Workers’ share of national income plummets to record low

Discussion in 'Politics' started by AK Forty Seven, Jun 14, 2011.


    Workers’ share of national income plummets to record low
    By Zachary Roth Tue Jun 14, 12:37 pm ET

    Over the last decade, the share of U.S. national income taken home by workers has plummeted to a record low.

    Check out the chart below, compiled by the Labor Department, and posted this week by conservative writer David Frum. It shows that the decline began with the brief recession that followed 9/11 in 2001. But it continued even as the economy picked up again, and got even worse once the Great Recession hit. In the weak recovery since then, workers' share of income just kept on falling.

    Why are workers taking home such a reduced share of the pie? Opinions differ, but many experts think that the trend has to do with a number of factors, including a decline in the bargaining power of labor, and increased competition from foreign workers. Similarly, over the last year or so, U.S. companies have made record profits, while unemployment has stayed high and wages have barely risen.

    The chart jibes with other data, which show that since the 1980s, income for the richest 1 percent of Americans has exploded, while hardly budging at all for everyone else.

    Still, there's little sense that either Obama administration or Congress plan to do much about this growing inequality. Indeed, any serious action to boost the economy and cut unemployment now seems to be off the table.

  2. Notice the drop from 1981 to mid 90's(Reagan and Bush)then the uptick under Clinton,then the huge drop that started under Bush 2 in 2000 :cool:
  3. Any fool knows the reason for this is increased global trade. Unions only gave added impetus to this, as companies rushed to emerging markets where labor bosses couldn't hold them hostage.

    There is no mystery here for anyone who is economically literate. The democrat party sold out its middle class, factory worker base in favor of environmentalist wackos, trial lawyers, government unions and the high taxes they bring, union bosses and all the various employment laws and lawsuits that have made hiring anyone here so risky.
  4. If it were only that simple.
  5. Ricter


    Fortunately, all those factors are growing abroad, faster than they did here.
  6. Lucrum


    ..and continuing exponentially under Mr. Hope & Change.

    Yeah you really showed us this that chart.
  7. Well, the nominal minimum wage has stayed the same but with all the QEs going around they really can't be worth much anymore.
  8. Ricter


    Because of all the inflation lately?
  9. jem


    we have massive inflation.

    What are you paying for food?

    [1980] 19 oz, 99 cents
    [1981] 18 oz, $1.12
    [1982] 18 oz, $1.25
    [1983] 18 oz, 99 cents
    [1984] 12 oz, 89 cents
    [1985] 18 oz, $1.09
    [1986] 18 oz, $1.39
    [1987] 24 oz, $1.99
    [1988] 18 oz, $1.49
    [1989] 18 oz, $1.69
    [1990] 18 oz, $1.99
    [1991] 18 oz, $2.19
    [1992] 18 oz, $1.99
    [1993] 18 oz, $1.29
    [1994] 24 oz, $2.19
    [1995-1996] no prices found yet
    [1997] 18oz, $2.59
    [1998] 18 oz, $2.29
    [1999] no prices found yet
    [2000] 18 oz, $2.99
    [2001-2003] no prices found yet
    [2004] 12 oz, $2.99
    [2005-2007] no prices found yet
    [2008] 12 oz, $2.99
    [2011] 12 oz., $3.79
  10. jem


    by the way the above was for cornflakes.
    but if you wish to talk burritos or milk or beer or butter or whatever...

    even t.v.s are going up in price at costco.
    #10     Jun 15, 2011