Wage and salary as a share of GDP. Gray bars indicate recessions.
Federal Reserve Bank of St. Louis
This chart reveals that there has been a general fall in working people’s wages as a share of GDP since 1970. This means that over time, the link between people’s earning power (and therefore their living standards) and economic growth is eroding. In fact. since the Wall Street generated Financial Crisis of 2008, the US economy has grown while wages have fallen sharply. The US economy actually emerged from recession in June 2009 and has been growing for nearly five years. Yet this week, an NBC News/Wall Street Journal poll of American adults found that 57 percent still think the economy is in recession. Why? Because: the wage gap.