Rising Wages Where? Real Wages Post First Annual Decline Since 2012

Tyler Durden's picture




 

For all the talk about "noisy inflation" this and "rising prices are good for the economy" that, what the Fed's cheerleading squad continues to ignore is the one most important inflation the US economy needs in order to actually have a sustainable recovery instead of centrally-planned stagflation: wage inflation.

So while bullish pundits keep referring to some mythical CEO survey promising wage will increase any day now, just not today, the BLS released its most recent real wage (adjusted for inflation) report moments ago, showing that not only did the average real hourly wage remain flat for the second month in a row at $10.29, the lowest level since September 2013, but posted the first annual decline since October 2012.

And a longer-term chart showing where real average wages have gone in the past five years (spoiler alert: nowhere).

In short: any minute now on those rising wages... Just not right now.

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Tue, 07/22/2014 - 10:33 | 4987762 PlusTic
PlusTic's picture

ah, the fruits of FED policy...what a peach!

Tue, 07/22/2014 - 10:51 | 4987837 NoDebt
NoDebt's picture

OT:  Federal Appeals Court just struck down Obamacare subsidies as illegal.  All of them, unless granted through a STATE-run exchange, which most are not (most are run by the Federal Government).

You can commence celebrating the death of Obamacare now.  But don't expect it to last very long.  This thing is going to the Supreme Court for certain now, where Roberts will quickly overturn it and it will be game-on again forever.

Tue, 07/22/2014 - 10:52 | 4987853 MFL8240
MFL8240's picture

And?   This group doesnt care about courts!

Tue, 07/22/2014 - 11:02 | 4987896 Colonel Klink
Colonel Klink's picture

King's decree via executive order in 3...2...1....

Tue, 07/22/2014 - 10:36 | 4987767 LetThemEatRand
LetThemEatRand's picture

And their plan for NWO marches along perfectly.  Fewer jobs?  Check.  Lower wages for those who can find work?  Check.  Massive wealth creation and concentration among a tiny percentage of the population?  Check.   Militarization of the police?  Check.  Constant surveillance of the population?  Check.   Eroding of confidence in US dollar and greater calls for a global currency to replace it?  Check.

Tue, 07/22/2014 - 10:48 | 4987819 A Nanny Moose
A Nanny Moose's picture

I think you missed massive population reduction.

Tue, 07/22/2014 - 10:36 | 4987770 Kreditanstalt
Kreditanstalt's picture

They've been trying to force, coerce and threaten companies in Japan into paying their employees more for years now.

(Hint: Would YOU voluntarily pay your hired help more when there are armies of them outside the door competing for work?)

Tue, 07/22/2014 - 10:40 | 4987783 LetThemEatRand
LetThemEatRand's picture

They push higher wages primarily for one reason -- to squeeze out small business.  It's a win-win for politicians.  They appear to the masses to be helping the average worker, when in fact they are gradually doing away with small business in favor of the very large corporations that can afford the higher wages.   

Tue, 07/22/2014 - 11:40 | 4988126 zer0concerns
zer0concerns's picture

Rand, I don't have a greater respect for any poster. I wished you commented more. Hell, I would be happier if you just had your own blog. I like the hell out of you dude. No bs. I'm not jerking ya, man.
I'm gonna get torched for this but IMO thru my experiences the small biz person is the greediest of the lot and largely incompetent doing little more than complaining about dumb shit and how they can't find good help. I've worked for many and...I couldn't believe how incompetent they usually were. My family and friends confirm this. It's not just me. Ya think small biz was doing shit to help anyone?
They deserve the Fucking they get.
I'm cool with the whole shit house going up.
I have zero Fucking concerns.

Tue, 07/22/2014 - 10:36 | 4987772 101 years and c...
101 years and counting's picture

lets all hope and pray the fat cow running the printers can print moar inflation for all of us as our wages decline?  i still hope, everyday, she drops dead of a heart attack as she drinks her daily bucket of gravy for breakfast.

Tue, 07/22/2014 - 10:36 | 4987773 RiskyBidness
RiskyBidness's picture

Time to BTFD!! Oh wait.....I don't have any money to do this!  Fuck!!

Tue, 07/22/2014 - 10:41 | 4987796 LetThemEatRand
LetThemEatRand's picture

Sure you do!  It's right over there.  On the sidelines.  You know, with everyone else's.

Tue, 07/22/2014 - 10:37 | 4987776 NoDebt
NoDebt's picture

See that big lump of positive real wage growth from 2008-2010?  We're taking it all back now.

- The Fed

Tue, 07/22/2014 - 10:38 | 4987777 PlusTic
PlusTic's picture

the rioting in the streets cannot start fast enough...

Tue, 07/22/2014 - 10:46 | 4987815 espirit
espirit's picture

We have a way to go yet.  EBT will be maintained until there is no middle income class (<Boomers), and victory gardens aren't fashionable yet.

Hunger is the catalyst.

Tue, 07/22/2014 - 10:40 | 4987788 i_call_you_my_base
i_call_you_my_base's picture

The only thing that matters to them is capital holders. If you actually work, then fuck off and eat dog food.

Tue, 07/22/2014 - 10:41 | 4987792 JenkinsLane
JenkinsLane's picture
I'm turning Japanese
I think I'm turning Japanese
I really think so...
Tue, 07/22/2014 - 10:51 | 4987835 MFL8240
MFL8240's picture
Rising Wages Where?

Hedge funds, Wall Street whores, CEO's and Ben Bernanke, Hillary and Bill Clinton speeches.  That’s where!  Isn't that the way hope and change works??

Tue, 07/22/2014 - 10:50 | 4987836 TabakLover
TabakLover's picture

Greed > people.

Tue, 07/22/2014 - 10:51 | 4987846 Amish Hacker
Amish Hacker's picture

We're poorer? This may explain the massive Homeland Security purchases of ammunition.

Tue, 07/22/2014 - 11:05 | 4987911 yogibear
yogibear's picture

A few billion rounds. Even if the Fed goons are bad shots they could kill a few million citizens. Like shooting fish in a barrel, except if citizens are armed.

Tue, 07/22/2014 - 11:07 | 4987920 Colonel Klink
Colonel Klink's picture

In the immortal words of Die Hard, they're gonna need some more DHS guys.

Tue, 07/22/2014 - 11:06 | 4987912 Colonel Klink
Colonel Klink's picture

We all know it was purchased to put down the uprisings once people sufficiently wake up and get motivated from hunger and being robbed.

Tue, 07/22/2014 - 11:00 | 4987885 Colonel Klink
Colonel Klink's picture

Obama....#winning! at destroying America.

Tue, 07/22/2014 - 11:06 | 4987916 orangegeek
orangegeek's picture

just deflation ramping up again - CPI inflation thanks to yellen is going to drive demand in non essentials down - hard.

 

and then the rest follows down - CPI, markets, energy - all headed down the toilet

 

and the debt out there won't be able to get paid back - so here come the defaults too

Tue, 07/22/2014 - 11:08 | 4987928 yogibear
yogibear's picture

The Fed's massive real inflation target could make it so EBT cards no longer buy enough to eat. It's coming. Add in the hoards of illegals coming in.

Tue, 07/22/2014 - 11:18 | 4987973 Shizzmoney
Shizzmoney's picture

This is what a corporate "recovery" looks like.

Only going to continue, IMO.

Tue, 07/22/2014 - 11:20 | 4987981 dcau1
dcau1's picture

'Real' as in keeping up with bull shit govt CPI figures?

Tue, 07/22/2014 - 11:31 | 4988068 zer0concerns
zer0concerns's picture

Thucydides had it right. It's the love of gain. Man seeks comfort via security. Woman seeks the man with it. More true today than ever. Same as it ever was. Same as it ever was. Allllllll a buncha talking heads. We are getting what we deserve. Hit the re-set.
I've zero Fucking concerns.

Tue, 07/22/2014 - 13:36 | 4988162 1stepcloser
1stepcloser's picture

I only make two more oz of gold a year than when I graduated college 20 years ago.  But I make 25% more oz of silver.

 

 

Tue, 07/22/2014 - 11:56 | 4988205 novictim
novictim's picture

If your Congressman or Senator doesn't talk about this or talk of eliminating the cap on Social Security contributions then you should fire them.

Tue, 07/22/2014 - 12:06 | 4988279 brown_hornet
brown_hornet's picture

Small business is incompetent due to the onerous regulation put on them making it much more difficult to do things "the government way". Most I know, know their business well. Finding good help is a pain. They all want top wage, but only about 10% are worth it. Especially considering the work comp and taxes heaped on top of wages.

Tue, 07/22/2014 - 13:17 | 4988736 authorized user
authorized user's picture

The oligarchs tha own all 3 branches of the federal government couldn't be happier.

Fri, 08/08/2014 - 09:27 | 5064693 trueFacts
trueFacts's picture

You should have potted the average Chinese wages, since nobody in America has a job anymore (at least not the citizens).  Chinese wage inflation is the big worry for American corporate profits :)

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