Magazine | August 14, 2017, Issue

Letters

(Baz Ratner/Reuters)

A Bleak Future for Wage Growth

Robert VerBruggen’s “conundrum” about wage-growth stalling (“A Wage-Growth Conundrum,” July 31) clears up when you realize that the categories of capital, labor, and productivity as presently defined in government statistics are hopelessly confused. Even VerBruggen admits that counting housing as capital is erroneous and has distorted standard measures of recent capital growth. Far from being a conundrum or an anomaly, weak wage growth in the face of rising returns to capital is inevitable in a system in which labor is regarded as a commodity, and profit of whatever magnitude as the just reward to the owners of capital. As distributist economist John C. Médaille has shown in his book Toward a Truly Free Market, “pure” capitalism leads to the “investor’s dilemma” in which stalling wages lead to flagging consumer demand as capital accumulates at the top with nowhere to go, except into the bank or overseas. The top ten U.S. cash-holding companies have nearly half a trillion dollars sitting around in the U.S., and about two trillion is held by all U.S. companies overseas.

VerBruggen touches on one solution that holds genuine promise when he proposes to curtail powerful monopolistic businesses that engage in “rent-seeking” — using their influence with governments to exclude genuine competition from the market. Unfortunately, in the present political climate, such measures have a snowball’s chances in Hades, but until more middle-class citizens own profitable well-capitalized businesses that they can realistically control, wage growth will continue to elude us.

Karl D. Stephan

San Marcos, Texas

Opening Up Education

Oren Cass’s “Teach to the Rest” (July 31), about diversifying high-school education to facilitate ends other than the traditional, four-year undergraduate education, calls to mind a friend. I’ll call him Chris. Chris is an extraordinary carpenter. Wood does miraculous things in his hands. I’ve seen Chris totter whole days away building tables, shelves, a back porch — you name it. Doing so gives him tremendous pleasure. But that’s a hobby, more or less. To pay the bills, Chris is an assistant principal at a secondary school. That’s a decent gig, but I’ve always wondered whether my friend followed a “traditional” route into suit-and-tie work for no better reason than that that’s the thing to do — check the boxes, etc. — even when he would have been happier, and perhaps better compensated, spending his days in his shop. Mr. Cass suggests that there are many forms of fulfillment, many different routes to professional satisfaction. I imagine that there are more than a few young people out there like my friend. Why should they, too, be shunted into a one-size-fits-all mold?

Richard Meads

Winterset, Iowa

NR Editors includes members of the editorial staff of the National Review magazine and website.

In This Issue

Articles

Features

Books, Arts & Manners

Politics & Policy

The Radical

Long after Henry David Thoreau’s death in 1862, Walt Whitman praised him for his “lawlessness -- his dissent -- his going his own absolute road let hell blaze all it ...

Sections

The Week

The Week

‐ George Romero, 1940 –2017. Rest in peace — please. ‐ The New York Times has revealed that, in June 2016, Donald Trump Jr. got an e-mail from Rob Goldstone, a ...
Politics & Policy

Poetry

THE CUSP OF SUMMER Geese in skies are on the wing. The pointed flock, triangle-shaped, Announce with honks the start of spring When tall green trees are softly draped. Trumpeting starts off everything Once more. Black ...
Letters

Letters

A Bleak Future for Wage Growth Robert VerBruggen’s “conundrum” about wage-growth stalling (“A Wage-Growth Conundrum,” July 31) clears up when you realize that the categories of capital, labor, and productivity as ...

Most Popular

White House

The Damning Inspector General’s Report

It is hard to believe that the run-up to the presidential-election year has plumbed such a depth of farcical degradation. It must be that Trump’s influence has contributed to unserious responses, but he can’t be blamed for the unutterable nonsense of his opponents and the straight men of the political class ... Read More
White House

The Damning Inspector General’s Report

It is hard to believe that the run-up to the presidential-election year has plumbed such a depth of farcical degradation. It must be that Trump’s influence has contributed to unserious responses, but he can’t be blamed for the unutterable nonsense of his opponents and the straight men of the political class ... Read More
World

Present at the Demolition

Economists at the World Bank and International Monetary Fund must feel pretty lucky these days. They work for just about the only institutions set up in the aftermath of World War II that aren't in the middle of an identity crisis. From Turtle Bay to Brussels, from Washington to Vienna, the decay of the economic ... Read More
World

Present at the Demolition

Economists at the World Bank and International Monetary Fund must feel pretty lucky these days. They work for just about the only institutions set up in the aftermath of World War II that aren't in the middle of an identity crisis. From Turtle Bay to Brussels, from Washington to Vienna, the decay of the economic ... Read More
Elections

Diversity Panic Hits the Democratic Field

Stop me if you’ve heard this one before. An Asian guy, two black guys, three white women (one of whom spent much of her life claiming to be Native American), a Pacific Islander woman, a gay guy, a Hispanic guy, two elderly Caucasian Jews (one a billionaire, the other a socialist), a self-styled Irishman, and a ... Read More
Elections

Diversity Panic Hits the Democratic Field

Stop me if you’ve heard this one before. An Asian guy, two black guys, three white women (one of whom spent much of her life claiming to be Native American), a Pacific Islander woman, a gay guy, a Hispanic guy, two elderly Caucasian Jews (one a billionaire, the other a socialist), a self-styled Irishman, and a ... Read More
World

Well . . . .

So much for my prophecies of doom. Britain's Conservatives won, and they won with a very healthy parliamentary majority, breaking through Labour’s “red wall” across the industrial (and post-industrial) Midlands and the North. The BBC: Leave-voting former mining towns like Workington, which was seen as ... Read More
World

Well . . . .

So much for my prophecies of doom. Britain's Conservatives won, and they won with a very healthy parliamentary majority, breaking through Labour’s “red wall” across the industrial (and post-industrial) Midlands and the North. The BBC: Leave-voting former mining towns like Workington, which was seen as ... Read More
White House

The Costs of Trivializing Impeachment

Resorting to a vague “abuse of power” theory, the House Judiciary Committee Friday morning referred two articles of impeachment to the full House on the inevitable party-line vote. The full House will impeach the president next week, perhaps Wednesday, also on the inevitable party-line vote. The scarlet ... Read More
White House

The Costs of Trivializing Impeachment

Resorting to a vague “abuse of power” theory, the House Judiciary Committee Friday morning referred two articles of impeachment to the full House on the inevitable party-line vote. The full House will impeach the president next week, perhaps Wednesday, also on the inevitable party-line vote. The scarlet ... Read More