When few workers are unionized, wages remain stagnant or decline.
Without adequate competition, prices and corporate profits rise.
The result? Wealth is siphoned off from workers and consumers to large corporations and shareholders.
It's a vicious cycle.
There is no cycle. The siphoned money goes off-shore, never to be seen again.
It then enters the 'bullish!t jobs' realm where upon it goes from one billionaire who makes yachts, to another billionaire who builds panic rooms, to yet another billionaire who manages hedgefunds, and so on and so forth.
It's like a particle in the hadron collider; once the particle has left the smaller ring for the larger ring, it will never return.
@Gednet @rbreich
…if the wealthy spend it at all. Usually they don’t. They just use it to buy more paper wealth and keep the ‘virtuous’ cycle rolling.
In reality, I think anyone would hard pressed to identify anything virtuous coming from it, except maybe the tiny small fraction that goes to philanthropy. It is not an efficient allocation of capital. Some of it like political donations are likely to be specifically targeted to make your life worse.
Robert Reich
Ged|Net
Ian Ollmann
Grovewest