Tuesday, August 18, 2015

the disconnect between wages and productivity will not reassert itself; rather, we should be beginning to understand that the connection is no longer valid, as a consequence of automation. this is a part of a fundamental economic shift that we have to get our heads around. which means we need to stop looking towards the old, steady hand and start looking towards young people that have grown up in the new economy and understand it without the baggage of the past.

back when workers were involved directly in production, it certainly made sense that wages should rise with productivity. but that is no longer true and will never again be true in the future. today, most workers are involved in jobs that have to do with the distribution end of the cycle. we should not expect increases or decreases in productivity to have any effect on wages in a store or a restaurant.

further, it follows that the old arguments about inflation and wage increases are no longer valid either, because labour costs are coming primarily out of the retail end rather than the production end.

the economy has drastically changed. economists across the spectrum have not. it's the rising gap between economists and the economy that needs to addressed, as a starting point.


i drew a graph:

 

daveruda
+deathtokoalas The resonable thing would be to tax the production itself instead of Labour. That way everyone can still enjoy the fruits of production. On top of that use the automation as a way to reduce working hours and share jobs and free time more equal.

deathtokoalas
+daveruda i don't deny that this is sort of a snotty position, but i've never seen anybody counter it effectively.

if corporations are people, why is it not discriminatory to give them special tax status? (the reason is that they're constitutionally exempt, but it's basically legislating themselves above the law). why should they not be taxed like people?

that's 30-40% above $100,000. and it could solve a lot of problems.

for ideological reasons, i'd rather put the production in the hands of the people. but, that's probably unrealistic. in the short term, i'd really honestly like to see corporations taxed like people...