The Real Cure for Inequality

Income gains are now rising faster for low-wage workers.

WSJ editorial. Excerpts:

"in 2018 . . .Worker earnings increased by 3.4% while the poverty rate declined 0.5 percentage points to 11.8%, the lowest level since 2001."

"According to the Census Bureau, the number of full-time, year-round workers increased by 2.3 million in 2018, and employment gains were biggest among minority female-led households. The share of workers in female-led households who worked full-time year-round increased by 4.2 percentage points among blacks and 3.6 percentage points among Hispanics."

"real median earnings for female households with no spouse present jumped 7.6% last year. The poverty rate among female households declined 2.7 percentage points for blacks, four percentage points for Hispanics and 7.1 percentage points for their children."

"The jobless rate for black women last month fell to a historic low of 4.4% and neared a nadir for Hispanic women at 4.2%."

"The share of households making less than $35,000 in inflation-adjusted dollars has fallen 1.2 percentage points since 2016 while those earning between $50,000 and $150,000 and more than $200,000 have both increased by 0.8 percentage points."

"no significant increase in real median household incomes last year, but this is probably because a decline in transfer payments and investment income offset wage and salary increases."

"Seniors are also retiring in greater numbers, which usually results in an income drop. But, notably, real median incomes increased in households between the ages of 15 to 24 and 25 to 34 by 9.1% and 5%, respectively."

"higher taxes, hyper-regulation and income redistribution resulted in slower growth and more inequality during the Obama Presidency. The Federal Reserve’s policy of lifting asset prices also favored wealthier Americans with financial assets rather than lower-income workers who received smaller wage gains."