Open thread Jan. 31, 2017 Dan Crawford | January 31, 2017 6:38 am Tags: open thread Comments (2) | Digg Facebook Twitter |
Re: DeLong on Rodrik on Delong on NAFTA — at Equitable Growth
Lost in all the fine and refined analyses …
… see http://angrybearblog.strategydemo.com/2017/01/trade-agreements-have-harmed-manufacturing-employment.html …
seemingly forever lost (!), is that most all today’s $10/hr US jobs (e.g., Walmart cashier) could plausibly be paying more like $20/hr — with German level union density. Given that 45% of today’s US workforce is earning $15/hr or less this seems to make debating about a few percent more or fewer manufacturing jobs blamed on this or that far from the defining issue of our time.
And don’t forget health care looks like the next manufacturing — evenly spread everywhere and eventually government funded.
THE MONEY IS THERE SOMEWHERE
You can’t get something from nothing but, believe it or not, the money is there, somewhere to make $10 jobs into $20. Bottom 45% of earners take 10% of overall income; down from 20% since 1980 (roughly — worst be from 1973 but nobody seems to use that); top 1% take 20%; double the 10% from 1980.
Top 1% share doubled — of 50% larger pie!
One of many remedies: majority run politics wont hesitate to transfer a lot of that lately added 10% from the 1% back to the 54% who now take 70% — who can transfer it on down to the 45% by paying higher retail prices — with Eisenhower level income tax. In any case per capita income grows more than 10% over one decade to cover 55%-to-45% income shifting.
Not to mention other ways — multiple efficiencies — to get multiple-10%’s back:
squeezing out financialization;
sniffing out things like for-profit edus (unions providing the personnel quantity necessary to keep up with society’s many schemers;
snuffing out $100,000 Hep C treatments that cost $150 to make (unions supplying the necessary volume of lobbying and political financing;
less (mostly gone) poverty = mostly gone crime and its criminal justice expenses.
IOW, labor unions = a normal country.