This entire discussion sounds crazy to me. If you want socialism, vote for socialism. If you want raw unfiltered capitalism, vote for the billionaire. You can't vote for the billionaire and expect safety nets. That's madness.
You are not wrong, but the contract is/was metaphorical. For a long time people were able to make a living for themselves by studying hard (usually STEM) and end up with a career which payed off. That was the invisible "contract". Hell I went to university for things which seem like academic navel gazing, but I still got a good tech job on the other side. That's not the reality for a lot of graduates nowdays who take more practical degrees at masters and phd levels.
Again even if the literal statement is clearly false, it is the sentiment which matters, and this sentiment does not just apply to graduates. I think many just feel like working hard does not work anymore, especially in the face of housing, cost of living, job competition and social media flaunting the wealth of others.
I get the idea from my younger siblings, "Why try if you are already a looser."
Recessions like the GFC, the Dot Bomb, the early 90s, the Asian Financial Crisis, the early 80s, Stagflation, and others show otherwise.
The extended bull run that SWEs had from the early 2010s to 2022 was an outlier, and the whiplash being felt today is comparable to what law and finance grads faced in the 2010s, accounting majors in the 2000s, and Aerospace/MechE majors in the 1990s.
“If you can convince the lowest white man he's better than the best colored man, he won't notice you're picking his pocket. Hell, give him somebody to look down on, and he'll empty his pockets for you.”
It doesn’t set the legal standard that profits must be maximized which is impossible.
Socialism has a specific meaning, it's not just a label we get to put on behaviors that we - or rather, specifically you in this case - don't like.
Or more to the point, productivity has consistently outpaced pay for most of the US workforce since the mid-1970s. That's ~50 years that companies have been ripping you off. It's only now you notice, because rent/mortgage/school/medical have finally become so much larger than pay.
Well now you get to live through the Great Depression and study it up close.
The alternate way of looking at it is that the 50s to mid 70s era saw a period of unprecedented prosperity and now we are just seeing a reversion to the mean.
http://web.archive.org/web/20200428221848/https://www.nytime...
A social contract is an implicit agreement that everyone more or less accepts without anything being necessarily legally binding.
For example, the courtesy of two weeks notice in the US is a social contract: there’s nothing legally requiring it, but there are _social_ consequences (ie: your reference might be less positive) if you don’t follow it.
Everything that’s kind of in an employee’s favor is not socialism. You don’t have to like the idea of “work hard, help the company do well, get rewarded,” but that isn’t socialism. It’s just a thing you don’t like.
The top 10% of income earners in the US account for 50% of consumer spending. LMK if you think that's part of the contract. https://www.marketplace.org/story/2025/02/24/higher-income-a...
I also think though that individual experiences of this kind are more about specific companies maturing than a widespread culture shift. A lot of people on these forums worked in tech companies that are relatively young and have changed a lot over the past two decades.
The second part of your sentence is not necessarily true. It might be true in some or even many cases, but it's certainly not something you can just assert & move on, as if it's a physical law.
There's just so much confusion here. Some people like you don't get why a world where a handful of billionaires own everything is a bad idea. Madness. I think nothing less than another depression will get through to most.
On its face, productivity vs pay isn't a faor metric. I agree that problem exists, but we shouldn't use it to benchmark
Like I said, madness.
It's like slavery was technically outlawed but a lot of America strongly disagreed. And they're posting on HN.
My point is increases in productivity can be caused by capital investment, not totally attributable to the worker. That money has to come from somewhere.
Ideally there's a fair balance. This isn't it but you can't look at the number you referenced blindly.
Correct systems-level answer to your question "how much do I pay you" is "as much as it takes to stabilize the US curve". Happiness correlates with financial security, which we won't get if the rich get richer from those capital investments then buy up all the housing.
Fun fact: Fit 2 lines on that data and you can extrapolate by ~2030 China will be a better place to live. That's really not that far off. Set a reminder on your phone.
Also, you know nothing at all of my opinion on whether "a handful of billionaires own everything" is a bad idea or not. All you know about me is I don't agree with you that rising inequality AUTOMATICALLY means some people haven't been rewarded as much as they "should", whatever that means. Reading comprehension, combined with not assuming others' POV, for the win.
https://en.wikipedia.org/wiki/Occupy_Wall_Street
I got what I needed from here, I'm out.
For decades, engineers at IBM, HP, Xerox, etc assumed that they had a job for life; because they did.
The management culture you describe may predate Jack Welch, but certainly came into vogue with him. It has all the well-known downsides: management often lays off critical staff because they can’t really measure productivity, it destroys morale, many of the remaining high-performers leave, and is often followed by hiring replacements in the next year or two because the people cut were actually necessary.
So it is odd to see it happen for highly profitable companies.
well we can trace that back to the 1920's, for one example.
>Do you people have some kind of contract with Tesla that I don't know about?
Are you aware of what a "social contract" is? There's nothing wrong with seeking to fill in gaps of knowledge.
>This entire discussion sounds crazy to me. If you want socialism, vote for socialism.
I'd be down for it, but this is almost orthogonal to the main point of the discussion. Social contracts exist in all forms of governing. Even rampant capitism has the bare bones social contract of "don't make your customers TOO angry so you can maximize extraction".