#ecinomics

[outcasts-redeemer]

Statism: A system where Capital is controlled and managed by the State to fit what ever the needs of the State demands. The accumulation of capital is only reserved by those who are connected to the State.

Corporatism: A system where Capital is exploited to generate more capital until the exploited Capital is no longer viable as capital and then replaced by other Capital.

Capitalism: A system were Capital is invested in and grown to generate more capital with the Capital receiving an agreed portion of the generated capital depending on the type of capital.

Bartersim: A system where Capital is exchanged for Capital based on individual worth need and desire rather than an organized system.

[freemoneycomic]

Divergence of Productivity and Pay

While I was doing research for the January FREE MONEY MONTHLY WORKSHEET I found this wonderful chart from the Economic Policy institute. Theoretically productivity and profit should be linked, and it used to be in the US. For 3 decades after WWII pay rose in tandem with national productivity across the socioeconomic spectrum, but since the 70s that has been less and less the case. Every year less of the profit from productivity goes to the 95% of Americans producing. Even the bottom half of the richest 10% are being left behind, and 95th-99th percentile are only holding even. So where is all that profit going? You guessed it.

http://www.epi.org/publication/understanding-the-historic-divergence-between-productivity-and-a-typical-workers-pay-why-it-matters-and-why-its-real/

For extra bummer points check out this NYT article about how the lowest payed 5th of jobs are paying less every year! http://nyti.ms/1UoaWGv

Maybe we can make some policy decisions that start to push this country back toward society where productivity and pay are correlated. Or maybe most of us will just have to hustle a little harder to get by, every year, forever.