Saturday, March 5, 2011

More on the big picture.

The battles in Madison and elsewhere have to be fought on the basis of the big picture. That is the developments in the overall economy and the situations facing the different classes in society must be taken into account. The Wall Street Journal today had a small piece entitled "sharing the wealth," which helps in doing this.

It explained that from 2009 to the end of 2010 "output per hour at US non farm businesses has risen by 5.2%. as companies get more out of their staffs." That is they admit that the 5.2% increase in economic growth comes from the increased efforts of workers. It then it goes on to admit: "Most of that gain has gone to shareholders as record profits: companies have shared only 6% of productivity gains with their workers," according to Labor department data. That compares with 58% since records began in 1947 and is the least workers have gotten in a recovery since the early 1980's."

Put it bluntly. Workers have been working much harder and producing much more but being given a much lesser share of this increased production. Profits have soared and as the Wall Street Journal says the country, that is the corporations are "awash with cash." This reality, this attack on workers living standards, this looting of the economy by the employers, these relate directly to federal and state deficits and must be brought into any debate and struggle on these issues. Not a single concession must be made by workers to solve any deficits, it is the employers and their class who have been pocketing the gains of the economic growth and been paying less and less as a share of taxes, see yesterdays blog, it is the employers and their class who must make the concessions to end the deficits. 

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