Our server costs ~$56 per month to run. Please consider donating or becoming a Patron to help keep the site running. Help us gain new members by following us on Twitter and liking our page on Facebook!
Current time: March 28, 2024, 12:39 pm

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
American workers' wages stagnant, even in a great economy: why?
#1
American workers' wages stagnant, even in a great economy: why?
American Workers Just Got a Pay Cut in Economy Trump Calls Great

Quote:President Donald Trump has presided over an accelerating economy and the lowest unemployment in years, but American workers still aren’t seeing it in their wallets.

U.S. average hourly earnings adjusted for inflation fell 0.2 percent in July from a year earlier, data released on Friday showed, notching the lowest reading since 2012. While inflation isn’t high in historical terms, after years of being too low following the 2007-2009 recession, its recent gains are taking a bigger bite out of U.S. paychecks.

“Inflation has been climbing and wage growth, meanwhile, has been flat as a pancake,” said Laura Rosner, senior economist at MacroPolicy Perspectives LLC in New York. “In a very tight labor market you would expect that workers would negotiate their wages to at least keep up with the cost of living, and the picture tells you that they’re not.”

U.S. unemployment at 3.9 percent in July was near a 50-year low and a core measure of inflation that excludes food and energy prices has pushed to 2.4 percent, the highest reading in almost a decade. But wages are just not keeping up and part of the reason is probably a lack of bargaining power on the part of U.S. workers.

Ryan Sweet, an economist at Moody’s Analytics Inc. in West Chester, Pennsylvania, said given that inflation has been low in recent years, “the sense of urgency” hasn’t been there to negotiate for higher wages. In the post-recession labor market, workers have forgotten how to bargain.

“As the labor market came back, workers were just happy to have survived,” Sweet said. “They value their job security more than asking for a higher wage.”

What will determine real wages in the coming months is not inflation as much as what happen to wages, he said. “I do anticipate nominal wage growth picking up which should help drive up real wage gains over the next few months.”

As I've said countless times, the average worker suffers under the American economic model. Things have to change on a fundamental level. We know that wages have failed to keep up with inflation, and that the top 10 percent of income earners have seen magnificent gains while the rest of us have seen, statistically speaking, nothing. It seems Republicans (and moderate Democrats) have conditioned workers to be content with this reality. This has been an issue for over 30 years. Through Clinton and Obama too.

I align with the political philosophy of social democracy. It's time to take note from its success in the Nordic countries. The average American deserves more. Congress (Dems and Repubs alike) almost unanimously passed the disgusting and highly unnecessary $700 billion to our military complex while we bicker about whether or not we can afford a universal healthcare system. Repulsive.
[Image: nL4L1haz_Qo04rZMFtdpyd1OZgZf9NSnR9-7hAWT...dc2a24480e]
Reply
#2
RE: American workers' wages stagnant, even in a great economy: why?
Because it's an economy to benefit the rich, not the rest of the people.
Dying to live, living to die.
Reply
#3
RE: American workers' wages stagnant, even in a great economy: why?
I have family that believes that if you increase wages, the price of everything will go up the exact same amount.
Poe's Law: "Without a winking smiley or other blatant display of humor, it is impossible to create a parody of Fundamentalism that SOMEONE won't mistake for the real thing."

10 Christ-like figures that predate Jesus. Link shortened to Chris ate Jesus for some reason...
http://listverse.com/2009/04/13/10-chris...ate-jesus/

Good video to watch, if you want to know how common the Jesus story really is.
https://www.youtube.com/watch?v=88GTUXvp-50

A list of biblical contradictions from the infallible word of Yahweh.
http://infidels.org/library/modern/jim_m...tions.html

Reply
#4
RE: American workers' wages stagnant, even in a great economy: why?
Production is in Asia. Production generates wealth. Which means that you cannot physically rise the standard of living, unless Elon Musk makes cheap robots or something.
Reply
#5
RE: American workers' wages stagnant, even in a great economy: why?
(August 12, 2018 at 2:06 pm)Chad32 Wrote: I have family that believes that if you increase wages, the price of everything will go up the exact same amount.

Yeah, that's kind of silly.  When wages increase, people have more disposable income, buy more stuff, creating a greater demand for services and manufactured goods, which increases production which lowers prices.  Economies of scale work best when wages grow moderately faster than inflation.

Boru
‘But it does me no injury for my neighbour to say there are twenty gods or no gods. It neither picks my pocket nor breaks my leg.’ - Thomas Jefferson
Reply
#6
RE: American workers' wages stagnant, even in a great economy: why?
Because the Orange Turdfuhrer doesn't know what the fuck he is talking about.
Reply
#7
RE: American workers' wages stagnant, even in a great economy: why?
I'm not overly bothered that real wages haven't improved. I have to wonder whether it's realistic to expect real wages to increase under any conditions. The balance between wages and cost may just be a fixed feature of economic reality. What I do object to, however, is the reapportionment of benefits from the public fund being diverted away from social programs and other things which benefit the greater part of society, and redistributing the savings from those cuts to the wealthy and corporations. Conservatives try to justify it with an appeal to the idea that if they prosper, the benefits will trickle down to the rest. But trickle down economics was shown to be an empty promise in the Reagan years, and the recent wave of companies using tax savings to make stock buy backs rather than making improvements that would benefit the workers simply shows this, again, to be the case. Instead, all you've done is take away resources and benefits from those who are struggling and need them, and given them to those who are not in need. The recent tax cuts are transparently regressive, and have nothing else to justify their implementation.
[Image: extraordinarywoo-sig.jpg]
Reply
#8
RE: American workers' wages stagnant, even in a great economy: why?
Wait until the republicunt shits start screaming about "out of control budget deficits" and how regardless the pentagon needs even more money to keep us safe from  enemies we go out of our way to create.

Their solution will be to totally fuck the poor and protect the upper 1% scumbags who hold their leashes.
Reply
#9
RE: American workers' wages stagnant, even in a great economy: why?
(August 12, 2018 at 2:12 pm)BrianSoddingBoru4 Wrote:
(August 12, 2018 at 2:06 pm)Chad32 Wrote: I have family that believes that if you increase wages, the price of everything will go up the exact same amount.

Yeah, that's kind of silly.  When wages increase, people have more disposable income, buy more stuff, creating a greater demand for services and manufactured goods, which increases production which lowers prices.  Economies of scale work best when wages grow moderately faster than inflation.

Boru

That's what I figured too. When you have more customers coming in with disposable income, you don't have to jack your prices up so much. They just don't seem to believe that, though.

Yeah. Deficits are out of control, so we need to cut funding in social safety nets while continuing to shovel money into the military and corporations. Those are two things the government will never cut back.
Poe's Law: "Without a winking smiley or other blatant display of humor, it is impossible to create a parody of Fundamentalism that SOMEONE won't mistake for the real thing."

10 Christ-like figures that predate Jesus. Link shortened to Chris ate Jesus for some reason...
http://listverse.com/2009/04/13/10-chris...ate-jesus/

Good video to watch, if you want to know how common the Jesus story really is.
https://www.youtube.com/watch?v=88GTUXvp-50

A list of biblical contradictions from the infallible word of Yahweh.
http://infidels.org/library/modern/jim_m...tions.html

Reply
#10
RE: American workers' wages stagnant, even in a great economy: why?
Some poeple are under the impression that a $3 raise for employees would make a pack of yellow #2 pencils cost $50.  If the margins on whatever you're making are that slim...you're doing it wrong..but hey, welfare for me and none for thee has become the dominant corporate ethos in the US.
I am the Infantry. I am my country’s strength in war, her deterrent in peace. I am the heart of the fight… wherever, whenever. I carry America’s faith and honor against her enemies. I am the Queen of Battle. I am what my country expects me to be, the best trained Soldier in the world. In the race for victory, I am swift, determined, and courageous, armed with a fierce will to win. Never will I fail my country’s trust. Always I fight on…through the foe, to the objective, to triumph overall. If necessary, I will fight to my death. By my steadfast courage, I have won more than 200 years of freedom. I yield not to weakness, to hunger, to cowardice, to fatigue, to superior odds, For I am mentally tough, physically strong, and morally straight. I forsake not, my country, my mission, my comrades, my sacred duty. I am relentless. I am always there, now and forever. I AM THE INFANTRY! FOLLOW ME!
Reply



Possibly Related Threads...
Thread Author Replies Views Last Post
  Russia's massive brain drain is ravaging the economy LinuxGal 0 373 September 3, 2023 at 7:36 pm
Last Post: LinuxGal
  Indian-American Nikki Haley: Plan to Counter the China Threat. Nishant Xavier 46 2601 August 6, 2023 at 4:06 pm
Last Post: LinuxGal
  The Economy (US) Foxaèr 11 1283 February 7, 2023 at 5:43 am
Last Post: BrianSoddingBoru4
  George Carlin American Dream vannymanny 6 517 June 29, 2022 at 8:29 pm
Last Post: Thumpalumpacus
  How bad is our economy? (US) Foxaèr 28 1374 March 15, 2022 at 1:12 pm
Last Post: The Grand Nudger
  Send in the social workers. onlinebiker 57 4477 November 1, 2021 at 2:24 pm
Last Post: The Grand Nudger
  [Serious] American Congress member speaks about Israeli terrorism against Palestinians WinterHold 5 365 May 14, 2021 at 1:30 pm
Last Post: Anomalocaris
  [Serious] Economy Class Economy ignoramus 41 2741 April 6, 2020 at 7:46 am
Last Post: ignoramus
  US and Taliban sign deal to withdraw American troops from Afghanistan WinterHold 50 3337 March 8, 2020 at 10:56 pm
Last Post: Fireball
  why are many american obsessed over maintainign the illusion of choice in healthcare? Cepheus Ace 8 1495 October 3, 2019 at 11:44 pm
Last Post: EgoDeath



Users browsing this thread: 1 Guest(s)