"Price's research traces a sharp decline in the share of national income paid to the bottom 90% of workers. We hadn't seen the share of income going to the bottom 90% substantively increase up to 2019, he said. Inflation has been a lot higher, and while there has been slightly faster wage growth recently, that's not going to make up for five decades of losses."
"His analysis found that America's growing income inequality has carried an enormous cost for working households. If the U.S. had maintained the same distribution of income that existed in 1975, the bottom 90% of earners would have collectively taken home about $3.9 trillion more in 2023 alone. When measured over the entire period from 1975 through 2023, that shortfall adds up to an astounding $79 trillion in lost income, the study found."
The share of national income paid to the bottom 90% of workers has declined sharply since the mid-20th century. Income distribution for the bottom 90% did not substantially increase up to 2019, leaving longstanding losses unrecouped despite modest recent wage growth. If 1975 income distribution persisted, the bottom 90% would have received about $3.9 trillion more in 2023 and about $79 trillion more from 1975 through 2023. The median household would have earned roughly $29,000 more in 2018. Lost earnings have reduced the ability to save down payments, while corporate consolidation and financialization reshape housing, wages and market power.
Read at www.housingwire.com
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