Liberals Can’t Read Graphs, Pt. 2

Just as they can’t tell when there’s a downslope, and read flat lines as downslopes, so do liberals think 7% is zero.

Here is an important chart from the Bureau of Labor Statistics:

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The only possible reading of these data is that capital always wins, and has been winning bigger since the ongoing Carter/Reagan Restoration began. But notice: Even in the supposed Golden Age of alleged equality, labor’s compensation growth rate was only 93% of its productivity growth rate. And remember, too, that productivity growth is based on final sales, not just worker pay, so each percentage point of growth there yields a larger absolute amount of money than does any corresponding growth of employee compensation. Hence, even if the growth rate of wages were equal to the productivity growth rate, capitalists would still be winning. But such equality has never existed in the USA since the end of World War II. Even in its supposed heyday, labor was clearly and substantially losing the race.

The plain fact is that the only time in the corporate capitalist epoch that inequality has not grown was World War II, when the state ran the economy and full employment existed.

Nonetheless, the official reading of the above chart is this: “Since the 1970s, growth in inflation-adjusted, or real, hourly compensation—a measure of workers’ purchasing power—has lagged behind labor productivity growth.”

Don;t you just love special pleading?

American Math: Where 74 = 19,000,000

In the United States in 2009, there were 151 million people who received wages. As reporter David Cay Johnston has begun to explain, there is a rather amazing collection of statistics being kept in this crucial area by the Social Security Administration.

Johnston explains some of the shocking, if not at all surprising, facts revealed by a bit of analysis:

[These statistics] do give us a stunning picture of what’s happening at the very top of the compensation ladder in America.

The number of Americans making $50 million or more, the top income category in the data, fell from 131 in 2008 to 74 last year. But that’s only part of the story.

The average wage in this top category increased from $91.2 million in 2008 to an astonishing $518.8 million in 2009. That’s nearly $10 million in weekly pay!

You read that right. In the Great Recession year of 2009 (officially just the first half of the year), the average pay of the very highest-income Americans was more than five times their average wages and bonuses in 2008. And even though their numbers shrank by 43 percent, this group’s total compensation was 3.2 times larger in 2009 than in 2008, accounting for 0.6 percent of all pay. These 74 people made as much as the 19 million lowest-paid people in America, who constitute one in every eight workers.

And remember: This comparison includes federally taxable wages only. It says nothing about stock options, expense accounts, or benefits.

And single-year wage data also say nothing about wealth distribution, which, in a capitalist paradise like the United States, is far more unequal than the income structure.

wage pyramid Finally, I would invite people to just goggle these stats. Contemplate, for instance, the pyramidal structure of the wage system. By far the most densely populated wage segments lie at the low end of the scale. And the slots get almost precisely less-filled as they ascend into the unconscionable stratosphere.

Likewise, one might examine these numbers and ask “our” politicians why the fuck they never shut up about the so-called “middle class.” Aren’t the bottom and the top really the overwhelmingly important issues? And, even without knowing the facts Johnston discusses, aren’t people thirsty for some leadership and meaningful choice in this area?

Alas, few topics are more off-the-table in our market totalitarian society. The mass media are owned by corporate capitalists who enrich themselves by serving the other corporate capitalists who are the sponsors of their fare.  The ruling (R) v. (D) junta, the money-grubbing Business Party duo-mono-poly, a.k.a. our “serious” policians?   The same.