Amid today's economic debate a chart published in 2007 by the Economic Mobility Project -- a non partisan collaborative effort of The Pew Charitable Trusts -- is still relevant.
The chart is entitled the "Productivity and Median Family Income Growth 1947-2005." It shows productivy and family income rising together between 1947 and 1977, diverging from then to 2000 and then widening dramatically to 2005. This is about divisions of wealth, about producers benefitting from tech advances and not passing those benefits to their employees in the form of higher wages. It's fantasy to think that with economic development wealth distribution will automatically balance.
A better division of wealth allows people to buy more and inspires employers to produce more and to hire more to meet the demand. It helps families save money and pay for their kid's college education. It helps upward mobility.
The chart is available here (at Sec1:6).
Copyright © 2011 by Frank E. Smitha. All rights reserved.
