Once again, we see Bloomberg peddling more malicious half-truths and fictions, with a similar theme to much of what is peddled on that elitist site:
If you pay the Workers fairly, this is “bad for Investors” (i.e. the Rich), so we should never pay the Workers fairly.
Let’s forget the general sentiment from these Greedy Misers that it’s OK to turn all the Workers into below-poverty-line Slaves, if it helps the Rich to get Richer. Let’s just focus on the half-truths and fiction.
Is paying workers fairly necessarily “bad for investors” (i.e. bad for profits)? No. Here`s an expression to which even the Rich can relate:YOU GET WHAT YOU PAY FOR.
Here`s what you get when you only hire under-paid workers:
– less-educated workers
– less-motivated workers
– less-reliable workers
– less-honest workers
Under-pay the Workers, and you only get the poorest educated Workers. This is somewhat less of a factor when there are over 100 MILLION PERMANENTLY UNEMPLOYED PEOPLE across the Western world, but it is still generally true.
Under-pay the Workers, and you destroy their motivation. How hard would you be willing to work, when your paycheque isn`t even enough to crawl above the Poverty Line in your standard of living?
Under-pay the Workers and you end up with less-reliable workers. While there are few-to-none good jobs available in our economies, as the propaganda machine points out regularly, many of the slave-wage jobs remain unfilled. So if you lose one slave-wage job, you can get another — assuming you’re willing to be a Slave.
Under-pay the Workers and you end up with less-honest Workers. When you work for a below-poverty-line-wage, the temptation to steal from your employer greatly rises — especially when they see management being generally paid like kings.
Note how the Bloomberg liars attempt to pretend that the Workers are paid fairly:
Wages and salary accruals as a percentage of GDP reached a seven-year high, and stands higher than at any point during the credit boom years of 2005-6.
This is an aggregate number of all employees, including the Fat Cats of the corporate board room. As regular readers know, CEO’s and management are overpaid by as much as 10,000% compared to historical norms. Take away the massive fortunes paid to the Thieves at the top of the corporate ladder, and Bloomberg’s misleading statistic would look much different.
This brings me to another point. Why is it “bad for investors” to pay Workers fairly, but it’s supposedly no “bad for investors” to OVERPAY MANAGEMENT BY 10,000%???
What’s good for the goose is good for the gander. If corporations cannot justify paying their workers a decent wage, how can they justify overpaying management by up to 10,000%?
The ultimate rebuttal to Bloomberg’s lies is the real world, and here I’ll quote Bloomberg itself, on Denmark:
Despite a minimum wage not far below $20 an hour and some of the world’s steepest taxes, unemployment is almost the lowest in Europe.
What were we just recently told by the propaganda machine Liars? If you raised the U.S. minimum wage to even $15/hr, corporations would replace all the workers with robots (and unemployment would soar) because corporations “couldn’t afford” to pay their Workers a livable wage.
As was explained in a recent commentary, higher wages for the workers is good for everybody. The Workers in Switzerland are paid even better than the Workers in Denmark. More than 90% of Workers in Switzerland make more than $25 per hour (USD), and their economy is even stronger than Denmark`s.
Obviously a strong economy is not `bad for investors`, because in a strong economy corporations prosper. Western wages go lower and lower (in most regimes) and these economies get weaker and weaker. That is bad for investors.
None of this Neaderthal right-wing propaganda ever made sense. The difference is that after DECADES of following the advice of the Right-Wing Morons, we can SEE THE DAMAGE. The only economies in the Western world which are not on the verge of collapse are the ones which (mostly ignored all the right-wing bullshit: Switzerland, Iceland, and Denmark.
Then we have the temporal chronology. In the 1960`s, when ALL Western economies were strong-and-healthy, they ALL had high wages for the Workers. For 50 years, these wages have been falling. For 50 years these economies have been getting sicker and sicker.
Reality or bullshit. That is the choice for readers.
What’s Good for Workers Is Terrible for Investors
Last week the Washington Center for Equitable Growth reported that 2015 was the best year for real income growth for the bottom 99 percent of income earners since 1998, as the impact of a tightening labor market and deflationary forces from abroad flowed through to workers. Wage data from the first-quarter GDP report suggests that 2016 will continue this trend: Wages and salary accruals as a percentage of GDP reached a seven-year high, and stands higher than at any point during the credit boom years of 2005-6…