by Matthew Stollak on Monday, November 28, 2011
In this weekend's New York Times, Floyd Norris highlighted the latest statistics for workers and corporations. He writes:
In the eight decades before the recent recession, there was never a period when as much as 9 percent of American gross domestic product went to companies in the form of after-tax profits. Now the figure is over 10 percent.Accompanying his article, were a number of charts, including the below to highlight his point:
During the same period, there never was a quarter when wage and salary income amounted to less than 45 percent of the economy. Now the figure is below 44 percent.
For decades, the success of workers and corporations were intertwined. As corporations did well and had high profitability, benefits expanded and wages increased. A rising tide lifts all boats, right?
In the 1910s, Henry Ford knew if workers worked long hours at low pay, they could neither afford nor consume the product they were making. So, he lowered the work day to 8 hours and the work week to 5 days, while offering $5 a day in wages (doubling wages). Check out his thoughts here.
When did organizations decide that workers no longer deserved to share in the success of the organization?