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WalterBright parent
Because the correct comparison would be with total compensation, of which wages are only a portion.

Total compensation is the costs to an employer to hire some one. It includes:

1. contributions to retirement plans

2. so-called "employer paid" social security contributions

3. sick and paid vacation days

4. employer paid health insurance

5. stock plans

6. 401k plans

7. other payroll taxes

Last time I checked, these often added 40% or more over the takehome pay.

Also, the pay is based on the value the employee as an individual provides, not the value the company as a whole created. Just like the compensation for pro football players varies in a single team.


gamblor956
Beyond Social Security contributions, which is legally mandated, most workers don't get the remaining items on your list. (And #7 is just double-counting #2.)

It's like saying, a CEO gets a housing allowance and travel allowance and can expense most of their meals, so the entry level worker is doing okay.

specialist
Am corrected. Updated question:

Now include profit (surplus) in your analysis.

Total compensation has not kept pace with corporate profitability. Why?

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> Just like the compensation for pro football players varies in a single team.

Then why do professional athletes have unions?

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