[lbo-talk] The abrupt decline in living standards

Marv Gandall marvgand2 at gmail.com
Tue Aug 9 10:34:31 PDT 2016


A recent study strikingly confirms what we already know - that living standards have declined precipitously in the advanced capitalist countries and are mainly responsible for struggling workers and small propertyholders seeking new political alternatives to their left and right.

The study by McKinsey Global Institute says that between 65-70% of households in 25 advanced capitalist countries, representing some 500 million people, reported declining or stagnant real earnings over the past decade. This is in startling contrast to the previous period before the financial crash, 1993–2005, when less than 2%, or some 10 million people, reported flat or falling real incomes.

According to the study, government transfers and lower personal tax rates have cushioned the effect of market forces in varying degrees in different countries, but an estimated quarter of the surveyed population is still receiving less income than they did previously.

https://www.theguardian.com/business/2016/jul/14/up-to-70-per-cent-people-developed-countries-seen-income-stagnate



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