He sort of looks clairvoyant now. doesn't he?

[Red Arrow]

If we fix whatever is causing workers to not share in the productivity gains, then yes.

If workers share in productivity gains, it's not inflation because the end product will not cost more to the producer.  In fact, it could cost less.  The sale price of a product would not need to be raised to cover the cost of production.

I realize that the sale price may go up anyway to increase company profits.  If you don't like it, don't buy it.  I also realize that too is not always possible.

[Conan71]

No, probably fixing our broken corporate governance.

Via government intervention into private enterprise?  Stock holder revolt? How exactly does that work?  I really don't see how you can have it both ways.  Put a cap on profits?  Don't leave us hanging!

[nathanm]

Via government intervention into private enterprise?  Stock holder revolt? How exactly does that work?  I really don't see how you can have it both ways.  Put a cap on profits?  Don't leave us hanging!

Sometimes I identify problems prior to identifying solutions. I would think strengthening shareholder rights would help, but other countries do things like have one board member be elected by a vote of the employees. I'm not sure what the solution is, but I am fairly certain that corporate governance is (in the main, I'm sure there are exceptions) just as screwed up as Washington.

[Conan71]

Sometimes I identify problems prior to identifying solutions. I would think strengthening shareholder rights would help, but other countries do things like have one board member be elected by a vote of the employees. I'm not sure what the solution is, but I am fairly certain that corporate governance is (in the main, I'm sure there are exceptions) just as screwed up as Washington.

Of course, share holder rights are likely going to work inverse to increasing employee pay as raising employee pay rates as an increased percent of profits would dig into potential dividends.  There are quite a few investors who don't give two craps about dividends though- and they are the same ones who don't care what anyone is paid in the company as long as that piece of their portfolio continues to grow.  As long as the company shows profit and has a great PR firm touting all their latest developments to the financial news outlets, the rise in share value is all shareholders care about.  I suspect precious few really care how much the executives are making as it really doesn't affect their ability to profit off ownership of the company in the near or long-term unless executive compensation is really dragging down compensation.  

IMO, some sort of  "shareholder bill of rights" does nothing to increase the wage of the average American worker.  

That's one of the basic tenets of free enterprise.  Companies can determine what their employees are worth to them and reward employees based on their perceived contribution to the overall success and profitability of the company.  

Personally, I love being paid primarily on bonus or commission.  I will make twice my base salary on bonus alone this year as our industry sector is going along quite well right now.  I don't think anyone in my company will tell you I'm over-paid either.  My contribution assures the continued employment of 10 to 12 other people and has allowed us to upgrade capital equipment and bolster inventory as well.

I've actually out-earned my boss a couple of years.  Rather than cut me back out of envy or thinking I need to be capped at some point, he realizes the incentive it presents to me to keep doing what I'm doing.  His solution has been to give himself a raise and to provide everyone else with profit sharing.  

So long as I've been compensated largely by commission or bonus, I've never felt over or underpaid.  I feel like I'm paid commensurate to what my contribution has been.  I'm going on 21 years now of that sort of compensation arrangement: anywhere from full commission to base plus bonus on sales.

[heironymouspasparagus]

If workers share in productivity gains, it's not inflation because the end product will not cost more to the producer.  In fact, it could cost less.  The sale price of a product would not need to be raised to cover the cost of production.

And that is exactly what has been happening for the last 30+ years.  Oh, except for the sharing the productivity gains with workers.  THAT is the reality.  You show that you understand that it's not inflation, but can't seem to get the part about sharing the gains...

[Red Arrow]

And that is exactly what has been happening for the last 30+ years.  Oh, except for the sharing the productivity gains with workers.  THAT is the reality.  You show that you understand that it's not inflation, but can't seem to get the part about sharing the gains...

Wow! 30 years.  How do you live on a 1980 salary?  No raises in 30 years?  Your middle name must be "Frugal".

[Conan71]

Wow! 30 years.  How do you live on a 1980 salary?  No raises in 30 years?  Your middle name must be "Frugal".

No, it's just when you are as obstinate as he obviously is, you will constantly get passed over for raises.  God forbid that his RWRE bosses would reward people based on merit and creative thinking.

[Gaspar]

No, it's just when you are as obstinate as he obviously is, you will constantly get passed over for raises.  God forbid that his RWRE bosses would reward people based on merit and creative thinking.

I won't stay with a job for more than a year if my income is not increasing.  I let my employers know that on day one!

[heironymouspasparagus]

Wow! 30 years.  How do you live on a 1980 salary?  No raises in 30 years?  Your middle name must be "Frugal".

You and I both are living on real salaries that are less than the equivalent 1980 salary.  In real terms that means a reduced standard of living from your 1980 status.    (Unless you were still in school then, and experienced a significant increase from your school years job salary through the first 5 years at an engineering job.)

The numbers get bigger and stay the same.

[we vs us]

I won't stay with a job for more than a year if my income is not increasing.  I let my employers know that on day one!

You must be in SUPER high demand if you're rocking that kind of leverage.

[Townsend]

You must be in SUPER high demand if you're rocking that kind of leverage.

Hey, I started out mopping the floor just like you guys. But now... now I'm washing lettuce. Soon I'll be on fries; then the grill. And pretty soon, I'll make assistant manager, and that's when the big bucks start rolling in.

[heironymouspasparagus]

You must be in SUPER high demand if you're rocking that kind of leverage.

It's not real.  Just another sound bite talking point.

[Gaspar]

You must be in SUPER high demand if you're rocking that kind of leverage.

Why?
I wouldn't hire anyone who told me they would be happy with a static salary level.  That indicates a person willing to "park" at a job.

The first offer is never the final offer. I love it when employees tell me they want to make far more money than I'm offering them.  That's the kind of ambition I want to hire.  That's also the kind of ambition that my boss appreciates.

Would you ever tell an employer that you wouldn't be back in her/his office in 12 months asking for a raise?

[Red Arrow]

You and I both are living on real salaries that are less than the equivalent 1980 salary.

http://www.bls.gov/data/inflation_calculator.htm

According to the calculator, I'm ahead a bit.

I used my 1981 salary, just after I got a BIG raise to keep me up with starting salaries.

My present salary is a bigger number than the number required now for the same purchasing power as my 1981 salary in 1981.  I started my first engineering job in Dec of 1979 after the Navy and Grad School at TU.

[Conan71]

I think I was working 20 hours a week for $3.35 an hour in 1980 so I really cannot make a comparison.  But let's say for comparison's sake that you were earning $40K in 1980 and you earn $110K now, what difference does it make?  You have the same buying power and would have been able to maintain the same lifestyle all along. 

If you haven't kept up with inflation or have not exceeded that rate and are unhappy about being stuck in the middle class because someone didn't see fit to pay you vastly more- it's not "the man" holding you down, but rather your own lack of creativity and ambition if you are sitting around wondering why you aren't well ahead of the curve, Heir.