Now this could mean that workers are just a bunch of whiners, or it could mean that something else is happening.
According to research firm The Conference Board, one reason for the job dissatisfaction is that wages are not rising enough to keep up with (very modest) inflation. Jobs are also less interesting. Who knew?
Leaving aside the issue of how interesting a job might be, the issue of stagnating wages is pretty much on the mark. Research at the University of Michigan has shown that in the 45 years between 1961 and 2006, the average income of the bottom 90% of U.S. workers increased from $22,366 to $31,642 (in 2006 dollars). That’s about a 42% increase over 45 years — hardly a king’s ransom. Tax cuts over the period saved these workers about $760 in 2006, but those savings were more than eaten up by increases in Medicare and Social Security payments.
Meanwhile, at the top of the income pyramid are the top 400 taxpayers in the U.S. In 1961, these individuals earned an average $13.7 million; in 2006, the average had risen to $263.3 million. That’s more than 1,800%. Tax rates on these folks also rose, but by far less than the increase in income. Medicare and Social Security taxes are negligible to this group.
Is it any wonder that average American workers are unhappy? People read about banker bonuses in the hundreds of millions of dollars and compare that with their own paltry salary increases, and they get mad? The surprising thing is that people don’t take to the streets and demand a bigger share of the American pie.
The collapse of home prices and equity has had a huge impact on the wealth of average Americans. By some measures, wealth, which for most people is tied up in home ownership, has dropped more than 35%.
Americans are less satisfied because they feel poorer. Their wages are stagnant, their house values have dropped, and they don’t see any significant change to that scenario anytime soon.
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