Why we shouldn’t expect the world’s richest to work for free
The world’s wealthiest individuals and businesses will be getting paid a fair wage, according to a report from the U.S. Bureau of Labor Statistics.
The report, which surveyed the top 100 highest-paid Americans from 2007 to 2012, shows that in the top 1 percent of earners, average earnings rose by nearly 20 percent between 2007 and 2012, from $1.18 million to $1,274,000.
It was a 1.7 percent increase in pay for the bottom 99 percent, who earned $9,848 in the same period.
In the middle of the 1 percent, however, pay declined by 4.7 percentage points, from the top 5 percent to the bottom 40 percent, or 3.6 percent, the BLS found.
“I think it’s very clear that the wealthiest Americans are not being paid as much as they should be,” said John Bogle, president of the Bogleheads Economic Council.
This trend reflects the fact that the wealthy are spending more on education and higher salaries than everyone else, Bogle said.
Bogle also noted that the wealth gap is narrowing.
“People in the middle class and below have become much wealthier.
That means there are more jobs that they can fill,” he said.
Bogle and others have raised the question of whether the economic growth generated by the financial crisis has been enough to offset the growing wealth inequality.
But a recent survey by the Bancroft Institute for Public Policy, a nonprofit think tank in Washington, D.C., found that while the wealthy now account for more than a quarter of the nation’s wealth, only about 6 percent of the population lives in a household where a person makes more than $1 million per year.