# Did Policy Choices After 1970 Systematically Dismantle Middle-Class Mobility?: 36 Sourced Claims, Contested Facts & Evidence Upward mobility collapsed due to legislative rollbacks on labor, tax restructuring, and the rise of shareholder primacy. Authors: david HTML: https://moyomap.com/maps/did-policy-choices-after Markdown: https://moyomap.com/maps/did-policy-choices-after.md License: HTML and markdown are for reading and citation. Bulk copying and AI training need a written license. See /terms and /developers#maps-data. Cite a claim as: MoyoMap, "Did Policy Choices After 1970 Systematically Dismantle Middle-Class Mobility?: 36 Sourced Claims, Contested Facts & Evidence", claim {id}, https://moyomap.com/maps/did-policy-choices-after.md#{id}. “Moyo, a product of SenTeGuard Inc.” ### From 1973 to 2014, U.S. Id: claim_04b60401dd810d1ce447cbff Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 From 1973 to 2014, U.S. net productivity grew 72.2% (1.33% annually) while real median hourly compensation rose 8.7% (0.20% annually), with rising compensation inequality explaining 58.9% of the divergence and the decline in labor's income share explaining 11.5%. Labels: Inferred, Low, known ### From 1979 to 2012, the 10 states with the smallest decline in collective bargaining coverage experienced a 23… Id: claim_6a068c9207819b94307a3ce1 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 From 1979 to 2012, the 10 states with the smallest decline in collective bargaining coverage experienced a 23.1% growth in real median hourly compensation, compared to 5.2% growth in the 10 states with the largest decline. Labels: Inferred, Low, known ### Labor Union Decline and the Labor Law Reform Act of 1978 Id: section_24b00f0f26a9719ed553bb9e Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 Labor Union Decline and the Labor Law Reform Act of 1978 Labels: Inferred, Low ### SEC Rule 10b-18 and Stock Repurchases Id: section_3179988411cc631ac9fd09b5 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 SEC Rule 10b-18 and Stock Repurchases Labels: Inferred, Low ### The Revenue Act of 1978 and 401(k) Plans Id: section_4c258b1b3bc7620fd0decf53 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 The Revenue Act of 1978 and 401(k) Plans Labels: Inferred, Low ### Productivity and Worker Compensation Divergence Id: section_500eeb11f20ae350a7f2e6f4 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 Productivity and Worker Compensation Divergence Labels: Inferred, Low ### Rise of Shareholder Primacy and Executive Incentives Id: section_5d85a4cdd5987b5fcd0768f9 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 Rise of Shareholder Primacy and Executive Incentives Labels: Inferred, Low ### Decline in Absolute Income Mobility Id: section_da1b18b682824168d7b99e23 Parent: topic_g4vAwrtiS3cStIYymXCO Depth: 1 Decline in Absolute Income Mobility Labels: Inferred, Low #### The Revenue Act of 1978 (Pub. Id: claim_0f8f84acae97286e8e8e0af8 Parent: section_4c258b1b3bc7620fd0decf53 Depth: 2 The Revenue Act of 1978 (Pub. L. 95-600) increased the long-term capital gains exclusion from 50% to 60% and introduced Section 401(k) to the Internal Revenue Code. Labels: Inferred, Low, known #### Redistributing growth to match the distribution of the 1940 birth cohort would reverse more than 70% of the d… Id: claim_310765f263ebeacd10800de0 Parent: section_da1b18b682824168d7b99e23 Depth: 2 Redistributing growth to match the distribution of the 1940 birth cohort would reverse more than 70% of the decline in absolute mobility, whereas higher GDP growth alone cannot restore it. Labels: Inferred, Low, known #### Legal historian Brian Cheffins argues that the practical managerial shift toward shareholder primacy coalesce… Id: claim_42887e3ac5c41c145132c637 Parent: section_5d85a4cdd5987b5fcd0768f9 Depth: 2 Legal historian Brian Cheffins argues that the practical managerial shift toward shareholder primacy coalesced in the mid-1980s during the wave of hostile takeovers and incentive compensation, rather than immediately following Milton Friedman's 1970 essay. Labels: Inferred, Low, known #### The SEC adopted Rule 10b-18 on November 26, 1982, establishing a safe harbor for corporate stock repurchases… Id: claim_6e1fdb8f6e7d59d4021fa910 Parent: section_3179988411cc631ac9fd09b5 Depth: 2 The SEC adopted Rule 10b-18 on November 26, 1982, establishing a safe harbor for corporate stock repurchases at 47 Fed. Reg. 53333. Labels: Inferred, Low, known #### Net productivity and typical worker compensation grew together from 1948 to 1973 before diverging sharply, fu… Id: claim_7d853c769451733e6fabc4a4 Parent: section_500eeb11f20ae350a7f2e6f4 Depth: 2 Net productivity and typical worker compensation grew together from 1948 to 1973 before diverging sharply, fully decoupling after 1979. Labels: Inferred, Low, known #### The Labor Law Reform Act of 1978 (H.R. Id: claim_b10dcfe3dacd31b10fd339f2 Parent: section_24b00f0f26a9719ed553bb9e Depth: 2 The Labor Law Reform Act of 1978 (H.R. 8410), which aimed to expand the NLRB and stiffen penalties for unfair labor practices, passed the House but died in the Senate on June 22, 1978, after six unsuccessful cloture votes. Labels: Source-linked, Low, known #### By 1977, workers were losing more than half of NLRB representation elections, down from an 80% win rate in th… Id: claim_c706262e747ce018cffa281d Parent: section_24b00f0f26a9719ed553bb9e Depth: 2 By 1977, workers were losing more than half of NLRB representation elections, down from an 80% win rate in the 1940s, and the share of newly organized workers obtaining a first contract dropped from 86% in the 1950s to below 70% in the 1970s and 56% in the 1990s. Labels: Inferred, Low, known #### Unfair labor practice charges against employers increased sevenfold between 1950 and 1980, while the percenta… Id: claim_e9f9f13be379c67cd185cc9a Parent: section_24b00f0f26a9719ed553bb9e Depth: 2 Unfair labor practice charges against employers increased sevenfold between 1950 and 1980, while the percentage of the workforce newly unionized via NLRB elections with first-contract success fell from 0.46% (1966–1968) to 0.17% (1978–1980). Labels: Inferred, Low, known #### The fraction of U.S. Id: claim_f7411134ed6cd8a34d132f5d Parent: section_da1b18b682824168d7b99e23 Depth: 2 The fraction of U.S. children earning more than their parents fell from 92% for the 1940 birth cohort to 50% for the 1984 birth cohort under copula stability. Labels: Inferred, Low, known ##### Between 1979 and 2019, net productivity grew by 59.7% while median worker compensation rose by 15.8%, creatin… Id: claim_08b75189f2a9c32056bd4be8 Parent: claim_7d853c769451733e6fabc4a4 Depth: 3 Between 1979 and 2019, net productivity grew by 59.7% while median worker compensation rose by 15.8%, creating a 43.9 percentage point gap. Labels: Source-linked, Low, known ##### Social Security Administration records show the bottom 90 percent of workers saw annual earnings gains of 15.… Id: claim_1d41baf29610b922cd2c3fce Parent: claim_7d853c769451733e6fabc4a4 Depth: 3 Social Security Administration records show the bottom 90 percent of workers saw annual earnings gains of 15.2 percent versus 61.9 percent net productivity growth between 1979 and 2013. Labels: Inferred, Low, known ##### From 1973 to 1979, compensation inequality and labor's share of income showed no appreciable change, with pro… Id: claim_3e25995cddbd689abecbe537 Parent: claim_7d853c769451733e6fabc4a4 Depth: 3 From 1973 to 1979, compensation inequality and labor's share of income showed no appreciable change, with productivity-compensation differences primarily reflecting price deflators. Labels: Source-linked, Low, known ##### Throughout the 1970s, the SEC proposed rules to restrict stock buybacks before reversing course in 1982 to ad… Id: claim_50f009ecd5a6afad9b6f3118 Parent: claim_6e1fdb8f6e7d59d4021fa910 Depth: 3 Throughout the 1970s, the SEC proposed rules to restrict stock buybacks before reversing course in 1982 to adopt Rule 10b-18. Labels: Inferred, Low, known ##### Michael C. Id: claim_598e0fe7d20b37ba2b2309e4 Parent: claim_42887e3ac5c41c145132c637 Depth: 3 Michael C. Jensen and William H. Meckling's October 1976 paper formalized agency-cost theory, creating theoretical justification for aligning executive interests with shareholders through equity-based incentive pay and corporate takeovers. Labels: Source-linked, Low, known ##### Absolute income mobility for U.S. Id: claim_63d16a4bfa56f42850e43c1a Parent: claim_f7411134ed6cd8a34d132f5d Depth: 3 Absolute income mobility for U.S. sons compared to their fathers fell from 95% for the 1940 birth cohort to 41% for the 1984 birth cohort. Labels: Inferred, Low, known ##### The decline in absolute income mobility between the 1940 and 1984 cohorts was largest for children with middl… Id: claim_6688fd7d99608e0c774ddb0e Parent: claim_f7411134ed6cd8a34d132f5d Depth: 3 The decline in absolute income mobility between the 1940 and 1984 cohorts was largest for children with middle-class parents. Labels: Inferred, Low, known ##### The Business Roundtable, formed between 1972 and 1974, coordinated CEO lobbying against the 1978 labor law re… Id: claim_74cb526eb62180aae589aa5e Parent: claim_b10dcfe3dacd31b10fd339f2 Depth: 3 The Business Roundtable, formed between 1972 and 1974, coordinated CEO lobbying against the 1978 labor law reform bill, which included transporting small-business owners to Washington on corporate aircraft. Labels: Source-linked, Low, known ##### Returning to 1940s absolute mobility rates through economic growth alone would require real GDP growth rates… Id: claim_a1ef34a1d2ca04a79f7304f7 Parent: claim_310765f263ebeacd10800de0 Depth: 3 Returning to 1940s absolute mobility rates through economic growth alone would require real GDP growth rates exceeding 6% per year. Labels: Source-linked, Low, known ##### SEC Chairman John Shad, a former E.F. Id: claim_a3cf90a6f62bafb3667c1a91 Parent: claim_6e1fdb8f6e7d59d4021fa910 Depth: 3 SEC Chairman John Shad, a former E.F. Hutton vice chairman and the first Wall Street executive to lead the agency in nearly 40 years, oversaw the adoption of Rule 10b-18. Labels: Inferred, Low, known ##### Ted Benna implemented the first salary-reduction 401(k) plan at The Johnson Companies in 1980, leading to 198… Id: claim_d9148ca921633265943473ab Parent: claim_0f8f84acae97286e8e8e0af8 Depth: 3 Ted Benna implemented the first salary-reduction 401(k) plan at The Johnson Companies in 1980, leading to 1981 IRS regulations allowing pre-tax contributions and employer matches, followed by corporate adoptions in 1982 by firms including PepsiCo, Honeywell, and Johnson & Johnson. Labels: Inferred, Low, known ##### Rule 10b-18's safe harbor conditions require using a single broker, avoiding trades at the open or close of t… Id: claim_da7825f4098bea38d4192712 Parent: claim_6e1fdb8f6e7d59d4021fa910 Depth: 3 Rule 10b-18's safe harbor conditions require using a single broker, avoiding trades at the open or close of the day, buying at the prevailing market price, and capping volume at 25% of average daily trading volume over the preceding four weeks. Labels: Inferred, Low, known ##### The Revenue Act of 1978 emerged after President Carter's comprehensive tax-reform initiative collapsed, resul… Id: claim_e29fc57dd32c725988bb508f Parent: claim_0f8f84acae97286e8e8e0af8 Depth: 3 The Revenue Act of 1978 emerged after President Carter's comprehensive tax-reform initiative collapsed, resulting in simultaneous capital-gains tax reductions and the establishment of the 401(k). Labels: Inferred, Low, known ##### Using the same price index to deflate both net productivity and median hourly compensation yields a 43 percen… Id: claim_ea1e18c050f0a7f2f94a0d59 Parent: claim_7d853c769451733e6fabc4a4 Depth: 3 Using the same price index to deflate both net productivity and median hourly compensation yields a 43 percentage point divergence between 1979 and 2017. Labels: Inferred, Low, known ##### Former SEC Chair Mary Jo White conceded in a response to Senator Tammy Baldwin that issuers cannot legally vi… Id: claim_fdf12fccebb63c030da31ce1 Parent: claim_6e1fdb8f6e7d59d4021fa910 Depth: 3 Former SEC Chair Mary Jo White conceded in a response to Senator Tammy Baldwin that issuers cannot legally violate Rule 10b-18 because it is a voluntary safe harbor. Labels: Inferred, Low, known ###### Lobbyist and former Nixon Treasury official Charls E. Id: claim_419eefb0d2ab2999288d01fc Parent: claim_e29fc57dd32c725988bb508f Depth: 4 Lobbyist and former Nixon Treasury official Charls E. Walker headed the 1978 campaign that replaced Jimmy Carter's proposal to equalize capital gains and ordinary income tax rates with capital gains tax cuts and new tax shelters. Labels: Inferred, Low, known ###### Mishel and Bivens calculated that identifiable policy factors account for three-fourths of the divergence bet… Id: claim_bf24bbd1d7763e97cdd2757e Parent: claim_ea1e18c050f0a7f2f94a0d59 Depth: 4 Mishel and Bivens calculated that identifiable policy factors account for three-fourths of the divergence between net productivity and median hourly compensation from 1979 to 2017. Labels: Inferred, Low, known ###### Bureau of Labor Statistics nonfarm business sector data shows cumulative hourly compensation growth of 147% b… Id: claim_e3d291373d84723dbaff6d8d Parent: claim_08b75189f2a9c32056bd4be8 Depth: 4 Bureau of Labor Statistics nonfarm business sector data shows cumulative hourly compensation growth of 147% between 1979 and 2019, obscuring the ~17.5% growth for median workers. Labels: Inferred, Low, known ###### AEI researchers Aparna Mathur and Cody Kallen argue the decline in mobility between 1940 and 1980 was concent… Id: claim_ea2a4645cc2874b2b33a5dc8 Parent: claim_6688fd7d99608e0c774ddb0e Depth: 4 AEI researchers Aparna Mathur and Cody Kallen argue the decline in mobility between 1940 and 1980 was concentrated among children of wealthier parents. Labels: Contested, Low, known