Re:Top 1% take biggest income slice on record
by rayiner on Tuesday September 10, 2013 @08:14PM
(#6364552)
I have to say I really enjoy your posts that discuss things in plain labor/capital terms. It seems to be out of vogue, but you don't have to be Marxist to appreciate that the basic dynamic of labor versus capital is simply a description of reality.
Re:Top 1% take biggest income slice on record
by eli_gottlieb on Wednesday September 11, 2013 @02:37AM
(#6365862)
Well thanks ^_^.
Who says? The top 1%, in any given year, mostly consist of capitalists (literally: people who invest capital for a living) or rentiers (people who control commons resources like land or mineral wealth). The top industrial sectors, often the only healthy sectors, in most of the developed world, are now: FIRE (Finance, Insurance, and Real Estate), Resource Extraction (basically: energy and raw materials), and technology (us on this site).
Income has always been divided between capital, labor, and rentiering (even though economists like to operate in a True Scotsman Efficient Market, where rentiering is eliminated by perfect competition). Recently, more and more of that income has been going to capital and rent, less to labor [1]. "Since labor income is more evenly distributed across U.S. households than capital income, the decline made total income less evenly distributed and more concentrated at the top of the distribution, and this contributed to increased income inequality."
So actually, what we are seeing is very much class warfare, in the Marxist sense of the word. Even the tax system (normally the tool of obnoxious redistributive Big Government) is now configured to favor capital over labor [2], contributing to income inequality, the deterioration of national infrastructure, and the accumulation of national debts.
“There’s class warfare, all right,” Mr. Buffett said, “but it’s my class, the rich class, that’s making war, and we’re winning.”
[1] -- http://www.clevelandfed.org/research/commentary/2012/2012-13... [2] -- http://www.nytimes.com/2006/11/26/business/yourmoney/26every...