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Re:Wage Stagnation by mcv on Tuesday February 26, 2019 @08:51AM (#19254264)
Can anyone be said to be responsible for the increase in productivity? It's probably largely a matter of increased technology and automation, as well as cultural improvements like the way we work and organise work. These are mostly collective efforts.

Sure you can point to any individual employee and declare "you didn't invent or buy that computer that makes you work more efficiently, so why should you get more money?", but the CEO or shareholders didn't invent the computer either, and buying a PC is a fairly small expense, so why should they be the ones to benefit from the increased productivity?

Because they hold power and the regular employee doesn't. I think that's the only real explanation for this discrepancy: CEOs and shareholders have power, while the regular employee doesn't, and that power imbalance means more money goes to the CEO and shareholders.

Re:Wage Stagnation by taneq on Tuesday February 26, 2019 @09:01AM (#19254320)
> Sure you can point to any individual employee and declare "you didn't invent or buy that computer that makes you work more efficiently, so why should you get more money?"

It's less about that as it is about your three remaining employees being rewarded handsomely for the highly productive work they do on their computers, but the seven who you let go and who now work at Walmart are no longer paid wages that are coupled to that increased productivity.

Re:Wage Stagnation by crdoconnor on Tuesday February 26, 2019 @11:10AM (#19255446)
Wages are not correlated to productivity in the slightest. Productivity simply establishes a floor on wage levels.
Re:Wage Stagnation by mcv on Tuesday February 26, 2019 @11:19AM (#19255544)
And that's the core of the problem. Wages used to go up with productivity, but not anymore. Plenty of money is being made, it just doesn't end up in the wages of regular employees.

A couple of years I came across a claim that compared to 50 years ago, the ratio between a CEO's salary than that of a regular employee of the same company, has shot up by one or two orders of magnitude. CEOs make way more than they used to, regular employees don't.

Re:Wage Stagnation by crdoconnor on Tuesday February 26, 2019 @12:13PM (#19256202)
Yeah, it's clearly relative power and competition that determines wage level, not productivity.
Re:Wage Stagnation by conanbatt on Thursday February 28, 2019 @12:39PM (#19273201)
Sorry there is a huge causal relationship if not the only reason. Wealth is not relative dollars but purchasing power. In a system where a hat maker and a shoe maker double their production, they respectively see no "wage increase" but they are both twice as rich.

Productivity -> more goods/services -> richer society, wages be damned.

Re:Wage Stagnation by AlexB138 on Tuesday February 26, 2019 @01:20PM (#19256885)
> the CEO or shareholders didn't invent the computer either, and buying a PC is a fairly small expense, so why should they be the ones to benefit from the increased productivity?

Because the company owns the computer, and the work done by it. The employee is paid to do that work, and the CEO is paid to do their work. The company (and the market) decides what they are willing to pay the CEO, the worker, and the share holders, and each of those parties agrees to it. These are not slaves, none of these people are forced into these agreements against their will.

> Because they hold power and the regular employee doesn't. I think that's the only real explanation for this discrepancy: CEOs and shareholders have power, while the regular employee doesn't, and that power imbalance means more money goes to the CEO and shareholders.

Or because they are worth less in the market than the CEO is. What those parties have is "leverage" and "marketability" and "ownership", not some evil "power" construct. Ownership is available to general employees in a co-op, and people are free to join them, or start their own companies. If they choose not to, that's their choice.

Re:Wage Stagnation by mcv on Wednesday February 27, 2019 @08:18AM (#19263019)
The issue is not that CEOs make more money than regular workers. Of course they do. But CEO salaries and bonuses have exploded, while regular worker salaries have stagnated.

If that's not enough to tell you something wrong, then consider that even failing CEOs, CEOs of companies going bankrupt or in other kinds of trouble, still get multi-million dollar bonuses.

It really is power. You can call that power "leverage" or "ownership", but it's still power that regular workers don't have.

Re:Wage Stagnation by turtlecloud on Tuesday February 26, 2019 @03:19PM (#19257976)
At the extreme end, people will revolt. When those in power push to far, the workers will violently protest. Just crack open a history book.