So, something is broken. I can't honestly tell you that I know what it is. A suspect would be the incredible concentration of many of the main markets stifling competition. De-regulation of anti-competitive practices certainly doesn't help. Employment policies that create significant transaction costs for people considering changing jobs (like starting over at the bottom rung, losing stock options, etc) are probably part of it.
A true free market without massive Federal and liberal intervention would but you dodge the point and ignore the costs forced upon business by the govt. Obviously many liberals here have never run a business and never invested their own income into a business which means they are the last one paid. You claim they are paying less than half of what the employee is worth so explain how you came up with how much an employee is worth? What makes you an expert on employee value?teamosil;1059942235]We should be asking why the market isn't doing it properly. In theory, in a free market, companies are supposed to be competing over employees. Each employer should be offering a bit more than the others to get the better resources, and back and forth, until they are all paying the employees almost as much as the value they create. That's the core idea of capitalism- the invisible hand. But that seems to have broken down in the modern US. They're paying less than half of what employees are worth and they're actually cutting compensation when in theory they should be raising it.
One thing great about this country is the ability for anyone to start their own business. What I have found however is that many liberals who are experts on the private sector have never started or run their own business. It would seem to me that any liberal who really wants to help people would start a business and pay them what they know they are worth and see how that works out for themSo, something is broken. I can't honestly tell you that I know what it is. A suspect would be the incredible concentration of many of the main markets stifling competition. De-regulation of anti-competitive practices certainly doesn't help. Employment policies that create significant transaction costs for people considering changing jobs (like starting over at the bottom rung, losing stock options, etc) are probably part of it.
It's weird to me that you seem to be holding a position passionately that you aren't able to come up with any arguments to defend. Maybe that means you got something wrong, no?
Worker productivity varies by industry and value of the product they produce. Would you value someone who works for a dry cleaner the same as someone working in a techical field?
Would love to talk to you about taxes but that is irrelevant to this discussion. There are many more costs to business than taxes just like there a millions more of small businesses than those evil corporations you want to demonize
Do you know what the profit margin is for most businesses especially those evil companies are? Competition always works when allowed to work. Right now the govt. is preventing competition from working by over regulations and high taxes which is putting business out of business. You believe we have a 9.1% unemployment rate in this country? Business owners that have gone out of business aren't counted and get no compensation.teamosil;1059942333]That's the point- we aren't supposed to have to rely on businesses being charitable. The market is supposed to ensure that they're paying fairly through competition. When the market is working properly, that is exactly what it does do.
We were taking about the value of people that you tie to productivity. That is the book talking to you and not the real world thus my statement regarding you starting your own business so you can apply your theory and book smarts to the real world.Not sure how you think that relates to what we're talking about. The median compensation is less than half the median productivity. Maybe you can explain your argument more?
Not sure where you get your information on corporate taxes but you made the claim so prove it. Most countries have higher user taxes than we have including gasoline taxes to fund their socialist agenda. I am waiting for some of the liberal elites to start and run their own business and put their theories into practice. Please explain your experience in working in the real world so as to give credibility to a statement that market ony works when the conditions are right. What conditions and does human behavior have any impact on business?Feel free to list them off. We generally have not just much lower corporate taxes than most countries and much less onerous regulations. And in fact, in most those countries with higher taxes and more regulations employers actually do pay much closer to the productivity of their workers. So "too many taxes and too much regulation" doesn't seem to fly as an explanation. In fact, it's probably too little regulation. The market only works right when the conditions are right. If we let competition break down, the market breaks down and this is what happens.
Doing Business in United States - World Bank Group
Regardless, just for the fun of it, I've worked in tech mostly. I managed the professional services departments in a few different software companies. Then I got sick of it after about 12 years and now I'm in law school.
I'm not sure it is valid to state that employees are worth 97k of production, but only receive 44k in compensation.... but leave out all other expenses of the employer
the difference between the 97k and the 44k is eaten up by a ton of expenses.
Corporation tax rates around the world. How much do companies pay? | News | guardian.co.uk
I am still waiting for you to define fair share in the form of taxes and fair share in the form of income for the various types of jobs in the labor force?