If only those with capital reap the benefits of capitalism, change the system
Stagnating wages are destroying the free-market economy, which is where ending non-compete agreements and fighting wage collusion comes in, writes Noah Smith
Capitalism isn’t working right. The US economy is growing, but workers are seeing less and less of the benefits. Since the Great Recession, real GDP per capita has increased substantially, but real compensation per hour — which includes benefits such as healthcare — hasn’t grown at all. This continues the disturbing trend of labour receiving less of the national pie. Stagnating wages are eating away at the very heart of the free-market economy. The economy keeps growing, but Americans are finding it harder and harder to be more prosperous than their parents. If capitalism only works for the relatively small slice of society that owns large amounts of capital, few people are not going to see the value in the system. Eventually, they’re going to turn to alternatives, such as the socialism now gaining popularity within the US Democratic party and the younger generations. Anyone who cares about preserving the free-market system should therefore be thinking very hard about how to raise w...
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