Linking ≠ endorsement. Enjoy and share:
- CONVERSABLE ECONOMIST: Breaking Down the Falling Labor Share of U.S. Income
We don’t think that technology replacing workers can be ignored.
The typical pattern is is that labor income tends to rebound as an economy recovers, but the recovery has been so listless that labor’s share has stayed low.
But there are also concerns that the decline in labor’s share of income may be a more long-term phenomenon, tied to technology and globalization. Here’s the CBO comment (footnotes leading to citations of research on these points omitted):
“For example, technological change may have reduced the returns to labor relative to capital in several ways: By expanding options for employing capital in place of labor (such as through automation); By reducing the relative price of capital goods, especially those used for communications and information processing; and By increasing the pace at which skills tied to old technologies become obsolete, thereby reducing the productivity of workers whose skills are not up to date. Moreover, technological change has increasingly contributed to the globalization of markets for services as well as for goods. At the same time, globalization of labor and product markets may have increased the returns to capital relative to labor by enabling the United States to specialize in the production of goods and services that require the capital inputs that it has in abundance relative to most other countries.Globalization may have also eroded the bargaining power of workers by increasing the mobility of capital.
Read the source article … https://conversableeconomist.blogspot.co m/2013/09/breaking-down-rising-labor-sha re-of-us.html
- Workers’ Pay Hasn’t Always Lagged Productivity Growth | Economic Policy Institute
Here’s a follow-on post concerning our last link, which was on the wage/productivity gap.
What is particularly striking is how the relationship between productivity and most workers’ compensation changed dramatically. From 1948 until the 1970’s, hourly compensation tracked net productivity very closely. As workers became more productive, they were compensated for their increase in productivity. Starting in the late 1970s, hourly compensation began to lag net productivity and has shown very little growth compared to the growing productivity we’ve experienced. We maintain and describe in painstaking detail in State of Working America how this disconnect between a growing economy and growth in wages for most of the population was the results of intentional policy decisions on taxes, trade, labor, and financial regulation. But that’s the good news: if inequality is not inevitable, then it can be fixed. Check out inequality.is to learn more about the policy decisions and what can be done about it.
Read the source article … https://www.epi.org/blog/workers-pay-has nt-lagged-productivity-growth/
- Bigwig real estate investors starting to pull out of Las Vegas as home prices rise – VEGAS INC
The bubble slows.
A year ago, there were at least 50 investment firms snapping up homes in the valley. Now, there are just three main buyers, according to Platinum Real Estate agent Steve Hawks.
Las Vegas home prices have soared 35 percent over the past year, making it harder for investors to book big profits on new deals. What’s more, the rental market is softening because of increased inventory. Rental prices are slipping, and many rental homes reportedly are vacant.
The recent slowdown doesn’t mean all investors are leaving Las Vegas, though. If anything, there appears to be an influx of smaller buyers snapping up rental homes, agents say.
The market also is expected to cool off in the coming months. Home values, which rose 31 percent over the past year, aren’t anticipated to drop but are expected to rise only 11 percent by July 2014, according to housing data firm Zillow.
Read the source article … https://www.vegasinc.com/news/2013/sep/1 0/bigwig-real-estate-investors-starting- pull-out-las/
- Robert Kessler – YouTube
Highly educational; a sincere analysis:
It is now accepted wisdom on Wall Street that the great bond rally of the past 30 years is over and that we have entered a new era of higher interest rates. Not so fast says this week’s Great Investor guest, Robert Kessler. He points out we have had many false alarms about economic growth and central bank tightening over the last 6 years only to see interest rates retreat again. Kessler has correctly defended the value of U.S. Treasuries in particular against Wall Street naysayers for more than a decade. So before you follow the stampede out of bonds you might want to listen to his defense of bonds. WEALTHTRACK #1011 Broadcast Sept. 06, 2013
The source … https://www.youtube.com/watch?v=d1iTkEdJ XRA
- News Release – Consumers Well-Attuned to the Housing Market | Fannie Mae
Consumer attitudes are proving consistent with recent slowing housing market trends, indicating that they are well-attuned to the direction in which the housing market is moving. According to the Fannie Mae August 2013 National Housing Survey results, Americans’ outlook on housing growth – which has been trending upward since the beginning of the year – has hit a plateau, likely due to concerns regarding the potential tapering of the Federal Reserve’s asset purchases.
The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010).
Read the source article … https://www.fanniemae.com/portal/about-u s/media/corporate-news/2013/6012.html