NEW REPORT ON THE STATUS OF
WORKERS IN WISCONSIN.
AS WE LOOK AHEAD TO LABOR DAY,
THE CENTER OFFERS WHAT IT CALLS
ITS FACTS AND FIGURES REPORT ON
THE STATE OF WORKING WISCONSIN.
ASSOCIATE DIRECTOR AT COWS LAURA
DRESSER JOINS US NOW.
>> THANKS FOR HAVING ME.
>> SO YOUR REPORT SAYS THERE IS
GOOD NEWS.
>> YES.
THERE IS GOOD NEWS.
AND THIS IS THE FAMILIAR NEWS OF
THE KIND OF THE GREAT CLOUD OF
THE GREAT RECESSION OF 2007 HAS
REALLY LIFTED.
WE'VE HAD LONG-TERM, SUSTAINED
UNEMPLOYMENT AT LOW LEVELS,
STEADY JOB GROWTH.
AND SO THAT PICTURE I THINK IS
REALLY CLEAR IN PEOPLE'S HEAD
RIGHT NOW.
>> THERE IS BAD NEWS.
>> YES.
SO WE SORT OF START WITH THAT,
BUT I THINK ONE OF THE BIG
MYSTERIES OF THIS MOMENT IS
GIVEN ALL THAT GOOD NEWS, WHY
ARE THESE KIND OF QUESTIONS OF
ECONOMIC INSECURITY STILL SO
SALIENT FOR PEOPLE.
SO WE TRIED TO FOCUS THIS REPORT
ON THESE VERY LONG-TERM TRENDS,
30 AND 40 YEARS LONG, THAT HAVE
UNDERMINED PEOPLE'S SENSE OF
SECURITY, WORKING WISCONSIN'S
SENSE OF SECURITY.
THAT'S THE FOCUS OF THE REPORT.
>> AS TO THAT FOCUS, YOU TALK
ABOUT WAGE STAGNATION, THAT THE
MEDIAN WAGE IS ONLY 73 CENTS
HIGHER THAN IT WAS IN 1979.
>> SO.
SO WE'RE BASICALLY AT 18 BUCKS
AN HOUR NOW.
AND THAT'S JUST BARELY, LIKE 63
CENTS AN HOUR HIGHER THAN IT WAS
IN 1979 ONCE YOU ADJUST FOR
INFLATION.
THAT STANDS OUT AS A COMPLETE
BREAK FROM THE WAY THE ECONOMY
WORKED, FROM THE POST WORLD
WAR II INTO 1979, WHEN THE
ECONOMY GREW, WAGES GREW.
THEY WERE SORT OF LOCKED
TOGETHER AND WORKERS SAW THE
BENEFITS OF GROWTH.
WHAT WE'VE HAD IN THE 2000s IS
THIS WAIG WAGE STAGNATION IN THE
CONTEXT OF GROWTH, SO WORKERS
DON'T SEE AS MUCH GOOD NEWS FROM
LOW UNEMPLOYMENT AS THEY USED
TO.
>> WHAT EXPLAINS THE STAGNATION?
>> I THINK A LOT OF PEOPLE SPEND
A LOT OF TIME, BUT THERE'S
CERTAINLY THINGS, THERE ARE
CERTAINLY INSTITUTIONAL FACTORS
THAT MATTER A LOT IN MY ANALYSIS
OR THINKING THE WAY I THINK
ABOUT WHAT WE COULD DO WITH
POLICY.
THE STATE'S MINIMUM WAGE IS
$7.25 AN HOUR, THE WAY IT WAS A
DECADE AGO.
THAT'S ONE THING THAT KEEPS
WAGES DOWN.
OUR LABOR MOVEMENT, WHICH HAS
OFTEN SERVED BOTH THROUGH POLICY
APPROACHES AND THROUGH ITS OWN
BARGAINING TO KEEP WORKERS'
WAGES HIGHER, HAS BEEN DECIMATED
BY PUBLIC POLICY IN THIS STATE.
SO I THINK WE CAN SEE THINGS
WHERE POLICY -- YOU KNOW, HOW DO
YOU MAKE THAT BETTER OR WHY DID
THIS HAPPEN.
WE'VE MOVED AWAY FROM SOME
POLICIES THAT ACTUALLY HELD
WORKING PEOPLE KIND OF CLOSER TO
ECONOMIC GROWTH.
>> YOU DESCRIBE HOW PRODUCTIVITY
HAS GROWN BY 70% DURING THE SAME
PERIOD.
WHAT IS THE IMPLICATION OF THAT?
>> ONE TIME TO THINK ABOUT IT,
ACROSS THE POST-WAR PERIOD, IF
THE ECONOMY GREW BY 70%, WE'D
SEE WAGES UP BY 70%.
THAT WOULD PUT THE MEDIAN WAGE
TODAY, WHICH IS $18 AN HOUR,
WOULD BE WELL OVER $25 AN HOUR
TODAY IF WAGES WERE STILL LOCKED
INTO PRODUCTIVITY THE WAY THEY
WERE.
AND YOU SEE THAT'S SORT OF THIS
GAP THAT'S GROWING, THAT IF
WORKERS ARE MAKING, YOU KNOW,
WITH AN HOUR OF LABOR THEY'RE
MAKING 70% MORE GOODS AND
SERVICES AND IF THEY AREN'T
BRINGING HOME MORE IN WAGES,
THEN THOSE WAGES ARE -- THAT
VALUE IS GOING AND, AS WE KNOW,
IN THIS ECONOMY THEY'RE GOING TO
THE TOP END, TO OWNERS AND
MANAGERS.
>> SPEAKING OF THE TOP END, YOU
ALSO POINT IN THIS REPORT TO
INCOME INEQUALITY.
IS IT NEARLY A MILLION DOLLARS,
THE REST OF THE 99% AT $51,000.
THAT IS QUITE A GAP.
>> IT IS.
ON ONE OF THE MEASURES WE ARE
BACK TO LEVELS THAT WE HAVEN'T
SEEN SINCE 1928.
INEQUALITY FELL ACROSS FROM
BASICALLY 1929 THROUGH THE
1970s, BUT HAS BEEN ON
DECLINE.
AND THE REWARDS OF ECONOMIC
GROWTH CONTINUE TO ACCRUE AT THE
VERY TOP.
SO YOU SEE A MILLION VERSUS
$50,000 AND THAT GAP IS JUST
GROWING.
>> ALL RIGHT.
WE LEAVE IT THERE.