This only considers take home pay, not total cost to employer.
I can't place the source right now, but the total cost to employer has actually increased faster than inflation when considering the increased cost of benefits, particularly health care. In effect, working class employees are taking higher pay and using it towards higher cost health care.
I don't doubt that employment costs have increased faster than inflation, but how much faster? Employer-sponsored health benefits are being cut, so they provide less service and transfer more cost to the employee. Retirement costs are likewise being cut, as employers ditch defined-benefit programs.
The bottom line is that, between flat salaries and declining benefits, the middle-class is effectively enjoying a reduced standard of living. Meanwhile, CEO pay has multiplied over the same period, and companies are currently posting record-breaking profits.
