My comments interspersed.
Originally posted by old_goat_23:
The money at the top is a function of a couple of things:
1. Transfer of wealth between generations (inheritance).
2. Companies shifting to compensation plans based upon stock price (I could write a book on the follies of that little practice).
The numbers shown for wages are somewhat misleading.
3. Changes in compensation structure that lead to perceived changes in actual compensation have skewed the numbers so they look worse than they really are.
Liberals are as if not more guilty of supporting #1.
Exactly. Viewing this as a partisan (Dem vs Rep) issue is to miss the point. We have the best government money can buy...regardless of who is in office. According to SCOTUS, money is speech, and Congress obeys the voice that it hears loudest and keeps it in office.
#2 will fix itself but no joy thus far (just read a Credit Suisse analysis of IBM that chills the soul).
I'll have to take your word for this, but tax changes could certainly move it along.
For #3, changes in compensation include the ever increasing cost of medical insurance (which OCare has not changed in the least), the advent of new forms of compensation (the common availability of IRA, SIRA and 401-K matching contributions). So what would have been a raise in previous decades now is eaten up by insurance costs or retirement fund matches.
Interesting idea, but other factors are also involved such as US subsidies on moving jobs overseas and incentives to hold profits overseas. As for Obamacare not holding down costs, the US healthcare industry spent billions on lobbying and campaign incentives to make sure that the primary effect was expanding healthcare coverage not cutting into industry profits. We still spend nearly twice the % of GDP to deliver a fraction of what other countries spend to cover everyone.
Let's not ignore the effects of the Bush tax cuts and the effects of the Bush delivered financial meltdown. The poor and middle class took a hit in 2008 leaving them without a chance to participate in the market and real estate recovery. Obama's refusal to prosecute criminal behavior in the mortgage scandal only insures that it will happen again in some other form.
The minimum wage is easy to fix in a controlled fashion. Get with Congress and suggest a bill that raises it $.50 every six months for the next five years. Insert a feedback loop in the bill that allows an annual review of the impact of the increase on inflation and other wholesale prices. Adjust as necessary. If not for the narcissistic and clueless community organizer in the White House this could be done in a few months. Unfortunately, Obama is all about Obama and doesn't really care about any of the ideals he espouses. He just wants to look good to other liberals. A controlled and gradual correction to the minimum wage won't get him any of the recognition for which he lives.
In psychology would this be a good example of projection?