Workers Haven’t Benefited From Economic Growth
July 27, 2018
Today Trump will try to boast about the economy, but the reality is that economic growth is not expected to continue at the same rate and workers have not benefited. Workers’ wages have actually decreased over the past year.
Economists said Q2 GDP growth was artificially high and economic growth would not continue at the same rate after this quarter.
CBS News: “An ‘idiosyncratic’ quarter: Not even bullish economists expect the pace of the second quarter’s growth to continue, however, because it’s driven by ‘a number of idiosyncratic factors that are unlikely to be sustained in the second half of the year,’ according to Morgan Stanley.”
New York Times: “The second-quarter acceleration was widely anticipated by economists, a result of a confluence of events unlikely to recur. Most economists expect growth to slow in the second half of the year.”
Workers have not benefited from economic growth or the Trump tax law. Wages have fallen over the past year.
CBS News: “Year-over-year, rising prices have eaten up still-modest pay gains for many workers, with the result that real wages fell 1.4 percent from the prior year, according to PayScale.”
Vox: “While wages have risen by 12.9 percent overall since 2006, wages adjusted for inflation (so-called ‘real wages’) have actually fallen by 9.3 percent. And between the first and second quarters of 2018 — after the tax cuts were enacted — real wages fell by 1.8 percent.”