Why are US corporate profits so high? Because wages are so low

Re:Why are US corporate profits so high? Because wages are s... by twoodfin on Monday January 27, 2014 @09:41AM (#7130455)

So they should get the rewards without the risk? By claiming it would be a poor investment for someone who can't afford the risk, you're implicitly arguing that the actual owners are taking a bigger risk than the employees, and thus it's unsurprising that they capture the rewards from growth.

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Re:Why are US corporate profits so high? Because wages are s... by simonh on Monday January 27, 2014 @11:24AM (#7131153)

Working for a company that could go bust at any moment isn't sharing in it's risks? Really?

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Re:Why are US corporate profits so high? Because wages are s... by twoodfin on Monday January 27, 2014 @04:48PM (#7133504)

Any company could go bust at any moment, and the only risk to you is the transactional costs of finding a new job. Those could be high, but it's not your current/prospective employer that's determining what that amount is, it's a function of the labor market and your own value.

Beyond that, it's not as if you're putting any of your own money on the table. Ownership (whether that be private management or shareholders) is putting their money on the table.

If you'd like a higher risk/reward level, negotiate for equity or other variable compensation.

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Re:Why are US corporate profits so high? Because wages are s... by unclebucknasty on Monday January 27, 2014 @11:28AM (#7131183)

By claiming that the owners are taking a bigger risk than the employees, you're implicitly arguing that employees are taking some risk. Thus, it's surprising that they capture none of the rewards from growth.

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Re:Why are US corporate profits so high? Because wages are s... by run4_too on Monday January 27, 2014 @12:25PM (#7131637)

There is nothing stopping the union from re-negotiating the contract that exists today, the same way management wanted to re-negotiate the contract that previously existed.

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Re:Why are US corporate profits so high? Because wages are s... by unclebucknasty on Monday January 27, 2014 @03:47PM (#7133109)

Except for the fact that many unions don't exist now.

Of course, your suggestion also implies a labor market balance that simply does not exist. The article is actually about the fact that corporations are realizing record profits by employing fewer people and paying less to those whom they do employ. It's a buyer's market for labor. Not exactly a strong negotiating position for the worker.

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