patrick.net

A graph similar to the one in the OP:

It was the year the Old Yankee Elite finally got what they wanted: Labor Discipline and the ascendance of capital over productivity. They'd been trying since just after the Civil War, but failed due to massive political competition and decentralization. By 1971, they took over the government, and got rid of Nixon for ending the Vietnam War and using emergency powers to try to control inflation.

The FRED chart does not take into account the massive increase in healthcare insurance that is paid by the employers.

Nor does the chart take into account any of the additional benefits that the modern workforce receives (stock options, LTC benefits, on-site childcare, etc BUT REALLY STOCK OPTIONS).

The chart also fails to include the massive increase in transfer payments to the poor (section-8 housing, food stamps, EITC, and credits for having children).

The chart also fails to include the reduction in federal income taxes (both for households and corporations) and the reduction in interest rates. --- These two items have made up a massive amount of the gain in stocks and housing.

Today's workers are far better off than the FRED chart implies.

@patrick
It’s not all bad for common folks.There are some things which common man gained on
1) Tattoos
2) Gender identification options
3) Size
4) Social studies count
5) Ways to stick it to white man
6) drug options
7) Free vaccine shots
8) Free houses on roadside
9) Unlimited plastic options from China
10) Money supply
…

Patrick says

East Bay food restaurants entry-level pay in 2022: $20.50

Patrick says

There should be no minimum wage. It hurts the tax payer massively. I side gig at my kids school mowing the lawn for $12/hr. I don't need the money at all. Go in on the weekend, jam out some tunes on the headphones, occasionally have a beer or so and get paid. And yes I know, drinking on school property is frowned upon, whatever. Guess what though. NO ONE WANTS TO WORK. Nice mower too. Fast. And any of you with a riding mower I know you have a beer or cocktail while mowing. That's what mowing is... lol.

WookieMan says

Nice mower too. Fast. And any of you with a riding mower I know you have a beer or cocktail while mowing. That's what mowing is...

Sounds like fun. Reminds me of the time a guy leveled ground for a company parking lot using a Bobcat. That guy got paid for something most men would pay to be allowed to do.

HeadSet says

WookieMan says

Nice mower too. Fast. And any of you with a riding mower I know you have a beer or cocktail while mowing. That's what mowing is...

Sounds like fun. Reminds me of the time a guy leveled ground for a company parking lot using a Bobcat. That guy got paid for something most men would pay to be allowed to do.

Then there is Jeremy Renner who liked to play with heavy equipment w/o proper safety training under his belt...

Hugh_Mongous says

Jeremy Renner

https://pagesix.com/2023/01/04/jeremy-renners-snowplow-accident-911-call-revealed/

Gruesome details of Jeremy Renner’s snowplow accident revealed in 911 call: report

By coincidence 1971 coincides with women entering the workforce in large numbers.

President Richard Nixon announced the severing of links between the dollar and gold as part of a broad economic plan on Aug. 15, 1971.

Answer: Too much currency in circulation. The billionaires all from tech or wall street.

Another version of the image from the OP above, up to 2020:

And it wasn't "European Competition". Netherlands and FDR were bringing in Southern Europeans and Turks by the late 1950s due to a lack of labor.

Shifting of wealth from the poor and middle class to the wealthy through fiat money is called the "Cantillon Effect". Based on an obscure (and likely KEPT obscure) French Irish economist who described an effect based on the 'Emperor Node' of fiat money. Those closest to the Emperor Node aka money printing presses like politicians and industrialists and government are compensated for inflation immediately, whereas the value of money to the lower classes is depreciated, allowing those closest the the Emperor Node to increase their relative proportional wealth.

This effect over time causes the shifting of assets from the lower and middle classes to the elites and their lackeys. That's why the rich get richer and the poor get poorer in the fiat money economies. Plus, politicians promising everything can simply withdraw the benefits they used to gather power once they have the power, standard operating procedure for the Democrats.

Anybody notice the across the board loss of purchasing power to the tune of 18 to 22 percent recently, even if our nominal face dollar net worth stayed the same? You think the elites weren't compensated for this inflationary bump more or less automatically, while the plebs have to live with it until lethargic compensatory processes take place?

Ceffer says

Shifting of wealth from the poor and middle class to the wealthy through fiat money is called the "Cantillon Effect". Based on an obscure (and likely KEPT obscure) French Irish economist who described an effect based on the 'Emperor Node' of fiat money. Those closest to the Emperor Node aka money printing presses like politicians and industrialists and government are compensated for inflation immediately, whereas the value of money to the lower classes is depreciated, allowing those closest the the Emperor Node to increase their relative proportional wealth.

In a few words - fiat inflation benefits those with first access to the new printed money.

Ceffer says

That's why the rich get richer and the poor get poorer in the fiat money economies.

Inflation in fiat money economies is also not so bad for those who own assets like stocks or land (but a house on that land is a continuously depreciating asset). Stocks and land tend to rise in price with inflation in the long run. The poor do not have this protection from inflation, because they do not have assets.

There's many great charts, but here's an interesting one.

AmericanKulak says

There's many great charts, but here's an interesting one.

You have to to it per capita because human growth has been exponential as well.

richwicks says

You have to to it per capita because human growth has been exponential as well.

The Population slightly more than doubled, but the production of Vegetable Oils in metric tons went up 20X:

1970 World Pop: 3.7B
2020 World Pop: 7.8B

Here's another interesting chart:

Chicken Production is insane. With injections directly into the egg, Foster Farms can breed a chick to full grown in 43 days. This modern chicken weighs 3x what a chicken weighed in the 1950s.
I've noticed that chicken breasts are much tougher, and hard to cut with a knife. They are stringy and have very little taste.

In the 1940s, farmers were able to get 40 bushels of corn per acre. With modern farming, seeds and fertilizer; farmers are able to get 400 bushels of corn per acre today.

Say what you want, but the US population was 151 million in 1950. Today it is 334 million. We have not added extra farm land. However, the percentage of people in the US facing food scarcity is at an all time low.

Say what you want about modern methods, but the amount of good far outweighs the negatives.

https://www.cnn.com/2023/07/03/business/tyson-antibiotics/index.html

New York
CNN
—
Tyson will once again use certain antibiotics in its chickens, eight years after it announced plans to ditch the drugs in some of its production and slapped a “no antibiotics ever” label on its packaging.

The company said the antibiotics it plans to use in chicken production are not important to the treatment of humans. Antibiotic use in food has come under intense scrutiny in recent years as some bacteria have become increasingly resistant to treatments as a result of frequent exposure to antibiotics. The Wall Street Journal first reported Tyson’s change.

About half of US poultry farmers use some form of antibiotics to help keep chickens healthy, the company noted. In many chicken farms, animals are raised in crowded and unsanitary conditions and can be prone to disease.

“At Tyson Foods, we base our decisions on sound science and an evolving understanding of the best practices impacting our customers, consumers and the animals in our care,” a Tyson Foods spokesperson said in a statement.

Globalization at least is starting to reverse.





Construction Spending on US Manufacturing Plants Soars, to De-Globalize Supply Chains?

The driver: computer, electronic, and electrical manufacturing.

The amount spent on building manufacturing plants in May in the US jumped by 73% from a year ago, and by 147% from May 2021, to $15.7 billion, according to Census Bureau data today. This by far outpaces the increase in construction costs...

https://wolfstreet.com/2023/07/03/construction-spending-on-us-manufacturing-plants-soars-to-de-globalize-supply-chains/

1971 was major inflection point... around the start of EPA and other regulatory bodies meddling into business

the start of companies not paying pensions ...

the start of getting free trade relations with China ...

the start of technology and automation in manufacturing ...

the start of the stock market being a major wealth creator for the top 9% and especially in the 1980s with the proliferation of "growth stocks" ...

all of these factors had a major effect as far as reducing middle class jobs

ad says

in the 1980s

Leveraged buy-outs was the big gambit then. I remember Ross Perot ridiculing them during his campaign, said they're not really producing anything just pushing numbers around creating huge amounts of debt. Wasn't Mitt Romney a big proponent of that? His father actually produced an affordable car but he produced nothing of any value.

NDrLoR says

Leveraged buy-outs was the big gambit then. I remember Ross Perot ridiculing them during his campaign, said they're not really producing anything just pushing numbers around creating huge amounts of debt.

Before leveraged buyouts, Milkin, etc. companies hoarded cash for bad times. LBO's raped the cash hordes of traditional conservative companies (mostly capital intensive industries). These traditional companies accumulated these cash hoards so that they wouldn't be slaves to the banksters. That, as well as before the 90's, there were effective prohibitions on stock buy backs. If a company wanted to increase its stock price, it had to generate higher profits. These higher profits were produced by innovation which was privately financed from within the company (Bell Labs, HP Palo Alto, etc.).

LBO shite effectively destroyed the traditional way of doing business. Now, as many on PatNet have mentioned, every corporation sucks at the government/FED teat. As long as corporations do what the NWO/WEF/globohomo wants, they get free money. Otherwise they die on the vine.

This is fascism, this is communism, this is oligarchy, this is the death of free enterprise, this is our sons being sold into slavery and our daughters into whoredom. This is globohomo.

Yes it was fundamental transformation of economy into a service economy and Wall Street shenanigans

Lower interest rates just allowed them to play more into this such as with stock buy backs and home prices skyrocketed

ad says

The company said the antibiotics it plans to use in chicken production are not important to the treatment of humans. Antibiotic use in food has come under intense scrutiny in recent years as some bacteria have become increasingly resistant to treatments as a result of frequent exposure to antibiotics. The Wall Street Journal first reported Tyson’s change.

All the drug resistant diseases emerge near feed lots and packing plants.

If it was due to people not taking the last of the course of antibiotics at home, you'd see it concentrated in big cities, not clustered in the Midwest and South rural areas/small cities.

Trollhole says

Globalization at least is starting to reverse.





Construction Spending on US Manufacturing Plants Soars, to De-Globalize Supply Chains?

The driver: computer, electronic, and electrical manufacturing.

The amount spent on building manufacturing plants in May in the US jumped by 73% from a year ago, and by 147% from May 2021, to $15.7 billion, according to Census Bureau data today. This by far outpaces the increase in construction costs...

https://wolfstreet.com/2023/07/03/construction-spending-on-us-manufacturing-plants-soars-to-de-globalize-supply-chains/

Woah, what is really going on here?

Are companies realizing that they can no longer count on cheap labor from China after experiencing supply chain collapse during the plandemic?

Patrick says

Woah, what is really going on here?

Are companies realizing that they can no longer count on cheap labor from China after experiencing supply chain collapse during the plandemic?

Pretty much. Although it's started before the pandemic. Then it accelerated.

Guess we can thank COVID for accelerating the deglobalization process by 10 or so years.

Patrick says

Are companies realizing that they can no longer count on cheap labor from China after experiencing supply chain collapse during the plandemic?

I wonder if they know Taiwan is about to be taken over.

AmericanKulak says

I wonder if they know Taiwan is about to be taken over.

Doubt that will happen.

Governments are paying private corporations billions upon billions of dollars to create manufacturing plants in their countries. Local governments have always been in the game of giving tax breaks to large corporations to start units in their jurisdictions,

In the future we will see if these government sponsored facilities are worthwhile or just a waste of taxpayer dollars (gifts to the politically connected).

AmericanKulak says

Patrick says

Are companies realizing that they can no longer count on cheap labor from China after experiencing supply chain collapse during the plandemic?

I wonder if they know Taiwan is about to be taken over.

Taiwan is NOT about to be taken over, at least not by force.

Taiwan has to DEFINITELY be cautious about reintegration with the mainland, but they are going to do it.

Misc says

In the future we will see if these government sponsored facilities are worthwhile or just a waste of taxpayer dollars (gifts to the politically connected).

I haven't seen a good US government investment since GM, and I'm not even certain that was a good investment. Probably the last one was the loan to Lee Iacocca to save Chrysler. Iococca paid it back. He also saved IBM in the early 1990s. There's few businessmen I admire, most of them are just government cocksockers, Iacocca wasn't one of them.