Making Markets Nir Kaissar: Economic Sentiment versus Reality - [Making Markets, REPLAY]
Sep 6, 2024
Nir Kaissar, founder of Unison Advisors and a prominent economic commentator at Bloomberg, dives into the paradox of strong economic metrics paired with public discontent. The discussion highlights wage stagnation amidst rising corporate profits and the transparency crisis in compensation. Kaissar examines recession indicators and warns about risks in private equity. He also touches on the skepticism surrounding commercial real estate post-pandemic and analyzes the 'Magnificent Seven,' stressing the sustainability of their growth in the current market landscape.
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Living Wage Crisis Explains Sentiment
- About 65 to 70% of full-time US workers don't earn enough to cover basic family needs.
- This large wage insufficiency explains the disconnect between strong economic numbers and public sentiment.
Profit Growth Outpaces Wage Growth
- US profit margins tripled since 1993 but wages have not meaningfully increased.
- Companies have captured productivity gains while workers' compensation stagnates due to power concentration and weaker labor.
Advocate Compensation Transparency
- Transparency in employee compensation would empower workers to negotiate better wages.
- Companies should disclose compensation structures more openly to balance power.