GOP tax cuts aren’t good news

The recent Republican tax cuts will not benefit most Americans. Since the 1980s, and even before, economic growth has not reached the average worker.

Here’s an example: In 1960, a young male worker between ages 18 and 34, earning the middle or median income for this age group, earned $27,300 a year. Jobs were abundant, wages were high. Wages had quadrupled for this age group in just 20 years since 1940.

But then came a long, slow decline, and young male workers’ earnings have dropped to $15,000, about half what they were 57 years ago. The economy is about three times more productive than in 1960, on a per person basis. But inequality is much higher.

This comes from a Pew Research Center report of 2016 drawing on U.S. Census data. If we wish to “Make America Great Again,” we will have to restore higher incomes to younger workers, to low-earning workers, and in fact, most all workers.

The share of the national income earned by the lower-earning 90 percent has fallen by 18 percent, according to some studies. This is a large dollar amount, $2.9 trillion a year, and it is over $26,000 per family in the entire lower 90 percent.

This story was originally published January 6, 2018 at 12:29 PM with the headline "GOP tax cuts aren’t good news."