“The good old days”

February 4, 2010 at 2:42 pm | Posted in Economy, Historical | Leave a comment
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Raymond Barger Studio, Stamford, Connecticut. 1946 October 19. (Library of Congress)

With continuing news of more bonuses to the financial geniuses who caused the collapse of the US economy and the constant drumming of anti-union forces, it behooves us to understand what and how Americans are losing more and more every year.

I recommend this NYT article from July 2005.

Yonkers, New York. Mrs. Harold Garrity, suburban housewife. August 1942. (Library of Congress)

Labor’s share, which has historically represented 60 to 65 percent of the total, has fallen in the last five years to the low end of that range. But for Mr. Gordon at Northwestern, that is only part of the story. Capital’s share, he says, has increasingly found its way to upper-income families as stock options, dividends, special bonuses and the like.

“We had much less income inequality in the first couple of decades after World War II because of strong unions, restricted trade and a decline in immigration,” Mr. Gordon said. “Then all three reversed, which means that the income from productivity falls to the bottom line and for the time being stays there.”


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