Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

"Hourly Pay in U.S. Not Keeping Pace With Price Rises"

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » Archives » General Discussion (Through 2005) Donate to DU
 
GreenPartyVoter Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-19-04 01:46 PM
Original message
"Hourly Pay in U.S. Not Keeping Pace With Price Rises"
The amount of money workers receive in their paychecks is failing to keep up with inflation. Though wages should recover if businesses continue to hire, three years of job losses have left a large worker surplus.

"There's too much slack in the labor market to generate any pressure on wage growth,'' said Jared Bernstein, an economist at the Economic Policy Institute, a liberal research institution based in Washington. "We are going to need a much lower unemployment rate.'' He noted that at 5.6 percent, the national unemployment rate is still back at the same level as at the end of the recession in November 2001.

Even though the economy has been adding hundreds of thousands of jobs almost every month this year, stagnant wages could put a dent in the prospects for economic growth, some economists say. If incomes continue to lag behind the increase in prices, it may hinder the ability of ordinary workers to spend money at a healthy clip, undermining one of the pillars of the expansion so far.

Declining wages are likely to play a prominent role in the current presidential campaign. Growing employment has lifted President Bush's job approval ratings on the economy of late. According to the latest New York Times/CBS News poll, in mid-July, 42 percent of those polled approved of the president's handling of the economy, up from 38 percent in mid-March.

http://www.commondreams.org/headlines04/0718-04.htm
Printer Friendly | Permalink |  | Top
mstrsplinter326 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-19-04 01:56 PM
Response to Original message
1. Real wages are about 25% less than they would be if matched with inflation
since the 50's... minimum wage, if adjusted to match inflation from 1950 on would be about double what it currently is.
Printer Friendly | Permalink |  | Top
 
sinkingfeeling Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-19-04 02:05 PM
Response to Original message
2. Funny, there was an angry, anti-increasing minimum wage LTTE
in yesterday's paper and I started gathering inform to write a 'counter-point'. Since 1968, domestic corporations' profits have risen by 64%, with the retail sector rising 158%. If wages had kept pace with productivity gains, the average hourly wage in the US would have been $24.56 in 2000 instead of $13.74! Buying power has declined a whooping 24%. Yet CEOs' salaries have risen 1100%!
Printer Friendly | Permalink |  | Top
 
DieboldMustDie Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-19-04 02:38 PM
Response to Reply #2
3. The U.S. minimum wage was at its highest in 1968 at $1.60 per hour.
Adjusted for inflation (see http://data.bls.gov/cgi-bin/cpicalc.pl ) that would be $8.72 today. The current minimum of $5.15 represents a more than 40% decline. :grr:
Printer Friendly | Permalink |  | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Fri Sep 19th 2014, 09:06 AM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Archives » General Discussion (Through 2005) Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC