by Brian T. Lynch, MSW
Prior to 1974, we all receive productivity raises nearly every year on top of any cost of living adjustments (a COLA, as it was called). Since then we stopped receiving productivity raises and lost public sector health coverage, pension plans, and other benefits. We have received cost of living raises since then, but productivity raises have been minimal. Therefore, while our wages keep up with inflation, they aren’t keeping up with new personal wealth. Put another way, our collective wages are a smaller and smaller percentage of our National GDP.
If wages continued keeping up with hourly GDP since 1974, the median household income today (fam of 4) would be over $115,000/year instead of nearly half that. The national GDP is nearly three times greater today than it was in 1974, yet inflation-adjusted have barely risen. These are uncontested facts. Chronic wage suppression (and I do believe this is deliberate) accounts for most of our economic ills today.
Imagine how much easier it would be to raise money for our schools and local services if everyone in town had twice the income they make now. How much money would we save on government aid to the working poor (daycare, housing, medical care, etc.) if everyone had twice the income and didn’t need financial subsidies? Imagine how the economy would be buzzing if everyone had lots more discretionary income to buy things, thus boosting the demand for production. The only downside is that the wealth of the richest 1% wouldn’t be growing quite as fast. The decline of the middle-class, the lack of good paying jobs, the increase in public assistance, the rise in taxes and decline of other government services are all symptoms of income inequality. The cycle of wealth accumulation followed by catastrophic wars and social collapse is a very old story with a many-centuries-old history.
Are you still with me, because this next part is important.
There has not been a big partisan difference on the issues of a fair distribution of wages or wealth. Both political parties remained silent on the subject for decades, until the 2014 election. Both parties talked about job growth, but not wage growth. Both talked about growing the economy but not about our shrinking pensions and benefits packages and stagnant wages. They talked about bolstering the middle-class but didn’t mention our growing poverty class for almost three decades.
Republican legislators (not most rank and file members) have been far more pro-corporate in pursuing the interests of the wealthy elite over time. Republican party elites also shamelessly pandered to value voters and the far-right fringe to win elections but never delivered on their promises. Main Street Republicans were used and abuse to the elite of their party could pursue the corporate donor interests.
On the other side of the aisle, Democratic Party leadership (not every legislator) also pandered to big corporations, to the rich and to their more liberal base while being complicit in their silence on income inequality and many other matters important to their voters. No one in government was addressing the shrinking middle-class or their shrinking wages relative to the size of the ever-growing US economy. No one was listening to any of us!
Hence, we had a political revolt in both parties during the 2014 elections. Rank and file members of both parties weren’t listening to each other either as powerful special interest, foreign and domestic, made sure we didn’t get together to compare notes. Donald Trump rose up among conservatives to shake things up in the GOP. Bernie Sanders rose up among liberals to shake up the Democratic establishment.
So here we are today, like opposing armies glaring at each other across the battlefield in a war we never wanted. Both sides have been ignored by our leaders. Both sides have been told the other side is the cause of our decline. Both sides have been given false reasons for our growing dissatisfaction. And yet the real reasons for this sluggish Main Street economy, which is slowly squeezing us into poverty, are reasons that we all share in common.
You raise compelling economic concerns that are things that must be pointed out. But your article is nothing new. I like the supporting documentation you provide but we are living in a world where facts are irrelevant. We have a pig monster in the White House and when he decides what the reality is that is where he wants everyone to go. Yes our current state of instability is a direct result of the “failure of politics”. Senators and Congresspeople have co-opted their priorities. They have allowed this pig to reign terror over our beloved country in ways we could never have imagined. They have chosen personal career over love of country.
I appreciate your optimism and call for sanity but I also think we are too far gone for this line:
“We would all do far better if we could just lower our guard, put our less consequential differences aside for now and join in common cause to take charge of our economic well-being.”
We are witnessing dogs with rabies who devoutly support this pig. Do you really believe everyone will put their partisanship aside in this toxic atmosphere for the good of each other? I highly doubt it. Just look at the way he is ramming through Brett Kavanaugh’s nomination! Look at the way he just declares tariffs whenever and wherever he pleases. I firmly believe there will be another government shutdown simply because it serves his interests to do so.
Anyway these are just a few responses I had to your fine article.
Grace and peace,
Well Hello Jack! Nice to hear from you. Thank you for your comments. I do have some reason for hope that change will come before the torches and pitchforks to follow if I am wrong. Our deepest problems are not the ones we read about every day in the news, but they are the ones that we all do have in common. The way to get past our broken politics is to help people see past our politics to the bigger picture. Then maybe we can work together despite our differences to defeat the more global enemy behind the scenes.