Here’s what Time magazine calls “The Most Important Chart In American Politics.”
Robert Shapiro, former Under Secretary of Commerce for Economic Affairs under President Clinton, says it means “The American Dream is in Big Trouble.”
Productivity is way up. The nation’s gross domestic product is up, too. Guess what’s not up? Household incomes.
The economy is producing more, but most American’s are earning less. The gap between rich and poor keeps widening.
Mr. Shapiro says the incomes of working Americans rose, on average, 5.3% during the 1983-1991 business cycle, and grew by 14.2%in the 1992-2001 cycle. But in the 2002-2007 expansion, and the recession that followed, incomes shrank by 3.4%.
It’s good to see the numbers, but the sad truth is that too many Americans do not need to look at this chart to be familiar with this economic trend.