Tech, Wages & Profits

Despite the Great Recession, the profits for corporations have doubled since 2000. In contrast, the median household income in the United States has fallen from $55,986 to $51,017 (dollars adjusted
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(Photo credit: Wikipedia) Despite the Great Recession, the profits for corporations have doubled since 2000. In contrast, the median household income in the United States has fallen from $55,986 to $51,017 (dollars adjusted for inflation, of course). Not surprisingly, corporate profits have gone from 5% to 11% of the GDP while wages of employee have dropped from 47% to 43%. While these numbers can be interpreted in various ways, one obvious implication is that corporations are making more money with fewer employees. It is also evident that corporations are doing better than most people (although some would say that corporations are people). One plausible explanation for this is automation that increases productivity without increasing employment and employee income—a claim put forth by the authors of The Second Machine Age. Historically automation and other technological advances have increased productivity and eliminated jobs—but these have also consistently resulted in higher. . .

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News source: Talking Philosophy

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