#### Comment Preferences

• ##### Same here(2+ / 0-)
Recommended by:
paige, ricklewsive

I can't figure out what that means either. It spools an otherwise great diary.

From the table values, with .10 to 1.55 indicating deteriorating condition for employees, my guess is that it means the corporate profit/employee compensation.
If that's the correct guess then corporate profit used to be only 10% of total employee compensation. Now, it's 155%.

• ##### A textbook on economics by Samuelson (can't (1+ / 0-)
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CalvinV

remember the title) seemed to think that 85% of revenue to labor and 15% to capital was normal.  That would make the corporate profit/employee compensation = 15/85=3/17= 0.17647   In the other direction if corporate profit was 10% of employee compensation, then employees would get a little over 90% of revenue and profit would be not quite 10% of revenue.  If corporate profit is 155% of employee compensation, then employees get a little over 39% of total revenue and capital gets a little over 60%.

• ##### It seems to me that(0+ / 0-)

there should be 3 elements at play here: labor, capital investment, and capital/profit.
Between 1070 and 2000, the ratio of profit/labor kept increasing but that might be normal due to the expanded use of technology such as computers and internet which increased the capital investment while reducing the labor cost due to the reduced need for workers. At the end of the Clinton years, unemployment was still low and workers were still doing OK.
Starting with the Bush years though, it was clear that disaster capitalism was ruthlessly applied to squeeze from labor and improve corporate profit. During this short 12 years, the ratio went from .40 to 1.55. It was also the period where the median wages of Americans actually shrunk.

• ##### Compensation/wealth gap chart (0+ / 0-)

was the best example. It shows the increase in wealth/compensations of corporations vs their workforce, and the lines jag up dramatically for the top, and are flat line for the workers. An explanation of why only part of the corporate employees deserve to cash in on increased productivity and profits, would be nice to hear.
How about a 20/20, or 60 minutes on that.
Love to hear someone explain how they deserve a 140% increase, and the people that actually produced get zilch.

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