"One doesn’t have to be an economist to know that economic output and employment is a function of income and wage growth. Consumers cannot spend what they don’t have."
Regular readers are aware that one of our favorite data series when it comes to demonstrating the quality aspect of the American "recovery" (the quantity is sufficiently taken care of with part-time workers filling in positions without benefits and job security in the New Normal) is that showing the annual average hourly earnings growth in nominal terms, which in November posted the tiniest bounce from its all time low print of 1.2%, rising to 1.3%. The problem as noted above, is that this is nominal wage growth. It therefore excludes the impact of inflation which according to the CPI, rose by 2.2% in October, or, in other ... (full story)
DislikedAlthough the picture has gotten a little better the last few months before the election, the data still show that few if any net private sector jobs have been created in the US since 2000. Should anyone be surprised that there is little or no incentive to raise wages? During this same time however the GDP has gone from 10 to 16 Trilliion, suggesting the problems is not a "weak" economy. The Obama administration response is to cheapen the dollar to encourage export of what little we still make here while leaving the back door wide open for...Ignored