why the gap between worker pay and productivity is so problematic

[xchrom]

http://www.theatlantic.com/business/archive/2015/02/why-the-gap-between-worker-pay-and-productivity-is-so-problematic/385931/

?nkc8yb


One of the most frustrating parts of the sluggish recovery has been paltry wage gains for most workers. The stock market may be booming, corporate profits increasing, and home values rising, but middle and lower-class workers often don't truly feel the benefit of such improvements unless wages rise.

But wage stagnation isn't just a problem borne of the financial crisis. When you look at the relationship between worker wages and worker productivity, there's a significant and, many believe, problematic, gap that has arisen in the past several decades. Though productivity (defined as the output of goods and services per hours worked) grew by about 74 percent between 1973 and 2013, compensation for workers grew at a much slower rate of only 9 percent during the same time period, according to data from the Economic Policy Institute.

[Omaha Steve]

1. No federal income tax deduction on the pay stub?

But the state gets it's share.

No 401k or medical. That is scary.

[Major Nikon]

2. ...

[daleanime]

3. Right there is our main problem......

[fasttense]

4. But that is exactly how capitalism is designed to work

After the US became smart enough to fight its way out of a slavery economic system, industrial capitalism ruled the country. The healthy middle class that developed in the previous century was in spite of capitalism NOT because of it. There were regular crashes and massive striking and revolts all along the way. Crashes, striking, labor unrest, economic devastation are all regular features of an economic system based on capitalism. Declining worker compensation despite ever increasing workload demands is also a common feature of corporate capitalism.

You can't regulate a monster. You have to kill it. Capitalism must be killed, just like slavery and feudalism.

[Dustlawyer]

5. The main cause has been the bribes paid to politicians in the form of campaign contributions.

It has enabled corporations to control their regulatory agencies and write the laws that benefit themselves to our detriment. Until we rise up and demand an end to campaign contributions, Super PACs, and the revolving door we will continue to get screwed!
Help Bernie fight for Publicly Funded Elections! Stop just bitching about the problems caused by this and attack the root cause!

[marmar]

6. K/R

[OnlinePoker]

7. I'm pretty sure a majority of productivity increase was due to automation

How many workers does it take to build a car now with all the robots compared to 1973, for instance? The skilled and well-payed (unionized) blue collar work force has been replaced by the service industry drones that earn little and have seen no real wage increase in decades and are perceived as being easily replaceable. I can't see this changing any time in the future.

[eppur_se_muova]

8. Minimum wage would have to be over $16/hr to keep up with productivity ...

and here we are having to protest to get $9-10/hr.