Chart Of The Day: With "Recoveries" Like These Who Needs Wage Growth?

Tyler Durden's picture

As if charts of endlessly grinding lower hourly earnings was not enough to show the increasingly desperate plight of the US worker, here is another nugget from the BLS, this time showing the annual change in real US wages, where we have conveniently highlighted the long-term trendline, and where Q1 wages just posted a -0.1% annual decline, which makes one wonder: with "recoveries" like these who needs any wage growth? Another question: what happened to the Fed's trickle-down - or are government handouts and transfer payments to a nation addicted to government handouts all that matters? Final question: since some cash is transferred to the US workers ultimately, what happens to worker wages when the Fed's QEternity finally ends?

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King_of_simpletons's picture

Let the 1% enjoy.

The rest can always complain.

camaro68ss's picture

Is it bad that i want to start drinking this early?

SemperFord's picture

It's always Happy hour somewhere, besides I could use some Sailor Jerry as well!

walküre's picture

Today is the day to go "all in" and throw that money straight into the DJI and SP crapshoot. I'm going soooooooooooooooo long, I'm almost to the moon!

Fuck you Bernanke!

espirit's picture

I think I remember you saying that if you're in...the rest of us should short, or somethin' like that.

espirit's picture

I find that it helps to be fitshaced before that market opens.

doomandbloom's picture

its easy...its a Recoveryless Recovery.....did you BTD yet?

AcidRastaHead's picture

If you were born after 1976, you may want to start drinking even earlier:

Jekyll_n_Hyde_Island's picture

Initial Caveat: I agree with the Durden's on almost everything, so I'm not disagreeing here.


  We aren't going to see wage increase until inflation stops being staved off with artificial mechanisms.  This is aberration of inorganic matriculated growth and I don't think many economists expected wage increase as a result.  No surprise here, just more "there's no recovery happening keep on stacking" same 'ol -- which is still wise.


  There are a few things to be positive about.  A few.


Mercury's picture

Another question: what happened to the Fed's trickle-down - or are government handouts and transfer payments to a nation addicted to government handouts all that matters?


Well that and making sure that a critical mass of recipients continue to vote for government "security".

That's pretty much the operating model of the socialist welfare state...until the music stops.

Ideally you would want “voter farms” filled with mostly idle people with little to no durable wealth who rely on government spigots to be constantly flowing rent payments, EBT money, TV, electricity and childcare/school/health services. Who is going to vote that away?

prains's picture

please don't confuse a corporatist state, with a socialist state;


a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.


yes this is a team concept and no it will not work in the Various States of Detroitification but at least we should try and keep our fax straight if we're going to attempt change

(fax is used in a mildly sardonic manner)

Mercury's picture

I believe the European Union is owned by the community as a whole.  How is that working out?

And who are to be the community angels in charge of making the wheels of central planning turn?

Whether it's Megacorp or a government agency that looks, walks and talks like Megacorp really makes no difference.

prains's picture

My current address can't be detroitified so that answer is up to you folks, but i remember vaguely something that uses the words;


by the people......

Mercury's picture

That's governance, not property rights.
Big difference.

prains's picture

property rights are derived from governance, circular arguement

Mercury's picture

No, you are making the circular argument.

When the government (sorry, "the community as a whole") or its agents own everything there are no property rights.

prains's picture


trying to paint me as a defender of socialism when all i was doing was getting your fax straight for ya! nice fail. 

we the people..... no longer needs to be an 'ism' in fact the team concept you'll need in the not so distant future will have more to do with drone detection than any esoteric ideas about governance, good luck

prains's picture

my address is not europified either but again you mistake the terminology which does nothing to help create a clear path to change. Draghistan is really nothing more than;


Fascist corporatism 

Fascism's theory of economic corporatism involved management of sectors

  of the economy by government or privately controlledorganizations


Caviar Emptor's picture

Fascism or gov by the Rockefelllers and for the Rockefellers.
But don't worry: soon you'll get free room and board in exchange for your work (14/7). Wherever they place you, that is. Work shall make you free !

Shizzmoney's picture


please don't confuse a corporatist state, with a socialist state


There *is* a difference between a socialist and a statist, as well as a capitalist and a statist.

I'm glad people are (slowly) starting to figure this out.


That's why "social" legislation is passed; TPTB don't want to make things better for people, they just want to do just enough so that we won't get any funny ideas and find out whose finger is up our collective asses.

Mercury's picture

Oh yeah? What "socialist" economy isn't actually controlled by the state or it's agents that severely limit your economic and personal liberties?

You people aren't fooling anyone by renaming the coersive state the "community".

TeamDepends's picture

Now get out there and find yourself a job college grad, this gravy train never ends!

Pairadimes's picture

Need to add a line and trend for net worth of wealthiest banksters.

Dr. Engali's picture

Bullish for multi- national sweatshops breaking ground on U.S soil. Foxcon and dead pigs floating down river coming to a town near you.

Jim in MN's picture


Sigh.  Our Martian (seeming) Overlords have forgotten anything they were ever taught about business and the economy.  Here is remedial reading for any Fed or other central bank rat bastard finks reading today:

At the turn of the 20th Century, automakers thought the best way to maximize profit was to build a car for the rich. But Henry Ford had a different vision. He wanted to produce a car that everyday people—like the workers in his factories—could afford. With lower prices, cars would be more affordable to the general public. He also figured that if he paid his factory workers a better wage, more of his workers would be able to afford the cars they helped make.

DavidC's picture

The difference being that Henry Ford was IN BUSINESS, he knew about things like that, unlike the Ivy-League-educated-never-had-a-proper-job-ex-Goldman idiots running Government and the Central Banks.


Terminus C's picture

This is a graph of the change in the change.  Over the period it mostly shows wage growth but with a declining rate of growth.  However, that growth, compared to inflation, would be no growth at all in most cases as this graph appears to show only nominal change in wages and not inflation adjusted.  It does not bode well for the future of the wage earner.


andrewp111's picture

Note that the trend crossed zero in 2011. It will only get worse. Why do you think the Bernank is desperate to blow bubbles?

Uncle Zuzu's picture

Wall Street loves globalization and illegal immigration. Both keep pressure on wages here at home while the bankers line their own pockets.

Headbanger's picture

Here come 20 year car loans.

thepigman's picture

Who needs income? We got bernank printing full time. Bubble Boy Bernank can buy everything.

NotApplicable's picture

Yeah, but there's got to be a middleman... like say, Goldman.


"Oh, Lloyd,

won't you buy me

a Mercedes Benz"

espirit's picture

+1 For the Joplin ref.

(damn, now I know you're as old as me)

JustObserving's picture

The only part of the economy without inflation is real wages.  Considering real inflation is considerable higher than the stated inflation, real wages are falling much faster than the graph displays.

We are all China now.  Except for that gold buying.

realtick's picture

since when does ZH not provide a link-post to an important live congressional hearing?

NotApplicable's picture

LOL, like there's any such thing.

Smoke and mirrors combined with a clown show.

Now that's entertainment!

realtick's picture

this is a good time for temporarily suspending cynicism

Dr. Engali's picture

Hah......Important congressional meetings...That's funny. Using important and congress in the same sentence is as silly as Obummer and citizen. They are tools and that's it, entertainment not to be taken seriously.

gbresnahan's picture

We will never recover until wage growth severely outpaces inflation.

NotApplicable's picture

Sorry, but that's not part of their plan. Well, the "wage growth" part, anyway. The "never recover" part though, it's the "New Normal."

angrychiwawa's picture

Final question: since some cash is transferred to the US workers ultimately, what happens to worker wages when the Fed's QEternity finally ends?

Answer: Poorly run fake-it-till-ya-make-it plan. Rarely works.

OpTwoMistic's picture

Who?   Folks trying to pay bills.

Bam_Man's picture

This is why we all need to buy stocks now! Buy! Buy! Buy!

If we can't get rich through hard, honest work, we can still do it speculating in Uncle Ben's Magnificent Casino where everyone except the shorts) is a winner!

blindman's picture

Rothschild and Rockefeller run the Federal Reserve and control the Media
07 May 2013
Gold Daily and Silver Weekly Charts - 'They Make a Desert, and Call It Peace'
" ...
A more repulsive picture can hardly be imagined. A mob, a moneyed class, and an aristocracy almost equally worthless, hating each other, and hated by the rest of the world; Italians bitterly jealous of Romans, and only in better plight than the provinces beyond the sea; more miserable than either, swarms of slaves beginning to brood over revenge as a solace to their sufferings; the land going out of cultivation; native industry swamped by slave-grown imports; the population decreasing; the army degenerating; wars waged as a speculation, but only against the weak; provinces subjected to organized pillage; in the metropolis childish superstition, whole sale luxury, and monstrous vice.

The hour for reform was surely come. Who was to be the man?" "
A.H. Beesley, The Gracchi Marius and Sulla, 1921

northerngirl's picture

As tough as it is getting out here, people are still spending money and not thinking twice about it.  I don't get it? 

TrumpXVI's picture

Yup. It's really, really weird, NG.

People are still clinging to very expensive lifestyles; European travel, skiing vacations, dining out at expensive restaurants, you name it.  I hear very little about living within modest means, staycations, cooking in....Battening Down The Hatches!

I'm a practical man and I don't get it, either.  I'm very doubtful that the people who are enjoying these expensive lifestyles actually earn enough money to support it all.

blindman's picture

transfer of part of the value of work, supposedly represented
by wages to labor, to the elite is the normal purpose and
function of the federal reserve's perverse money system.
".. what happens to worker wages when the Fed's QEternity finally ends?"
there will be no wages that are not entirely denuded of value resulting
in the revelation of the signature of the fed, confiscation of property.
that is and has always been their main plot and business. land grabbing
and asset confiscation is at the core nature of the system.
sane and decent people would have nothing to do with it.

Unprepared's picture

But that's not fair, you are looking at real wage growth.


Everybody knows (aka. the Fed) that only nominal values are important. Ask Liesman about the DOW.