Jon's Soapbox
One Chart Speaks Volumes on Wage Stagnation in USA
(posted 9/6/2015) - Josh Bivens and Larry Mischell of the Economic Policy Institute have put together a compelling analysis of the root causes of Income Inequality growth in the United States. Their data clearly shows that as workerforce productivity has increased by 72% since 1973, real wages have only increased 9% for employees. So where have the bottom line profits been directed? The authors identify the recipients of about 80% of growth in corporate profits as going to the 'owners of capital' -- meaning bond and shareholders. The executors of this change to the slice-of-pie going to labor and capital owners are the corporate executive class who non-coincidentally have seen their compensation rise at double-digit rates!
Here's a single chart that speaks to the changes that began in the early 70's and have been accelerating ever since. Business management with support from Federal and State policy makers have moved the profits from most businesses away from labor (proportionally) and toward owners of capital. This was done intentionally and is the root cause of the massive wealth inequality that has arisen between 99.9% of our citizens and the .1% who reap inordinate gains from the operation of markets (aka the Rentier Class).
Here's a link to the online analysis . I think this should be the key domestic issue being discussed in the 2016 election cycle.
PS -- You may say to yourself, after reading this soapbox rant, so what? I've got mine why would I want to change anything through messy political action? The answer I think is that if you look down the road a bit you will see that if increasing economic disparity is allowed to continue our nation's economy will suffer fatally. Think what will happen when our middle class (the largest consumers of our domestic output) loses its ability to consume as it once did. Remember each employee is also a consumer. Kill off enough consumption and you will not enjoy the result (great depression anyone?).