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Article: Backlash: the view from Wall Street. (excerpt from an Oct 1995 Morgan Stanley report 'Worker Backlash')
- Article from:
- Harper's Magazine
- Article date:
- January 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 Harper's Magazine Foundation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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From "Worker Backlash," a report sent last October to selected clients of Morgan Stanley, the Wall Street investment firm, by Stephen Roach, the head of the company's economics department.
One of the by-products of economic theory ' is that workers are eventually paid a just reward as measured by their incremental contribution to productivity. But this has yet to happen in the recovery of the 1990's. Indeed, the once tight linkage between trends in productivity and real wages in the U.S. economy appears to have broken down.
One of the by-products of this growing wedge is a dramatic shift in the distribution of income--away from the agents of productivity ...