Economy Booming – For the Top 5%
September 15, 2016
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U.S. Census data released in mid-September shows that 2015 wages rose significantly for the well-off; a result newspapers heralded as strong wage increases that were pulling millions out of poverty. Although wages for the top 5 percent are up 3 percent since the onset of the Great Recession in 2007, those in the bottom fifth are still down 5.2 percent in inflation-adjusted income. (Workers in the bottom 80 percent have lost ground across the board, but the poorest workers were hit the hardest.) And while women workers are now making more than they were in 1973, though still significantly less than their male counterparts, men’s wages are $2,152 less, after inflation, than in 1973. (The Economic Policy Institute has an unduly optimistic take here.)
The growth in 2015 income is mostly attributed to workers taking on more hours, often in the form of second jobs, and partly to what the government claims was 0% inflation (though those having to pay rent, go to the hospital, or buy groceries will likely have had a different experience).