Monopsony?

From a Naybob of IT.... Your from the neighborhood, so you must be a neighbor?

Neigh·bor·ly - ˈnābərlē - adjective
adjective: neighbourly; adjective: neighborly
characteristic of a good neighbor, especially helpful, friendly, or kind.

synonyms: obliging, helpful, friendly, kind, amiable, amicable, affable, genial, agreeable, hospitable, companionable, well disposed, civil, cordial, good-natured, nice, pleasant, generous; considerate, thoughtful, unselfish, decent

antonyms: unfriendly

"most of the tenants here are pretty neighborly"

Well neighbor, perhaps the tenants in the corporate towns or modern day Pottersville's are. We keep hearing from various pundits who eat their MSM parrot food diligently, that wage increases are going to drive inflation in the near term.  Those who are looking for a huge inflation boost, don't know how credit markets work viz. don't know a debit from a credit, nor money from mud. 

If economic conditions were robust and unemployment was "tight" real wage inflation would exist, it does not and has not for decades. Contributing towards those wage stagnation ends, corporate policy and short term thinking have been geared toward wage suppression in no uncertain terms. Recent research indicates that corporate labor market power has contributed to wage inequality and economic stagnation.

"Our current economic expansion has lasted almost nine years, yet wages have hardly budged, especially for less skilled workers. Inflation-adjusted wages for the average worker have risen only by 3 percent since the 1970s — and have actually declined for the bottom fifth." - 
Companies' Monopoly Power Over Wages

Monopsony harms growth and raises prices because it works much like monopoly: by reducing production. 

"the conventional wisdom was that wage growth had slowed because of rising competition from low-paid workers in foreign countries (globalization), as well as the replacement of workers with machinery, including robots (automation). But in recent years, economists have discovered another source: the growth of the labor market power of employers — namely, their power to dictate, and hence suppress, wages."

The power corporations wield over labor markets is no longer a theoretical curiosity and clearly a major source of our economic malaise.  Explaining: declining growth rates, falling labor share of corporate earnings, rising inequality, falling employment of prime-age men, and persistent and growing government fiscal deficits.

Has corporate policy and quarterly bonus driven mentality killed the goose that laid the golden egg? Well neighbor, unless real wages rise in a meaningful way, what comes next in this neighborhood won't be pretty or a beauty-wood thing. Kind of like a neighborly joy ride with Frank Booth?  More to come in Change is Necessary? Stay tuned, no flippin.




What's Killing The Economy
Facts About Wage Growth