Check out the chart below, which was compiled by the Labor Department and posted this week by conservative writer David Frum, a former speechwriter for President George W. Bush.
As you can see from the chart, over the past thirty years, the share of U.S. national income taken home by workers has plummeted to a record low. With the exception of a period from the mid-1990’s until the year 2000, the share of U.S. national income taken home by workers has been on a steady downward track, begging the question, “why?”
Is this sharp downward decline in the share of U.S. national income taken home by workers a result of the decline in the bargaining power of organized labor?
Is increased competition from foreign workers and the advent of “free trade” agreements to blame?
Is it a coincidence that the downward trend was interrupted and actually reversed during the years of Democratic President Bill Clinton?