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The Mysterious Case Of America's Negative Real Wage Growth

Tyler Durden's picture





 

Regular readers are aware that one of our favorite data series when it comes to demonstrating the quality aspect of the American "recovery" (the quantity is sufficiently taken care of with part-time workers filling in positions without benefits and job security in the New Normal) is that showing the annual average hourly earnings growth in nominal terms, which in November posted the tiniest bounce from its all time low print of 1.2%, rising to 1.3%.

The problem as noted above, is that this is nominal wage growth. It therefore excludes the impact of inflation which according to the CPI, rose by 2.2% in October, or, in other words, wage growth was negative in real terms. But it wasn't negative only in October and November. When one takes the Y/Y change in average hourly earnings and subtracts the Y/Y change in CPI one gets a very troubling picture: wages have risen below the rate of inflation for 22 consecutive months, with real wages printing their last positive number back in January 2011 and negative ever since!

So how does one explain this disturbing news that nobody reports on for fear it would upend all narrative of a recovery, as one can not have a recovery if real wages have been declining for nearly two years in a row? Bloomberg's Rich Yamarone takes our big picture jobs Quality-vs-Quantity theme, and granularizes it, showing that since the "end" of the Great Recession, the most jobs gained, are those who have had the lowest change in average hourly earnings:

Another critical component of this low-wage hiring trend is the eroding rate of wage growth. During November the pace of average hourly earnings for all private workers increased just 0.2 percent from October, and remained a mere 1.7 percent higher than a year ago. This is not keeping up with the pace of underlying inflation, which was 2.2 percent during October (as measured by the consumer price index.) The year-over-year increase in average hourly earnings for production and nonsupervisory workers was 1.3 percent in November, a negligible difference from the 1.1 percent rate in October, which was the lowest since recordkeeping  began in 1964.

 

Wage growth is simply not keeping pace with the underlying rate of inflation. Wage growth in two of the largest industries isn’t even advancing by 1.0 percent per year. Leisure and hospitality average hourly earnings growth in the last year is a lowly 0.5 percent, while professional and business services earnings are 0.8 percent higher than November 2011.

His conclusion is sadly spot on:

One doesn’t have to be an economist to know that economic output and employment is a function of income and wage growth. Consumers cannot spend what they don’t have.

Well, in that case Krugman must be an economist to "know" that consumers can and will spend much more money than they will ever make as long as the US government keep handing it over to them and everyone somehow continues levering up in expectation of the magical "snap" moment, when this too trend of negative real wage growth will reverse just because, and everyone will be perfectly wealthy once again.

Because ECON101 said so.

 


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Mon, 12/10/2012 - 09:54 | Link to Comment CPL
CPL's picture

I'll get the Hardy Boys and Nancy Drew on the case.

Mon, 12/10/2012 - 10:14 | Link to Comment LouisDega
LouisDega's picture

They are not of my generation. I was thing more of Columbo

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcS2r_P65oLiS8S9d5Qt...

Mon, 12/10/2012 - 11:13 | Link to Comment TruthInSunshine
TruthInSunshine's picture

For insight on the clear & present danger that the Krugmans of the world pose to everyone (to the extent that their ideas gain influence amongst central banksters and legislators), Paul "When Mar's Attacks" Krugman has now blamed robots, and not the actions of quasi-humans such as one Ben Bernanke, on the loss of skilled, unskilled, and now, professional jobs within the U.S., as well as wage stagnation/declines. He had a big propaganda piece...I mean op/ed...about it in Sunday's edition of The New York Crimes.

Krugman: Robots and Robber Barons

Mon, 12/10/2012 - 12:48 | Link to Comment fourchan
fourchan's picture

 

 

We have exported our wage inflation to the lesser slave nations. there is no pricing power in wages for u.s. workers

and since this is the only measure of inflation benake looks at he is a fool interpreting shadows on a wall.

 

 

Mon, 12/10/2012 - 13:31 | Link to Comment LMAOLORI
LMAOLORI's picture

 

 

 

Corporate profits hit record as wages get squeezed

snip

Just four years after the worst shock to the economy since the Great Depression, U.S. corporate profits are stronger than ever.

In the third quarter, corporate earnings were $1.75 trillion, up 18.6% from a year ago, according to last week'si gross domestic product report. That took after-tax profits to their greatest percentage of GDP in history.

But the record profits come at the same time thatworkers' wages have fallen to their lowest-ever share of GDP.

http://money.cnn.com/2012/12/03/news/economy/record-corporate-profits/

Mon, 12/10/2012 - 14:39 | Link to Comment Boris Alatovkrap
Boris Alatovkrap's picture

Strange is Amerika elect Bolshevik and wages are descending! Who is would to think!?

Mon, 12/10/2012 - 15:26 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The always talk about corporate profits, yet in the same articles and tripe-fests, they never mention levels of corporate debt...

Hmmmmmm

Tue, 12/11/2012 - 01:12 | Link to Comment Blazing Saddles
Blazing Saddles's picture

Clearly all corporations are evil.

Tue, 12/11/2012 - 21:41 | Link to Comment blunderdog
blunderdog's picture

You can make whatever moral assertations you like, but the simple bit is that it's profits vs. wages.

Just like it's always been.

Mon, 12/10/2012 - 13:05 | Link to Comment Seer
Seer's picture

Just because someone is an idiot it doesn't mean that they can't get some things right (whether it was their intention or not).

Automation DOES displace human jobs.  Consider the highest capitalized company on NASDAQ -AAPL- do you think that their products are being hand-crafted?

Businesses relocate, and when they do they take the opportunity to incorporate changes in their production.  In the case of manufacturing you can bet that there are always changes that incorporate MORE automation.

Take a look at the growth (well, now it's mostly past since everything is contracting) in companies that produce automation/robotic equipment.

It was Automation Weekly (?) who many years ago had an article pointing this all out.

The CON, which you have to be careful to be sucked in to, is in thinking that there's a whole bunch of human jobs that can be returned to US shores.  As tensions increase with foreign govts we'll be seeing US-based companies pulling out and bringing their toys back to the US; BUT, and here's the CON, these companies will manage to get a LOT of concessions for enticement to return to the US: they'd be returning anyway, being kicked out from abroad!

Mon, 12/10/2012 - 18:57 | Link to Comment TruthInSunshine
TruthInSunshine's picture

My point wasn't that automation doesn't displace jobs, but that the breaking of all financial and economic markets, along with breaking sub-components such as valuation, price discovery, and supply/demand equilibrium, by batshit crazy-level central fractional reserve radical interventionism is far more responsible for the current (real) depression and corollary job losses, hence Krugman is a fraud to set up the "robots are stealing jobs, oh my!" singular theme.

Mon, 12/10/2012 - 10:22 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

You'll find him at Galt's gulch.

Mon, 12/10/2012 - 10:40 | Link to Comment kridkrid
kridkrid's picture

I went back home and I watched Columbo. Let me clear my throat.

Mon, 12/10/2012 - 12:06 | Link to Comment AGuy
AGuy's picture

Not to worry, Inspector Clouseau is on the case!

Mon, 12/10/2012 - 13:13 | Link to Comment LouisDega
LouisDega's picture

Correction, Thinking more of Columbo, Not thing

Mon, 12/10/2012 - 10:31 | Link to Comment Debtless
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And they would continue to get away with it if it hadn't been for you meddling ZH kids.

Mon, 12/10/2012 - 09:56 | Link to Comment bigdumbnugly
bigdumbnugly's picture

mystery?

elementary my dear krugman

Mon, 12/10/2012 - 09:58 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

Be carefu Tylerl, a little truth every now and then is refreshing.  Too much truth, on the other hand, can be a dangerous thing.

 

Mon, 12/10/2012 - 09:56 | Link to Comment Racer
Racer's picture

And I bet those at the top have still got wages that are soaring!

Mon, 12/10/2012 - 10:43 | Link to Comment Crash N. Burn
Crash N. Burn's picture

And I bet those at the top have still got wages that are soaring!

And, of course, the lowest tax rates in history!

Top backet tax rate

If they pay them!

Mon, 12/10/2012 - 09:56 | Link to Comment ekm
ekm's picture

Can't we behave like real men?

What the fuck is a NEGATIVE GROWTH?

 

Can't we call it the way it has to be called like:

CONTRACTION, DECREASE, REDUCTION etc.

 

Freaking pussycats.

Mon, 12/10/2012 - 10:59 | Link to Comment Crash N. Burn
Crash N. Burn's picture

What the fuck is a NEGATIVE GROWTH?

 Indeed, was watching the BBC business 'news' (yeah, I know, as futile as reading Krugman) and they keep reporting corporations are making a loss.

Mon, 12/10/2012 - 13:10 | Link to Comment Seer
Seer's picture

Or, you can try my own coined-phrase: Economies of Scale in Reverse.

Another one that gets me is when all the warmongers (defense contractors with their insiders planted in govt) claim that their budgets are being cut, when what is being cut is the FORECASTED INCREASE.

Hell cannot be hot enough to deliver to these folks what they deserve...

Mon, 12/10/2012 - 15:47 | Link to Comment zerozulu
zerozulu's picture

I like " negative growth". To me it means I don't have to go to work and my employer will come to me at home and pay me my salary.

Mon, 12/10/2012 - 09:57 | Link to Comment buzzsaw99
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bonus time

Mon, 12/10/2012 - 09:58 | Link to Comment Super Broccoli
Super Broccoli's picture

naaaah come on people, just make some more loans to finance chrismas !

Mon, 12/10/2012 - 10:05 | Link to Comment pepperspray
pepperspray's picture

That's what I did. Super easy!

Mon, 12/10/2012 - 09:58 | Link to Comment Looney
Looney's picture

I was goning to post "Fucking Unicorns", but don't want to be acused of bestiality...  ;-)

Looney

Mon, 12/10/2012 - 10:03 | Link to Comment holdbuysell
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Pile on the Shadowstats' estimate of inflation using the method used by the government in the 80's before changing it and the picture is even worse.

Mon, 12/10/2012 - 10:09 | Link to Comment kridkrid
kridkrid's picture

+\- 3%- 4% per year. Compounding interest, being what it is, makes life a bitch for those who actually live in reality vs. the made up CPI. Lies, damn lies and statistics.

Mon, 12/10/2012 - 10:23 | Link to Comment holdbuysell
holdbuysell's picture

Shadowstats' current inflation estimate is 9.82%.

Mon, 12/10/2012 - 10:34 | Link to Comment exi1ed0ne
exi1ed0ne's picture

But the actual deviation between the two series compounds and gets worse over time.  Even with a 1% deviation, you get a spread of 200K humans per DAY (population growth for example).

Mon, 12/10/2012 - 10:47 | Link to Comment kridkrid
kridkrid's picture

So at that pace, prices double in 7-8 years...I'm guessing that most haven't seen their incomes double in that same period of time. And I think that number is pretty fair. Random things in the supermarket that for some reason stick out in my mind, but the little tins of cat food that were .29/can when I first married into cats 8 years ago are now .59/can. A 2 liter of diet coke was almost always on special for .89 or .99 can never be found for less than 1.59. Of course food isn't part of the CPI measure, even if it is the most inelastic thing we buy with our money. Crazy.

Mon, 12/10/2012 - 13:46 | Link to Comment blunderdog
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CPI only measures all the stuff that doesn't matter.

Mon, 12/10/2012 - 10:38 | Link to Comment kridkrid
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Double post

Mon, 12/10/2012 - 10:02 | Link to Comment dick cheneys ghost
dick cheneys ghost's picture

I would suggest that the nation needs more banker bailouts!!

Mon, 12/10/2012 - 10:04 | Link to Comment scatterbrains
scatterbrains's picture

.

Mon, 12/10/2012 - 10:03 | Link to Comment Jason T
Jason T's picture

Food stamp benefit was $95 per person in 2008.. now it's $135 per person per month!

There's your raise.. in gov't handouts thus offsetting need to ask employer for raise.

I've got a family of 4, I can make $15 an hour while my wife stays home and get $662 a month in food stamps.  .. if we so wanted to do ..in NY that is.

Mon, 12/10/2012 - 10:23 | Link to Comment adr
adr's picture

Exactly, and that explains 1 million more going the welfare route instead of working. Good ol Chicago style socialism. Saul Alinski would be so proud.

Add in a free Obamaphone and Obamanet. In some schools a free Obamapad that isn't supposed to leave the school, but can be "stolen". Nearly free utilities, all the free prescription drugs you can get as long as you fake symptoms of pain for your disability check. Now you get to park next to the door anywhere you go.

Saturday was fun. The first Saturday after the EBT cards were filled, and the last welfare transfer before Christmas. Ghetto people everywhere loading carts with toys. Welfare queen with six kids throwing everything she can in a cart, combining her EBT card with her oldest daughter's who also has three kids.

Makes you so glad to be an American. Wish I didn't have a family to support, it would have been a fun day to test some things.

Mon, 12/10/2012 - 10:04 | Link to Comment kridkrid
kridkrid's picture

So I'm sure by the time I hit "save" ten other people will have pointed out that inflation outpacing wages when defined by CPI tells an even rosier picture than reality.

On my drive into my office today, NPR was running a story about how manufacturing was going to return to America thanks to $30,000 robots who can compete favorably vs basic slave labor in china. The story was upbeat. I suppose that the average person who prefers not to think would "think" - "damn straight, American ingenuity will win in the end". I wanted to raise my hand and ask a question, but the cars next to me would have thought it odd.

Mon, 12/10/2012 - 10:13 | Link to Comment Whoa Dammit
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And the average person doesn't know the $30,000 robots, and their maintenance parts will be made in China or some similar place.

Mon, 12/10/2012 - 10:15 | Link to Comment SheepDog-One
SheepDog-One's picture

Forget the manual labor robots....what about the T-1 Terminator androids with the hyper metal alloy combat chasis? 

Mon, 12/10/2012 - 10:25 | Link to Comment kridkrid
kridkrid's picture

Nothing like that. These robots blush when you get into their workspace... They said so during the report. The robots are apparantly shy, but excellent workers, and very quick learners; you show them how to do the task one time and they are good to go. I may get one myself.

Mon, 12/10/2012 - 11:11 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

Wait until these cute-n-bashful robots unionize.  Then the only thing blushing will be the consumer's ass-cheeks as they get pounded by titanium AI-driven manparts.

Mon, 12/10/2012 - 13:23 | Link to Comment Shizzmoney
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Isn't this essentially the plot of all of the "Matrix" films?

Mon, 12/10/2012 - 10:51 | Link to Comment Joe Davola
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Someday we'll reach Utopia 14

Mon, 12/10/2012 - 11:07 | Link to Comment Dapper Dan
Dapper Dan's picture

MADE IN AMERICA

(by robots made in China)

Mon, 12/10/2012 - 10:07 | Link to Comment Miramanee
Miramanee's picture

I teach High School Economics. We frame ALL of our discussions about EVERYTHING in terms of real v. nominal. Using this contrast as a frame of refercne allows the students to make observations that are less in line with various rhetorical memes and more prone to real analyses and synthesis.

Mon, 12/10/2012 - 10:10 | Link to Comment jimijon
jimijon's picture

Hmmm... not preaching the gospel? Better hurry and get tenure.

Mon, 12/10/2012 - 10:12 | Link to Comment kridkrid
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Same day, in the not too distant future, your teaching methods will be called suspect and you might be considered unpatriotic.

Mon, 12/10/2012 - 10:12 | Link to Comment scatterbrains
scatterbrains's picture

Does DHS know what your up to ?   Public school ?  

Mon, 12/10/2012 - 10:34 | Link to Comment Whatta
Whatta's picture

hmmm. Congrats, you have now made the No Fly List!!

Mon, 12/10/2012 - 10:08 | Link to Comment Comay Mierda
Comay Mierda's picture

Forward!

Mon, 12/10/2012 - 10:14 | Link to Comment Whoa Dammit
Whoa Dammit's picture

Isn't that what Custer said?

Mon, 12/10/2012 - 10:24 | Link to Comment dcb
dcb's picture

thye bernanke eect, make the 99% poorer but hlp the richest. More proof how the qe policy is really hurting folks

Mon, 12/10/2012 - 10:26 | Link to Comment wilburpup
wilburpup's picture

A lot of what would have been wage growth has been eaten up by health insurance costs paid by employers.  Total compensation is therefore somewhat better than these charts indicate.

Mon, 12/10/2012 - 10:26 | Link to Comment madcows
madcows's picture

first i cancelled the cell phone.  Then, I cancelled cable.  Then I reduced my 401K contribution.  Then I eliminated the 401k contribution.  Then I reduced the high deductible health insurance contribution.  Then I reduced the church offering.  I'm running out of things to cut.  But, of course, inflation is only 2.2%.

Mon, 12/10/2012 - 10:53 | Link to Comment Joe Davola
Joe Davola's picture

On the bright side, those eliminated 401k contributions leaves less for them to confiscate!

Mon, 12/10/2012 - 12:29 | Link to Comment Shizzmoney
Shizzmoney's picture

Those last two posts here are pretty fucking funny (b/c they are true).

Corporpations want you to sign up for their 401K, yet most won't match said 401K contributions.  Who benefits from this?  The corporate execs (who hold stock) and the investment house (of course). 

I'll take the cash in my already over taxed and under paid check, thank you very much.

I think 401Ks are a bubble.  I can't wait for them to crash (although some people, I'll feel bad) just so I can stick it right in the face of those who shitted on Occupy Wall Street and say, "We told you so, motherfucker!".

Mon, 12/10/2012 - 10:27 | Link to Comment mrktwtch2
mrktwtch2's picture

its getting worse..not better..but someday it will!!..lol

Mon, 12/10/2012 - 10:32 | Link to Comment Whatta
Whatta's picture

seriously...the brand of dog food we eat went up more than 10% in the last month.

what inflation?...or What? INFLATION!!!

Mon, 12/10/2012 - 10:32 | Link to Comment Sean7k
Sean7k's picture

Sadly, this passes for imformation. Are we so stupid that we cannot put two and two together without an "expert" to add it up for us? 

The labor market is more competitive with less employment= lower wages are accepted to GET the job. 

Inflation is higher because of the expansion of the money supply versus the manufacture of productive assets. 

This is pretty plain on the face of it and should be EXPECTED. The attempt to satisfy the debt through increased taxes and governmental theft further exacerbates the problem and indicates a fall in our standard of living. It's all greek to me. 

Why are we surprised? Why are we educated? We aren't. People really need to think for themselves, assimilate and analyse information, read past the statistics, look around themselves and find their best solutions. It is not via this type of boilerplate, run of the mill blog crap.

Mon, 12/10/2012 - 10:47 | Link to Comment NotApplicable
NotApplicable's picture

Good thing you were here to make the point.

Mon, 12/10/2012 - 10:34 | Link to Comment Debugas
Debugas's picture

real wages (in terms of purchasing power) are falling for several decades already

Mon, 12/10/2012 - 10:35 | Link to Comment Shizzmoney
Shizzmoney's picture

Mysterious?  Ain't nuthin' fuckin' mysterious about it.

In a system that is driven by behind-the-curtain shareholders, capital driven by fraud, and politicans who quite simply don't give a shit b/c our government and its central fail bank (Fed Reserve) only serves the interest of the 1%.......this should of been quite frankly, predicted.

But karma dictates that at some point, this has to end.  Either by a crash, or a mass exodus of consciousness of the workers who put up with worsening conditions, stagnant wages, lessening benefits (despite "legislation" passed to help, otherwise), and plutocratic bureaucratic assholes who want to keep the system intact by lowering the taxes they pay, yet raise the taxes on workers WHILE making them compete against labor in other countries, that we export inflation too. 

But hey, iPads have never been cheaper, and the let us wear jeans on Fridays!

Mysterious negative wage growth?  And this is happening in countries that are controlled by the Federal Reserve AND ECB? 

Ain't nuthin' fuckin' mysterious about it.

Mon, 12/10/2012 - 10:52 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Real wages never keep pace with real (monetary) inflation. Palyi wrote about this in 1960 in "An Inflation Primer", but nobody listened...or cared.

Mon, 12/10/2012 - 10:53 | Link to Comment tabasco71
tabasco71's picture

Maybe I am just crap, but... I haven't had a decent wage increase since 2009.

In fact I only get wage increases when I am clever enough to figure out a way to bullshit a different company to pay me more to move to them.... once I am in the door, my wages stagnate again.

Like I say, maybe I am just a shit worker.... but then, I keep getting hired (touch wood)

Mon, 12/10/2012 - 11:29 | Link to Comment Shizzmoney
Shizzmoney's picture

I get a raise (which is also not guarunteed merit increase to me by my company) of 2.5% each year (based off of the CPI number).

Yet:

- Certain foods like beans, corn, meat, and milk is up 20% since 2005.

- Rent in high employment areas (or at least relative) has risen, like here in Boston, on an average of 5-9.5% each year

- Health Care costs have risen by 6%-19% each year since 2002, even DESPITE government intervention (like here in MA with "HeritageCare").

- Public Transit costs have risen by 25% this year here in Boston. 

Now, I was able to handle these costs as an employee BEFORE the 2008 crash, where it was common for employers to offer paid MBTA passes, summer/XMAS bonsuses, AND the token merit increase (which would be higher b/c the job market was more competitive, which is proven by job vacancy and quit rates). Not anymore.

Oh, and taxes are also now higher. 

Libertartians all the time talk about a "free market".  yet, when it comes to employment today in America, the job market is NOT a free market. 

The game is rigged against workers, small businesses, and those who actually create value for society.

Mon, 12/10/2012 - 11:50 | Link to Comment tabasco71
tabasco71's picture

You are getting 2.5%... hmm, so I am shit... I've been getting 1.05-1.8% in each year since the crash.  

 

I moved company in 2010 and got a 40% hike which I thought would keep me happy for 5 years, but in fact I'm barely treading water again already.

 

I guess in order to get another wage increase like I did, I'll have to become self-employed... Ooops... who's pulling my trousers down!!!! 

Mon, 12/10/2012 - 13:14 | Link to Comment RKDS
RKDS's picture

It's so bad that some state government employees are going on six years without a raise.  Computer programmers, for instance, are considered management due to some loophole.  We're not protected by the union contract but we don't get any of the perks of being management either.  What option have we but to deliver a level of service commesurate with  falling pay?  Too bad private sector sociopaths squeeze productive workers so much harder.  The gamble of self-employment's looking like the only way out but as wrecked as the economy is...

Mon, 12/10/2012 - 11:05 | Link to Comment IamtheREALmario
IamtheREALmario's picture

I suppose that when one considers that real wealth is being siphoned off from the people of this country in the form of interest taxes and foreign labot arbitrage and transferred to parasites that something has to give and that is the wages of the people ... so that they cannot afford their lifestyles and must become wage slaves to the parasites.

If one looks at the real rate of inflation (instead of the falsified CPI) on wages and lifestyle, then the numbers must look much worse.

Mon, 12/10/2012 - 11:06 | Link to Comment DeadFinks
DeadFinks's picture

We have the perfect president and administration to execute a managed decline of America.  A guiltless liar with the charm that places him beyond reproach of the masses can apply incremental pain without setting off the explosion.  A perfect leader for the frog boil.

Mon, 12/10/2012 - 11:06 | Link to Comment roadhazard
roadhazard's picture

Twenty two months ?  How about thirty years. Get real.

Mon, 12/10/2012 - 11:15 | Link to Comment khakuda
khakuda's picture

There is no mystery here.  Labor is oversupplied.  You've added like a billion workers in China over the past few decades.  Central banks are printing like crazy to create inflation (or as they say, avoid deflation) and they are successfully doing that in everything but U.S. wages.  That is their great error.  Inflation isn't good if wages don't keep up.

The end result is more misery, yet that is the path they continue to follow. We'll see even more this week.  When it doesn't work, they will just take more from the haves and give it to the have nots.

Mon, 12/10/2012 - 11:35 | Link to Comment Shizzmoney
Shizzmoney's picture

I wish my liberal Neo-Keynesian friends would see this, the ones who think, "inflation is good!". 

Inflation is only good if the currency, and the institutions which print it, are honest.  And obviously, our banking institutions, and our government, are failed instutitons.  Therefore, the inflation they create, is more destructive. 

People need to get out of debt, stop buying crap, and stop settling for crappy jobs.  Stand up for your fucking selves.

BTW, I'd bet that job creation < population creation.  And since NAFTA and other free trade agreements, we are competing on a global scale. 

Jobs are a bubble.

Mon, 12/10/2012 - 11:37 | Link to Comment jplotinus
jplotinus's picture

Tylers say:

" (the quantity is sufficiently taken care of with part-time workers filling in positions without benefits and job security in the New Normal)"

That's enlightening up to a point, but why not complete the thought, thus making it meaningful rather than merely anecdotal? I can help:

Capitalism has a vested interest in keeping people poor, insecure and minimally compensated for work they perform. The logical conclusion to be drawn is, therefore, that capitalism is more apt to destroy jobs than create them.

Hadn't we ought to deal with that?

Just axin' :-/

Mon, 12/10/2012 - 13:55 | Link to Comment blunderdog
blunderdog's picture

This has been understood in the past--we maintain an entertainment industry which has driven this very basic understanding out of many people's heads in the USA.

It's really amazing, if you think about it.  I wonder if 30 years of the right teevee programming could similarly convince Americans that water isn't wet.

Mon, 12/10/2012 - 11:49 | Link to Comment Shizzmoney
Shizzmoney's picture

The problem is that money is such a great, mobile thing. It moves so quickly and neatly and everyone is always happy to see it, so the idea is to squeeze as much out as quick as possible and put it elsewhere, especially abroad to countries like China, Bangladesh, etc (also where the government is the beneficiary, and enforcer, for crony corporate malfeasance), where employees are paid even less.

However, now also, executives and investors are mobile (and faceless), and have no connection with the production apparatus they are paying for.  The existence of corporate stock today is just a bunch of alphabetical symbols on a portfolio.  The investor class, and the banking institutions that bankroll them, don't see the faces behind those "profits" (which one can also argue are fraudulent).

There's a limit, however. Now that the 'third world' has as much knowledge as we do, they're building their own capacity and don't await our money so greedily.

They're even biting back, saying we don't know best and shouldn't tell them how to build their factories, economies, governments, etc.  You can thank the IMF for this, otherwise known as the World's Serfdom Export Vessel.

I am in favor of HONEST world trade because it brings cultures together, breaks down barriers between races, and provides a freer market for the consumer.

BUT it's not supposed to be used looting mechanism for the new world class of stateless rich people, and stateless corporate governance, which seek to "unify" legislation in their favor at the behest of the majority of the world's citizens. Of course it is, and that's why we are in the position we are today.

Mon, 12/10/2012 - 13:36 | Link to Comment SmittyinLA
SmittyinLA's picture

There's nothing mysterious about it, our govt has an alien scab labor population replacement program going, our government is an ongoing criminal enterprise.

The state is like is an AIDS virus, its harnessed all the cells of its body (citizens & machinery of govt) to divert all resources to alien population replacement.

Instead of "right to be free from foreign invasion", foreign invasion is policy, at home and abroad. 

Look at local spending in every state, everything is being diverted to subsidize scab replacements, no scabs, no spending, no nutrients. 

Americans have been forced into tax slavery to pay for mass immigration whose only purpose is to "cut the wages" and "grow the herd" of the American pig farm, which apparently Americans don't care own anymore.

Foreign invasion of our own territory and free shit for foreigners not only is public policy, its "outed" public policy.

 

 

Mon, 12/10/2012 - 16:02 | Link to Comment Shizzmoney
Shizzmoney's picture

Capuchin Monkeys reject unequal pay......must see:

http://www.youtube.com/watch?v=g8mynrRd7Ak&feature=youtu.be

Pretty sad they have more fight than we do.

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