Sunday, January 26, 2014
The typical worker makes no more than Dad did in 1979
When adjusted for inflation, the average American worker makes about the same at a worker in 1979 did. According to Rex Nutting the productivity of the workers has nearly doubled since 1979. With price increases of 1.5% and and wage increases at 1.3% the workers are struggling to continue their way of life. I believe that massive increases in technology could have a hand in the lack of raises and increase in technology. With machines now being able to do many of the jobs, a workers worth has decreased. This takes away a strong bargaining chip for workers.
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It is surprising for me to know that people nowadays are making the same money as people making 30 years ago. More advanced technology definitely helps increasing economy growth as a whole, but does not favor most labors. The same level of output requires less workers than before due to technology advancing, that is why there are more people who are looking for jobs than available jobs.
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