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View Diary: CSI: Federal Reserve (221 comments)

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  •  I agree totally (0+ / 0-)

    This diary is about the symptoms not the cause.  Low-wage worker productivity is up but worker differentiation is way down.  The ability to provide value from anywhere with minimal training means unskilled US workers no longer have a locational or training advantage over foreign workers.  They may (or may not) be better trained (more literate, etc) but the  impact of training above a certain competence level is lessened by more automated processes and specialized training.

    On the flipside, the value of ideas and leadership has been magnified because of the speed with which those ideas can be implemented and the frequency of change to the competitive landscape.  Those that can analyze change and strategically respond to it best and most quickly are worth much more than they were in an era when a competitive advantage could be sustained for years or even decades.  So a good CEO can be worth billions, literally.

    Bernanke rightly suggests that understanding these forces is the key to correcting wage growth imbalance, not railing against (or attempting to artificially control) market wages.

    On the other hand, their is a corporate governance problem that allows company boards and management to continue to reward poor performers for way too long and to enter into bad contracts that make separation with senior managers costly.  This is something that needs to be addressed.

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