Tag Archives: Workers wealth

Worker Wealth Decline

You hear a lot about the so-called “trickle-down effect” that lower corporate taxes will trigger, and also a lot about the decline in wealth of the middle class of American workers over the years.  A recent Harvard Business School report suggests that there HAS been an erosion in the income of American workers, but it also casts some doubt on the trickle-down theory.  Citing data from the U.S. Bureau of Economic Analysis, the economists found that corporate profits grew from 4.7% of the U.S. economy in the year 2000 to 9.1% in 2016—by any measure, a healthy rise, considering that the economy itself was growing during most of those years.  But worker salaries and wages fell from just under 47% of the economy in 2000 to 43.4% in 2016.

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