Invented the term "Characterpalooza"
- Aug 23, 2008
You still haven't answered how you're going to get businesses to change. You can argue til the cows come home how right it would be. How are you going to make that happen?Businesses pay dividends to their shareholders. This is some percentage of what's left over after expenses. My average stock holding grows its dividend 8% per year. Meanwhile, the employee share of earnings has dropped for decades. How many companies have you worked for that raise your income 8% per year or more?
If businesses raise their prices, they will at some point lose volume. How high they can raise it is anybody's guess? At a certain price, they won't have enough demand. What will most likely happen is that they will make less. There is only so much cost they can pass onto their customer. Another business will give up earnings to compete. You only have to look at Walmart and Amazon and how they took out mom and pop shops by being more competitive on price.
I've seen both sides. My dad was union growing up, so I saw their approach. I work in senior management and have talked union busting with lawyers. At the end of the day, you have to find the narrative that maximizes your return to your investors that your employees will believe. That's it. If you're convinced that paying people more will cost you more, then the businesses have already won. You're primed for being exploited wage wise.
The smart person is the one collecting the dividend. They'll also pay lower taxes. Qualified dividend income caps out at 20%. The poor one is the one collecting a wage and seeing maybe an inflationary increase in their salary each year.
Here's labor share: