Household incomes, wages lagging behind

According to some economists, the economy is moving along at a decent clip, with unemployment relatively low and productivity on the rise. However, this does not tell the true story of what is going on in American households, particularly among working men and women. Income and wages have continued to lag behind the economy. The cost of housing and the exploding cost of health care coverage have eroded the purchasing power and the disposal income levels of working men and women throughout the United States. Wages and salaries now account for the smallest percentage of our gross domestic product. At the same time, corporate profits are at their highest level in more than 40 years. A report produced by the Economic Policy Institute said that during the past five years of economic expansion in the U.S., workers produced more while not being paid more. It said real income is in fact lower for the typical American family in 2006 than it was in 2000. The bottom line -- the rich get richer, the working men and women work harder for less, and the fabric that holds our nation together gets stretched ever and ever tighter. Chip Gerrity, President, IBEW - Published in the Daily Journal, October 9, 2006