Morgantown, WV – Chris Freiman, a Professor of General Business in the John Chambers College of Business and Economics at West Virginia University, recently took to social media to dispute claims made in an article published by Jacobin magazine. Freiman, also the Director of Outreach for the Kendrick Center for an Ethical Economy, specifically cited what he called "falsehoods" regarding assertions that "wages have stagnated" and "upward mobility has collapsed" in the United States.
"Lots of falsehoods in this Jacobin article, including the claims that “wages have stagnated” and “upward mobility has collapsed”," Freiman stated in his tweet, linking to the Jacobin article.
The debate over wage growth presents a complex economic picture. Recent data from sources like the Atlanta Federal Reserve and the American Progress Center indicate that nominal wage growth has been observed, with some analyses suggesting real wage growth, particularly for lower-income workers, especially since the pre-pandemic period. For instance, the American Progress analysis notes that real wages for the lowest-income workers are 16 percent higher than before the pandemic, contributing to a decline in wage inequality. However, other reports, such as those from the Economic Policy Institute (EPI), highlight a long-term trend of slow wage growth for most workers since 1979, with significant gains concentrated at the top of the income distribution, leading EPI to characterize it as "wage suppression" rather than stagnation.
Similarly, trends in upward economic mobility are subject to varied interpretations. Research from Opportunity Insights suggests a sharp decline in absolute income mobility, with only 50% of children born in 1984 earning more than their parents, compared to 92% in 1940. This decline is often attributed to the unequal distribution of economic growth. Conversely, studies from institutions like Brookings and the St. Louis Fed indicate that intergenerational income mobility has been relatively stable over the past few decades, though they acknowledge declining mobility for children from low-income families and increased mobility for those from high-income families. The Economic Policy Institute also asserts that income mobility in the U.S. is lower than in most other developed countries and has been falling for decades.
Jacobin magazine, describing itself as a "leading voice of the American left," typically offers socialist perspectives on politics, economics, and culture. The publication is known for its critiques of capitalism and advocacy for socialist policies, often emphasizing issues of economic inequality and systemic barriers to upward mobility. Freiman, whose academic background includes philosophy and interests in libertarianism, frequently engages with economic and political topics from a different ideological standpoint. This divergence in perspectives underscores an ongoing discussion among economists and policymakers regarding the true state of economic opportunity and well-being in the U.S. and the underlying causes of observed trends.