Washington Post: For the biggest group of American workers, wages aren’t just flat. They’re falling.

GOP Tax Law
Remember when Republicans promised their tax scam law would lead to a $4,000 raise? Well, we’re nearing the six month mark and here’s the reality from the Washington Post:



Key excerpts:

“The average hourly wage paid to a key group of American workers has fallen from last year when accounting for inflation, as an economy that appears strong by several measures continues to fail to create bigger paychecks, the federal government said Tuesday.”

For workers in ‘production and nonsupervisory’ positions, the value of the average paycheck has actually declined in the past year. For those workers, average ‘real wages’ — a measure of pay that takes inflation into account — fell from $22.62 in May 2017 to $22.59 in May 2018, the Bureau of Labor Statistics said.”

“The falling wages promise to exacerbate historic levels of U.S. inequality. Within the labor force, it means workers who were already making less are falling further behind. And if private laborers as a whole are seeing their earnings flatten while the economy as a whole grows at an annual rate of more than 2 percent, that means the gains are going almost exclusively to people already at the top of the economic ladder, economists say.”

“‘The extra growth we are seeing in the economy is going somewhere: to capital owners and people at the top of the income distribution,”’ said Heidi Shierholz, director of policy at the Economic Policy Institute and a former chief economist at the Labor Department, noting workers' share of corporate income remained relatively low as of January. ‘And what we've seen is in recent period a much higher share of total income earned going to owners of capital.’”
 
Issues: