Why Don't Wages Rise With Profits?

Because profits wouldn't be so high if the wages bill was higher.

We are now seeing the wages bill fall while profits continue to rise due to big business - like Tesco 'employing' people on benefits and just paying expenses on top of their JSA so their wages bill will fall as their profits continue to soar. This is blatant exploitation and I wonder how long it will continue before the population start to fight back.

What I'd like to know is why aren't business owners told they have to expect lower profits in times of recession instead of the burden being dumped on ordinary people in the form of higher prices, high unemployment, pay freezes and the rest.

The answer to both is the same, because we are under a tory govt who want to milk the working class in order to increase their personal wealth and that of their business friends. They want to dismantle the NHS to increase profits for private health providers - putting public money into private hands, they support businesses like Tesco in exploiting people for benefits - putting public money into private hands.

Time to rise up and say enough is enough, get rid of the tories, then we can perhaps begin the struggle to get rid of capitalism and develop a more equitable system that values people above profits.

Same reason as why failing bank CEO's are offered million £££ bonuses. The system has been corrupted in the UK, by big business. You can see it at every level, take A lansley, the health minister who is pushing through the health and social care bill, back door privatisation dressed up as faux reform. It may interest you to know this man is being paid by those very same private health companies who will benefit from privatisation. CareUK have admitted paying this man over £20k.

edit... In 1979 barcleys bosses were paid 14.5 times more than the average worker, today its 75 times more.

High pay commission forecasts top earners' slice of national income will rise from current 5% to 14% by 2030

During the recession top earners have seen wage rises whilst the poorest workers hve seen pay cuts and freezes.

because the owners of a company want to make as big a profit as possible. cutting payroll is the easiest and quickest way to make the final figures look good.

Profit comes out of the unpaid labour of workers, i.e. the difference between the value that workers create and what they are paid in wages. So if profit makes up a bigger slice of the cake, wages will occupy a smaller part.

Put simply, because they don't have to.

We hand over more & more power, and are increasingly owned by major corporations. Sadly we show no sign of stopping, & little sign of even slowing this trend.

If you give all the power away, don't be surprised when you're screwed over.

Because they don't have to.
I live in the USA.

"Profits" can go for expansion, new product development, dividends, or making the business owners wealthier.

Why would they? If the wage earners wish to put their capital at risk by investing in the venture they can enjoy the profits when the enterprise succeeds and lose their money when the enterprise fails. Wages can, do and should be based on the market price for the skills the enterprise requires. Profit sharing programs, options and stock grants notwithstanding, the market decides wages not the profits, or losses of individual companies.

If you really want to know the answer to this question, you should consider taking some economics classes at your local college. You will learn that there are all kinds of formulas and charts and graphs that predict how things like wages, profits, supply, demand, productivity, etc are related and how they rise and fall relative to each other. By posting a link to a facebook page that I'm not going to read, I imagine that you're looking for some kind of answer that speaks to some conspiracy. Well, that's not how it works.

1 Because its the boss who's taking the risk
2 to pay for new machinery
3 To pay your holiday pay
4 to Pay taxes
5 to pay dividend to others taking the risk
6 to find new work
7 to develope new work

Because life isn't fair, it never has been and it never will be. I'd have thought someone of your age would have learnt to accept that by now, oh I forgot you're a Socialist,oh well you're only fooling yourself.

sometimes they do