Many economists and policy-makers struggle to explain growing inequality and the erosion of the middle class.
Nobel laureate economist Paul Krugman has a simple explanation, “…corporations use their growing monopoly power to raise prices without passing the gains on to their employees.”
The top 1% take 93% of all new gains created in our economy.
They divide gains that way – because they can!
Years ago, manufacturing workers had relatively strong bargaining power, which created a wage floor for all workers in the economy. Not anymore.
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