Thursday, May 12, 2005
Real Wages Fall...
Inflation rose 3.1 per cent in the year to March but salaries climbed just 2.4 per cent, according to the Employment Cost Index. In the final three months of 2004, real wages fell by 0.9 per cent.
The last time salaries fell this steeply was at the start of 1991, when real wages declined by 1.1 per cent.
Stingy pay rises mean many Americans will have to work longer hours to keep up with the cost of living, and they could ultimately undermine consumer spending and economic growth.
Great solution - except it's worthless for those that are salaried employees. For those people, they just get to work longer hours for the illusion of increased job security.
The point about salaried employees is a natural response. I think it speaks to a gripe I have about the journalist /pundit/expert community, this group seems miserably out of touch with the real middle class.