Economists at the National Bureau of Economic Research, are stating that high-school degree holders are now receiving 12% less than in the 1980's. This is mostly due to manufacturing jobs declining since then. However, there has been an increase in low-wage service jobs: health care and hospitality. Of course, those who have a college degree, or equivalent, have experienced an increase in pay by 18%.
Pontificia Universidad Católica de Chile's J. Rodrigo Fuentes and UCLA's Edward E. Leamer suggested, "We may be returning to the income inequality of the Victorian age but with talent replacing land as the source of inherited wealth and power." This information proposes that this lack of balance can affect the growth of the economy. Less money will be spent on leisure, which helps build the economy, because citizen will be too preoccupied with paying off debt and bills they should have the right to afford.
Elizabeth Warren, Massachusetts' Senior Senator since 2013, is wanting to add a 6% tax on those who make more than $1 billion, to boost revenue to aid her Medicare-for-all plan. No surprise there, that billionaires, like Bill Gates, conceive this as a form of an attack on the wealthy. According to The New York Times, if this was assumed, instead of Bill Gates being worth $97 billion, he would be worth $14 billion. Activist Paul Glover suggested, in 2018, to help middle class America with school funding "tax profits of major non-profit institutions" needed to be in place. "A shopping mall owned by a university should contribute to public education," said Glover.
Moreover, it's not only about taxes. These ever-growing labor jobs will soon become the new "servant class" as reported by the Brookings Institute. If income continues to decrease, for the 7-out-of-10 Americans who have only obtained a high school diploma, more debt will be accumulated and the standard of living will become even harder.