The American Economy Is Growing, But Workers Are Getting A Shrinking Slice

Investopedia ^ | June 25, 2026 | Diccon Hyatt

[anthropocene_x]

Wages and salaries for U.S. workers make up the smallest share of economic output in history, according to records going back to 1947.

The U.S. as a whole gets more prosperous every year—but less and less of that prosperity is showing up in workers' paychecks.

That's according to fresh analysis by researchers at the Federal Reserve Bank of New York. In a blog post on Wednesday, the researchers highlighted the declining share of the nation's economic output going to workers in the form of wages and salaries, as opposed to corporate profits and capital.

Why have workers taken home a smaller and smaller share of economic output in the U.S. and other advanced economies? Many researchers have landed on different answers, including the decline of unions, the rise of China as an economic power and technological change, for starters.

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TOPICS: Business/Economy
KEYWORDS: ai; economy; jobs

[anthropocene_x]

Meanwhile, keep fighting about abortion, DEI, transgender stuff, race-baiting, gender-baiting, and other silly stuff.

[Mogger]

I read once that inflation cuts your money in half every 10 years.

Based on that, starting about 50 years ago, gas should be $32 a gallon.

Rent should be $6400 for an average apartment.

An average pickup truck should be $80,000.

Blue collar income should be 224,000 a year.

The pickup turned out about right.

[econjack]

When the price of labor per unit of output increases, entrepreneurs will seek technology the substitutes capital for labor. Look at almost any manufacturing industry (e.g., auto) and the trend has been to make the substitution (assembly line robotics). In many cases, unions have priced labor out of existence.

[VanShuyten]

Gee. Printing more money out of thin air screws the people who can only trade labor for money.

Who could see this coming?

Not anymore in Congress, obviously.

[VanShuyten]

“ Based on that, starting about 50 years ago, gas should be $32 a gallon.”

Hmmmm…… Fifty years ago, gas wars had the price to 25 cents per gallon. Good beef was $3/lb.

Ten times in 50 years isn’t enough?

[FLT-bird]

Which is why we need to reverse illegal immigration and increase the fee on foreign work visas high enough to ensure companies only resort to bringing in foreigners when there truly is a critical shortage in the US or the person they’re bringing in is a superstar who is worth the fee.

[Chickensoup]

The welfare and illegals are getting the big share.