Quote:
Originally Posted by Cappy
I think this is a bigger reason for the stagnation of wages. We couldn't have always thought western society could live the way we did at the expense of the rest of the world forever?
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I think we ultimately agree, but tax policies, tax avoidance has created a big part of the wage stagnation of the middle class, while the highest earners have seen massive gains in the last 2-3 decades. Its a transfer of wealth, not so much because of globalization but because governments all over the western world cow tow to powerful financial interests that push legislation to help them pay less taxes, avoid taxes, etc..
Globalization and off shore banking, incorporation, is a massive problem that has a huge part to play as well.