Overworked and Underpaid? Productivity Increases, But Wage Growth Declines

[G_j]

http://www.commondreams.org/headline/2010/09/01-7

Published on Wednesday, September 1, 2010 by In These Times

Overworked and Underpaid? Productivity Increases, But Wage Growth Declines

by Akito Yoshikane

As Labor Day approaches, many Americans are breathing a sigh of relief for the extra day off. On a day that celebrates unions and the eight-hour work day, many workers are feeling like their hard work isn’t exactly paying off the way it used to.

Even as productivity has continued to climb, wages have been either stagnant or declining. Household income for the average working family has continued to fall, but men, latinos and those without a college education have experienced an especially sharp deceleration of wage growth since the recession, according to a new briefing paper by the Economic Policy Institute.

The Washington, D.C.-based think tank says that from 2002 to 2007, productivity rose 11 percent but the hourly wage for high school and college educated workers fell. In fact, the average median household income (adjusted for inflation) actually earned $2,000 less during that period, going from $60,804 to $58,718. For the first time, family income levels sunk below what they had been at the beginning of the economic cycle.

Typically, an era of higher productivity would also cause wages to rise as workers receive compensation for harder work. Instead, the opposite has been happening. As many companies have reduced staff to cut costs, employees have been squeezed to work longer and produce more. And with productivity falling slightly for the first time in more than a year, many workers have likely reached their threshold this past Spring.

..more..

[Art_from_Ark]

1. No surprise there

Cue "The Volga Boatmen" song

http://www.youtube.com/watch?v=KfsWoNpHg2s

[Lasher]

2. Hey, all that money for the top 1% had to come from somewhere.

Now back to work, you ingrates!

[Anakin Skywalker]

3. Of course! This is the great free market! Don't question it or doubt it in any way! Or.....

"you are unpatriotic!" "Why do you hate America?"

[Sherman A1]

4. been going on since Ronald Reagan's time

the working class has been screwed and screwed again and again.

[anarch]

5. well, a three-person crew has pretty much devolved into me...an no real raise for several years

so yeah. This year I got a salary increase, but not enough to cover my anticipated rent increase. Last year, no increase at all, so basically real wages have declined. 8 hour day? Forget about it. Waaay too much work to do...I would be considered a shirker if I left after 8 hours, most days.

[Solly Mack]

6. k/r

[Fumesucker]

7. I'm sure the coincidence theorists will be all over this..

Richest lawmakers grew wealthier as economy faltered

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9061188



By Rachel Rose Hartman

http://news.yahoo.com/s/yblog_upshot/20100901/pl_yblog_...

Sen. John Kerry - D/MA -- $188 Million
Rep. Darrell Issa - R/CA -- $160 Million
Rep. Jane Harmon - D/CA - $152 Million
Sen. Jay Rockefeller - D/WVA -- $83 Million
Rep. Michael McCaul - R/TX -- $73 Million
Sen. Mark Warner - D/VA -- $70 Million
Rep. Jared Polis - D/CO -- $56 Million
Rep. Vern Buchanana - R/FL - $53 Million
Sen. Frank Lautenberg - D/NJ -- $49 Million
Sen. Diane Feinstein - D/CA -- $46 Million


According to this article from 2009 http://www.cbsnews.com/8301-503544_162-5553408-503544.h... there are 237 millionaires in congress, or 44% if that body as compared to only 1% of the rest of the country.

[jotsy]

8. As a poster upthread suggested, this has been the case for too long awhile now.

Richard Wolff, UMASS Economics Professor and lecturer from 'Capitalism Hits the Fan' explains. In just under 5 minutes.

<http://www.youtube.com/watch?v=M8ZH1ejtIFo>

Recently looked into minimum wage standards across the states, a handful of them have none at all. Scary scary age for the worker be.