A rising tide doesn't lift all boats--some boats just get washed away.
We've been told that benefits of growth would trickle down, but they do so less and less. Reminder: the best kind of profit-sharing if employees were really seen as partners in any business would be compensation for services rendered that contributed to the overall success of the enterprise. But workers are viewed as expenses. You know, except in banking and stuff like that.
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And it's even worse than that. Between offshore labor and accelerating workforce automation, Labor Force Participation is at its lowest point ever, below 63%. That means there is no demand for additional labor and there is no upward pressure on wages. In fact, real wages ARE falling and we're close to seeing nominal wage growth to go negative.
There's really no cure for this condition. The rich aren't going to suddenly become altruistic, and they are able to sustain their wealth even with a decline in the labor force. More and more, what used to be 'cost of labor' is now just another capital expense. The very nature of the social compact has changed, and there's no going back...
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