In honor of Labor Day, we made a little tool—based on our project inequality.is—that shows how much you would be making if wages had kept pace with productivity, a key indicator of an economy working for all.
Economic inequality is a real and growing problem in America. Since the 1979, workers are working more, making more goods, and not reaping the rewards of their increased productivity. Instead, CEOs and executives—the top 1% of earners—now take home 20% of the nation’s income.
But it doesn’t have to be like this. Growing inequality isn’t an inevitability—it was created. It’s the result of intentional policy decisions on taxes, trade, labor, and financial regulation. But that’s the good news: if inequality is not inevitable, then it can be fixed.
Take a look, and share with your friends. And remember that American workers should be earning more than we are. To do something about it, visit inequality.is.
What should you be making?
Americans' wages have lagged further and further behind productivity gains since the late 1970s, but it wasn’t always this way. After World War II, our pay rose with productivity—the more we made, the more we were paid. Today, the gap between American workers’ productivity and their wages is at an all-time high. What could you be making if wages had grown with productivity?
If wages had kept up with productivity over the last three decades, your pay would be closer to:
Source: Economic Policy Institute | Methodology