Something happened in the middle of the 1970's that changed our country forever. Stan Sorscher gives us this graph of the relationship between productivity and earnings.
There is a gigantic change in the relationship in 1974 or 1975. Mr Sorscher argues that what changed is the moral makeup of the United States. The change from the shared progress we saw after World War II where everyone rose together to the "Greed is Good" mentality of the upper income earners.
In the new moral narrative I can succeed at your expense. I will take a bigger piece of a smaller pie. Our new heroes are billionaires, hedge fund managers, and CEO’s.
This new moral value from our CEO's and corporate leaders has utterly transformed our society. When CEO's can earn 300% more than their employees there is something wrong with the value system that promotes that inequality.
I do not know how we go back to the shared progress that we had in the 1950's and 1960's. I do know that we have to do something because the disparity is unsustainable culturally.
via Catrine Fake
source Economic Opportunity Institute