The Great Wage Slowdown of the 21st Century Is About a Lot More Than Just Wages

For indispensable reporting on the coronavirus crisis, the election, and more, subscribe to the Mother Jones Daily newsletter.


David Leonhardt writes about why the economy looks so bad even though unemployment has fallen below 6 percent:

American workers have been receiving meager pay increases for so long now that it’s reasonable to talk in sweeping terms about the trend. It is the great wage slowdown of the 21st century.

Yes indeed. This started around the year 2000 and hasn’t changed since. But as I’ve written before, that’s not all that changed around the year 2000. Here’s a more comprehensive list:

  1. Median income growth slowed in the mid-70s, but it stalled almost completely around 2000 and hasn’t recovered since.
  2. Real-world investment opportunities began stagnating around 2000.
  3. Labor markets slackened permanently starting around 2000.
  4. The employment-population ratio among women plateaued around 2000 and continued its long-term decline among men.
  5. The labor share of income in the nonfinancial sector dropped steeply starting in 2000 and never recovered.
  6. The number of jobs created by new businesses peaked around 2000 and has been falling ever since.
  7. State and local government output suddenly stagnated around 2000.
  8. Globally, the energy intensity of GDP stopped growing around 2000, which means world economic growth became limited by energy growth.
  9. Household debt inflected upward in 2000, and kept growing until the Great Recession put a stop to it.

I call this the Inflection Point of 2000, and it seems like too many things, all happening at about the same time, to be mere coincidence. In my piece last year about our robotic future, I suggested that much of it might be the barely visible early signs of a more automated economy, and I still suspect that may be part of what’s going on. But I don’t know for sure, and the evidence on this score is distinctly fuzzy.

And yet. It sure feels like something changed right around 2000. But what?

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate