A free-market economy creates wealth. For one person to make a dollar does not mean that another needs to lose one. There is not just one dwindling pie to be divided up among the population, but rather a proven recipe to grow the pie to serve everyone. All the talk about the rich “grabbing” too large a share of the national income therefore rests on a flawed understanding of this basic truth of free-market economics.
While on the surface this may seem reasonable and even reassuring, reality says otherwise. So let’s look at the data:
According to the Economic Policy Institute: the bottom tenth of the wage distribution earned less in 2011 than the lowest earners did in 1979, accounting for inflation. Meanwhile, the real wages of the median worker rose only 6 percent between 1979 and 2011.