Recently, a reader responded to two posts of mine \u2014 one that used macroeconomic data to show how much of the nation\u2019s income ends up in workers\u2019 pockets and another that looked into how long a US workweek might be if the US automated as many work-hours as existing technology allows \u2014\u00a0 and the response seemed worthy of publishing here (with permission, of course). The numbers used below are sourced from the posts \u201cWorking Class w\/ No Living Wage<\/a><\/strong>\u201d and \u201cIf Work-Hours & the Value of Automation Were Distributed Fairly Today<\/strong><\/a>.\u201d<\/p>\n What follows is the response \u2014 the author wished to not be named.<\/p>\n Another great article. If we add in the stats you wrote about in \u201cWorking Class w\/ No Living Wage: The Absurd Math of US Income,\u201d then we should be able to see what the real value of those distributed work hours are. If the current average work week is 38.7, and the average annual wages are $49,630, then the current average value of an hour of work is:<\/p>\n \\mathtt{\\large \\$49,630 \\div 52 \\div 38.7 \\approx \\$24.66}<\/span>$<\/span>4<\/span>9<\/span>,<\/span>6<\/span>3<\/span>0<\/span>\u00f7<\/span>5<\/span>2<\/span>\u00f7<\/span>3<\/span>8<\/span>.<\/span>7<\/span>\u2248<\/span>$<\/span>2<\/span>4<\/span>.<\/span>6<\/span>6<\/span><\/span><\/span><\/span><\/span>If the hours were split evenly as you suggest above, then we\u2019d get:<\/p>\n \\mathtt{\\large \\$49,630 \\div 52 \\div 30.7 \\approx \\$31.09}<\/span>$<\/span>4<\/span>9<\/span>,<\/span>6<\/span>3<\/span>0<\/span>\u00f7<\/span>5<\/span>2<\/span>\u00f7<\/span>3<\/span>0<\/span>.<\/span>7<\/span>\u2248<\/span>$<\/span>3<\/span>1<\/span>.<\/span>0<\/span>9<\/span><\/span><\/span><\/span><\/span>And if we add in automation, then we\u2019d get:<\/p>\n \\mathtt{\\large \\$49,630 \\div 52 \\div 1 9.23 \\approx \\$49.63}<\/span>$<\/span>4<\/span>9<\/span>,<\/span>6<\/span>3<\/span>0<\/span>\u00f7<\/span>5<\/span>2<\/span>\u00f7<\/span>1<\/span>9<\/span>.<\/span>2<\/span>3<\/span>\u2248<\/span>$<\/span>4<\/span>9<\/span>.<\/span>6<\/span>3<\/span><\/span><\/span><\/span><\/span>$49.63 for an average hours worth of work.<\/p>\n But the more interesting part of the article on US Income is that $9.8 trillion is unearned (i.e. not acquired by doing work). If we got rid of that, and moved all of the GNI (minus government benefits) to earned income, then we\u2019d have a very different picture.<\/p>\n Total US income minus benefits:<\/p>\n \\mathtt{\\large \\$18.75 \\text{ trillion}\\ – \\$2.0393 \\text{ trillion}\\ = \\$16.7107}<\/span>$<\/span>1<\/span>8<\/span>.<\/span>7<\/span>5<\/span>\u00a0<\/span>trillion<\/span><\/span>\u00a0<\/span>\u2212<\/span><\/span>$<\/span>2<\/span>.<\/span>0<\/span>3<\/span>9<\/span>3<\/span>\u00a0<\/span>trillion<\/span><\/span>\u00a0<\/span>=<\/span><\/span>$<\/span>1<\/span>6<\/span>.<\/span>7<\/span>1<\/span>0<\/span>7<\/span><\/span><\/span><\/span><\/span>If the mass workweek is 5.66 billion hours, the mass work year is 294.32 billion hours. So if all income was based on labor we\u2019d have an average rate for an hours work of:<\/p>\n \\mathtt{\\large \\$16.7107 \\text{ trillion}\\ \\div 0.29432 = \\$56.78}<\/span>$<\/span>1<\/span>6<\/span>.<\/span>7<\/span>1<\/span>0<\/span>7<\/span>\u00a0<\/span>trillion<\/span><\/span>\u00a0<\/span>\u00f7<\/span><\/span>0<\/span>.<\/span>2<\/span>9<\/span>4<\/span>3<\/span>2<\/span>=<\/span>$<\/span>5<\/span>6<\/span>.<\/span>7<\/span>8<\/span><\/span><\/span><\/span><\/span>And if we throw automation in the mix than people on average should be working for an hourly wage of:<\/p>\n \\mathtt{\\large \\$16,710,700,000,000 \\div (52 \\times 3,545,798,057) = \\$90.63}<\/span>$<\/span>1<\/span>6<\/span>,<\/span>7<\/span>1<\/span>0<\/span>,<\/span>7<\/span>0<\/span>0<\/span>,<\/span>0<\/span>0<\/span>0<\/span>,<\/span>0<\/span>0<\/span>0<\/span>\u00f7<\/span>(<\/span>5<\/span>2<\/span>\u00d7<\/span>3<\/span>,<\/span>5<\/span>4<\/span>5<\/span>,<\/span>7<\/span>9<\/span>8<\/span>,<\/span>0<\/span>5<\/span>7<\/span>)<\/span>=<\/span>$<\/span>9<\/span>0<\/span>.<\/span>6<\/span>3<\/span><\/span><\/span><\/span><\/span>[\u00a0End of Response<\/em>\u00a0]<\/p>\n<\/div>\n The final figure presented by this reader is what a US worker\u2019s wage could be if (1) the\u00a0full value<\/em>\u00a0of all US goods, services, and information was paid to the people who actually produced them and (2) if already-existing labor-saving technology was fully utilized to reduce the total US work-hours. In principle, there is nothing to prevent US society from simply paying its working people the full value of their labor and using public funds to gradually implement labor-saving tech in order to increase the productivity of all its industries. It is only\u00a0capitalism<\/em>\u00a0that holds such a world in abeyance.<\/p>\n So long as the\u00a0means to produce wealth<\/a><\/strong>\u00a0remain in private hands \u2014 so long as\u00a0public funds<\/strong><\/a>\u00a0are directed in the interest of capital and not of the public purpose \u2014 people like Jeff Bezos will keep appropriating the fruits of labor and\u00a0automation will never liberate<\/strong><\/a>\u00a0but only un-employ people. There is no problem with scarcity \u2014 there is a problem with humanity\u2019s social organization and with its institutions. There is no failure in our production of economic values \u2014 even now they are being produced to abundance (maybe even over-abundance). The math above shows that, if it could be allowed, this country can afford to pay a wage\u00a0just shy of $100 to every human being who is willing to work.<\/p>\n It is only the obscenely wealthy whom we stretch and strain to afford\u2026<\/p>\n \u200bIn solidarity, August 26, 2018 (johnlaurits.com) Recently, a reader responded to two posts of mine \u2014 one that used macroeconomic data to show how much of the nation\u2019s income ends up in workers\u2019 pockets and another that looked into how long a US workweek might be if the US automated as many… Continue reading ![\"Wages](\"https:\/\/i1.wp.com\/www.johnlaurits.com\/wp-content\/uploads\/2018\/08\/fully-automated-luxury-communism-NOW.jpg?ssl=1\" "\\"Wages")
<\/a><\/p>\n
\nJohn Laurits<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"