90% of Americans Earn Less Than 1950 Minimum Wage Standard

[Jackinthebox]

The good ol' days. We always hear about them from our parents and grandparents. Some of us were there and still look back with fond nostalgia to the heyday of American capitalism. The 1950's defined the American ideal. We had emerged from World War II as the richest, most powerful nation on the planet, and we were ready to cash in on our victory.

There was a suburban home with a white picket fence, a new car built from American steel sitting in the driveway, a regular 9-to-5 job, good schools for your children, and a good wife who managed the homefront with aplomb and a fresh baked apple pie. The American dream was not just a television show in black-and-white television re-runs, that was how we actually lived. It was a way of life that was attainable for just about anyone willing to work hard, and work hard we did.

Our parents and grandparents were no slackers. They had paid their dues through the most destructive war mankind had ever known, they had struggled through the misery of the Great Depression before that. They were grateful to be rewarded now with an honest day's pay for an honest day of work, and spiteful of those godless Communists who could promise only drudgery. Our own social contract worked out just fine. Our obligations to our neighbors and to our country were tempered by the personal liberty prescribed in our nation's Constitution. The harder we worked, the better life would be, and there were no free rides for anyone. The promise of freedom was never more clear. Each man would be made or broken on the basis of his very own efforts. And for the time-being, it was upheld by a government we still believed was for the people and by the people, serving the interests of the people.

Read more: 90 of Americans Earn Less Than 1950 Minimum Wage Standard Minimum Wage Workers Union of America

 

[Toddsterpatriot]

"it could easily be said that even more than 90% of American workers earn less then a minimum-wage worker in 1950"

You could easily say that, if you were an idiot.

 

[theliq]

The good ol' days. We always hear about them from our parents and grandparents. Some of us were there and still look back with fond nostalgia to the heyday of American capitalism. The 1950's defined the American ideal. We had emerged from World War II as the richest, most powerful nation on the planet, and we were ready to cash in on our victory.

There was a suburban home with a white picket fence, a new car built from American steel sitting in the driveway, a regular 9-to-5 job, good schools for your children, and a good wife who managed the homefront with aplomb and a fresh baked apple pie. The American dream was not just a television show in black-and-white television re-runs, that was how we actually lived. It was a way of life that was attainable for just about anyone willing to work hard, and work hard we did.

Our parents and grandparents were no slackers. They had paid their dues through the most destructive war mankind had ever known, they had struggled through the misery of the Great Depression before that. They were grateful to be rewarded now with an honest day's pay for an honest day of work, and spiteful of those godless Communists who could promise only drudgery. Our own social contract worked out just fine. Our obligations to our neighbors and to our country were tempered by the personal liberty prescribed in our nation's Constitution. The harder we worked, the better life would be, and there were no free rides for anyone. The promise of freedom was never more clear. Each man would be made or broken on the basis of his very own efforts. And for the time-being, it was upheld by a government we still believed was for the people and by the people, serving the interests of the people.

Read more: 90 of Americans Earn Less Than 1950 Minimum Wage Standard Minimum Wage Workers Union of America

I FIND THIS VERY HARD TO BELIEVE,if so how has this happened ??????????steven..you are talking 64 years later...Nuh impossible

 

[Manonthestreet]

One item comparison................fail.

 

[Jackinthebox]

One item comparison................fail.

Worker productivity is a fair standard of measure. But there are others, and they ALL say that the American worker has lost a LOT of ground in compensation for work.


Using data by the U.S. BLS, the average productivity per American worker has increased 400% since 1950. One way to look at that is that it should only take one-quarter the work hours, or 11 hours per week, to afford the same standard of living as a worker in 1950 (or our standard of living should be 4 times higher). Is that the case? Obviously not. Someone is profiting, it’s just not the average American worker. -Source

Based on consumption growth since 1968, the minimum wage today would have to be $25.05 to represent the same share of the country's total consumption. Based on national income growth, the minimum wage should be $22.08. Based on personal income growth, it should be $21.16. -Source

After adjusting for inflation, minimum wage workers today are paid about 26 percent less than they were in 1974.

At the top 1 percent of the American income distribution, average incomes rose 194 percent between 1974 and 2011. Had U.S. minimum wages risen at the same pace as U.S. maximum wages, the minimum wage would now be $26.96 an hour. -Source


Read more: http://mwwuamerica.blogspot.com/2012/08/analyziing-pracitcal-minimum-wage.html#ixzz3LNAEfd6c

 

[Manonthestreet]

Back then money was worth something...now it is not. Should have chosen housing then you could argue for even higher minimum wage except its not a wage problem but an easy credit one.

 

[Manonthestreet]

If you go by how much fast food ya could buy its probably dead even......probably can buy more TV than back then so it should be less.

 

[Toddsterpatriot]

One item comparison................fail.

Worker productivity is a fair standard of measure. But there are others, and they ALL say that the American worker has lost a LOT of ground in compensation for work.


Using data by the U.S. BLS, the average productivity per American worker has increased 400% since 1950. One way to look at that is that it should only take one-quarter the work hours, or 11 hours per week, to afford the same standard of living as a worker in 1950 (or our standard of living should be 4 times higher). Is that the case? Obviously not. Someone is profiting, it’s just not the average American worker. -Source

Based on consumption growth since 1968, the minimum wage today would have to be $25.05 to represent the same share of the country's total consumption. Based on national income growth, the minimum wage should be $22.08. Based on personal income growth, it should be $21.16. -Source

After adjusting for inflation, minimum wage workers today are paid about 26 percent less than they were in 1974.

At the top 1 percent of the American income distribution, average incomes rose 194 percent between 1974 and 2011. Had U.S. minimum wages risen at the same pace as U.S. maximum wages, the minimum wage would now be $26.96 an hour. -Source


Read more: Analyzing a Practical Minimum Wage Minimum Wage Workers Union of America

Worker productivity is a fair standard of measure.

Why do you feel that?

 

[Toddsterpatriot]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

 

[GHook93]

"it could easily be said that even more than 90% of American workers earn less then a minimum-wage worker in 1950"

You could easily say that, if you were an idiot.

The dollar doesn't go as far that is foresure. The wife and I make roughly between $125K-$135K depending on the year and we still feel like after the mortgage, food, clothes, kid's activities, co-pays, gas, utilities etc there is little left over. I thought when I hit $100K it would be smooth sailing, but I was wrong.

 

[Toddsterpatriot]

"it could easily be said that even more than 90% of American workers earn less then a minimum-wage worker in 1950"

You could easily say that, if you were an idiot.

The dollar doesn't go as far that is foresure. The wife and I make roughly between $125K-$135K depending on the year and we still feel like after the mortgage, food, clothes, kid's activities, co-pays, gas, utilities etc there is little left over. I thought when I hit $100K it would be smooth sailing, but I was wrong.

I know what you mean. Higher Illinois income taxes and Rahm don't make things easier.

 

[Jackinthebox]

Worker productivity is a fair standard of measure.

Why do you feel that?

All profits are derived from worker productivity. If wages keep pace with productivity, that means a proportionately equal cut of the "pie" stays in worker pockets, and therefore, in circulation for the most part. When that productivity is not compensated, the profits wind up in the hands of the very few, who do not tend to spend. It's like throwing sand in the economic motor, instead of keeping it well lubed.

 

[Toddsterpatriot]

Worker productivity is a fair standard of measure.

Why do you feel that?

All profits are derived from worker productivity. If wages keep pace with productivity, that means a proportionately equal cut of the "pie" stays in worker pockets, and therefore, in circulation for the most part. When that productivity is not compensated, the profits wind up in the hands of the very few, who do not tend to spend. It's like throwing sand in the economic motor, instead of keeping it well lubed.

If wages keep pace with productivity, that means a proportionately equal cut of the "pie" stays in worker pockets

Why do you feel wages need to keep pace with productivity?

the profits wind up in the hands of the very few, who do not tend to spend.

Why do you feel that?

 

[kiwiman127]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

I thought the OP used a weak and highly partisan resource. But then, so do you. AEI? One can't get a better tool for the Top 1% than AEI!
There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's. There isn't an economist alive that would dispute that fact.

 

[Toddsterpatriot]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

I thought the OP used a weak and highly partisan resource. But then, so do you. AEI? One can't get a better tool for the Top 1% than AEI!
There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's. There isn't an economist alive that would dispute that fact.

One can't get a better tool for the Top 1% than AEI!

Well if you could show that the average worker needs to work more hours to buy the items they listed,
you might have a point.

There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's.

Sure there is.

 

[Dont Taz Me Bro]

Well, if the blog of the Minimum Wage Workers Union of America says so it must be true....

 

[kiwiman127]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

I thought the OP used a weak and highly partisan resource. But then, so do you. AEI? One can't get a better tool for the Top 1% than AEI!
There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's. There isn't an economist alive that would dispute that fact.

One can't get a better tool for the Top 1% than AEI!

Well if you could show that the average worker needs to work more hours to buy the items they listed,
you might have a point.

There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's.

Sure there is.

The table below extracts from B-47 to reduce its size. The inflation is adjusted using 1982-84 dollars as its base.

Year Weekly Earnings (1982-84 dollars)
1972 $341.83 (peak)
1975 $314.75
1980 $290.86
1985 $285.34
1990 $271.12
1992 $266.46 (lowest point; 22% below peak)
1995 $267.07
2000 $284.79
2005 $284.99
2010 $297.67
2011 $294.78 (still 14% below peak)
Middle Class Political Economist Basics Real Wages Remain Below Their Peak for 39th Straight Year

In today's world, most consumer products are made offshore using cheaper materials. Cars used to be made of metals and were much safer, things like TV's don't have as long as life as they used to. I had a TV made in the US I bought in the 1980's, it outlasted several TV's that were made cheaply offshore, as a matter of fact my "Made in the USA" TV just died in February of this year. Now many things that we buy are cheaper (in Real Dollars) and are basically disposable. A car gets in an accident today traveling at 15 mph versus a car made in America when cars were made of metals, there's huge cost differential in the extensive repair. People cars today get totaled today in what used to be called a "fender-bender". Clothing is cheaper too. I still own a pair of Levis from back in the day when they were made in America. They are much thicker than the Levis made offshore and they have outlasted the crap that are on the shelves today.
I just love that folks try to say a person doesn't have to work extra time to buy the cheaply made goods of today, versus the high quality "Made in the USA" goods of yester-year.
That's an apple-to-oranges argument.

 

[Freemason9]

Ah, the glory of Reagan's "supply side economics."

 

[Toddsterpatriot]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

I thought the OP used a weak and highly partisan resource. But then, so do you. AEI? One can't get a better tool for the Top 1% than AEI!
There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's. There isn't an economist alive that would dispute that fact.

One can't get a better tool for the Top 1% than AEI!

Well if you could show that the average worker needs to work more hours to buy the items they listed,
you might have a point.

There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's.

Sure there is.

The table below extracts from B-47 to reduce its size. The inflation is adjusted using 1982-84 dollars as its base.

Year Weekly Earnings (1982-84 dollars)
1972 $341.83 (peak)
1975 $314.75
1980 $290.86
1985 $285.34
1990 $271.12
1992 $266.46 (lowest point; 22% below peak)
1995 $267.07
2000 $284.79
2005 $284.99
2010 $297.67
2011 $294.78 (still 14% below peak)
Middle Class Political Economist Basics Real Wages Remain Below Their Peak for 39th Straight Year

In today's world, most consumer products are made offshore using cheaper materials. Cars used to be made of metals and were much safer, things like TV's don't have as long as life as they used to. I had a TV made in the US I bought in the 1980's, it outlasted several TV's that were made cheaply offshore, as a matter of fact my "Made in the USA" TV just died in February of this year. Now many things that we buy are cheaper (in Real Dollars) and are basically disposable. A car gets in an accident today traveling at 15 mph versus a car made in America when cars were made of metals, there's huge cost differential in the extensive repair. People cars today get totaled today in what used to be called a "fender-bender". Clothing is cheaper too. I still own a pair of Levis from back in the day when they were made in America. They are much thicker than the Levis made offshore and they have outlasted the crap that are on the shelves today.
I just love that folks try to say a person doesn't have to work extra time to buy the cheaply made goods of today, versus the high quality "Made in the USA" goods of yester-year.
That's an apple-to-oranges argument.

Wages aren't the best measurement.

 

[kiwiman127]

When it comes to the affordability of common household goods the rich and the poor are both getting richer AEI

I thought the OP used a weak and highly partisan resource. But then, so do you. AEI? One can't get a better tool for the Top 1% than AEI!
There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's. There isn't an economist alive that would dispute that fact.

One can't get a better tool for the Top 1% than AEI!

Well if you could show that the average worker needs to work more hours to buy the items they listed,
you might have a point.

There is no doubt when using Real Dollars, that the American workforce is making less than they did in the 1970's.

Sure there is.

The table below extracts from B-47 to reduce its size. The inflation is adjusted using 1982-84 dollars as its base.

Year Weekly Earnings (1982-84 dollars)
1972 $341.83 (peak)
1975 $314.75
1980 $290.86
1985 $285.34
1990 $271.12
1992 $266.46 (lowest point; 22% below peak)
1995 $267.07
2000 $284.79
2005 $284.99
2010 $297.67
2011 $294.78 (still 14% below peak)
Middle Class Political Economist Basics Real Wages Remain Below Their Peak for 39th Straight Year

In today's world, most consumer products are made offshore using cheaper materials. Cars used to be made of metals and were much safer, things like TV's don't have as long as life as they used to. I had a TV made in the US I bought in the 1980's, it outlasted several TV's that were made cheaply offshore, as a matter of fact my "Made in the USA" TV just died in February of this year. Now many things that we buy are cheaper (in Real Dollars) and are basically disposable. A car gets in an accident today traveling at 15 mph versus a car made in America when cars were made of metals, there's huge cost differential in the extensive repair. People cars today get totaled today in what used to be called a "fender-bender". Clothing is cheaper too. I still own a pair of Levis from back in the day when they were made in America. They are much thicker than the Levis made offshore and they have outlasted the crap that are on the shelves today.
I just love that folks try to say a person doesn't have to work extra time to buy the cheaply made goods of today, versus the high quality "Made in the USA" goods of yester-year.
That's an apple-to-oranges argument.

Wages aren't the best measurement.

Really? Well what exactly is the best measurement?