Yulia Slavina

Wages have dropped as a share of income, Eric Basmajian notes

Wages have dropped as a share of income, Eric Basmajian notes
Wages fall as share of U.S. income

Eric Basmajian highlights a shift in the sources of American personal income.

According to Basmajian, the proportion of income derived from wages has fallen from 73% in 1970 to 60.5% today. In contrast, income from assets and transfers, such as Social Security and Medicare, has risen from 23% to 39% over the same period.

Basmajian previously reported that corporate profit margins have reached a record high of 20.6 percent while worker pay has trended downward, according to recent data. He has also observed that the worst and best three-month periods for stocks often take place during a recession, as noted in prior analysis. These observations add context to the changing composition of personal income in the U.S.

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