Posted 2 years ago on May 16, 2018, 10:08 a.m. EST by agkaiser
from Fredericksburg, TX
This content is user submitted and not an official statement
Why are profits high and wages low, even though unemployment is at 3.9%?
If profits go up but wages don't, where does the money come from? Obviously it's not real people's purchases. We pay much higher prices for necessities, have more debt and pay more interest, have less income in real dollars. All that and Wall St. is booming. Can anyone see that it must be a bubble that creates money without creating goods to buy with it? IE. Perpetual motion of money that accrues interest and grows magically is the way to make something out of nothing. Our financial geniuses have outdone the alchemists wet dream.
The FIRE sector arsonists say production is up and think that explains it. The production they talk about is all in the imaginary products of Wall St. They're creating money on their ledgers and we pay by struggling to make ends meet in our low paying under houred shit jobs. Well ... 90% of us do....
"... Economic theory normally stays that when unemployment is low, wages go up, because there is more competition to attract workers. However, both wages and inflation remain quite low at the moment. Now, President Trump himself offered an explanation six years ago to this issue, before he was president, when he was still a businessman. He said: “Unemployment rate only dropped because more people are out of the labor force and have stopped looking for work. Not a real recovery,' he wrote. “Phony numbers.'..."
"... So if the average wage is stagnant and average productivity has doubled, that means the income is rising to the top. So if you want an explanation for the rise of inequality in this country, that is the first and foremost explanation, just in logical, statistical terms. If you’re producing twice as much, and the workers, the average workers are getting paid exactly the same, then the rest of that increased product is going to people other than the workers. And that’s what explains, more than anything else, income inequality and wealth inequality. ..."