GREENSBORO, N.C. — According to a new study, income inequality has cost the average American worker $42,000 a year.
A think tank called Rand looked at how dollars and cents impact u.s. households.
They found that Americans would earn about $42,000 more annually if wages kept up with economic growth.
Prior to the 70s, American incomes, no matter how much they made, generally rose in step with overall economic growth. That changed toward the end of that decade. The vast majority of economic growth went to the rich.
In 2018, they found that the typical full-time worker made about $50,000 annually. If that income kept up with the economy's expansion, they would have earned $92,000 a year.
Only people in the top 5% of earnings had an income that approached or even surpassed the nation's economic growth. The top 1% came out with even more money than they made prior to the 70s.