stagnant wages

Labor Day and Downward Mobility

September 3, 2018 // 0 Comments

By GREGORY N. HEIRES Since 1890, children could count on having a higher standard of living than their parents. Not anymore. Today–as we mark Labor Day–is a time to ask, why? Many factors account for this troubling trend: public policy, tax cuts for the wealthy, globalization, labor-saving technology, a corporate attack on worker benefits, and de-unionization. What are the consequences of the disappearing American Dream, the result of decades of the erosion of our benefits and pay? Here are some of the most disturbing signs of downward mobility: Only 50 percent of the children born 1980 earn more than their parents. About 90 percent of children born in 1944 surpassed the income of their parents. Black children from well-off families (the top fifth of income distribution) are more likely to fall behind their parents than white children, according to a study by Raj Chetty of [More...]