The typical full-time worker is receiving almost half as much pay because of increase in inequality.
“Income inequality has given the rich a greater share of the economic spoils than middle- and low-income earners. That’s resulted in a very real impact on the incomes of middle- and low-income households, with the typical full-time American worker now earning $42,000 less than they would have if inequality hadn’t surged over the last four decades.
That’s according to a new analysis from researchers at Rand, the global policy think tank. Its researchers wanted to look at the dollars-and-cents impact on U.S. households from yawning income inequality, which has lifted the fortunes of the rich to that of Gilded Age levels.
Prior to the mid-1970s, Americans’ incomes, no matter their level, generally rose in step with overall economic growth. But that changed in the late 1970s, with the rich capturing the lion’s share of economic growth, while middle-class and lower-income workers eked out gains far below par.
In 2018, the typical full-time worker earned about $50,000 — but if that same worker had kept up with the economy’s expansion, they would have earned $92,000 annually, the Rand analysis found.
Only the top 5% of Americans have enjoyed earnings that approached or exceeded the nation’s economic growth. Meanwhile, the top 1% has come out far ahead, gaining a far greater share of economic growth than they did prior to the 1970s.
The typical person in the top 1% earned $1.4 million in 2018, but would have earned $630,000 –– less than half that amount –– were it not for benefitting from widening inequality, the analysis found.”
For the rest of the story, visit CBS News here.
You must be logged in to post a comment.