But strong productivity growth more than compensated for the increase in wages. But in an economy, as in anything, better does not necessarily mean best. It doesn't necessarily even mean good. In spite of widespread living standard improvements, the fundamental economic situation, given the dramatic, broad-based wage erosion and rising inequalities since 1979, is still not the best we can do. The wage gap between those at the top and the middle has grown steadily, and the returns to capital have soared to historic highs.
Inequality is high both in historic terms and in comparison to other industrial countries.
Low-wage workers here earn substantially less than those in other advanced countries, and the percentage of U.S. children who are poor is twice as high as in other advanced countries. Almost one in five children were poor in 1998, including more than a fourth of African American and Hispanic children. Making better best The persistent low unemployment that has brought new workers into the workforce, improved the quality of jobs, boosted wages, and even helped raise productivity is primarily the result of policy choices. At some point the recovery will give way to a recession, and how fast and by what means we reestablish low unemployment will be a major public issue, particularly for low-income families. Another policy, raising the minimum wage, has helped promote growth at the bottom.