Explaining Away Stagnant Wages

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Every now and again, the Bush administration or some other booster of the current economy will argue that wages aren’t really stagnating, as they appear to be to anyone who looks at the numbers. Rather, workers are just receiving more and more of their compensation in health care benefits.

Trouble is, that’s not true, at least not for workers at the very bottom of the ladder. According to the Economic Policy Institute, between 2004 and 2005 the bottom 20 percent saw their wages decline 1.9 percent. Yet only 24 percent of those workers get health insurance through their employer. Basically, health care costs would have had to increase 39 percent during that year for this to be the primary explanation; in fact, it rose 9.2 percent. In reality, there’s something badly wrong with an economic “recovery” that has a large number of workers seeing their paychecks shrink rather than grow.

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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