New Labor TrendsOver the past 15 years Labor has significantly changed

Globally: Globalization: “free trade” with other countries

Collapse of Soviet Union & Communist Economies China & India emerge as economic powers European Union forms common currency

United States: Unions are declining Less “Job Security” Declining Manufacturing Jobs Rising Demand for Educated Workers

↑ Gap between Rich & Poor

CEO Pay vs. Average Worker

• 1982 42 to 1• 2007 365 to 1

Household IncomeHousehold Income % of Total U.S.

Household Income

Bottom 20% $0 - $18,000

Next 20% $18,001 - $33,000

Middle 20% $33,001 – $52,000

Next 20% $52,001 - $82,000

Top 20% $82,001+

3%

9%

15%

23%

50%

• The top 5% earn _____ of ALL income (Those with incomes over $145,000)

• The top 1% earn _____ of ALL income (Those with incomes over $300,000)

22%

15%

What is Income?

What is Wealth?

The sum of _________ and other forms of earnings received in a ____________________.

The total value of ___________________; cash, stocks, bonds, real estate, etc.

wagesgiven time period

all assets owned

Joe v. Bob example

Joe BobAnnual Income $200,000 $60,000

Stocks $500,000 none

Bonds $300,000 none

House $500,000 rents

Percentage of Total Income

Percentage of Total Wealth

Bottom 20% 3.5%

Next 20% 9.0%

Middle 20% 14.7%

Next 20% 22.8%

Top 20% 50.0%

0.1%

0.8%

4.2%

10.6%

84.3%

• Top 1% has _____ of all the wealth!

• Top 1% has more wealth than the ______________________!!!!!

• Bottom _____ has less than _____ of the wealth.

39%

bottom 95% combined

40% 1%

Wealth vs. Income

• Top 20% earns 50% of Income• Top 20% has 84% of Wealth

• Top 1% earns 15% of Income• Top 1% has 39% of Wealth• Pay 34% of all taxes

Numbers YOU should know for TEST

6 min. video