Worker Wages Flat, But Since 1978 CEO Pay Has Soared by ‘Outrageous’ 937%
Wages for most American workers have remained basically stagnant for decades, but a new report published on Thursday by the Economic Policy Institute (EPI) shows that the CEOs of America’s largest firms have seen their pay soar at a consistent and “outrageous” clip.
Between 1978 and 2016, CEO pay rose by 937 percent, EPI’s Lawrence Mishel and Jessica Schieder found. By contrast, the typical worker saw “painfully slow” compensation growth—11.2 percent over the same period.
Even one of the richest men in America thinks income disparity is unfair:
- Warren Buffett: U.S. Prosperity has Been “Disproportionately Rewarding” the Wealthy
Income Inequality has gotten worse:
- …between 1980 and 2014 the average real income of the Mega Rich has nearly quadrupled, increasing by 381 percent. Over the same period, the Merely Rich doubled their income while the bottom 90 percent lost ground, suffering a 3 percent decline. (source)
Income inequality harms the economy:
- From 1949 to 1979, while the ratio of CEO‑to‑average-worker pay was relatively constant, the US economy grew 2.56 percent annually. When this ratio surged from 1981 to 2014, economic growth dropped to 1.71 percent a year. The difference may sound small, but over half a century, the higher growth rate results in an economy that is 50 percent larger. That’s a big difference. (source)