Commentary: Joint Economic Committee Democrats released a report today that outlines the need to take action and raise wages for American workers. Most American workers have not benefited from the economic growth of the last several decades—wages for the average worker have barely grown for nearly 40 years, while wages for the highest earners have grown substantially. The GOP tax law fails to address these issues, according to the new report, despite claims from Congressional Republicans and the Trump administration.
The report, “Real Action is Needed to Give American Workers the Raise They Deserve,” highlights that the real hourly wage for the median worker has only grown less than 0.2 percentage point per year on average since 1979. The Republican tax law does little to solve this problem, with 99.2 percent of the benefits going to the top 5 percent of households once it is fully implemented. Instead of leading to broadly shared wage gains, the tax bill is likely to exacerbate the trends we are already seeing.
“We must take the needs of American workers across the country seriously, and actively work to ensure they get the raise they deserve,” said U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee. “Many of the challenges American families are facing will only be made worse by the Republican tax plan. Democrats are ready to take serious action to achieve broad wage gains that tackle all of the factors that hold back pay for workers. If we work to implement our A Better Deal proposals, we can grow wages and improve living standards for all Americans, not just the wealthiest.”
The report builds off Democrats’ A Better Deal economic agenda and outlines a comprehensive approach to raising wages. It calls for investing in regional economies that have been left behind, building talent pipelines that all students can access, and empowering worker to negotiate for better pay and benefits. Furthermore, the report emphasizes the need to combat discrimination and close divides, encourage innovative and competitive markets, and promote and maintain full employment. Democrats were able to get a start on these priorities by securing funds in the omnibus for new infrastructure projects, a historic increase in child care funding, and a raised Pell Grant award to make college more affordable.
Click here to review the report online.