This simple chart shows just what a disaster the last three and a half decades have been thanks to GOP economic policy. By reducing taxes on the rich and the corporations, weakening workers' unions, and removing regulations from corporate entities, the Republicans have unleashed a corporate greed not seen since before the Great Depression.It has been good for corporate CEOs (whose compensation has grown by 725%) and for other rich people (who are also seeing record incomes). But it has been an unmitigated disaster for the ordinary working men and women of America. While CEO compensation has grown by 725% and the income of the top 1% by nearly 300%, workers have seen their wages climb by only 5.7% -- a pitiful figure that doesn't even begin to cover the inflation that has occurred over that same period (1978 to 2013).
That means that a worker earning $10 an hour in 1978 would be earning $10.57 an hour today. But something that cost $10 in 1978 (about 1 hour's worth of a worker's wage) would now cost $35.82 (which would now require a worker to work nearly four hours to buy). That may be a small increase in the wage, but it's a huge decrease in buying power -- and that means workers have effectively lost ground.
Before 1978, productivity increases were shared between owners and workers. The owners kept the lion's share, but workers received enough to keep them ahead of inflation -- and the entire country prospered. But even though productivity is still rising, it is no longer shared with workers. The owners (and company executives) keep it all now -- and that gives them an enormous rise in income, while workers are left to the ravages of rising inflation (and decreasing buying power).
This has resulted in the largest gap in wealth and income between the rich and the rest of America since the 1920's. It is shrinking the middle class, and creating a country populated only by the rich and the poor (low-wage workers). We are fast becoming one of the most economically unequal nations in the world (already surpassing some of the so-called "banana republics"). And a country populated only by the rich and the poor cannot exist as a democracy, but will be reincarnated as a plutocracy (rule by a wealthy class).
We still have a little time to reverse this, but not much -- and it can't be done as long as the Republicans still control a part of government (blocking any efforts to change economic policy to a fairer and saner one).
