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By Rachel Goldfarb, originally published on Next New Deal

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The Pay-for-Performance Myth (Bloomberg Businessweek)

Eric Chemi and Ariana Giorgi report on a new analysis of data on the relationship between company performance and CEO pay, which shows no relationship between the two factors.

  • Roosevelt Take: In his white paper, William Lazonick explains how stock-based performance pay incentivizes CEOs toward business practices that manipulate stock prices.

Elizabeth Warren to Help Propose Senate Bill to Tackle Part-Time Schedules (The Guardian)

Jana Kasperkevic writes that the Schedules That Work Act would establish a right to request a predictable schedule, payment for cancelled shifts, and two weeks' notice of schedule changes.

Technology, Aided by Recession, Is Polarizing the Work World (NYT)

Claire Cain Miller says a new study explains how the recession has accelerated the loss of "routine" jobs, which follow well-defined procedures and used to go primarily to men and people with less education.

Even After Open Enrollment, Activity Remains Unexpectedly High on Federal Health Insurance Exchange (ProPublica)

There have been nearly 1 million transactions on the federal exchange since the April 19 enrollment deadline, writes Charles Ornstein, as people continue to sign up for and switch insurance plans.

Paul Ryan's Anti-Poverty Plan Should Support Minimum-Wage Hike, But Don't Count on It (The Hill)

Raising the minimum wage is one of the best ways to fight poverty today, writes Shawn Fremstad, but Paul Ryan ignores research that shows higher wages wouldn't impact employment.

Highway to Hell (The Economist)

The Economist says Congress's solution to funding the Highway Trust Fund through budget tricks around pensions creates risk of greater costs on taxpayers if those underfunded pensions go bust.

New on Next New Deal

The Future Economy Will Pit Man vs. Machine

Andy Stern, president emeritus of the SEIU, presents a speculation on the future for the Next American Economy project in which technology replaces the vast majority of jobs.


Originally posted to Daily Kos Economics on Thu Jul 24, 2014 at 05:17 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  In the economy of the future... (1+ / 0-)
    Recommended by:
    Shockwave

    ...the unemployment rate will be 99.999999%

    Only one person will have a job. This job will be to press a single button that tells the computers and robots to produce all the goods and services in America.

    The salary for this job will be $16 trillion/year.

    This guy will pay a 99.9999% tax rate.

    The rest of us will be on Food Stamps.

    •  This was envisioned Kurt Vonnegut in... (1+ / 0-)
      Recommended by:
      ManhattanMan

      ...his novel Player Piano;

      Kurt Vonnegut's first novel, was published in 1952. It is a dystopia of automation,[1] describing the dereliction it causes in the quality of life.[1] The story takes place in a near-future society that is almost totally mechanized, eliminating the need for human laborers. This widespread mechanization creates conflict between the wealthy upper class—the engineers and managers who keep society running—and the lower class, whose skills and purpose in society have been replaced by machines.
      I hope he will be proven wrong.

      Daily Kos an oasis of truth. Truth that leads to action.

      by Shockwave on Thu Jul 24, 2014 at 07:39:11 PM PDT

      [ Parent ]

    •  of less hours (1+ / 0-)
      Recommended by:
      ManhattanMan

      Right now, we really need to get a full down job down to around 32 hours a week.  That is four eight hour day or five 6 and 1/2 hour days.  This is why need a minimum wage of 10-15 dollars, which will cause a relative increase in other wages, and in time a realization that efficiency has increased so much that we don't need to work so much.  This is what in the US with child labor laws.  We became so efficient that have children work was no longer a major need.

      We also need to education for learning, not specific skills. A few oil busts ago I was out of high school and working in an office that just laid off most of it's staff.  I was helping the owner computerize and teaching him.  The offices were built to hold a couple dozen workers. In the span of few years I helped him build up to about 8-10 workers, not doing as much business as before, but doing enough.  The three secretary jobs were consolidated into an office manager and receptionist, with the owner learning to do a lot of work on the computer.  The rest of the staff were sales people.

      What I found interesting, though he was one of those horrible conservatives, is that he could learn new things and keep the company running. The workers had to learn to use computer programs that did not exist when they were in school.  If someone taught them how to take an order, and thinking that is all they would every have to do, they would not have a job.   Computers took the jobs of people who were not able to learn.  

      It takes me so little time to get my work done, unless I am actually coding or doing other creative tasks.  

      She was a fool, and so am I, and so is anyone who thinks he sees what God is doing. -Kurt Vonnegut Life is serious but we don't have to be - me

      by lowt on Thu Jul 24, 2014 at 08:34:42 PM PDT

      [ Parent ]

      •  What you are saying... (0+ / 0-)

        ...makes a lot of sense.

        But it will be difficult to get people to understand. We have been trained to talk about how to "create jobs". Workers want "jobs".

        But really we don't want jobs. We want stuff. If we can use technology to get the stuff without working, that is a much better goal!

        But saying this puts us at odds with the American (Puritan) Work Ethic. It makes the speaker sound lazy. And under Capitalism, workers know that they'll be allowed to starve if they are no longer needed.

        I am a framing fanatic, and I have no idea how to state these ideas in even a remotely acceptable manner!

  •  Will Republicans be smart enough to (0+ / 0-)

    pick up on the fact that The Roosevelt Institute seems to blame Democrats for ruining the economy?

    The claim that performance pay creates incentives (a la Enron) to maximize stock prices instead of tending to company business and, as a result, not provide good jobs for Americans points a finger straight at:

    Democrats, who, without a single Republican vote in the House or the Senate, passed a $1,000,000 cap on non-performance CEO pay in 1993 which was signed into law by Democratic President Bill Clinton.

    LG: You know what? You got spunk. MR: Well, Yes... LG: I hate spunk!

    by dinotrac on Fri Jul 25, 2014 at 03:14:27 AM PDT

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