…s that wages are no longer performing the central redistributive role they have played for decades. Simply put, gains in capital productivity are not being translated into higher median incomes, a breach of the social contract on which liberal economies rest.
The concept of “social contract” here-used hides the fact that salary increases are NEVER automatic and ALWAYS have to be gained by action or negotiation. There is no WRITTEN rule saying that 50% or whatever percentage of the increase in productivity will have to go to the salaried people of the business.
In the new globalized phase, under tremendous pressure from the whole world, the famous REST, the West has to rethink its economic and social model and we are “amazed” because we find out the mythical “social contract” (thanks Jean Jacques Rousseau) is upgraded, restructured, revamped without any discussions, and when we are lucky with fair elections that do not give victory to a minority popular vote and then the government that comes from that really representative parliament negotiates the various changes with the unions, various associations or organizations and not only under the sole influence of lobbyists.
When this model is respected then the change can go rather smoothly and some improvement in income for salaried people can be achieved