CBS News has released a report according to which the wages of the workers have taken an impact of a wage drop despite the rising share prices of the companies. The recent law approval of Tax Cut and Jobs Act doesn’t seem to be a successful venture in trickling down the beneficial effects to the workers and job holders.
The comparison of the collective worker wages shows that a drop down was noticed in the wages as compared to the first quarter. The drop down was measured to be 1% as compared to the previous quarter. The report of difference has been published by PayScale Index. The inflation has contributed a lot to the miserable conditions of the workers. The increased costs of purchasable items has made him feel the decreasing value of his pay and wages.
This drop of wages was effective enough, due to the added inflation the drop noticed was 1.4 percent and 80 percent of industries felt the jolt.
Now, economic confidence has been good, we’re in a strong economy, GDP is growing, but the question has been, where’s the paycheck? – says Vice President of data analytics
The answer, if sought, finds its existence in the increased spending of the businesses towards re-purchasing their shares. An artificial high demand increases the value of their shares. The collective benefit is reaped by the people holding the shares.
Business are reported to be spending around $700 billion in order to repurchase their stock. This report was published by TrimTabs. The previous year’s record was nearly doubled when corporations were found to be getting $433 billion worth of buybacks.
This practice often makes a company more valuable on the paper, however, the overall conditions of the working environment and the workers remain the same. The corporate profits are being channelled to the high stakeholders who have purchased greater shares. The increase share price is not translating to the increased wages.