- cross-posted to:
- news@lemmy.world
- cross-posted to:
- news@lemmy.world
cross-posted from: https://lemmy.world/post/15086405
Bureau of Labor Statistics releases latest estimate of how much labor receives of national income, showing bleak decline
When Jesse Motte began working at a Starbucks inside a Target store in Columbia, South Carolina, more than two years ago, $15 an hour sounded great. He was excited to start because it was the most he had ever made after working for years in the service industry.
The excitement has dissipated due to his inconsistent and erratic work schedule, the rising costs of necessities and the minuscule raises he and his co-workers receive annually. His most recent annual wage increase was $0.37 an hour.
Motte is not alone. This week, the Bureau of Labor Statistics released its latest estimate for the share labor receives of national income for the first quarter of 2024. The statistics shows the income workers receive compared to the productivity their labor generates.
According to BLS, this income share has declined for non-farm workers from around two-thirds, 64.1% in the first quarter of 2001, to 55.8% in the first quarter of 2024.
These are kind of exceptions that prove the rule. Small business owners may often be workers themselves, but they also still profit from minimizing costs and maximizing revenue. They have the same incentives as any other capitalist, even if they have less ability to act on them due to lack of resources and competition keeping them in check. Even to the extent that these are more acceptable forms of capitalists, the trend in the economy for a long time has been towards consolidation and large companies putting smaller ones out of business.
Similarly, while some artists make it big, far more of them end up exploited by record labels, studios, etc. In fact even some of the successful artists have stories about their awful contracts.
There’s also the aspect of this which is that once you have enough money to invest it in significant amounts, you indirectly enter into the role of a capitalist, since the profit you derive from those stocks is the same as the profit made from the companies exploiting workers.
More to the point though, I ask you why/how they end up paying so little in taxes? Tax law didn’t fall from the sky. It isn’t just that the politicians were stupid or that most people wanted it this way. This is the result of the structure of political power in a capitalist nation.
So how do you address the problem: “Rich people don’t pay enough taxes and poorer people pay too much.” I can come up with any number of clever policies to solve our problems, but what good does that do if you can’t make the government adopt these policies?
This is why you need a theory for understanding how power is distributed, used, and perpetuated in a society. Otherwise you’re doomed to keep asking the question “Why don’t they just do this?” It’s not a new idea, but it’s still relevant.
If you disagree, I challenge you to be able to explain how we got here or how we move forward without any kind of structural critique.
You are stuck at step 1, I invite you to move on to step 2 and actually start looking at how we are gonna solve problems.
You can go back all the way to colonial times and feudal times and even earlier to discuss how societies have become less egalitarian since the invention of agriculture.
But we are here, right now and it’s best to identify the actions we can take today, for a brighter tomorrow.
I mean, how we got here probably can inform us as to how we proceed. But ok, fine. Ignore the first part. Answer the 2nd part.