Friday, January 21, 2011

Who Benefitted ?

Yesterday's post proved that the common man and woman obtained zero - nada - no benefit from the massive productivity gains since 1969. Where did that increased productivity come from ? Technology. New technology from computerization permitted everyone to do more work with less labor. Machines replaced people.

Expensive and time consuming studies could prove that, but our collective memory contains plenty of proof. Remember that great musical, "How to Succeed in Business Without Really Trying?" The secretarial pool and the junior executive pool no longer exist. Remember the job of receptionist at the elevator entrance on every floor? Gone. A person used to answer the telephone and take messages. No more - voice mail. Today many lawyers do their own documents and make changes; in the past a skilled legal secretary did them.

On the factory floor, fewer skilled machinists are needed as CNC machinery does their work after the set-up. Technology permits jobs to be performed in India for low wages that used to require highly paid analysts in NYC. X-rays are read in India, instead of by a US based skilled person. Plug-in modules dumb down the job of being a technician, reducing their skill - and pay levels.

You know all this deep in your mind and memory. BUT where is the profits go? Where did the gains in national income go? Who got it? Readers of yesterday's post know the common man and woman got nothing from 40 years of increasing national income.

The cynics are right. The people on top got it all. They took it all. Data prove this. I downloaded the table, "Table 695. Money Income of Families--Percent Distribution by Income" from the Census bureau. Families making $100,000 and over (in constant dollars) increased their share of the total national income from 8.7% in 1969 to 26% in 2008. Everyone else was mostly flat or got a lot less. Remember, the median Ozzie & Harriet family got nothing - almost no income gains for almost years. The group at the top got plenty.

We even see this process continuing today. WSJ: "Lenders See Little Choice: Layoffs - The banking industry, racked by the financial crisis and facing slower revenue growth, is starting to cut costs—increasingly at the expense of jobs."

The leadership at banks failed and is continuing to fail. Does the executive suite get a pay cut? Nope. They lay off lower paid workers, cut their pay, benefits and pension. The customer gets worse service. The bosses get MORE.

All this simple research and thinking proves the 200+ year old implied social contract was broken unilaterally around 1970. The group at the top left the rest of the people eating their dust and leftovers. For all the vaunted bloviations of the revolutionary baby boomers of the 1960s, the leaders of that generation did their best to screw the common man and woman. You can see that easily in people like the Clintons, Barry and the bespectacled Republicans. They all got plenty in favors and book deals. Joe Auto Mechanic got the shaft.

We need a new social compact, a square deal for the common men and women. We need an ideology to bind together the great majority of people in the US in the middle - the center. Let them rule and get a Square Deal. Cast aside the fringe right and left. The fringe right want to let the Vikings continue to raid and loot; the fringe left wants to turn us all into serfs for the government, union bosses and trust fund brats.

Under Free Fraternalism, the middle 60% or so gets complete freedom and a square deal; the top 20% pays part of their fortunes to support the unlucky and unendowed bottom 20%. Those numbers aren't strict lines; they are just rough guidelines. BUT I've proven in other posts that national happiness would increase under this political economic system. And in the past few days you have seen data to substantiate your own memories of 40 years, that national happiness has NOT improved for the great bulk of the people under the existing classic liberal system with its socialist admixture.

The existing system has failed: Time to recognize this and fix the problem.

More to come in future posts.

Word of the Day

"Pellucid" - adjective [$10]
Pellucid means easy to understand.
Sentence: Today's pellucid post should make the nature of the problem facing America obvious. Government and its implied social compact need to be fundamentally changed Free Fraternalism is the solution - a total makeover, not simple tinkering around the edges.

20 comments:

Bunkerman said...

All this Facebook-Google billionaire buttkissing is making me puke.

Bunkerman said...

BofA is such a joke. Their Board of Directors should be mandating pay cuts for the top 10% of the firm for long term failure to meet objective.

Spin-em said...

you did leave 50% on the table bunks with BAC...im just sayin...lol

Bud said...

from the orlando sentinel today


Food prices have begun rising, putting new pressure on consumers who were just beginning to feel more comfortable about spending again.

"Things you would see for 10 cents less last Monday are 10 cents more this Monday," said Barbara Powell, 64, of Orlando, shopping at a Publix on South Orange Avenue this week. "People on fixed incomes like I am, it's hard for us. We just have to close our eyes and get it. But it's expensive.''





Bman you still think QE2 is workin?? you and Ben make me puke

Bud said...

the common man is gettin strangled.......choked.........Ben has launched an assault on our global purchasing power



let it fall my ass

Bunkerman said...

sigh ... do you enjoy torturing me, spin?

No need to answer :))

Bunkerman said...

I guess the FL newspapers read your posts, Bud.

Bunkerman said...

but food is still dirt cheap IF one is willing to do a bit of work.

I don't begreduge the farmers a good profit.

Spin-em said...

Hey Bud...will you and Barb pick me up some cantelope tonight??

loooooooool

Spin-em said...

HAS TODD HOFFMAN'S GOLD FEVER BLINDED HIM TO THE POINT THAT LIL OLIVIA NEEDS TO BE RUSHED TO THE ER AGAIN???...IS IT WORTH IT TODD???...IS WORTH THE HEALTH OF YOUR SWEET LIL ANGEL FROM HEAVEN ABOVE???....WELLLL....IS...IT???!!!

mfl59 said...

They have risked everything Spin. It is absolutely American to the core. Its not about going to Harvard and fantasizing in a supper club. Its about taking a risk with everything on the line.

Spin-em said...

WILL THE CONSTANT PUT DOWNS AND HUMILIATIONS BY THE CAMP IN FRONT OF JIMMY DORSEY'S WIFE AND KIDS STRAIN THE RELATIONSHIP FOREVER??JOY'S BEEN THROUGH SO MUCH WITH JIMMY KILLING THE REAL ESTATE MARKET..IS HE NOW KILLING THE GOLD RUSH AROUND THE WORLD??..SHOULD MIKE BE CONCERNED????

Frosty said...
This comment has been removed by the author.
Bunkerman said...

fantasizing in a supper club

fwiw, I was NOT a member of any of those clubs - one had to be a preppy to be in those. I was a small town boy out of the local HS.

Spin-em said...

Did I miss how we get the $$ to the common man??...I get the top guys cut jobs...get the $$...left wants the govt to provide...

Bunkerman said...

I've written about many reforms that would move more $ to the common man WITHOUT running it through the governemnt, but ...

you can be sure I'll be repeating those and providing more over time.

:)

If I write longer posts, SOME people complain.


;))

Bunkerman said...

6" new fluffy white stuff here; gotta hit the shovel & snow blower.

At least I don't have to climb on the roof to clean off solar panels.

:)

Spin-em said...

Why pay scale to the Plow guy if you have to whip out the shovel and blower...puta plastic plow on the half trak..EZPZJAPANEZ....lol

Spin-em said...
This comment has been removed by the author.
Bunkerman said...

sheesh I pay that plow guy plenty ... the drive is 1/4 mile long past many pits & traps. But I should ask him if he has helpers to do the cleanup shoveling, etc.; front steps, etc.

I'd pay a fair wage.