Re:The rich world needs higher real wage growth
by chibg10 on Sunday July 01, 2018 @01:43PM
(#17436572)
Ehhh, I think you're fudging the causality here and reading your own incorrect perspective into the article.
Recessions hit the lowest rungs of the economic ladder hardest, and those same rungs are last to fully get in on the recovery. Hence, labor's share of GDP tends to be highest at the end of the business cycle... which necessarily coincides with an imminent recession.
Re:The rich world needs higher real wage growth
by droidist2 on Sunday July 01, 2018 @04:12PM
(#17437314)
Or is it that when wages rise and inflation kicks in, the Fed raises rates to "cool off" the economy, and then the recession comes?
Re:The rich world needs higher real wage growth
by harryh on Sunday July 01, 2018 @12:51PM
(#17436330)
GDP was still increasing in the late 90s in the US. The recession didn't start until March 2001.
Re:The rich world needs higher real wage growth
by ethbro on Sunday July 01, 2018 @01:00PM
(#17436374)
The interesting corollary would be that in the run-up to a recession, all other assets and opportunities are so over-valued that capital has nowhere else to go.
And that increasing wages for labor is in fact capital's least-preferred option.
Which would be sad, but more or less jive with how the modern global, publicly traded economy works.
Re:The rich world needs higher real wage growth
by eli_gottlieb on Sunday July 01, 2018 @05:30PM
(#17437720)
Well, that sounds pretty accurate: today's economies are so thoroughly dominated by the interests of monopoly capital that it takes a long-running bubble/overheat to actually raise wages.
Continued tightening in labour markets might yet boost workers’ bargaining power enough for that to happen, as was the case during the late 1990s and late 2000s, two unusual periods in which labour’s share of GDP rose across the rich world.
Labour’s share of GDP is a fraction. labour/gdp. you can make it bigger by having higher wages or lower gdp. Anyone remember 1999 or 2008? Anything "unusual" about those years?