Two small groups of Americans are improving their economics while the vast majority struggles.
A big reason for average incomes in 2014 being smaller than in 2000 is subtle policies that take from the many and redistribute upward. Taxpayers now provide many businesses with much of their capital for new investment—whether it’s moving the corporate headquarters to a different state (Boeing, General Electric, AMC Theaters); building new factories (BMW, Boeing, Mercedes); or letting owners escape property taxes (one example: Donald Trump) or pocket the state income taxes paid by workers without their knowledge (Ford, Google, Nissan).
Wages are down because of Congressional hostility to unions, which are common among America’s major economic competitors.
Labor’s share has been falling ever since government policy turned against unions. Put average wages and union membership into a graphic for the last four decades and the declines track closely. That’s because without unions most workers have no bargaining power. A clerk, teacher, airline pilot or street cop is basically a commodity. One person can easily be replaced with another.
Washington. Through a myriad of government policy changes, income is being redistributed up. This shows why it’s important for all of us to pay attention to what’s going on and make sure our politicians have our interests in mind and not just the interests of the corporations or the wealthy people.