The Bottom Keeps Dropping

Over the last 15 years, more than half of income growth was captured by the top 1% of incomes. (See A Billionaire Urges Us to Support His Coup | Notes from The Pondonome)

And the bottom keeps dropping.

Even at times of high unemployment in the past, wages have been very slow to fall; economists describe them as “sticky.” To an extent rarely seen in recessions since the Great Depression, wages for a swath of the labor force this time have taken a sharp and swift fall.

The only other downturn since the Depression to see similarly large wage cuts was the 1981-82 recession. But the latest downturn is already eclipsing that one. Unemployment has stood above 9% for 20 straight months—longer than the early 1980s stretch—and is likely to remain above that level for most of 2011, putting downward pressure on wages.

Downturn’s Ugly Trademark: Steep, Lasting Drop in Wages –

tip of the construction helmet to Daily Kos: American Dream Done: WSJ–Steep, Lasting Drop in Wages

Suggested new slogan for Republicans: thanks for the vote, suckers.

This entry was posted in American History, Economics, History, Politics and tagged , , . Bookmark the permalink.

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