Monday, February 27, 2006

Wages Reduced for Workers Under Age 45

The Christian Science Monitor has published a story revealing that "America's Younger Workers are Losing Ground on Income." Here's a quote:
Thus, despite a boom in worker productivity, "what the typical family or typical worker has to show for it has been remarkably little," says Dean Baker, an economist at the Center for Economic and Policy Research in Washington.

From 2001 to 2004 the median household income fell 8 percent for householders under age 35.

Paul Krugman has written an article that reveals that a college education adds little to the average income of younger workers. Here's a quote:
Highly educated workers have done better than those with less education, but a college degree has hardly been a ticket to big income gains. The 2006 Economic Report of the President tells us that the real earnings of college graduates actually fell more than 5 percent between 2000 and 2004. Over the longer stretch from 1975 to 2004 the average earnings of college graduates rose, but by less than 1 percent per year.

If these young workers weren't so busy working overtime or working two jobs to pay back their student loans and other debts, they would probably read articles like Krugman's and the one in the Christian Science Monitor and grow to resent being exploited.

Some day Americans, young and old, are going to wake-up and realize that conservative, trickle down, supply-side economics does not produce a rising tide that lifts all boats. Only the yachts have been given enough slack to be able to rise with the tide of productive labor, everything else has been moored to the bottom of the wharf.

No comments: