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Where The Rising Wages Are?
With the September jobs report, perhaps one of the most irrelevant monthly updates from the BLS in a long time, due out in less than half an hour, BofA's Chart of the Day looks at what has become the most sticky issue in the monthly jobs report of late: where the inflation-adjusted income growth, or lack thereof, can be found.
What it finds is that the average American can still hope for rising real wages: they just have to be massively underwater on unrepayable student debt. To wit:
As of 2013, the median income for college graduates was about $80,000 compared to about $40,000 for high school graduates. We can see that the median inflation-adjusted income for those who did not graduate college has decreased dramatically since 1991 when the data first became available. Those with bachelor's degrees have fared better, and those with graduate degrees have fared even better.
Because in the new normal "fared better" somehow means suffering a decline in real wages over the past two decades!
To paraphrase: only those with specialized post-grad education have seen any increase in real income. Everyone else: sorry. Of course, the question then is - has that tiny sliver of post-grad educated workers used their modestly rising wages (up to a max of 5%) to first pay off their mountain of student debt... or last. We are confident BofA, which obviously is pimping a college education for those who want to see rising wages yet completely ignores the cost-benefit analysis of rising wages offset by hundreds of thousands of additional student loans, will get right on it.
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PHD in Physics and an MBA does wonders on the Street these days.... way more than a 5% pay raise.
off topic, but I don't care...
look at the massive volume that just tanked the paper silver just now and it's under 17/oz once again!
Massive spike in volume over 300,000. Love it. Stack up that phyzz, bitchez!
and FYI, supplies in huge shortage right now and there has been record setting sales of silver Eagles again in the last few days. Premiums have spiked up as well and there are now delivery delays of up to 2 or more weeks.
Get your orders placed now for phyzz. You can wait to see if it drops to 16 or 15 or 10, but at the same time there won't be any supply and premiums might spike to 25% or higher just to off-set the downward paper price manipulation, so don't fucking wait to add to your stacks.
I enjoy this "paper/physical" concept.
The bubble has crashed and is in its final leg down (Silver) and about to take a major leg down (gold). Knife catch it all you want.
$5 silver is coming... $500 gold is coming...
You are fighting the biggest MoMo stock of the year: USD
...especially if you know computers inside and out...
You need to wait to the end of recovery
PS not an american
LOL - There's a recovery?!!
Yes, let's end the "recovery" because the chaos and further decline will provide better opportunities. (no /sarc as we truly will be better off if we stop the FED induced "recovery" nonsense).
You want fries with that?
What if they factor in the probability of default ? At a 100% probabiltiy, those BA and AA degrees look good !
Yep it's broken.
Just waiting for the charismatic revolutionary and the FEMA camps.
I'd guess by 2016-2020 "End of America" tour goes live.
Energy is getting scarce and economies are shrinking. There will not be job growths anymore, just fiddling of numbers and shifting of measures.
But we can keep analysing it, all the way down.
Actually energy is rather plentiful but it is expense to extract and implement.
As for job growth, we need to reinvent our economies based on true value, mutual respect and honesty. The alternative is to submit totally to the gulag state run dystopia.
Energy is in a glut because no one has any money to buy it. Prices are collapsing as there is no final demand. We have succeeded in creating the greatest debts in US history...if not the history of the world. The theory that we can inflate all this away has failed. Trading profits are drying up if not being utterly eliminated...we have an Army of One.
Forget the economy...the debt markets can't even afford a correction in the equity market.
the ever increasing reverse repo spikes are giving it away, but who is going to be the person or corporate entity to make that margin call? My experience tells me that we will see WWIII or the death of the dollar first.
When it comes to energy, some will have calories to available for consumption, other will not, period. If you don't have calories to burn you can't actually do shit.
If energy is in a glut then we can get CAT to make some more heavy machinery and hire everyone ot dig up roads and other infrastructure and redo all of it.
Will generate employment, improve the infrastructure, corporate profits and commissions and all.
Also write off all the non-recoverable debt, while we are at it.
Whats stopping them?
Are those median figures based on those that have jobs or does it include those that cannot find a job as well?
The answer is quite crucial particularly for those on the lower rungs where unemployment is highest.
A student loan is designed to help students pay for university tuition, books, and living expenses. It seems that many students are borrowing against their future at an almost unimaginable pace, unfortunately the money is often used for things other then education.
Too many young people and others taking student loans "living expenses" go on to include cars, trips, vacations and more. All this has a very dark side that will effect the lives of these borrowers going forward and has the potential to grow to crisis dimensions in the future.
In many ways society is encouraging young people to take on this debt and to hock their futures. This is akin to the, "I will gladly pay you Tuesday for a hamburger today" way of thinking. More on this subject in the article below.
http://brucewilds.blogspot.com/2012/04/students-borrowing-against-future...
Actually it goes to the bloated salaries for these blowhard professors. Among other useless things on these college campuses
Now that I have two kids in college I have been looking into that statement. After taking a hard look, it wasn't the professors, but rather the cost of "administration" that has increased 500-fold since I went to a state Agricultural school.
Seems to me (like everything else these days) all the "fat" that needs to be trimmed is at the top. The people actually doing the work are not compensated shit.
you can't trim that fat at the top. not as long as there are cheap-looking student loans, because the effect they have is similar to a subsidy in a situation where demand and supply aren't that price-sensitive, i.e. an adverse situation to subsidy
to put it differently, if student loans would cease to exist, colleges would stop having that kind of price tags, i.e. they would fire that "administration"
of course this line of reasoning is subversive, then it would point also out that housing is being subsidized beyond the possible positive results, too
funny things, subsidies. for a short period they work wonders. like some drugs. but if you continue their use...
You sir, are clearly a terrorist. Surprised they even let you near an E.U. country.
You, sir, are clearly a farmer. Because you understand subsidies. Or how a real economy looks like, or what marginal means
But in our defense: we can't afford too many subsidies. Our agriculture needs too much of them already. We have to economize...
That is exactly right. I was a assistant professor of engineering (operations research) and mathematics (dual appointment). It was at a top university. It was fun (I did not think of it as work) when I started. Now, the admins everywhere and directly involed in grant writing and research direction - WTF. Had enough and left for industry.
Also, the "students", really customers, seeking degrees these days is pathetic. Stupid and ZERO work ethic. The USSA higher ed is a complete disaster!
I taught secondary education... AP Chemistry. Exactly the same there.
The world as a whole has become an old growth forest... only a massive fire will clean out the parasitic undergrowth.
Professors don't earn very much. Assistant, tenure-trace professors will typically not start any higher than 60-70k and top out in the 125-150k range after tenure.
You are a fucking idiot.
Really.... LOL
Really.... LOL
"Actually it goes to the bloated salaries for these blowhard professors. Among other useless things on these college campuses"
Bullshit statement.
Here's the Cliffnotes for you so you can stop talking out of your ass:
" It reports that for the first time in five years, average pay increases for all full-time faculty members slightly beat the rate of inflation, rising 2.2 percent on average. Full professors at public doctoral institutions made $126,981 in salary in the 2013-2014 academic year, and instructors at those schools made $50,032.
Presidents of public doctoral institutions, meanwhile, saw their salaries rise 11.3 percent on average over the past seven years. And presidents at top private universities saw even higher average raises: 17.3 percent over the same period, compared to 7.2 percent for professors at the same schools"
So, if youre not going all the way to masters, dont bother?
Shoot for the stars so if you miss you're adrift with no chance for rescue. (see: fucked)
I bet my next raise (huh) that UE is under 6 before the november election. Shazaam
Sweet. Tell me, Janet, what do I win? You win a no expenses paid trip to indentured servitude!
248k and 5.9% unemplyment.
can you overlay that with income for wall street and the government regardless of education.
so fucking pathetic that a 248k print gets cheered
starve a man long enough and a saltine tastes like a friggin' porterhouse
oh, and 40-50% of those jobs YTD are part-time ... exactly what you spend $100,000+ on for college
Those trillionaires sure move the curve upward on median income.
Seriously where is the median college grad making 80K?
I need to relocate there
These numbers don't jibe with any I have seen elsewhere.
80k is like 5-7 years post graduation, out of hte gate figure 55k; while undergrads (unless accounting degree) start at 40.
Carl, I agree. I'm throwing a BS flag on the $80K college median income.
Okay,
So here's my question. I am interested in other's viewpoints about where I may find the greatest utility.
The contract under which my employer works has been dramatically cut.
I was offered a 40% pay cut or termination.
QUESTION: Take the paycut, or take unemployment (which comes within a few thousand of the paycut, but involves no labor, or commuting expenses)?
Take the Pelosi option: "just say no to job lock".
Sit on your ass, collect unenjoyment and file for O'DummyCare.
Depends if you are going to need to find another job or if you were very close to retirement anyway. Unemployment may seem appealing, but you will certainly be more viable as a job candidate if you currently have a job.
I would probably stick with the job but immediately start looking for a new one.
thats a slam dunk. the concept of rising economic inequality as a corollary, includes what we see in todays report. more workers, but a reduction in purchasing power. so they need to work more right? well there are only so many hours in a day.
the labor movement began during the industrialization of england and gathered momentum for a 100 years and in the US finally labor could organize, overtime pay, child labor laws etc. capitalism didnt fix these items nor could it have eventually, as when a person has to eat, and all the power is with one party (employer) an indivlidual worker has no voice.
so the balance of power shifted and labor peaked in the 70's with the peak of pension plans and union participation. since then unions have been villainized and the few that exist fight for every benefit they can ---as they should as it is their role.
a free society can direct the balance of power, a free economy can adapt and absorb whatever new rules are in place.
today we are still enduring the weaker and weaker voice of labor as seen in these stats for the past 20 yrs +; the trickle down theory still guides those in power naturally as it gives them the $ first then through their moral righteousness decides what labor, who is worthy of a living wage. era of Mad Men it was understood you paid a family man a wage so he and his family could be a part of society....today its live to work as a cultural norm, maybe another 10 years before it starts to swing the other way perhaps
Retain an employment attorney that works on commission and negotiate a severance package on top of taking unemployment immediately. Start working for yourself under the table and out of the eye of the taxman.
go on unemployment and sell pot for a living out of a taxi cab or uber(even more undercover). work when you want and burn phatties all day.
Pay the rentier/bureacrat/academic/flunkie class BEFORE you pass go and collect a slightly higher wage...
Article seems ok. My salary has gone up an average of 6% a year for the past decade.
# births in 1945: 2.858 million people turning 70 assume leaving workforce by choice or health
# births in 1995: 3.892 million people turning 20 assume entering workforce
that means he first 86000 jobs are just to make up for population shift. this doesnt include any kind of immigration, legal or otherwise. we are just barely beginning to eat into the jobs that 'should' have been created over the past 7 years. any number under 300k/month is indicative of structural problems and the longer it takes the more permanent these swaths of the population are underutilizted.
250k ina month is like a gasp of air for a drowning overly debt leveraged economy.
We dont need anymore MBA's for a very very long time.
PhD in physics and your going to go gambling. Great use of the mind /sarc
"Where The Rising Wages Are?"
CEO, CFO, COO.