"Forward" - 40% of Americans Now Make Less Than 1968 Minimum Wage.(BLN).You may have seen charts like the one to the right from the Economic Policy Institute, showing how working people’s wages stopped going up along with productivity gains.
Economist Dean Baker describes one effect of this in Minimum Wage: Who Decided Workers Should Fall Behind?
“If the minimum wage had risen in step with productivity growth [since 1968], it would be over $16.50 an hour today. That is higher than the hourly wages earned by 40 percent of men and half of women.”The minimum wage would be $16.50 an hour — $33,000 a year — if it had kept up with the growth of productivity since 1968. To put the effect of this a different way, 40 percent of Americans now make less than the 1968 minimum wage, had the minimum wage kept pace with productivity gains.
To put this even another way, the average American’s living standard would be much, much higher today if wages had not decoupled from productivity gains – with the gains all going to the 1 percent instead of being shared by workers. If wages had kept pace we wouldn’t feel the terrible squeeze that everyone in the middle class is feeling.Read the full story here.