Wednesday, December 23, 2009

Worker productivity way up. Wages, no. Who wins?

From Thom Hartmann
Professor Thomas Kochan at MIT's Sloan School of Management is reporting that economic productivity of the American worker rose by 8.1 percent in the third quarter, but pay did not. Instead, at this holiday time - and pretty much continuously since Reagan declared war on working people in 1981- wages are stagnating and workers are stressed out with larger workloads while fearing for their jobs.
Professor Kochan's latest opinion piece includes:
Wage data are equally unacceptable. Average worker incomes remained flat or fell during the recession. Nor did they grow over the seven years of the past economic recovery. Indeed, workers have been getting a declining share of the productivity they helped create for the past three decades. Because consumption accounts for 70 percent of the U.S. economy, a wage-less recovery is a weak and unsustainable recovery.

Why pay workers more when it cuts into CEO compensation?


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