Over the past 30 years, income for the wealthiest Americans has increased by a whopping 275 percent. But the same is not true for working-class Americans.
According to the Economic Policy Institute:
“Income growth has become grossly unequal within the top 5 percent, with the distribution of market income most heavily concentrated within the top 1 percent of households by income…
Congressional Budget Office (CBO) data measuring comprehensive household income show that the top 1 percent of households captured 38.3 percent of total income growth between 1979 and 2007, more than the collective income gains of the bottom 90 percent of earners (36.9 percent).”
In addition to lower tax payments, another way to boost the wealth of ‘job creators’ is to pay workers “starvation wages” and provide no health insurance. However, the money these poverty wage employers add to their profits does not come cheap for taxpayers. Millions of low wage workers need government programs like food stamps and Medicaid to make up for what does not ‘trickle-down’ from the ‘job creators.’
At a national minimum wage of $7.25 per hour, a full-time employee working 40-hours only earns $290 a week before taxes, which is well below the poverty line.
Opponents of raising the minimum wage claim it has a negative effect on job growth. But five studies show those claims are not true.
Data from the Center for American Progress shows, “A significant body of academic research has found that raising the minimum wage does not result in job losses even during hard economic times. There are at least five different academic studies focusing on increases to the minimum wage made during periods of high unemployment…that find an increase in the minimum wage has no significant effect on employment levels.”
In reality, there has never been much evidence to suggest that the wealthy have much interest in sharing their “extra money” with the poor or middle-class, which gives little credibility to trickle-down economic policy. As Americans have seen since the 2008 financial market meltdown, when the rich make more money, they keep it.