculate they did.... when it all crashes having so much influence and connections allows you to get bailed out by those same people who helped increase your productivity but didn't get raises.

The modern markets of large corporations with boards of 12 and major shareholders numbering the same guarantees this result. They are the most undemocratic authoritarian institutions you can find in the modern world.

It's a shame. Workers need to take over the ownership of their companies and fire their boards.

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