US wages plummet to 43% of national income — lowest since the Great Depression. Did Nixon’s gold breakup kill paychecks?
US wages plummet to 43% of national income — lowest since the Great Depression. Did Nixon’s gold breakup kill paychecks?
Source: Moneywise
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DW NOTE
Nixon severed the dollar from gold in 1971. Wage share of GDP peaked at 51% that same year and has fallen in near-linear fashion ever since. The correlation isn't proof, but the mechanism is clear: when money becomes purely political, those closest to its creation claim the largest share. Workers trade hours for currency. Banks trade nothing for credit. Guess who wins.