Related Stories
Income inequality increases sharply in US
Key Excerpts from Article on Website of Christian Science Monitor
Posted: July 19th, 2010
http://www.csmonitor.com/Money/Robert-Reich-s-Blog/2010/0713...
Missing from almost all discussion of Americas dizzying rate of unemployment is the brute fact that hourly wages of people with jobs have been dropping, adjusted for inflation. Average weekly earnings rose a bit this spring only because the typical worker put in more hours, but Junes decline in average hours pushed weekly paychecks down at an annualized rate of 4.5 percent. In other words, Americans are keeping their jobs or finding new ones only by accepting lower wages. Meanwhile, a much smaller group of Americans earnings are back in the stratosphere: Wall Street traders and executives, hedge-fund and private-equity fund managers, and top corporate executives. As hiring has picked up on the Street, fat salaries are reappearing. Were back to the same ominous trend as before the Great Recession: a larger and larger share of total income going to the very top while the vast middle class continues to lose ground. And as long as this trend continues, we cant get out of the shadow of the Great Recession. When most of the gains from economic growth go to a small sliver of Americans at the top, the rest dont have enough purchasing power to buy what the economy is capable of producing.
Note: The author of this analysis, Robert Reich, is a former U.S. Secretary of Labor. For highly informative graphs showing the details of rising wealth inequality in the United States, click here.
Related Stories
Latest News
Key News Articles from Years Past
