What is the lowest wages/(wages+profits) (after all energy, taxes, transport, marketing costs are removed) ratio that workers should tolerate? I’d say a min of 70%, but OECD countries have slipped to 55%.
PS: Bear in mind that this microeconomic wage share links up with inequality macroeconomically. And inequality leads to the decay of democracies and rule of law (because with depressed wage share economic indicators you may still have great growth numbers, but if nobody feels it in their wallet, they go vote for the loudest village idiot)
I’m just writing this to be more constructive than the average tankie, but to also make it clear that the neoliberal approach to things has unintended social consequences that end up eating your pretty conceptions of markets, risk, investment and innovation and people are growing tired of it. FDR knew this, but nobody high up seems to care anymore about regulating these forces, because that would be “socialism”.
What is the lowest wages/(wages+profits) (after all energy, taxes, transport, marketing costs are removed) ratio that workers should tolerate? I’d say a min of 70%, but OECD countries have slipped to 55%.
PS: Bear in mind that this microeconomic wage share links up with inequality macroeconomically. And inequality leads to the decay of democracies and rule of law (because with depressed wage share economic indicators you may still have great growth numbers, but if nobody feels it in their wallet, they go vote for the loudest village idiot)
I’m just writing this to be more constructive than the average tankie, but to also make it clear that the neoliberal approach to things has unintended social consequences that end up eating your pretty conceptions of markets, risk, investment and innovation and people are growing tired of it. FDR knew this, but nobody high up seems to care anymore about regulating these forces, because that would be “socialism”.