May 24, 2013
One in Five Americans Is Jobless or Underemployed
Posted on Jun 22, 2012
Economics reporter David Cay Johnston takes an accounting of American wages, personal debt, national income from manufactured exports and tax revenue both today and 10 years ago, and concludes the U.S. needs a new set of fiscal policies.
For starters, adjusted for inflation, Americans’ average pretax income fell roughly $2,700 between 2000 and 2010. Wages per capita dropped 4.3 percent during the same period, and the ranks of the partly and fully employed jumped a meager 1.5 percent while the population grew 6.4 times faster.
Mortgage debt grew 51 percent as averaged adjusted pretax income fell during the century’s first decade. During the same period, the U.S.-Chinese trade deficit grew from $112 billion to $302 billion, with U.S. exports to that country dropping $27 billion.
“Trade with China has destroyed every 55th job in America” according to the Economic Policy Institute, Johnston writes, due in large part to China’s lax regulations and minimal protections for workers and the environment.
—Posted by Alexander Reed Kelly
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