[Villages PL]

Originally Posted by tcxr750

My thoughts on the wealth transfer. Executive pay vs. worker...2013 400 to 1, 2000 120 to 1, 1980 42 to 1, 1950 20 to 1. I imagine being an Executive your instinct would be to improve your financial position through whatever means available. Downsizing, M and A, Rightsizing, Outsourcing work to China. Keep the shareholders happy.
Just the outsourcing to China alone has transformed a virtual third world country in 60 years to a global powerhouse. That's another consequence of wealth transfer.

Sub Prime Loans. I believe that started under the President before Obama's administration. Investors were hungry for insured CMO's with good returns. Once the high risk borrows defaulted, companies like AIG ,that insured the losses couldn't cover the losses ergo...the Great Recession.

Outsourcing work to China has kept the cost of household products very low for a long time which has a benefit to low wage workers who are buyers of these products. Same for clothing etc. made by other third world countries.

Higher wages = higher prices for goods and services. When you add everything up like rent, food, clothing, transportation and entertainment, what would be left of a higher wage?

[Paper1]

Originally Posted by Villages PL

Outsourcing work to China has kept the cost of household products very low for a long time which has a benefit to low wage workers who are buyers of these products. Same for clothing etc. made by other third world countries.

Higher wages = higher prices for goods and services. When you add everything up like rent, food, clothing, transportation and entertainment, what would be left of a higher wage?

I disagree with that. I think the transfer of our manufacturing to Asia has more to do with increasing profit margin than keeping prices down. Unearned and barely earned income is what US capitalism has become. My own home state has LL Bean. They have made an obsene amount of profit by switching to almost all imported goods. They do employed call center employees and retail help but not much manufacturing. Apple is worse. Wall street darling but made in China. Remember Henry Ford's idea of making a car for the masses. Iphone 6s and I-watch are not aimed at the masses.

[tcxr750]

I'm not blaming wealth transfer on the last President. My quote implies that wealth transfer as we know it started in the 50's. Notice the change in ratio of executive to worker pay. With research you will see that in the 50's personal income tax rates ranged from 20%-90%. The implication is that some force in the U.S. economy caused a shift in the demographic that holds the wealth. We need an economics professor to explain that.