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Comment by yummyfajitas | Hacker News Reader

Wages being flat/declining is solely because compensation has shifted from wages to non-wage compensation.

https://research.stlouisfed.org/fred2/series/COMPRNFB

Things have been fine for workers.

Simply holding a ruler up to the graph you cited reveals your conclusion to be complete bullshit. If the straight-line trend that obtained up the early 1970s had continued then the indexed compensation would be closer to 130 than the 110 it currently is. What sort of idiots do you take us for?

Don't even get me started on all the rent-seeking and tax acrobatics surrounding non-wage compensation. I would much rather just get paid cash and pay a somewhat higher rate of income tax than waste time trying to optimize some endless menu of benefit packages that require the skills of a CPA to analyze properly.

I didn't claim a specific linear trend was followed, I claimed that comp went up.

This is the problem with rolling up the human experience into a price index, and then using that index to judge changes in standard of living.

Purchasing power of electronics, appliances, etc, has gotten a lot better.

Purchasing power of food has somewhat stagnated, though variety has gotten better.

It is harder for a single earner to pay for a standard three bedroom house in a good school district that is close to jobs. It is also much more expensive to buy the education admission ticket to the job market, due to cost inflation of schools and credential inflation of job requirements.

A bunch of that non-wage compensation is just going directly into bigger healthcare bureaucracy that doesn't do anything the worker, it should be considered an increase in income that is offset by a bureaucracy tax. Healthcare has gotten better, but the things that have gotten better are generally related to where the money is going.

Please look at the chart that I posted. Wages have declined for the majority of men, since 1973. The chart you link to averages all workers, so the increase for women, and the big increase in income for the top 10% of workers, pulls up the average. But for the majority of men, things have gotten worse since 1973.

Do you have data showing that comp didn't go up for any specific subgroup? If not, all you've shown is that employers have shifted comp from the wages to benefits.

I.e., you haven't demonstrated any problem for workers.

So workers are fine because they are partially shielded from the soaring cost of health-care?

It has nothing to do with that. It's simple a matter of converting the cost/value of the additional benefits in the form of employer health-care and other things, and adding that on top of the salary as if they are the same.

Seems pretty logical to me when I look at my paycheck and make that calculation. Am I happy that my employer has control over my medical expenses? Probably not. Am I happy that they get huge discounts from insurance companies on my behalf(and that of their other employees)? Probably am.

Employer health-care coverage has been widespread for most, if not all, of that time. So if my paycheck is slightly down from what it would have been 40 years ago, then 40 years ago I have both health insurance, plus more money (and possibly a defined benefit pension). How am I better off today?

I'm certainly better off today - 40 years ago a lot of activities would have been off limits to me. For example, walking, sitting, missionary position, sleeping on my side, basically everything besides lying on my back. Health insurance simply would not have paid $infinity for me to have treatments that were not yet invented.

As you might expect, these treatments have caused the price of health insurance to go up.

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