Stopping the decline in union representation requires significant union organizing activity. Despite declining membership, unions have significant financial resources for political purposes. Using a corrected measure of inflation shows real wages are rising, although males and workers with low educational attainment are falling behind. Despite stories of economic stagnation, real family income is higher than ever, with modest gains in income across the income distribution even since 1989. Workers' choices can explain much of the increase in income inequality.
Poverty continues to fall and is lower than official measures suggest.
A corrected CPI does not imply that most families were poor in the 1950s or 1960s. Because compensation rises in tandem with productivity, its share of national income has changed little in 25 years. Increasing productivity growth is critical to raising future wages and living standards. Workplace innovations, such as teams and gainsharing, can increase productivity growth, wages and living standards. Reforming Social Security would encourage investment and increase productivity growth.