Capitalism only works when prosperity is shared | Letter

For a generation after World War II, America kept a basic promise: when workers produced more, they earned more. Between 1948 and 1973, productivity rose 96% and wages rose 91%. That shared prosperity built the American middle class. Families in Maine and across the country could build a stable life on honest work.

That promise broke in the early 1970s. Between 1973 and 2013, productivity rose 74% while wages rose only 9%. The link between effort and reward snapped. People are working harder than ever yet struggling to afford housing, groceries and basic stability. This shift created a class system where the gains of growth flow upward while working families fall behind.

Economists have shown that when companies invest in workers, they often gain $1.50 to $3 in productivity for every dollar in wages. Henry Ford understood this a century ago. Today, many corporations seem to have forgotten it. Cutting wages, benefits and hours has not made America more productive. It has made workers feel undervalued, and productivity has slowed.

Other policy choices added to the problem. Unfunded tax cuts from decades ago added trillions to the national debt without delivering broad economic benefit. When policies fail, they should be revisited, but repealing them has become politically unpopular. Meanwhile, money has gained enormous influence over politics, making it harder for working and middle‑class Americans to be heard.

American families deserve an economy that lifts everyone. Capitalism only works when prosperity is shared. We fixed this once before. We can fix it again.

William Smith
Westbrook

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Tagged: letter to the editor