The Politics/Religion/Conspiracies Deathmatch Thread

[The Dunster]

Real wages are growing slower than profits. That means workers incomes are not sufficient to purchase the goods and services they produce.

Hot tip. Real wages are determined with the cpi. Real gdp is determined with a gdp deflator.

You can't simply use nominal data as cpi takes into account both domestic and imported goods purchased as a basket for the the "normal consumer". The gdp deflator is only concerned with domestic incomes but for all goods and services produced including those not in the basket of goods the CPI takes into account.

In layman's terms the wages share of total income is shrinking and no matter how hard you work in aggregate your productivity gains are being appropriated towards profits not wages.

The Member is once again wrong. Some people will benefit but many will miss out.

None of this affects me but it certainly makes things hard for the younger generations - there are opportunities - but the day of simply choosing to work hard to make a good living are well and truly gone.

Governments control employment through their budgetary stance and they do this because of massive pressure from lobby groups over the past 45 years or more.

Unemployment exists because governments choose it - not because people don't want to work.

If the private sector wishes to save and the current account is in deficit then the only way to keep employment stable is for the government to run a deficit - it's not politics - it's arithmetic.

If you leave employment up to the private sector without any government involvement you have unemployment - and lots of it because the private sector is inherently unstable and incapable of producing full employment.