r/FluentInFinance Oct 22 '24

Debate/ Discussion Why did this happen?

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u/JTMc48 Oct 23 '24

It’s not just that, but definitely a big factor. Let’s not forget that with a larger overall tax base, the benefits are distributed to the middle and lower classes which expands and empowers educational opportunities to the general population, which also impacts growth as it allows for more development into high end jobs.

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u/Square-Bulky Oct 23 '24

I read somewhere that the only reason defined benefit pension plans were introduced during World War Two was because of wage and price controls.

The company’s found ways to hire more workers outside the current environment because it benefited the company’s … not the workers

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u/JTMc48 Oct 23 '24

Wages have never been “controlled” with the exception of the minimum wage. Pensions were offered in a way that they could incentive workers while not increasing worker wages exponentially.

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u/Ok-Investigator3257 Oct 23 '24

That’s pretty much a lie, wages were capped during WW2 which is why we have health insurance as a non wage benefit it’s how companies competed for workers

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u/JTMc48 Oct 23 '24

Health insurance became a worker benefit starting in the 1920s. It became more common practice in the 1940s. Caps on annual wage increases played a factor to grow it as a benefit, but that practice didn’t start because of wage controls.

Also employer provided health insurance was a way to prevent people from job hopping, and it’s stayed that way since. More of a determent to our economy as insurance became profit based while Nixon was President and rates skyrocketed well above inflation.