Non-employees
Inequality, inequality, is a subject that is always present in this system, both right and left. The causes can be discussed, but nobody doubts that it has risen worldwide, especially in recent decades. Kuznets was wrong when he said in the middle of the last century that as the people were developing, inequality would have to decrease. The recession in labour incomes is based on the loss of union strength as the transformation and deindustrialisation of technological changes in the labour market progresses. That is, behind the increase in inequality between capital and labour incomes.
Despite the general international trend, last October Joseba Garmendia highlighted in the article published by the Naiz media that the distribution of income in Hego Euskal Herria was more favorable to workers thanks to the struggle of their unions. However, income distribution may lead to disregard for inequality, as financing has transformed business dynamics and capital payment mechanisms. Currently, corporate wages combine the interests of shareholders with business strategies and, therefore, higher wages can be understood as disguised dividends, as capital income. The weight of wages in the income of the wealthiest people corroborates this: According to the Joint Annual Report of the Basque Treasury, 30-60% of the income of the wealthiest comes from wages.
Inequality is not resolved by equalising the best workers’ rights and wages downwards, but by increasing the lowest wages to the detriment of corporate profits.
The analysis of wage inequality allows us to go further and avoid that bias. According to data from the INE in Spain, since 2008 the top 10% of the wages of Hego Euskal Herria has risen each year above average, while the lowest wages decreased each year in 2018, until in the Spanish state it began to rise as a minimum wage. In addition, higher wages have grown above inflation, i.e. they have increased in relative and absolute values, while the rest of wages are becoming less and less. Finally, the average wage has risen less than average, making it clear that there are more and more low wages, but higher wages are getting higher.
Inequality is not resolved by downgrading the best rights and wages of workers in certain sectors, but by increasing lower wages to the detriment of corporate profits. But, as we have seen, there are some employees who are not workers, and the reduction in these wages may mean a reduction in the inequality between capital and labour incomes.
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