More evidence that the theory of trickle-down economics is a sham. American workers earn less than they did 40 years ago, according to information from the U.S. Census Bureau.
It’s the result of incomes not keeping up with inflation. As goods and services cost more and more to obtain, wages need to continue to increase relative to the price of goods and services. When that doesn’t happen, the effect is that a worker’s income becomes less valuable. Basically, workers have been suffering pay cuts by omission.
That’s exactly what has been happening. According to the Census Bureau, the median male full-time worker earned $50,383 in 2014. Adjusted for inflation, that same worker earned $53,294 in 1973. That’s nearly a $3,000 pay cut.
So, the next time someone tries to argue that the Republican-favorite theory of trickle-down economics is anything to hold in high regard, remind them that we’ve tried it. In the end, workers just get hosed.
For more on this, read the article from Fast Company titled: “The Average American Worker Earns Less Today Than 40 Years Ago.”