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GBrooks9's avatar

Mr Reich:

There is a related issue that your network could energize and propagate:

How does the middle class prosper if systemic increases in pay leads to significant price increases by predatory corporations who seek windfall profits (because workers can now afford higher prices)?!

Back in the day when Unionization was large enough to influence benefits to even Non-Union labor, we could see a tighter relationship between higher profits leading to a larger share of profits going to labor.

Under these circumstances, it made less sense for corporations to increase prices, when it quickly and inevitably led to negotiated pay raises (unions were strong enough to compel pay raises with each round of increased profitability)!

It is now clear that without Unions as a non-legislative remedy to mitigate corporate greed, corporations exploit raises in labor compensation as a source of higher profits that won't be shared with the middle class!!!

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Dio.Genes's avatar

I think the spate of government spending under Biden in a non-unionized economy (less than 10%) answered your question -- inflation. Of course, the increasing limits on the materials extraction needed to generate wealth from capitalist production due to resource depletion and climate change also impact the ability to increase supply to meet a government,-funded demand.

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GBrooks9's avatar

You seem to be ignoring the very real trend of corporations increasing prices because they can get away with it. Employee compensation increased ... which allows them to reason that they can now afford a higher price.

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