When Profits Come Before People: How Corporations Are Failing American Workers

A brief overview of how Americans continue to struggle despite federal political promise

"I’m a store manager at 5 Below. Sales at my location are two to three times higher than they were this time last year. You’d think that would be good news, right? Instead, corporate refuses to give me the 40 hours a week I need to survive. They won’t approve hiring anyone new, even though we’re slammed every day. I’m a veteran. I’ve served this country, and now I’m working two jobs just to stay afloat while my store’s profits keep climbing. It’s exhausting—and at my expense.”

This story isn’t unique.

It’s one of millions that illustrate how American life is becoming increasingly difficult by the day, not because we lack resources, but because corporations continue to prioritize profits over the people who keep them running. Whether you're a veteran managing a retail store, a nurse working double shifts, or a delivery driver sleeping in your car, the pattern is the same: the system isn’t broken—it’s functioning exactly as designed to benefit the few at the top.

For decades now, wages for everyday workers have remained mostly flat while corporate profits and CEO salaries have soared. According to the Economic Policy Institute, since 1979, the top 1% of earners saw their wages grow by 138%, while the bottom 90% saw a mere 15% increase. According to the US Bureau of Labor Statistics (BLS), American workers made a median wage of $1,139 per week in the first quarter of 2024, which would add up to $59,228 per year. That means most Americans are working harder and longer for less relative pay. When adjusted for inflation, real hourly wages for many workers are no more powerful today than they were in 1978.

Low-wage workers indeed saw modest gains from 2019 to 2023—a roughly 13% real wage increase—but that momentum hasn’t meaningfully shifted the overall picture. At the same time, costs have skyrocketed. The Ludwig Institute recently reported that a family needs an annual income of $100,000 to maintain a “minimal” quality of life. That’s double what was required just two decades ago. And housing? It’s becoming even more unattainable. According to projections, the median home price is expected to reach $615,000 by 2030.

Even basics like fast food—once the go-to for working families—are now luxuries. A LendingTree report found that the average combo meal at a fast food restaurant costs $11.50, and in some cities, workers have to labor nearly 40 minutes to afford a single meal at the place where they work. Food, rent, gas, and electricity bills have all climbed faster than wages, especially for those in frontline or service roles. This financial imbalance leaves many workers constantly playing catch-up. Between 2020 and 2023, grocery prices rose by over 20%, electricity costs jumped more than 15%, and rent increased by 18% nationwide, with even sharper spikes in major cities. Meanwhile, real wages for frontline and service workers have remained largely stagnant, barely keeping pace with inflation. Despite being labeled “essential” during the pandemic, these workers continue to earn disproportionately low wages while facing rising costs in every corner of their lives. The math simply doesn’t work, and the gap between what it costs to live and what workers are paid continues to widen.

The impact is brutal. More than ever, Americans are being pushed out of their homes. Between 2022 and 2024, the homelessness rate increased by 30% nationwide, from 1.75 to 2.3 people per 1,000. Even those who served our country are not spared. Veteran homelessness, while slightly reduced this past year, still leaves over 32,000 people sleeping on the streets or in shelters. Many of them face health challenges, trauma, and systemic neglect.

All the while, corporate executives are doing just fine.

Executive compensation continues to skyrocket, reflecting a broader shift in how corporate profits are distributed. According to the Economic Policy Institute, CEO pay grew by an astonishing 1,209% between 1978 and 2022, far outpacing the 15% wage growth seen by the typical worker in the same period. In 2022 alone, the average CEO of a top U.S. firm made 344 times more than their median employee, up from a ratio of just 20-to-1 in 1965. Meanwhile, the overall share of national income going to workers has steadily declined. In 2001, 64.1% of the national income was paid out as wages and salaries; by 2024, that number had dropped to just 55.8%, according to the U.S. Bureau of Economic Analysis. This shift means that more of the money generated in the American economy is being funneled into stock buybacks, executive bonuses, and shareholder dividends, while fewer dollars are reaching the people actually producing the goods, serving customers, or keeping stores running. Workers like the 5 Below manager, who are seeing record-breaking sales, are still being denied full-time hours, adequate staffing, and a living wage. They're being asked to do more with less, not because the money isn't there, but because it's being redirected upward.

It doesn’t have to be this way. America can choose to put people first again, through stronger labor protections, living wages, affordable housing, and corporate tax structures that prioritize reinvestment in workers. Until we make that shift, stories like the one at 5 Below will continue to define the reality of working-class life in this country: overworked, underpaid, and fighting to survive in the shadow of billion-dollar profits.

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