Economics
Reason magazine|October 2017

Health Care Costs Are The Reason You’Re Not Getting A Raise 

Veronique De Rugy
Economics

AS LABOR DAY approaches, you can count on seeing a spate of news stories saying that “real wages” in the United States haven’t grown since the 1970s. That’s true, more or less, but the reason for the stagnation might surprise you. It’s a complex story, but it boils down to this: Blame health care costs.

According to the Federal Reserve Bank of St. Louis, inflation-adjusted wages have grown by just 2.7 percent in the last 40 years. But inflation-adjusted total compensation—wages plus fringe benefits, such as health insurance, disability insurance, and paid vacation, along with employer-paid Social Security and Medicare taxes—increased by more than 60 percent in the same period.

Wages still make up a significant share of your total compensation: 68.3 percent, according to 2017 data from the Bureau of Labor Statistics, vs. 31.7 percent that goes to benefits. But that latter piece has grown significantly, in no small part due to the rising cost of health insurance. And that trend is only going to get worse.

Diese Geschichte stammt aus der October 2017-Ausgabe von Reason magazine.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der October 2017-Ausgabe von Reason magazine.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS REASON MAGAZINEAlle anzeigen
Libertarianism From the Ground Up
Reason magazine

Libertarianism From the Ground Up

ARGUMENTS FOR LIBERTARIANISM typically take two forms. Some libertarians base their creed on natural rights-the idea that each individual has an inborn right to self-ownership, or freedom from aggression, or whatever-and proceed to argue that only a libertarian political regime is compatible with those rights.

time-read
5 Minuten  |
January 2025
Lawlessness and Liberalism
Reason magazine

Lawlessness and Liberalism

THE UNITED STATES is notorious both for mass incarceration and for militarized police forces.

time-read
5 Minuten  |
January 2025
Politics Without Journalism
Reason magazine

Politics Without Journalism

THE 2024 CAMPAIGN WAS A WATERSHED MOMENT FOR THE WAY WE PROCESS PUBLIC AFFAIRS.

time-read
10+ Minuten  |
January 2025
EVERY BODY HATES PRICES
Reason magazine

EVERY BODY HATES PRICES

BUT THEY HELP US DECIDE BETWEEN BOURBON AND BACONATORS.

time-read
10+ Minuten  |
January 2025
The Great American City Upon a Hill Is Always Under Construction
Reason magazine

The Great American City Upon a Hill Is Always Under Construction

AMERICA'S UTOPIAN DREAMS LEAD TO URBAN EXPERIMENTATION.

time-read
10 Minuten  |
January 2025
Amanda Knox Tells Her Own Story
Reason magazine

Amanda Knox Tells Her Own Story

\"OUR CRIMINAL JUSTICE SYSTEM RELIES UPON OUR OWN IGNORANCE AND THE FACT THAT WE DON'T KNOW WHAT OUR RIGHTS ARE.\"

time-read
10+ Minuten  |
January 2025
Trade Policy Amnesia
Reason magazine

Trade Policy Amnesia

WHILE HE WAS interviewing for the job, President Joe Biden demonstrated an acute awareness of how tariffs work. It's worrisome that he seems to have forgotten that or, worse, chosen to ignore it-since he's been president.

time-read
2 Minuten  |
January 2025
Civil Liberties Lost Under COVID
Reason magazine

Civil Liberties Lost Under COVID

WHEN JOE BIDEN was sworn in as president in January 2021, he had good reason to be optimistic about the trajectory of the COVID-19 pandemic.

time-read
2 Minuten  |
January 2025
Bye, Joe
Reason magazine

Bye, Joe

AMERICA'S 46th president is headed out the door. After a single term marked by ambitious plans but modest follow-through, Joe Biden is wrapping up his time in office and somewhat reluctantly shuffling off into the sunset.

time-read
1 min  |
January 2025
Q&A Mark Calabria
Reason magazine

Q&A Mark Calabria

IF YOU HAVE a mortgage on your home, the odds are that it's backed by one of two congressionally chartered, government-sponsored enterprises (GSES), Fannie Mae and Freddie Mac.

time-read
3 Minuten  |
January 2025