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<p>[QUOTE="Blaubart, post: 1982148, member: 37498"]Just curious, but could there be lurking variables that influence the graph above?</p><p><br /></p><p>For example, have households changed over the past 25 years? i.e. Marriage rates, divorce rates, single parents, work/life balance. Have workers changed? Delayed entry into the workforce, early exits from professional careers, depression, incarceration rates, etc..</p><p><br /></p><p>Here's a graph for incarceration rates. it doesn't match as closely as GDP to median household income, but it certainly could account for some of the stagnation in wages.</p><p><br /></p><p><img src="http://fcnl.org/resources/newsletter/septoct11/Prison_Rates_1880.jpg" class="bbCodeImage wysiwygImage" alt="" unselectable="on" /> </p><p><br /></p><p>I believe it is indeed obvious that "more capital does not necessarily produce higher wages", but could the inverse be true? i.e. Lower capital produces lower wages? Given the dips in 1990, 2000, and 2007, I suspect it may be the case. Which means to me that when the earnings of the 1% rise, they don't necessarily share those profits with the 99%, but when they lose money, they're quick to lay off workers.[/QUOTE]</p><p><br /></p>
[QUOTE="Blaubart, post: 1982148, member: 37498"]Just curious, but could there be lurking variables that influence the graph above? For example, have households changed over the past 25 years? i.e. Marriage rates, divorce rates, single parents, work/life balance. Have workers changed? Delayed entry into the workforce, early exits from professional careers, depression, incarceration rates, etc.. Here's a graph for incarceration rates. it doesn't match as closely as GDP to median household income, but it certainly could account for some of the stagnation in wages. [IMG]http://fcnl.org/resources/newsletter/septoct11/Prison_Rates_1880.jpg[/IMG] I believe it is indeed obvious that "more capital does not necessarily produce higher wages", but could the inverse be true? i.e. Lower capital produces lower wages? Given the dips in 1990, 2000, and 2007, I suspect it may be the case. Which means to me that when the earnings of the 1% rise, they don't necessarily share those profits with the 99%, but when they lose money, they're quick to lay off workers.[/QUOTE]
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