Chart Of The Day: The Minimum-Wage (Non) Recovery
Yesterday we showed all those key economic criteria (that get so little airtime for obvious reasons), which were prevalent the last time the Dow Jones Industrial Average hit an all time high, back in 2007, all of which reflected a far more vibrant economy, and more importantly, an economy, and market, not propped up by a $14 trillion global central bank liquidity tsunami. Today, our chart of the day comes from BloombergBrief, which shows yet another aspect of the "low wage" recovery, namely that while the bulk of the jobs lost heading into the "recovery" were of middle and higher paying jobs, the offset have been part-time and other low-paying jobs, which explains also why the purchasing power of the average American, in real terms, declines with every passing day.
It is this that Ben Bernanke keeps slamming his head into the pavement over (metaphorically of course: everyone knows the Chairman's only purpose is to make his banker friends richer beyond their wildest dreams), because as long as his artificially imposed "wealth effect" refuses to trickle down in the form of better paying jobs and higher wages, nothing will change, and every periodic surge in "recovery" propaganda, usually taking place in the start of every year, will be met with the same failure as has been the case for the past 4 years.
From Bloomberg:
Recent analysis of current population survey data by the National Employment Law Project shows that 60 percent of job losses during the Great Recession were among middle-wage earners, with low-wage earners accounting for only 21 percent of job losses. During the recovery, those numbers have been flipped; only 22 percent of job growth occurred in the middle-wage occupations while 58 percent of job gains were for low-wage occupations.
The chart below needs no further explanation:
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Need more hamburger flippers & Wal-Mart cashiers when everyone is on food stamps...
Just hold down on the hours so we don't have to buy you heathcare....that crap is wicked expensive.
We'll raise your wage....but we're cutting your hours.
You're welcome.
'The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.'
-Lil' Ilyich
"Lest we forget at least an over-the-shoulder acknowledgment to the very first radical from all our legends, mythology, and history (and who is to know where mythology leaves off and history begins -- or which is which), the first radical known to man who rebelled against the establishment and did it so effectively that he at least won his own kingdom -- Lucifer." - Saul D. Alinksy
Well if your goal is to help as many poor people as possible, the first step in that process to make a lot more people poor to begin with.
Lightbringers always get a bad rap when people want to keep their dealings in the shadows.
So that's why Rockefeller has a GOLDEN statue of Prometheus in the town square. Rockefeller wanted to shine the light of truth on all his dealings so everyone could see just how honest he was. Makes sense. /s
Never confuse the PR with their intent, son.
I think someone told George the game a long time ago.......his name was Joe Palmer
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I've been in Wal-MArt lately. Layoffs are comin'.
Really? You were in there? See all those SELF SERVICE check-out machines?
But, but, but, on MSNBC they say that the Obama Recovery is in Full Swing!
AMERICA IS BACK!
And anyone who disagrees is Talking down the Recovery and, well, is Talking Treason!
TRAITOR!
Ben Bernanke is the greatest man to walk the Earth since Jesus Christ. I heard it on CNBC.
Same in Japan. Nikkei.com headline...
U.S. Recovery, Weak Yen Bode Well For Japanese Stocks
The Dow Jones Industrial Average's close at an all-time high Tuesday bodes well for Japanese stocks, as it may be a sign the U.S. economy is on the road to recovery.
A stronger U.S. economy will tend to push the dollar higher, which in turn will help Japanese companies, especially those in the export sector, by improving their sales and profits.
Hopium.
Every time I think it's gotten so over-the-top absurd that surely we must be at the precipice, these fuckers trot out and reset my expectations for how utterly retarded the herd can be.
I knew Jesus Christ Vic, and Ben is no Jesus.
The only solution is to equip an army of civil servants in light blue uniforms, give them white vans and set them off to deliver Pottery Barn catalogs.
Oh... Never mind. We already have that.
obamacare
Wait until the doctors start getting paid minimum wage... We'll be back to using leeches & sawbones within a generation...
Now would be a good time to polish up on Civil War Field Hospital Medicine.
Take a shot of black jack, put a stick between your mouth, and out comes the hacksaw!
Open heart surgery will be kind of tough, though.
A lot of doctors will just switch to private pay only. No insurance accepted.
So ~ then only the .01% will have doctors... The rest ~ leeches & sawbones...
~~~
Trust me, I'm in pre-Law
But I thought you were in 'pre-Med'
Same thing...
Long barber shop doctors!
Obamacare = "Don't get sick" [but quite frankly ~ we prefer you dead]
Today it don't pay to get sick or die, I don't recommend either.
Free phone and free next-day burial at sea.
Fine by me... I was meaning to go visit my gold someday anyway...
Amen brother.
When will the doctors wake up from their sleep and realize what is coming their way. A doctor friend of mine has pretty much been for Obamacare because he was tired of insurance companies telling him how to "doctor." I told him 3 years ago, if he has a problem with insurance companies, wait till the bureaucrats start telling him how to practice.
I am now starting to feed him stories of those individuals starting to call Doctor's greedy (i.e. Time magazine) and that they should make less money. I mean after all, it is is healthcare and we all have a "right" to free healthcare. I think he and his fellow Doctors will wake up but I think it is going to be too late.
Makes me sick!
The AMA sold the doctors out to the insurance companies and the drug companies. The drug companies and insurance companies made the doctors dependent on THEM at the expense of BOTH the doctors and the patients. Because the doctors were the tools of the money coming from the drug companies and insurance companies, they have thrown their patients under the bus, feeding them unneeded drugs and giving them unnecessary diagnosis... all for the money.
Do I feel sorry for the doctors because their gravy train from the drug companies and insurance companies will be coming to an end? Not so much. Their pay was artificial to start and never would have gotten to where it is in a free market.The patients would not or cannot pay the doctors what the doctors have now been led to believe they are worth.
how do you not immediately understand the fact that an insurance company sets the price for your service? Or the federal government? State government? It's really, really simple. I know a heart surgeon that quit to do general surgery because reimbursements for his services were hacked and slashed and he could make a lot more money jacking off in general practice with little or no risk.
What needs to happen is that the payment function needs to be much more closely tied with the patient and at the time the services are provided. The co-pay and deductible system is broken... the medicare and medicaid system is completely broken (how about another ER visit and ambulance ride?)... the only place where anything is working is on the private pay side.
40 years ago, local doctors accepted pigs, ducks, canned jellies and jams, homemade soap, moonshine, and a myriad of other goods and services in exchange for medical services... AND MADE A GREAT LIVING DOING IT. I don't know why everyone is so scared of going back... they'll do less work (jamming out patient visits every 3 minutes) and have a higher standard of living...
again, oxygen for the markets. with better news, markets would drop.
Minimum Wage? That was a Fabian Socialist initiative from 1906, wasn't it?
Don't know if I should mention here that eurozone countries Austria, Germany and Italy have no minimum wage anymore...
see List_of_minimum_wages_by_country and the oldest think-tank of the world, the Fabian Society
+ 1 for reference to the patient Fabians. Minimum = Maximum, no ?
Really this article is dealing with the coming maximum wage. The max and min will slowly approach each other until the middle class is crushed and destroyed along with the entire country. Have a nice day!
Maximum wage? Oh, somehow this reminds me the new Banker Bonus Cap EU Law that the UK Chancellor is currently fighting against in the Financial Minister's council in Brussels
Indeed, but it looks like he's losing the battle.
Frankly, I don't agree with maximum wages or curtailing banker bonuses. They are a classic socialist attempt at *control* of yet another market for reasons of political dogma.
In their place, I'd like to see criminal action taken against bankers who break the rules. No ifs and buts. That would probably mean hundreds of bankers would be in the slammer today. I'm asking for the Rule of Law to be applied.
IMV that would be far more effective at solving "the banker problem" than trying to control something that cannot really be controlled (higher salaries and perks will replace bonuses).
I have a different view on the matter
The way fiat banking system function, what both national bank and the affiliated fractional-reserve banks do is administrate the public credit
It belongs to the sovereign (as in seignourage) and so to the people
whenever one of those top-shots makes millions in bonuses, it's because he is hyper-leveraging his bets with a very small amount of private shareholder money and immense amounts of public credit - something that was not possible when banks were segregated, btw
further, the very fact that he is incentivated by the current bonus system to seek short-term gain does increase public risk
and yet the truth is even uglier - even continental europeans are unwilling to dismantle those financial dreadnoughts as long as the others have them
and so a serious reform of the banking system's way (perhaps a reset to the regulatory framework we all had before) has to wait until the hegemon of this world wakes up and takes action
I know, it's a very continental view - banking as facilities - and so this EU law is a feeble attempt to change the way people think about banking
meanwhile the right honourable Corzine is legally untouchable because his gains from public credit grease political wheels
No. Private banks are private banks and it's not for government or Brussels to dictate what salaries or bonuses banks pay their staff. If government wants to exercise control (which is what the Brussels-crats want), they should nationalise the banks and make state ownership/control visible. As it is, banks are at the centre of the corporatist political regime whilst govt peddles the lie that they're private and independent of govt. ho-ho. If that were remotely true we would not have seen huge $billions in bailouts.
If government is concerned that bonuses are earned by banksters through using public credit as you claim then regulate such practices, not attempt to control bonuses which will never work. Salaries and expensive perks will partly replace bonuses.
IMHO :-)
they are private as much as their capital goes - which is a small fraction, with the rest made up by "state capital", i.e. what the central lender of last resort guarantees (since it's made up from thin air), who is usually backed by the "social capital" of taxes not yet collected
they are definitely not private when they are bailed out with further tax money, present or future
yes, the is a cancer among them - centered in the US/UK and spreading - where they have hijacked politics in a way that makes them a corporativist regime - though they are flanked in this by other great and strongly lobbyied interests - Big Biz
I understand you - you don't like the method, perhaps it smacks you of socialism
and yet politics is full of strange marriages - just look how a conservative Juncker like Bismarck founded governmental controlled pension funds
sometimes it's better to have the wierd & embarassing first step in the right direction than not have the super cool radical and ideological correct solution at all
well said...payng banksters to game governments should not only result in a return of the entire amount paid to bankstes to government, but should be a criminal act if a bankster shelters it in another domicile or claims it is part of "working for god" or "adding value"..
whoever works for Him should report at His desk immediately - you know the way, you've watched "Groundhog Day"
Fabian Society. To heat up the world in order that they may shape it....
It's for your own good really.
Whatever the minimum wage is now, it should doubled, no, wait...tripled! Why not? Why wait?
Why not go the other direction? I mean...they can still afford the gas to get to work now...and that ain't right.
How can workers compete to offer their wages at the lowest rate to capital if minimums are set? It hobbles competition. Real competition.
Why should they? If you want to steal your fellow man's labor...step up and steal it, bitch.
Nature is red in tooth and claw.
End.
Yes, you are a proponent for a beastial future at best.
Assuming you got your way, what would improve (besides business bottom lines, of course)?
We already have a black market.
My weary, defeated, sardonic whimper didn't come through, did it?
Sorry.
Austria, Germany, and Italy are near the top of the Gini Index.
Yes but all they need to do is buy MOAR stocks in their Etrade account with their after tax savings from the $9.75/hr job and they too can make $16/hr - POOF BAM, its like they had the same job they did in 2004