Wage stagnation is the inequality of workers caused by a raise in how much they are working and no growth in how much they are earning. In the reading it highlights the widening gap between the rich and in power versus, the weak and impoverished. Even though American workers since the 1970’s have been working more than in the past, this hasn’t been translated over to their paychecks causing the inequality gap to widen. Wage stagnation in America is also caused by the expected outcome for more hours and work. The outcome expected is a greater turn out of money received, but this expected outcome is not what is being seen. Even though there is growth in how much each social group is making, the growth is not significant enough because it severely
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There are three commonly thought of reasons why there is a gap between net productivity growth and the typical paycheck of the worker. The first reason for the inequality for how much income from the economy is received by the worker versus the owner of the capital. In Figure C, since 2000, there has been a decrease in the worker’s income. The second reason is that there is not enough of a growth in hourly compensation of a worker despite increased production. The third reason is that there is a widening gap between what the workers are making monetarily versus what they are buying. The way that compensation is calculated is by taking the net wages, and not the gross numbers. In this article, in figure D, there is a chart of how the wages versus productivity between different social classes changed. For the zero to ninetieth percentile there barely a rise in earnings, but for the top one percent there is a 137.7% increase in wages. Just by this graph alone it is obvious that there is a huge inequality to each social group, causing the gaps in wages. One of the more prominent points made in this paper is that a commonly believed way to close the gap between wages is to remove the relationship between an averages worker’s paycheck and economy
There are three commonly thought of reasons why there is a gap between net productivity growth and the typical paycheck of the worker. The first reason for the inequality for how much income from the economy is received by the worker versus the owner of the capital. In Figure C, since 2000, there has been a decrease in the worker’s income. The second reason is that there is not enough of a growth in hourly compensation of a worker despite increased production. The third reason is that there is a widening gap between what the workers are making monetarily versus what they are buying. The way that compensation is calculated is by taking the net wages, and not the gross numbers. In this article, in figure D, there is a chart of how the wages versus productivity between different social classes changed. For the zero to ninetieth percentile there barely a rise in earnings, but for the top one percent there is a 137.7% increase in wages. Just by this graph alone it is obvious that there is a huge inequality to each social group, causing the gaps in wages. One of the more prominent points made in this paper is that a commonly believed way to close the gap between wages is to remove the relationship between an averages worker’s paycheck and economy