The American male worker with a high school diploma saw his real income drop by 30 percent between 1973 and 1993. But for the guy who came back from Vietnam, went to work every day, paid his taxes, obeyed the law, and raised and loved a family, it means that as his skill and experience increased and presumably made him more valuable to his employer, his employer paid him less. In 1977, the total after-tax income of the bottom 40 percent of American workers was double that of the richest one percent. By 1990, the share of national income going to the richest one percent had more than doubled-to equal that of the bottom 40 percent. Rep. Martin Olav Sabo, the former speaker of the Minnesota House and ranking Democrat on the House Budget Committee, has come up with an admirable sensible Midwestern solution.
American workers are the most productive in the world.
Private business productivity has increased dramatically. There was a 2.3 percent increase in 1994, a 1.5 percent increase in 1993 and 3.0 percent increase in 1992. Traditionally, higher wages have followed increased productivity. But that is not now the case. Capitalism has shown itself to be a dynamic economic theory.