American families are struggling to make ends meet. People have lost their jobs, homes, and their dreams. About 1 in 4 children are living in poverty. Newly college graduates are growing increasingly pessimistic they can ever have the salary job their parents enjoyed. Even during these troubling times, it is good to know that the wealthiest top percent, the creme de la creme have still seen their wages increase.
The three decades following world war II witnessed a wage increase of 3 percent for all income levels every year. America had a strong, vibrant middle class. Infrastructure was built, roads were maintained, and people were optimistic about their future.
However, during the last three decades The top 1% of earners have seen their wages increase by almost 24 percent after adjusting for inflation. While the average salary declined by 7 percent. Our economy is stagnant and our infrastructure is falling apart. Our living standards are worse than our parents, our grandparents.
How about the trickling down effect? Will the rich usually fund a dam that is about to collapse any moment or are they more likely to buy a bigger mansion than their friends? Or how about that charming villa in Tuscany? For instance, take Mark Hurd. The former HP CEO laid off 10% of HP's work force while imposing mandatory pay cuts across the board all the while HP was reaping record profits. Did he himself take a pay cut? I think not. The "trickling down effect" theory is really weak.
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