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During that same period of
time average wages for manufacturing jobs increased only 8%(end note
9). Thus wages increased at a rate one fourth as fast as productivity
increased. As production costs fell quickly, wages rose slowly, and
prices remained constant, the bulk benefit of the increased
productivity went into corporate profits...
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In fact, from 1923-1929
corporate profits rose 62% and dividends rose 65%(end note 10).
The federal government also contributed to the growing gap
between the rich and middle-class. Calvin Coolidge's administration
(and the conservative-controlled government) favored business, and as
a result the wealthy who invested in these businesses...
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