A Breakout Moment for the Working Class?
In 50 Years, Only Two Presidents Have Delivered for the Working Class: Nixon and Trump
In the annals of American economics, few eras shine brighter than the post–World War II decades—a time when factory whistles marked prosperity, wages rose with productivity, and the working man could support a family on a single income. That golden period, especially the 1960s, saw real wages climb alongside American power. We built. We exported. We employed.
Today, with real wages for low-income workers rising at their fastest clip since that era—up 1.7% to 2% over just five months—some are asking: Are we witnessing the return of the American worker?
The Numbers Tell a New Story
The data is no mirage. Real wages at the bottom of the income scale have jumped over 15% since 2019, according to the Economic Policy Institute. The Atlanta Fed and the BLS back it up: wage growth outpacing inflation, especially in blue-collar jobs. In Ohio and the Midwest, growth for low-wage workers is topping 3% annually. For once, the gains are going to those who punch the clock, not just those who shuffle paper.
That’s not nothing. For decades, working-class America has been sold slogans while corporations shipped jobs overseas, gutted industry, and blamed automation for decisions made in boardrooms. From 1979 to 2013, the top 1% saw their real wages soar 138%, while the bottom 90% scraped out a 15% gain. We were told the rising tide would lift all boats. It sank our shipyards and hollowed out our towns.
Why Now? And Will It Last?
So why the sudden surge in wages for the forgotten man?
First, labor markets are tight. After COVID, employers had to fight for workers, especially in trucking, warehousing, food production, and manufacturing. Workers had leverage for the first time in a generation.
Second, policy finally swung in labor’s direction. Federal investment in infrastructure and domestic manufacturing—plus higher minimum wages and tax credits for working families—put money in pockets and created demand for hands-on work.
Third, inflation cooled. With prices stabilizing, nominal wage hikes turned into real buying power.
A Structural Shift or a Sugar High?
This is more than a blip. The distribution of gains tells us something profound. In prior recoveries, Wall Street roared while paychecks stayed flat. Now, wage gaps are narrowing. The poorest workers are catching up, not falling further behind.
But here's the rub: These gains are fragile.
Broad-based tariffs may boost U.S. industry, but they can also raise costs and squeeze wage margins. Roll back worker-friendly policies—like infrastructure investment, apprenticeship programs, or fairer tax rules—and the progress evaporates. And automation, offshoring, and the worship of efficiency still loom like storm clouds.
Where Does This Go Politically?
Economic shifts reshape politics. If wage growth holds, the working class will have more power and different priorities. A coalition of laborers and populists could demand policies that defend their gains: balanced trade, controlled immigration, antitrust enforcement, and national investment in things that produce, not just profit.
But if the old order reasserts itself—if globalism resumes its march unchecked—then this moment will go down as another false dawn. A brief flash of prosperity before the factories go quiet again.
The Stakes
We’re at a hinge point. The working man is not asking for charity. He’s asking for a fair deal. For work that pays. For an economy that rewards those who build, dig, lift, and drive—not just those who speculate and scheme.
We’ve seen what America looks like when it takes care of its working class. And we’ve seen what happens when it doesn’t.
If this breakout is to become a foundation (not just a fluctuation) Washington must decide: are we serious about rebuilding an economy for the people who make this country work?
Or are we content to let this window close, again?