An anonymous reader sent the following:
A friend of mine recently posted this link on SharePoint. I thought you may enjoy interacting with the ideas presented.
In short, Blodget argues that employers don’t pay employees enough, thus the economy’s in trouble. To support his assertions he shows four charts, all of which depict data from 1940 to the present:
- Chart one shows corporate profits as a percentage of GDP. They are higher than ever.
- Chart two shows wages as a percentage of GDP. They are lower than ever.
- Chart three shows civilian employment as a percentage of the population. It is lower than it has been in decades.
- Chart four is, for all intents and purposes, a repeat of the second graph, though meant to seem scarier.
Because my brain hurts and I want to go to sleep, I won’t criticize the article, aside from asking a few questions and letting all y’all fill in the rest.
1. Where’s the chart that shows non-wage benefit compensation to workers, and how dramatically said compensation has grown over the last 30 years?
2. Where’s the chart that shows retirement funds, stock portfolios, bond portfolios, mutual funds, real estate holdings, etc., and how dramatically the value of such has grown over the last 30 years?
3. Where’s the chart that shows total compensation to workers?
4. If you are going to complain about the last 30 years (1984-2014), shouldn’t you at least mention that in the 30 years before that (1954-1984, when, apparently, everything was fine), there were more recessions and more time was spent in recession?
5. What are the ideal values of the ratios of corporate profits to GDP, wages to GDP, and civilian employment to population?
6. How do or can you know the answer to #5?
7. Can you think of any plausible explanation for the fact that the ratio of civilian employment to population has shown no real sign of recovery since bottoming out in mid-2009?
One thought on “5304.”
Articles like these are why more people need to take Microeconomics classes.
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