A story about the rich who weren't content to be merely rich, they had to be super-rich. Why give your life to academia and being a physician when you could be on Wall Street? A NY Times Editorial here.
In a related story, the IRS reported that although real income was up in 2004, it had not caught up to the level of 2000. So our real incomes were lower for at least 3 years despite two Bush tax cuts.
Additionally, buried in one article on thestreet.com was this tidbit:
"Interesting and surprising was the government's downward revision of $100.3 billion to wages and salaries. The figures reflect new salary tabulations obtained from the Bureau of Labor Statistics, according to Market News. The figures will result in a downward revision to the 5.3% gain reported for unit labor costs during the quarter, probably in the vicinity of about 4% or a bit lower. This means that more of the income generated during the quarter went to businesses -- corporate profits.
To be specific, the government's data on profits after taxes and adjustments for capital consumption and inventory valuation show an increase of 31.5% from a year ago."
So remember in class when I say: Since GDP=Y, therefore
Consumption+Investment+Gov't+(X-IM)= Wages+Profit+ Interest+Rent.
If GDP is increasing, and Wages are dropping, then something is increasing, and its Profits. And guess what segment of the society gets those profits? The owners of capital.
3 comments:
I find this situation to be beneficial to the wealthy and only harmful for the majority of Americans. This mass job transfer it only widening the gap between the rich and poor while it slowly depletes the middle class. Another negative outcome is that many are gearing toward business related occupations and are abandoning education/research related jobs which are, crucial roles in our society. We need research to improve our quality of living and we need educators to aid others so they may inturn work to improve our country's status. How well off will America be in the future if this continues?
The interesting thing that I find about this is that one of the interviewees (?) said that the weath they generated would free thier children to pursue more meaninful occupations, like teaching or research. So much for a higher purpose.
from this article, it seems as tho people don't care as much about the importance of their job but just about how much income they will make. i understand their want for a good paying, or more money to pay for more accessories or not living pay check to pay check. but in some cases this want is abused to the point where mom and pop shops will all be replaced by places like domino's, in order for the person to make the most amount of money as possible.
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