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Zandi's "Workforce Vitality Index" Suggests Fed Should Hike Rates Sooner
If you like your 'disappointing' government-sponsored wage growth data, you can keep it... but if you are an ambitious talking-head economist looking to boost confidence in the economy in the hopes of a career in the administration, then ADP has just the 'tool' for you. Behold, the "ADP Workforce Vitality Index" - which measures the total real wages paid to the US private sector workforce, implying that the BLS is not measuring wage growth correctly as it is actually notably higher. In Q3, the ADP data grew 0.77% which they argue "is a good sign that may lead to increased consumer spending and a boost for the economy," and implicitly means The Fed should be hiking rates sooner as ADP warns "real wages are accelerating." Zandi the optimistic hawk?

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Thus - Fed narrative confirmed: wage growth is accelerating and this is justy the excuse The Fed needs to exit QE and start tightening policy... because they know just how impotent they will be if another recession or slowdown or market crash occurs with rates at zero and markets more dovishly positioned than actual policy.
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In conclusion, just as the PMIs are used and abused to fit whatever narrative is necessary to maintain the status quo of easy monetary policy OR "tighter policy because the economy is rebounding so well", we suspect ADP's efforts here are more of the same... given enough economic indicators, even a monkey can find reasons to be dovish forever or hawkish right now.
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That graphic says about 1/3 of Americans make less than 20k.
http://likethedew.com/wp-content/uploads/2010/08/MissionAccomplished_Oba...
(that saying will probably be used for the next 50 years, just like everything is "-gate" after watergate)
Someone needs to let my boss know wages are rising .........
Speaking of wages, Jennifer Lawrence is all pissed off that so many guys were beatin off to her without paying first.
She called it a sexual violation. I think it is more about haggling about price myself.
Sorry, just not fixated on her enough to subject myself to the Hunger Games..............
pods
Fucking ADP, and they know better because they do my payroll which has had yearly increases of 2% for the last 5 years.
Message to the fed:
"Go ahead; raise rates. I triple-dare-ya!"
Ain't gonna happen...
The recovery party is getting out of hand, pull the punchbowl.
Zandi sounds like a troublemaker...
" ...they know just how impotent they will be if another recession or slowdown or market crash occurs with..."
Are you every REALLY impotent if you can write your own rules and print unlimited amounts of money?
"Are you every REALLY impotent if you can write your own rules and print unlimited amounts of money?"
Yes. The last 5 years have proven it.
Despite everything the fed has thrown at it, the economy has not actually improved.
In 1964 minimum wage was 1.25 = 5 silver quarters or about 20.00 in today's money.
7.25-20.00= 12.75 of lost wages?
Also, the national average gasoline price in 1964 was $0.30 a gallon. That's 1-1/5 silver quarters.
Today, the silver in those coins (even at currently-depressed levels) is worth $3.71:
http://www.coinflation.com/
So, gasoline is priced pretty close to where it was 50 years ago.
But, in 1964, minimum wage bought you over 4 gallons of gas; while today it doesn't even buy you 2...
If the fed starts raising rates they won't need to be worried about responding if the market crashes because they will have caused it. Wake me when Germany and Japan's rates start to rise.
The Fed should be hiking rates sooner as ADP warns "real wages are accelerating."
business margins are being squeezed here and now (see just about any corp involving consumer spending ... walmart, mcdonalds, etc)
real wages accelerating is a myth
zandi a noted flak for The Administration
Is he saying wages are up an AVERAGE of 10.6% (110.6) in three years?
I'd like to check his homework...
Um, does he even attempt to subtract off for inflation?
Looks to me like he does not, and so the reality is people are losing high-paying jobs and being pushed into low-paying jobs, and Zandi thinks this is great.
It's all a dead cat bounce since 2008.
And it won't get any better until we bring back 10,000,000 jobs from China.
Zandi is talking his own book and counting his own take.
Another bullshitter carrying water for the staus quo PTB and living off the skim.
Does ADP count employer-paid health insurance as "gross wages" like the BLS does?
I bet they do.
Thanks to our canceled, criminalized, insurance policy (which worked great for our workers), our workers all have seen a growth in "wages."
Our premiums went up 70% (while our deductibles TRIPLED), so according to the BLS, so did the employees wages.
Problem is my employees pick up 20% of premiums, so take home went down and their out of pocket is HUGE.
"If you like your health insurance you can keep it*."
*if you get free stuff or are a unionized, government connected, employee, apparently does not apply to those of us that actually pay for it.
The wheels on this bus are flying off. ADP unicorn reports to the contrary.
Is this the same Zandi as the cocksucking, shit stained dildo licking, cum wadded face fucked, Yellen penis evnied, small asian boy pee pee whacking pederast? That one?