Profits Up, Wages Down: What Economics Has to Say

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“It won’t surprise many readers to learn that in recent years profits have been doing a whole lot better than most workers’ wages.

We just learned that for the fourth year in a row, the real median weekly earnings for full-time workers fell slightly. The orange bars show the real, or inflation-adjusted, changes in these medians since 2007. The blue bars show nominal growth, which as you can see, has slowed in response to the weak job market. Interestingly, the only year of substantial growth in the real median was 2009, a year when nominal wage growth actually decelerated.” 

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By Jared Bernstein

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