Worker productivity rose 92% since 1979. Pay rose 34%. The difference went to shareholders — not to paychecks. The CEO-to- worker pay ratio has grown from 21:1 in 1965 to 281:1 today. The federal minimum wage has been frozen at $7.25 since 2009. And 53% of American workers are living paycheck to paycheck. This is not an accident. It is the result of policy choices — and it can be reversed by better ones.
We're a policy platform with 50 researched positions on every major issue. This page breaks down our labor and worker rights plan — but there's much more to explore.
American workers produce 92% more per hour than they did in 1979. Their wages have risen just 34%. The gap between what workers produce and what they are paid is the single most important economic fact of the last half century — and it explains nearly everything about why the middle class is shrinking.
The divergence between productivity and pay began in the late 1970s and accelerated through the 1980s, 1990s, and 2000s. It was not driven by market forces alone. It was driven by a systematic campaign to weaken the institutions that gave workers bargaining power. Union membership in the private sector fell from 35% in the 1950s to 6% today — a decline unmatched in any peer democracy. As unions declined, so did workers' ability to negotiate for their share of the wealth they create.
Deregulation eliminated many of the rules that had kept corporate power in check. Financial deregulation allowed Wall Street to extract enormous profits through speculation rather than investment in productive enterprises. Labor deregulation weakened overtime protections, safety standards, and enforcement mechanisms. The shift from stakeholder capitalism — where companies balanced the interests of workers, communities, and shareholders — to shareholder primacy meant that every decision was evaluated on one criterion: does it increase the stock price? Workers became costs to be minimized, not partners to be invested in.
Globalization was used as a cudgel against domestic workers. Trade agreements like NAFTA and PNTR with China were designed to maximize corporate profits, not worker welfare. When companies could credibly threaten to move jobs overseas, workers lost what remained of their bargaining power. The result: the US lost 3.7 million manufacturing jobs between 2001 and 2018. The trade policy page details the Common Good approach to trade agreements that protect workers.
Gig economy misclassification is the latest chapter. Companies like Uber, DoorDash, and Instacart classify workers as independent contractors to avoid paying minimum wage, overtime, health insurance, unemployment insurance, and payroll taxes. This misclassification costs workers an estimated $16 billion per year in lost wages and benefits. The corporate power page addresses the broader pattern of corporate consolidation that suppresses wages across the economy.
A $20 federal minimum wage would raise pay for roughly 40 million American workers, lift millions out of poverty, and inject billions of dollars into local economies — without the mass job losses that opponents predict. The evidence from decades of research is clear: moderate minimum wage increases do not kill jobs.
The current federal minimum wage of $7.25 per hour has been frozen since 2009 — 17 years without an increase. Adjusted for inflation, the minimum wage today buys less than it did in 1968. If the minimum wage had kept pace with productivity growth since 1968, it would be over $24 per hour today. A $20 minimum wage is not radical — it is a partial correction of a five-decade decline in the value of work.
The most rigorous research on minimum wage effects comes from economists David Card (who won the 2021 Nobel Prize) and the late Alan Krueger, whose work comparing fast-food employment in New Jersey and Pennsylvania after a minimum wage increase found no negative employment effects — and earned Card the 2021 Nobel Prize in Economics. Subsequent studies, including a 2019 meta-analysis of 138 minimum wage estimates, confirm the finding: moderate minimum wage increases do not cause significant job losses. What they do cause is reduced turnover, increased productivity, and higher consumer spending.
The Common Good plan indexes the minimum wage to inflation after the initial increase, so it never falls behind again. This is standard practice in Australia, where the minimum wage is approximately $15 USD and is adjusted annually by an independent commission. It is also standard in most US states that have already raised their minimum wages above the federal floor. Indexing removes the politics from the issue entirely — no more decade-long freezes while the cost of living rises.
For the complete economic analysis and sourcing, see the full labor issue page and the affordability policy.
The Common Good plan restores the balance between workers and corporations through eight evidence-based provisions. Every one is modeled on policies that already work in peer democracies — countries with higher wages, stronger economies, and better outcomes for working families.
The plan addresses wages, bargaining power, job security, family support, and corporate accountability. Together, these provisions close the productivity-pay gap and ensure that economic growth is shared by the workers who create it.
For the complete plan with legislative detail, cost projections, and sourcing, see the full labor issue page and the budget and fiscal responsibility page.
The United States is the wealthiest large economy on Earth — and among the worst for working people. American workers produce more per hour than workers in nearly any other country, yet receive fewer protections, lower minimum wages relative to median income, less paid leave, and virtually no voice in corporate governance. The comparison is damning.
| Country | Min Wage (USD) | Union Rate | Paid Leave (wks) | Worker Board Seats | CEO-Worker Ratio |
|---|---|---|---|---|---|
| United States | $7.25 | 6% private | 0 | None | 281:1 |
| Germany | $13.50 | 17% | 14 | 50% (2,000+ employees) | 39:1 |
| Denmark | ~$22 (sectoral) | 67% | 52 | 1/3 (35+ employees) | 48:1 |
| Australia | $15.00 | 12% | 18 | None | 55:1 |
| Japan | $8.50 | 17% | 14 | Varies | 58:1 |
| United Kingdom | $13.80 | 23% | 39 | None (proposed) | 109:1 |
The pattern is clear. The United States is the only country in this list with no paid family leave. It has the lowest minimum wage relative to median income. It has the lowest union rate. And it has, by a wide margin, the highest CEO-to-worker pay ratio. American workers are not less productive — they are less protected. The institutions that ensure workers share in the wealth they create have been systematically dismantled in the US while being maintained or strengthened in every peer nation.
Sources: OECD Employment Outlook, ILO Global Wage Report, EPI analysis of BLS data, AFL-CIO Executive Paywatch. For a detailed comparison of party positions on labor, see the Compare Parties page.
Sectoral bargaining sets wages and working conditions across an entire industry at once — not company by company. It is the standard in most of Europe and the primary reason why European workers earn higher wages with better benefits than their American counterparts doing identical work.
In the United States, unions bargain one workplace at a time. If workers at one McDonald's franchise organize, they negotiate with that franchise — not with McDonald's corporate, and not with the fast-food industry as a whole. This means every workplace must be organized individually, a process that takes months or years and is aggressively resisted by employers. The result: union coverage is low, and workers at non-union employers receive no benefit from nearby organizing efforts.
Sectoral bargaining eliminates this problem. In Denmark, unions and employer associations negotiate a single agreement that covers every worker in a sector — hotels, restaurants, retail, manufacturing, construction. The agreement sets minimum wages, overtime rules, vacation time, and working conditions for the entire industry. No individual workplace needs to organize. Every worker benefits. And employers compete on quality, innovation, and service — not on who can pay workers the least.
The results are extraordinary. A McDonald's worker in Denmark earns approximately $22 per hour with six weeks of paid vacation, a pension, and paid parental leave. A McDonald's worker in the United States earns approximately $10 per hour with no paid vacation, no pension, and no parental leave. A Big Mac in Denmark costs about $0.80 more than in the United States. The difference in worker compensation is not reflected in dramatically higher prices — it is reflected in lower corporate profit margins and lower executive pay.
The Common Good plan establishes sectoral bargaining through industry-level wage boards — tripartite bodies composed of worker representatives, employer representatives, and government mediators. These boards set minimum standards for each sector, which can be exceeded but not undercut by individual employers. For the full legislative framework, see the labor issue page and the corporate responsibility policy.
Every time a minimum wage increase or labor protection is proposed, the same objections appear — funded by the same corporate interests that benefit from keeping wages low. Here are the four most persistent myths — and what the evidence actually shows.
Myth: "Raising the minimum wage kills jobs."
Reality: The most comprehensive research on this question — including the Nobel Prize-winning work of David Card — shows that moderate minimum wage increases do not cause significant job losses. A 2019 meta-analysis of 138 minimum wage studies found employment effects statistically indistinguishable from zero. What does happen: reduced turnover (which saves employers money), increased productivity, and higher consumer spending that creates demand for new jobs. The states and cities that have already raised their minimum wages — including Washington, California, and New York — have seen job growth that equals or exceeds the national average.
Myth: "Higher wages cause runaway inflation."
Reality: Labor costs are only one component of consumer prices — typically 20-35% depending on the industry. A 10% increase in the minimum wage results in a 0.4-0.7% increase in overall prices, according to a comprehensive review of the evidence. When Denmark's fast-food workers earn twice what American fast-food workers earn, a Big Mac costs $0.80 more — not double. The inflation argument assumes that every cent of a wage increase is passed through to prices. In reality, much of it comes from reduced turnover costs, lower executive compensation, and marginally lower profit margins — all of which are economically efficient adjustments. For more, see the affordability page.
Myth: "Higher wages hurt small businesses."
Reality: Small businesses are hurt most by low wages — because low-wage workers have no discretionary income to spend at local businesses. When workers earn more, they spend more — and they spend locally. A higher minimum wage also reduces the competitive disadvantage that small businesses face against large corporations: Walmart can offer $15/hour because of its scale, while the local hardware store cannot match that without a level playing field. Sectoral bargaining ensures that all employers in an industry pay the same floor, preventing large corporations from using wage suppression as a competitive weapon. Denmark, with effectively a $22 minimum wage, has higher small business formation rates than the US.
Myth: "Workers don't deserve higher pay — they should get more skills."
Reality: American workers are more productive, more educated, and more skilled than at any point in history. Productivity has risen 92% since 1979. The share of workers with college degrees has more than doubled. Yet wages have barely budged. The "skills gap" narrative — the idea that workers are paid poorly because they lack skills — is contradicted by the data. Workers with bachelor's degrees have seen real wage growth of just 0.3% per year over the last two decades. The problem is not a lack of skills. The problem is a lack of bargaining power. When unions covered 35% of the private sector, productivity gains were shared. When coverage fell to 6%, they stopped being shared. The solution is power, not credentials. See the full labor plan for the evidence.
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Productivity rose 92%. Pay rose 34%. The gap went to shareholders. Read the full plan and see exactly how we close it — with sources, costs, and implementation details.