US wages plummet to 43% of national income — lowest since the Great Depression. Did Nixon’s gold breakup kill paychecks?

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American workers are getting a smaller slice of the economic pie — and some people blame it on a decision made more than 50 years ago.

A Kobeissi Letter chart (1) based on Federal Reserve Bank (FRED) data (2) has been making the rounds online (3). It shows wages and salaries at roughly 43% of U.S. gross domestic income in the first quarter of 2026. Taken from a government data series going back to 1929, that share is nearly the lowest since the Great Depression began.

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But it doesn't mean Americans suddenly took a 57% pay cut. The figure only counts wages and salaries. It leaves out benefits that employers pay for workers, such as health insurance and retirement plans.

Americans are still getting raises, too. The latest Employment Cost Index (4) from the U.S. Bureau of Labor Statistics (BLS) found wages and salaries rose 3.2% over the 12 months leading up to June 2026.