"Quiet Fleecing" Is Responsible For Low American Wages

Cadrene Heslop

The word "quiet fleecing" has gotten Americans' attention. But what does the term mean?

Experts say quiet fleecing is why millennials are worse off than their parents. For this generation, milestone goals like buying a house are out of reach. Many are struggling to afford health care. Yet, nine times as many billionaires exist as there were in 1990. (source)

The Economic Policy Institute coined the term "quiet fleecing.". It describes decades of stagnant wage growth despite rising productivity and living costs. In theory, wages should move with productivity or the worker's output for a company. And for workers to gain from the increase should outpace inflation. This theory occurred until the 1970s. Then, things changed. The compensation of the 1% outpaces economic growth and inflation. Meanwhile, the income of the average worker fell behind. (source)

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Reports say the productivity of American workers is higher than ever. Yet, employees share less and less in the wealth created by American corporations. Elise Gould is an EPI economist. Elise gave a statement. (source)

"For much of the last 40, 50 years it's been close to zero wage growth or compensation growth for typical workers. Those trends in hourly wage growth have profound consequences for American living standards. And how well people in this country are able to make ends meet. And I think that the growing economy has not universally translated into broadly shared prosperity."

"Quiet fleecing" means lower wages and fewer ways to get ahead while the elite thrive. Analysts predict the practice will continue under two conditions. The government and unions cannot turn things around. Or if the economy goes into a downturn. Reports say CEOs received 350 times more than the typical worker in 2020. And corporations recorded-breaking profits. The pandemic has only worsened inequality problems. (source)

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*Disclaimer: This article is for informational purposes only. This article got written using accredited media reports.*

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