Trump’s tax tsunami is about to wallop Canadian jobs and investment
- Thread starter Angstrom
- Start date
Ryan Avent discusses how wage stagnation is harming U.S. productivity - and how a shift toward empowering workers could be the solution to both:
If low wages are indeed inhibiting productivity, what can we do about it? A large corporate tax cut is unlikely to help. In an economy in which large firms enjoy market power while workers have none, such cuts will raise stock prices and dividends rather than wages and investment. Big increases in the minimum wage would certainly give companies an incentive to automate, but at the cost of jobs for the most vulnerable workers.
A better strategy would be to shift power from companies to workers, to allow workers to bargain for a bigger share of the gains from growth. Keeping companies from getting too big and too dominant would make a difference by increasing the number of companies competing for workers and the competitive pressure they face to maximize worker output.
Making it easier for workers to unionize would improve productivity, too. A strong labor movement, were one magically to appear, could bargain for higher pay, potentially pushing firms to invest in workers and new technology.
Perhaps most important, we should not allow a low unemployment rate to fool us into thinking that labor is scarce. The Fed should wait for much faster wage growth before taking steps to slow the economy. Governments at all levels should make sure that schools and agencies are fully staffed with qualified workers. And Congress should turn its attention to public investments, rather than counting on tax cuts to motivate private ones. Large-scale infrastructure spending would increase the economy’s growth potential while creating good jobs. So would concerted efforts to make postsecondary education as accessible and affordable as possible.
https://www.nytimes.com/2017/12/15/...y-raises-is-also-curbing-economic-growth.html
A better strategy would be to shift power from companies to workers, to allow workers to bargain for a bigger share of the gains from growth. Keeping companies from getting too big and too dominant would make a difference by increasing the number of companies competing for workers and the competitive pressure they face to maximize worker output.
Making it easier for workers to unionize would improve productivity, too. A strong labor movement, were one magically to appear, could bargain for higher pay, potentially pushing firms to invest in workers and new technology.
Perhaps most important, we should not allow a low unemployment rate to fool us into thinking that labor is scarce. The Fed should wait for much faster wage growth before taking steps to slow the economy. Governments at all levels should make sure that schools and agencies are fully staffed with qualified workers. And Congress should turn its attention to public investments, rather than counting on tax cuts to motivate private ones. Large-scale infrastructure spending would increase the economy’s growth potential while creating good jobs. So would concerted efforts to make postsecondary education as accessible and affordable as possible.
https://www.nytimes.com/2017/12/15/...y-raises-is-also-curbing-economic-growth.html
Move.
I can just feel the pressure building up!
Is that a wall of debt or inflation driving up interest rates?
No... those were your tsunami of salty tears building up because Americans just received a YUGE Tax Break!
Say hello to government interference in free markets. You socialists will be absolutely giddy
No... those were your tsunami of salty tears building up because Americans just received a YUGE Tax Break!
How ya’ll payin for it?
Didn't you read the bill?
Don't be so upset... you're still going to be paying higher and higher taxes as usual.
*snicker*
You have to read the bill then. It's all there.
Geez Avro, don't get the sniffles. You'll still get to back all of your taxes and maybe Justin will give you more taxes to pay.
I know, I just don't do research for liberals because they are salty and are too lazy to do it themselves. I do enough for layabouts like you.
*snicker*
You want me to explain it to you... I am telling you to do your own research. It would be like explaining to a hysterical 4 year old that he can't just have candy for dinner.
Geez, Liberals are always looking for people to provide for them.
*snicker*