Socialist Progressives
Related: About this forumThe Equalizing Effect Of Labor Unions
Via EPI, CEO Pay Continues to Rise as Typical Workers Are Paid Less.
A new study on the effect of labor unions on equality helps explain this, Could politics trump economics as reason for growing income inequality?
But a new study suggests that a different cause the politically induced decline in the strength of worker unions may play a much more pivotal role than previously understood.
In fact, the role that union decline has played in growing income inequality may actually be larger than many of the favorite explanations offered by economists, such as the education gap in the United States.
Among their contributions to income equality: unions reduce pay differences within companies and use their influence to lobby on behalf of the working and middle classes, the researchers say. The effect that unions used to have on protecting the incomes of middle class and working Americans has been underestimated, said David Jacobs, co-author of the study and professor of sociology at The Ohio State University.
Jacobs conducted the study with Lindsey Myers, a doctoral student in sociology at Ohio State.Their results appear online in the journal American Sociological Review and are scheduled to appear in the August print edition.
[...]
They concluded that unions likely would have lost members in the 1980s even if there had been presidents supportive of their cause, but the losses would have been less severe.
After the Reagan turning point, unions no longer had the influence to help contain the acceleration in inequality, Jacobs said.
How did unions help control inequality?
According to Jacobs, other research has shown that firms with unionized employees have diminished differences in pay such that the gap in the earnings of the highest-paid worker and the lowest-paid workers was reduced in firms organized by unions.
Unions were also the most effective political advocates forv the less affluent before Congress, the president and other elected officials,Jacobs said. They ended up helping less prosperous families even if they werent union members.
What this shows is that the exponential rise in CEO pay coincides with the decrease in unions in the US.
Further Reading:
Gar Alperovitz, After Piketty, the ownership revolution.
http://eyeonwilliamson.org/?p=13840
leroysfish
(7 posts)Last edited Tue Sep 26, 2017, 03:12 AM - Edit history (2)
As the Workin 4 A Livin Caucus has educated the listeners of its radio show about the true reasons for the loss of jobs, capital and worker clout in America.
Hint Global tax imbalance due to different tax structures [Payroll withholding (USA) vs Sales Tax (Most of the world) a change decided at the 1982 G-7 Summit in Mexico City], and locked into place by the likes of NAFTA but more importantly GATT [Global Agreement on Tax and Tarrifs].
These details can be heard on our April 24, 2017 radio show that may be found on the top left corner of the home page of our Workin For A Livin website.
If you find the information on that radio show to be valuable, please write about it and create just one link to it.
Thank you very much for taking your time to find out what most Americans don't know about what happened to our country; in that, the rest of the world changed or created a sales tax structure, and we were "controlled" to remain on a payroll withholding tax system that is a 32% disadvantage to the U.S.A. to the rest of the world.