U.S. workers did not share in the growth of the economy of the last forty years

According to a recent study1, unlike the growth patterns in the 1950s and 1960s, the majority of full-time workers did not share in the economic growth of the last forty years.

Had the income distributions of the three decades following World War II (1945 through 1974) held steady in the following four decades, the aggregate annual income of Americans earning below the 90th percentile would have been $2.5 trillion higher in the year 2018 alone. That is an amount equal to nearly 12 percent of GDP—enough to more than double median income—enough to pay every single working American in the bottom nine deciles an additional $1,144 a month. Every month. Every single year.

The median income for all adults with nonzero income was $42,000 in 1975 and it grew to $50,000 by 2018. Had income for this percentile grown as the same pace as the economy, it would have reached $92,000. In other words, their income growth captured only 17% of the growth that occurred in the whole economy.

 

 

 

 

  1. https://www.rand.org/pubs/working_papers/WRA516-1.html []

A lesson from jazz legend Miles Davis

Loose improvisation is integral to jazz, but we all know Miles Davis as a very exacting character. He could be mean, demanding, abrasive, cranky, hypercritical, and we might conclude, given these personal qualities, and the consistent excellence of his playing, that he was a perfectionist who couldn’t tolerate screw ups. [Herbie] Hancock gives us a very different impression, telling the tale of a “hot night” in Stuttgart, when the music was “tight, it was powerful, it was innovative, and fun.”

Making what anyone would reasonably call a mistake in the middle of one of Davis’ solos—hitting a noticeably wrong chord—Hancock reacted as most of us would, with dismay. “Miles paused for a second,” he says, “and then he played some notes that made my chord right… Miles was able to turn something that was wrong into something that was right.” Still, Hancock was so upset, he couldn’t play for about a minute, paralyzed by his own ideas about “right” and “wrong” notes.

[Says Hancock:] What I realize now is that Miles didn’t hear it as a mistake. He heard it as something that happened. As an event. And so that was part of the reality of what was happening at that moment. And he dealt with it…. Since he didn’t hear it as a mistake, he thought it was his responsibility to find something that fit.

Hancock drew a musical lesson from the moment, yes, and he also drew a larger life lesson about growth, which requires, he says, “a mind that’s open enough… to be able to experience situations as they are and turn them into medicine… take whatever situation you have and make something constructive happen with it.”

(…)

What matters, Davis is quoted as saying, is how we respond to what’s happening around us: “When you hit a wrong note, it’s the next note that you play that determines if it’s good or bad.” Or, as he put it more simply and non-dualistically, “Do not fear mistakes. There are none.”

Source: Open Culture