Thanks to help from pen-pals, especially Erdogan Bakir, I've produced the following paragraph. Comments are welcome. I think that it's very interesting that that old fraud Martin Feldstein's article admits that wages are increasingly falling behind productivity without noting the fact that it goes against his core beliefs.
> This [trickle-down] vision, however, contradicts recent experience in the > United States and many other advanced capitalist countries. Three O.E.C.D. > economists note that > >>Over the last two decades, the share of wages in total income has tended to > >>decline in a large number of European countries as well as in the United > >>States. (de Serres et al., 2001: 375). << > For the U.S., McConnell and Brue’s second assertion above [that real wages > always catch up with the trend of labor productivity] seems contradicted by > their diagram 26.1 on the same page, at least after about 1980 [2008, p 523]. > Looking more deeply, Krueger (1999: 47, 49) found that up to 1998 “labor’s > share declined by almost 3 percentage points since reaching a plateau in the > mid-1970’s” in the national income and product ac-counts. Using another > measure and correcting for the counting “some business owners’ income [as > part of] labor compensation” implies a “substantial 5.6-point fall in labor’s > share” between 1988 and 1995. Willis and Wroblewski (2007: 15) indicate that > real wages lagged behind labor productivity growth by 0.3 percentage point > per year between 1973:Q4 to 1995:Q4 and by 0.5 percentage points between > 1995:Q4 and 2006:Q3. Finally, Feldstein (2008: 591) finds that between 1970 > and 2006, wages lagged 0.2 percentage points per year behind productivity > growth. Worse, between 2000 and 2007, this lag was about double, 0.4 > percentage points per year.< sources: De Serres, Alain, Stefano Scarpetta, and Christine de la Maisonneuve. 2001. Falling Wage Shares in Europe and the United States: How Important is Aggregation Bias? Empirica. 28: 375-400. Feldstein, Martin. 2008. Reference available on demand. Krueger, Alan B. 1999. Measuring Labor’s Share. American Economics Association Pa-pers and Proceedings. 89(2) May: 45-51. McConnell, Campbell R. and Stanley L. Brue. 2008. Economics: Principles, Problems, and Policies. New York: McGraw-Hill/Irwin. Willis, Jonathan L. and Julie Wroblewski. 2007. What Happened to the Gains From Strong Productivity Growth? Federal Reserve Bank of Kansas City Economic Review. 1st Quarter: 5-23. -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
