Monday, October 12, 2015

Stagnant Wages......ANOTHER PESKY FACT!

Stagnant Wages

The typical full-time working male is earning less than he did in 1973.  In 1973 a man with a full-time job was earning $53,294 measured in 2014 dollars.  The latest Census data finds that a full-time working man today is making $50,383.  Keep in mind this is for those that actually have a job. We have more than 94 million Americans that are "not in the labor force" a record by any measure.

The pay gap for women is still large but the median female worker saw their pay increase by more than 30% between 1973 and 2014. This is largely driven by the gains made in educational attainment. Of course the challenge today for both men and women is finding a good college education that won't put you into massive student debt.

What is going on here?  One major contributing factor is that productivity gains are simply not being passed on to workers. While output per hour of work is up nearly 2.5 times wages are simply not keeping track.  Part of the issue is that there is a growing income inequality in the nation.

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