tag:blogger.com,1999:blog-27946614.post4609089605675168054..comments2024-03-07T14:43:21.888-08:00Comments on Whatever I want to write about: Where have all the wages gone?Sriram Khéhttp://www.blogger.com/profile/06907731254833435446noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-27946614.post-44222596062532683722015-01-11T08:17:54.638-08:002015-01-11T08:17:54.638-08:00Anne and I are in different political-economic cam...Anne and I are in different political-economic camps, even more than Ramesh and me being different camps ;)<br />But, despite the differences, it is cool that we are able to exchange comments and exchange them freely. <br /><br />As I mention in the latest post, I would note regarding Anne's points that they require extensive responsible discussions in the political scene. But, that is asking too much from most of our elected officials who only deal with irresponsible and unprincipled rhetoric. <br /><br />I disagree with Anne's "leech" metaphor ... primarily because people don't expect those as much as those are a part of the social contract. The social contract about retirement, Medicare, homeownership, ... <br />Now, are these the golden rules and unchangeable like the speed of light? Of course not. But, rewriting the social contract will require extensive responsible discussions in the political scene .... <br />Sriram Khéhttps://www.blogger.com/profile/06724218458246880137noreply@blogger.comtag:blogger.com,1999:blog-27946614.post-4299756511553575622015-01-11T07:38:53.214-08:002015-01-11T07:38:53.214-08:00I continue with some of the related issues in the ...I continue with some of the related issues in the next post too ... <br /><br />Meanwhile:<br />1. Even in China and India, digital technologies will increasingly trigger wage stagnation. In India, the fabled IT jobs will not only slow down in their growth rates, the compensation for those jobs will fall and fall rapidly. There will be a few at the very high end of pay and there will be a vast number down at the other end toiling away. <br />2. The awesome technological progress means that even the demand for skilled labor decreases, and decreases rapidly. Plumbers are the best examples--because the water/sewer technologies work so well now compared to the past, rarely, rarely ever do households ever hire plumbing help anymore.<br />3. Yes, on the pathetic savings rate. If only we would understand how awful a strategy it is to spend money on all the fancy gadgets without saving for that rainy day and month and year!Sriram Khéhttps://www.blogger.com/profile/06724218458246880137noreply@blogger.comtag:blogger.com,1999:blog-27946614.post-51324406710230185692015-01-10T22:27:20.715-08:002015-01-10T22:27:20.715-08:00From the business perspective, increasing wages ca...From the business perspective, increasing wages can be an impossibility in light of government demands of employers. Obamacare is replacing increases and bonuses for many businesses which simply cannot afford both. In addition, for every dollar wage increase, it costs the employer an additional $0.20 in taxes, social security, Medicare and workers' comp insurance. 10 employees receiving a $0.50 raise will cost the employer approximately $2000. Where is he supposed to get that money, especially with Obamacare costing him $1000 or more a month? <br /><br />How many employers are withholding raises, awaiting the wave of $15.00 minimum wage to sweep the states? For businesses that can survive that increase, they need to save now for that possibility. I hope legislators talk to business owners, not just unions, before taking this step. Clearly they did not before passing the ACA.<br /><br />Ramesh, saving one's income and preparing for the future are anathema in the US, where far too many people expect the government to take care of them when they hit hard times. They expect the government to forgive their student loans, save them from foreclosure, and pay for their retirement and medical care in perpetuity. We have lost our sense of personal responsibility and have become leeches on society because independence has lost its honor and dependence has lost its stigma.Anne in Salemnoreply@blogger.comtag:blogger.com,1999:blog-27946614.post-10308838043320478042015-01-10T20:55:06.379-08:002015-01-10T20:55:06.379-08:00You haven't done justice to the headline.
Wag...You haven't done justice to the headline.<br /><br />Wages are falling only if<br /><br />- your post exclusively deals with the US (Wages are not falling, and will not fall, in China and India for some time to come)<br /><br />- you are a low skills worker. If you are a very skilled plumber or carpenter in the US, your earnings are actually going up<br /><br />- you are inflexible and immobile ( you are not prepared to be self employed, you are not prepared for flexi hours and you are not prepared to move where the jobs are)<br /><br />The problem is compounded by the fact that<br /><br />- your wages in the US are actually way too high to be really competitive globally.<br /><br />- you will not save even $5 a day, when the times are good. Savings rate in the US is , to put it finely, too low.<br /><br />It's hard to feel great sympathy for the US worker, although I know that is a very inhuman thing to say. OK - I'll feel just a little sympathy.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.com