But if this was ever true, it is no longer true. Now we know that we can have a long period of robust growth in the gross national product that has no impact whatsoever on the wages of poor people, or even on ordinary people. Since 1980, all of the gains in household income in the U.S. have accrued to people in the top 20%. Now even famously rigorous conservative economist Tyler Cowen agrees. As he said in his latest comments on the new employment data,
There is more and more evidence that we’ve shifted into a new regime where wage growth for most income classes simply doesn’t happen to any significant degree. This may not last forever, but it remains the status quo and too many people find it too hard to wrap their heads around that. That to me is the single biggest takeaway.And there you have it. If we care about the incomes of poor and ordinary people, just working to create economic growth (the platform of ALL of the Republican presidential candidates) will not help.