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Monday, June 10, 2019

Everything Is On Sale Compared to 1979!

U.S. Cost of Living and Wage Stagnation, 1979-2015.

Prosperity and Income Aren't the Same Thing

By: Marian L. Tupy

In recent years, income inequality has become a major political and economic issue in America. Income inequality, the argument goes, was caused not only by the growth of incomes among the wealthy, but also by wage stagnation among middle-class Americans. According to a 2015 report issued by the Economic Policy Institute, a pro-labour think tank based in Washington, DC, “ever since 1979, the vast majority of American workers have seen their hourly wages stagnate or decline”.

The blame, predictably, fell on President Ronald Reagan and his free-market reforms, even though economic liberalisation started under his Democratic predecessor, Jimmy Carter. But, income is an imperfect measure of overall living standards, which are much better than they used to be.