The Trump Boom Yields Huge Gains for Manufacturing and Mining Workers

Workers in two American industries that many economists had consigned to the dustbin of history saw some of the biggest gains in wages, bonuses, and benefits in the start of 2018.

The earnings of workers in the durable manufacturing sector rose 12.2 percent compared with the end of 2017, the largest gain of any of the 24 industries tracked by the Bureau of Economic Analysis (BEA). Incomes and benefits for these workers rose by more than $20 billion in the quarter.

The Trump tax cut, it turns out, was a boon to many of the regions that voted for Donald Trump in 2016. Bonuses paid by auto manufacturers in nine states were responsible for around one-fifth of the gain, according to data released by the BEA on Thursday.

“Earnings in durable manufacturing, which increased $20.7 billion dollars in the first quarter, was boosted by $4.3 billion dollars in profit sharing payments made by auto manufacturers to workers in nine states: Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Tennessee, and Texas,” the BEA said in a statement.

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