Post by buccaneer on Mar 10, 2023 6:23:30 GMT
Contrary to popular myth EU has a myriad of problems and these issues rarely get a mention in MSM, and certainly not on this forum where dwelling about Brexit in the European Union forum continues ad nauseam.
Why do the EU supress wages and allow profits to go up?
Some excerpts below.
Some sobering responses there for Europhiles. The EU is a 'machine designed to drive exports' and wages are not a driver internally for the bloc. They need wages suppressed to keep a lid on inflation because they have no tolerance to it and
You can see why FoM is deeply baked into the EU's ideology; like the Ten Commandments were embedded into the Bible.
Supress wages, to heck with wage growth; profit growth for big coorperations reigns supreme in the EU.
Upon reading this worrying NEWS about the EU's design, I have decided to do my bit. I've bought some Bavarian Weihenstephaner to help with German exports - in keeping with suppressing EU wages.
It's a beautiful drop of ale too.
Why do the EU supress wages and allow profits to go up?
Some excerpts below.
To those who actually buy stuff this may not seem like a groundbreaking insight, and yet for the past nine months, the European Central Bank (ECB), responsible for keeping prices level, has increased interest rates, making it even harder for people to buy things, while letting corporate profits — the main driver of inflation — off the hook.
This puts further pressure on disposable income, which despite massive government support schemes — estimated at €800bn in 2022 alone — fell by 2.9 percent last year; 6.9 percent in Greece and 3.1 percent in Germany, where it fell for the third year in a row.
The question is, why? Why do we suppress wages while letting let profits rip? To put it in historical perspective: in the 1970s, nearly 70 percent of economic output went to employees, with just over 20 percent going to profits. Now, labour's share stands at 56 percent with a third going to profits.
To discuss this, EUobserver sat down with Mark Blyth, author of the book Austerity: The History of a Dangerous Idea and professor of international economics and international affairs at Brown University. He is also one of the most lucid (and fun) deconstructors of economic thought out there.
Read on here to find out why: euobserver.com/work-week/156815
This puts further pressure on disposable income, which despite massive government support schemes — estimated at €800bn in 2022 alone — fell by 2.9 percent last year; 6.9 percent in Greece and 3.1 percent in Germany, where it fell for the third year in a row.
The question is, why? Why do we suppress wages while letting let profits rip? To put it in historical perspective: in the 1970s, nearly 70 percent of economic output went to employees, with just over 20 percent going to profits. Now, labour's share stands at 56 percent with a third going to profits.
To discuss this, EUobserver sat down with Mark Blyth, author of the book Austerity: The History of a Dangerous Idea and professor of international economics and international affairs at Brown University. He is also one of the most lucid (and fun) deconstructors of economic thought out there.
Read on here to find out why: euobserver.com/work-week/156815
The paradox is the EU is serious about decarbonisation in a way the US isn't. The planning is deeper. The institutions that are needed actually exist. The problem is the EU itself. It is a monetary union, not a fiscal union. The EU doesn't have the allocative authority the US has. It has the same amount of money available, but it's terrified of spending it.
Some sobering responses there for Europhiles. The EU is a 'machine designed to drive exports' and wages are not a driver internally for the bloc. They need wages suppressed to keep a lid on inflation because they have no tolerance to it and
The last thing Germans want is demand growing at home because if demand goes up at home, wages will go up, costs will go up, and suddenly their BMWs are more expensive. The Dutch are the same: a giant financial parasite in the north of Europe. Their external surplus shows up as internal deficits on Italian, French and Spanish budgets who buy all their stuff.
The entire EU framework was settled in the 1990s, which is based on cost competitiveness, where everybody should be "a bit more German". It's like being Tony Blair in the 2020s. Nobody cares. It's just an outdated model.
Take Germany: they outsourced high-skilled labour to Romania, which over the past 20 years, had the fastest real-wage growth in the EU because it came from a very low baseline. German businesses could afford to increase wages there because the return on capital was still huge. Well, what does that mean for the guy that's running an IT chain in Germany? They are not gonna get 10-percent wage increase because your company's costs would go up.
The entire EU framework was settled in the 1990s, which is based on cost competitiveness, where everybody should be "a bit more German". It's like being Tony Blair in the 2020s. Nobody cares. It's just an outdated model.
Take Germany: they outsourced high-skilled labour to Romania, which over the past 20 years, had the fastest real-wage growth in the EU because it came from a very low baseline. German businesses could afford to increase wages there because the return on capital was still huge. Well, what does that mean for the guy that's running an IT chain in Germany? They are not gonna get 10-percent wage increase because your company's costs would go up.
Supress wages, to heck with wage growth; profit growth for big coorperations reigns supreme in the EU.
Upon reading this worrying NEWS about the EU's design, I have decided to do my bit. I've bought some Bavarian Weihenstephaner to help with German exports - in keeping with suppressing EU wages.
It's a beautiful drop of ale too. 
