Report: Most not seeing real wage gains

cnn.com ^ | 8-28-06

[Hydroshock]

Employee pay lowest share of GDP since 1947, when government started tracking data. Corporate profits highest share of GDP since the 1960s. August 28 2006: 11:32 AM EDT

NEW YORK (CNNMoney.com) -- Most workers have not seen wage gains keep pace with inflation during the current economic expansion, the first time that has happened since World War II, according to a published report.

The New York Times reports that the median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation. Median wages are the point at which equal numbers of workers earn more and less.

How much would in 19131914191519161917191819191920192119221923192419251926192719281929193019311932193319341935193619371938193919401941194219431944194519461947194819491950195119521953195419551956195719581959196019611962196319641965196619671968196919701971197219731974197519761977197819791980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004 be worth today? $

The paper reports that while average family income, adjusted for inflation, has continued to advance at a good clip, that has been helped by gains by the top wage earners.

The paper says that about nine out of 10 workers have seen inflation that has outpaced their pay increases over the last three years, according to the Labor Department. That includes workers earning up to $80,000 a year, a level that puts them in the 90th percentile of wage earners.

The paper reports that with employment gains softening in recent months, inflationary pressures stay high due to factors such as high energy prices, so the gap between wages and prices could increase for many workers.

[2banana]

Wonder if they factored in the ever increasing burden of local, state and federal taxes and fees...

[Durus]

I love the smell of class warfare in the morning. (/sarcasm)

[neodad]

As I recall, those stats don't include bonuses and incentives as "wages". I may be wrong, its still early.

[OldFriend]

Rush addressed this bullship yesterday.

[RebelBanker]

OK, so CNNMoney is reporting on a New York Times report. Almost every paragraph starts "The paper reports..."

Is there any independent verification of any of this or are the media engaging in their typical circle jerk?

These people have been trying to talk the economy down to hurt President Bush for the last five years!

[BerniesFriend]

sigh..let me be the first to do it..Bush's fault..

[KevinDavis]

Same BS when I heard when Reagan was President...

[avg_freeper]

"How much would
19131914191519161917191819191920192119221923192419251926
19271928192919301931193219331934193519361937193819391940
19411942194319441945194619471948194919501951195219531954
19551956195719581959196019611962196319641965196619671968
19691970197119721973197419751976197719781979198019811982
19831984198519861987198819891990199119921993199419951996
19971998199920002001200220032004
be worth today?"

In Zimbabwe currency? A buck fiddy.

And speaking of Zimbabwe the obvious solution to this is to allow the state to plan the economy. After all it's worked so well elsewhere.

[LS]

That, and as long as people keep getting health care that is skyrocketing at 35% a year increases, their REAL "wage gains" are astronomical. American business simply cannot keep up this kind of benefits provision. Better to give employees 6% wage increases a year and let them pay cash for medical.

[mkjessup]

CNN.

"The Most Trusted Name In News."

BWHAAHAHAHAHAAAAAHAHAHHAHAHAHAAAAA!!!!!!!!!

Oh my ribs.

[mcg2000]

NY TIMES? yea, that's the ticket ...

[Plymouth Sentinel]

Growth in wages is the principle source of inflation.

Can you say rally?

[CSM]

Sounds like a good reason to lower the tax burden and increase the take home pay for Americans.

Of course this is all Bush's fault, or Wal-Mart's......

[Jason_b]

The reason you heard this same BS when Reagan was President is that this same BS was happening when Reagan was President. So it would follow that you heard this same BS whe Reagan was President. :-/

My salary has gone up, purportedly merit increases. But not as fast as prices and property taxes, which wiped out my merit increases. Thanks a lot inflation.

Such is life since the currency of the US ceased being "primary money," i.e., gold and silver coin, and was replaced by debt-based fiat currency, proliferating without restraint and in proportion to the size of the debt.

what homes used to cost before the depreciation.

[traditional1]

"The New York Times reports ...."

Oh....well, that IS a surprise.

Couldn't have anything to do with the 20 million illegals that invaded the country to do "jobs Americans won't do", could it?

[stylin19a]

ah....we can always count on you to provide an article with little details proclaiming gloom & doom

no mention that products are better and cheaper today, which means you can have more stuff than ever before....

a throw-away casual mention of energy prices....
rock solid reporting...

[stuartcr]

What are bonuses and incentives, and how does one get them?

[pfony1]

Well, here are some excepts from what the BLS actually reported:

---

"REAL EARNINGS IN JULY 2006

Real average weekly earnings decreased by 0.1 percent from June to July after seasonal adjustment, according to preliminary data released today by the Bureau of Labor Statistics of the U.S. Department of Labor.

A 0.4 percent increase in average hourly earnings was more than offset by a 0.5 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Average weekly hours were unchanged.

Data on average weekly earnings are collected from the payroll reports of private nonfarm establishments. Earnings of both full-time and part-time
workers holding production or nonsupervisory jobs are included. Real average weekly earnings are calculated by adjusting earnings in current dollars for changes in the CPI-W.

Average weekly earnings rose by 4.1 percent, seasonally adjusted, from July 2005 to July 2006. After deflation by the CPI-W, average weekly earnings decreased by 0.1 percent. Before adjustment for seasonal change and inflation, average weekly earnings were $571.48 in July 2006, compared with $542.49 a year earlier."

---

In other words, average weekly earnings of "...workers holding production or nonsupervisory jobs..." INCREASED 0.4%, but the prices of a theoretical "basket" of goods (which must include gasoline) increased 0.1% more.

In NUMBERS, this means that the "average worker" has suffered a loss of $0.57 in his purchasing power in July!

57 CENTS!.....FIFTY-SEVEN CENTS!!.....BIG WHOOP!!!

By the way, if the BLS had bothered to include the income of supervisors, managers, busneness owners and professionals in its survey, this miniscule $0.57 "decrease" would actually show an increase. But that would not suggest the imminent arrival of "doom", now would it?

Anyway, it's fun to see that you are as gullible as ever. I am eagerly awaiting your next "fake but accurate" message of DOOM...

[Idaho Whacko]

Seriously, wages have not kept up with inflation.

Wages seem to trigger anti-inflationary actions, but if we could drag all the lawyers out and dump them in a ditch, we would see inflation drop so fast, earning power rise so quick, we could recover much of the lost spending power.

If you don't have money to invest, in this economy, you are SCREWED. Wages don't cut it.