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The Inside Analyst's avatar

Great read, thx for sharing. I think you really identified a key pain point we are facing in the near future - labor productivity is higher than ever and while it was possible to benefit from productivity as a worker in the 70s and 80s. Today that very same economic benefit does not translate into individual wealth for the middle class but rather into margin expansion, growth outlook and shareholder returns that increase stock prices.

The Market Dispatch's avatar

Yes! That is exactly right, productivity gains have benefited the companies’ bottom line without benefiting wages for the workers. This has got to change soon or we will continue to see CEOs and stock owners become ultra wealthy while most of the workers live paycheck to paycheck

The Inside Analyst's avatar

There is also an interesting development highlighting executive compensation vs average worker wages. It speaks for itself. I am a big supporter of free markets and the economy but I do believe that in times of prosperity every contributor deserves a fair share.

https://www.epi.org/blog/ceo-pay-increased-in-2024-and-is-now-281-times-that-of-the-typical-worker-new-epi-landing-page-has-all-the-details/

OCULUS RESEARCH's avatar

Great read! Historical economic and equity correlations are completely broken. The current trajectory is unsustainable.