2017 Wage Growth At Lowest In 9 Years

US nonfarm labor costs rose just 0.35% YoY in 2017 - the weakest growth in American worker compensation since 2010...

While the headline revisions to Q4 unit labor costs and productivity were better than expected...

Unit labor costs +2.5% (vs 2.0% exp)...

Q4 productivity was revised up to unchanged from -0.1%...


2017 remains a dismal year for American workers...



SeaMonkeys Four Star Wed, 03/07/2018 - 12:52 Permalink

You hit the nail on the head. The circular flow of income from productive jobs and investment started to decrease around the time of the end of Bretton Woods. Building wealth from adding value turned into building wealth from asset inflation. Housing and banking de-linked from the 30 year career/30 year mortgage as wages and incomes went flat starting in the 70's. 

The money supply is created mostly by commercial bank lending, and most of that lending is speculative, not productive. The housing market is driven by banks lending into an accelerating market. In other words, banks create the price by lending ever and ever greater amounts of money for housing. By doing so, they set the price and guarantee profits from the interest. Homes are not bought for living, but for selling. 

Along with housing, the other high priced items in the average American's life are health care and education. These 3 things suck up most/all of our (earned) incomes. With no wage growth in 40 years, Americans turned to credit and cashing in their housing equity. 

The media and Washington DC want people to think that the blame rests on individuals for using credit instead of "hard work." As long as the public blames itself for its own lack of incomes and wealth, the elites can continue playing the same old political game of identity politics and culture wars. 

Washington DC knew exactly what it was doing when Nixon, Kissinger, Simon, Volcker created the U.S. petrodollar. Starting with Truman, the U.S. printed money to wage the Cold War. This is what eventually caused the end of Bretton Woods. The Triffin Dilemma is the name of this inflationary problem. Too many Euro dollars and a limited supply of gold. 

Capitalism is no longer a real economic practice. Asset inflation via banking and currency have replaced productivity and added value. Money reflects monopoly power, not value. 

The high cost of living and loss of disposable income are the results of "societal capture," not capitalism or economics. 

The only way out of this mess is Henry George. Full blown capitalism, no poverty, no tax on labor or capital, and massive amounts of productivity. Read his Progress and Poverty. 

Marxism is a decoy. It's a red herring, like Goldstein in Orwell's 1984. The banking elites are not afraid of communism because it's not a viable system. The banking and rentier elites who make profits while they sleep are deathly afraid of Henry George, because his single tax promotes productive growth, freedom, and self reliance.

In reply to by Four Star

ejmoosa yogibear Wed, 03/07/2018 - 08:50 Permalink

The job market is NOT hot and wages are NOT increasing.


We know who is lying. 


IF we are not allowed to truly define our economic issues how can we every truly solve the problems?

Too much taxation.

Too many regulations.

Too many businesses held afloat by ultra low rates that are penalizing those companies that are actually viable.

While we place tariffs on foreign competition subsidized by foreign governments, our Federal Reserve has subsidized businesses around the planet with ultra low interest rates and free money.


The day of reckoning is moving closer.

In reply to by yogibear

bshirley1968 ejmoosa Wed, 03/07/2018 - 09:23 Permalink

What you have just described is a worldwide welfare program. This is and has been the goal. When you can print money, why would you care who us on the take? You would want everyone on the take. Then you could CONTROL them. It is and always has been about CONTROL.

Never changes until central banks are burned to the ground and bankster are hiding in caves to keep from being lynched.

In reply to by ejmoosa

Kidbuck shankster Wed, 03/07/2018 - 11:51 Permalink

Most of my Amazon deliveries now come via the Postal Service and our Postal guy is a minimum wage no benefit contractor of an age that should have retired decades ago. Most of the local cashiers are now well beyond their first SS checks, too. That's why no one is filing for unemployment. When you are broke with no savings you put up with a lot of shit from your boss. All of my junk mail is either for hearing aids or cremations. Ain't the economy great.

In reply to by shankster

lester1 Wed, 03/07/2018 - 08:46 Permalink

Why would there be wage growth when we have "free trade" and globalization where you can hire a Chinese, Indian, or Mexican worker at $1.20/hr with no benefits ??

shimmy Wed, 03/07/2018 - 08:52 Permalink

And about to be made better by having tariffs on everything and making everything cost more. Apparently having businesses need to spend more on stuff is going to make them want to increase wages and the sheeple who aren't even getting wage increases to match inflation will be better off now having to spend more for the things they buy.


Philo Beddoe Wed, 03/07/2018 - 09:02 Permalink

Our suppliers are trying to $ squeeze out the middle men. Us. Problem is that all the talent in our industry became middle men.  Now they are trying to internally regulate us out of the equation. Fuckers. Time will tell. 

The goal is to have most of the population on the dole and have a bunch of worker bees buzzing around making about the same. 

To win or survive one needs to be exceptional or at the top of the food chain. 


MusicIsYou Wed, 03/07/2018 - 09:14 Permalink

There hasn't been any real wage growth in 15 years. They cherry pick every statistic. Funny how in movies psychopaths never smoke, probably because they rarely smoke in real life either, because they have no conscience, and their vice is engineering society for their own gain.

MusicIsYou Wed, 03/07/2018 - 09:21 Permalink

There's no real wage growth for the same reason most savings accounts pay .05% APY, the stingy fckers are hoarding it all, even though the Fed has been throwing free money at them the last decade. The economy is like a huge store, they been dumping free money into the cash register, but they've been skimming the drawer instead of fixing up the store.

small axe Wed, 03/07/2018 - 09:21 Permalink

a dismal year for American workers...

dismal year? More like a dismal 3-4 decades. The last chart shows we're back to the level of 1983 or so.

MusicIsYou Wed, 03/07/2018 - 09:34 Permalink

America truly is a "Shovel ready project", in that it's in a deep hole ready to be buried. And I guess elites are skimming the store cash register drawer because Americans have about two functioning brain cells, so there's little point in putting money back into the store.

youngman Wed, 03/07/2018 - 10:15 Permalink

Its the dumbing down of America...why pay for a high school dropout that comes to work stoned and late most of the time...Rosie the riveter is long gone....

moonmac Wed, 03/07/2018 - 11:11 Permalink

Property Taxes continue to increase well above any pay raises. Another reason to leave this corrupt state - the Loop is off the air.