Phila. Inquirer: Happy Labor Day?

[fencesitter]

The great pay divide

http://www.philly.com/mld/inquirer/news/editorial/15434894.htm

As Americans try to enjoy an extra day off in celebration of the working man and woman, they might not want to consider what's happening to the fruits of their labor.

In short, Americans are working more effectively: Productivity is up solidly. But wages are not.

In the 10th edition of its The State of Working America, released Saturday, the liberal Economic Policy Institute paints a daunting picture with a fusillade of statistics.

The median family's real income (wages with the effect of inflation on purchasing power figured in) fell 3 percent between 2000 and 2004, the last year for which numbers were available. That's in contrast to steady increases in this figure from 1979 to 2000.

During most of America's long run as an economic powerhouse, income has increased in step with productivity, the output of goods and services per hour. Productivity grew 2.5 percent per year from 1995 to 2000, and family income grew 2.2 percent annually during that same period. Productivity jumped to 3.1 percent a year from 2000 to 2005. But Americans didn't see a similar jump in pay.

Overall, the share of national income due to wages and salary has dropped steadily since 2000. What share increased as workers lost? Corporate profits. And, yes, many shareholders are workers, too. But this method of distributing the fruits of productivity clearly increases income inequality.

More at link...
--------------------------------------
EDIT: COPYRIGHT. PLEASE POST ONLY
4 OR 5 PARAGRAPHS FROM THE
COPYRIGHTED NEWS SOURCE PER DU RULES.

[peacebird]

1. k&r

[Parisle]

2. Good Editorial,...

----- Very succinct. That the Bush administration has operated to the exclusive benefit of the top 1% of the income strata may no longer even be seriously questioned.