Awful: Wages Dropped for Almost All American Workers in First Half of 2014

[xchrom]

http://www.alternet.org/labor/awful-wages-dropped-almost-all-american-workers-first-half-2014



Think your money's not going very far this year? It's not your imagination. According to new research by the Economic Policy Institute, real hourly wages declined for almost everybody in the U.S. workforce in the first half of 2014. Thanks, so-called recovery.

Economist Elise Gould pored over data from the government’s Current Population Survey and determined that workers at the 20th, 30th, 40th, 50th, 60th, 70th, 80th, 90th, and 95th percentiles all saw declines in their real wages in the first half of 2014 compared with the same period last year. This was true whether you had no high school degree, a high school diploma, some college, a college degree, or an advanced degree. In fact, people with advanced degrees saw the biggest drop (2.7 percent).

EPI reveals this isn't just a blip. Real wages dropped 4.9 percent for workers with a high school degree and 2.5 percent for workers with a college degree from the first half of 2007 to the first half of this year.

Gould explains in the report that "the last year has been a poor one for American workers’ wages." She states that “on the whole, the broad wage trends by education level over the last decade and a half make clear that wage inequality cannot be readily explained by stories about educational credentials and technology; wage inequality has increased steadily, yet even those with a college diploma or advanced degree have experienced lackluster wage growth.”

[xchrom]

1. Fed Should Not Push the Brakes Wages Have Decelerated in 2014

http://www.epi.org/publication/fed-should-not-push-the-brakes/

The most salient economic debate raging today revolves around if and when the Federal Reserve should raise today’s very low short-term interest rates in a bid to slow the recovery to forestall inflationary pressure in the economy. This would clearly be a bad idea and would amount to slowing the recovery before it had reached the paychecks of most American workers. The most recent data show that wages for virtually all workers have continued to stagnate, if not fall, in 2014.

The figure below shows the cumulative growth in real hourly wages for the 10th, 30th, 50th, 70th, and 95th percentiles between the first half of 2007 and the first half of 2014. Aside from an increase in 2009 that was driven by outright price deflation (falling prices, caused by both the slack generated by the Great Recession and an extraordinarily large decline in energy prices), wages for most groups fell through 2012. While there was an increase between 2012 and 2013 (again, driven mostly by decelerating price inflation), it was short-lived, and wages for all but the 10th percentile have fallen again over year ending in June 2014.

[RunInCircles]

70. Do low interest rates help the middle class?

It is taken as a given that low interest rates spur the incentive to invest creating more jobs and opportunity.
The post I am replying to uses poor economic conditions for the majority of americans as a reason to keep interest rates low. If the last 5 years has shown anything it is that low interest rates serve as a source of fuel to 1% stock trading. The only benefit the middle class gets is lower rates on home mortgages if you qualify. Demand fuels market growth not capital availability. There is so much money already concentrated in a few hands chasing any available return that has nothing to do with helping the average worker. I think low interest rates only help the investment bankers and leveraged hedge fund speculators. Investment dollars derived from these rates are only invested overseas. Why Apple just used the low rates to borrow a ton of money to repurchase their stock so they could avoid bringing overseas money home and having to pay tax on it.
I think it is time to let interest rates go up. The bankers do not need more government help!

[ensemble]

72. Disagee...

We have inadequate fiscal policy to create jobs, but tightening monetary policy would just make the situation worse.
There is no sign of high inflation, and lackluster growth; higher interest rates would squeeze the minimal growth and maybe bring deflation, a bad thing for people in debt.
Two wrongs don't make a right.

[Laelth]

2. k&r for the truth, however depressing it may be. n/t

-Laelth

[The Wizard]

3. The wealthy elites have gamed the system

to create two tiers, lords and serfs. This is what happens when the wealthy get front loaded tax exclusions. They have no incentive to invest back into the economy and create more jobs. With more people out of work there is pressure on labor to accept less and work more just to survive. At some point those squeezing the working class will wake up to realize the peasants have revolted and are in the streets with pitchforks, torches and rope.
Let's hope those causing the grief and hardship on labor will come to their senses and rectify this sooner rather than later.

[Scuba]

5. +1

[theHandpuppet]

7. Well said, Wizard!

[FreakinDJ]

8. You will not have a productive economy for the 99% until you close the loop holes for the 1%

[1StrongBlackMan]

17. Closing the "loop holes" ...

will not create a productive economy.

[FreakinDJ]

36. Better invested rather then hidden off shore

Only Rush Limpdick would Lie about that

[1StrongBlackMan]

37. I agree; but ...

whether the profits are invested in U.S. banks or Off-shore banks, only affects whether the U.S. can tax the money, but has little effect on creating a productive economy.

[FreakinDJ]

38. Tax incentives apply to invested money

Not stashed money

The Off Shore Loopholes have taken away any incentive to invest -

[1StrongBlackMan]

39. What do you think those off-shore accounts are?

They are bank/investment accounts, no different from those in the U.S., except the money is out of the reach of U.S. taxing authority.

[FreakinDJ]

49. OK obviously from Rush Limpdick school of economics

Ic no further need to educate anyone who listens to that drivel

[1StrongBlackMan]

52. No ...

That "drivel" is a basic fact of international banking.

But you are correct, there is no further need to "educate" someone, when they insist on arguing false points.

[FreakinDJ]

57. WRONG Again -"Summa Cum Laude" Rush Limpdick school of economics

Have you ever filled out a tax form of ANY type.

Do you not have ANY money in the bank

Did you neglect to enter in the 1099 the bank sent you

That would be the "Simple Minded" difference between Google stashing $100 Billion off shore or parking it in a USA account.

More importantly (and this flies entirely over the head of ALL of Rush Limpdick's audience) "IF" that corporation had to pay taxes on those earnings, then the cost comparison of being taxed vs: investing in existing or new USA facilities favors the investment by that margin

THAT IS MERELY 1 EXAMPLE

Its brutally apparent Rush's audience is completely behind the curve on understanding the breadth and width of the numerous Tax Avoidance Scams brought on by "Off Shoring" Multinational Corps have lobbied for and received thanks to "Low Information Voters" who keep re-electing Corporate Puppets to Congress

[1StrongBlackMan]

60. I'll respond thusly ...

Have you ever filled out a tax form of ANY type.

Yes.

Do you not have ANY money in the bank

Yes

Did you neglect to enter in the 1099 the bank sent you

No

That would be the "Simple Minded" difference between Google stashing $100 Billion off shore or parking it in a USA account.

Yes ... Simple-minded. You have said nothing that I haven't said ... except you appear to not know that "stashing $100 billion off-shore" is investing it, i.e., the "stash account" invests the "stash" ... just like when the money is "parked in a U.S. account" ... No?

More importantly (and this flies entirely over the head of ALL of Rush Limpdick's audience) "IF" that corporation had to pay taxes on those earnings, then the cost comparison of being taxed vs: investing in existing or new USA facilities favors the investment by that margin

THAT IS MERELY 1 EXAMPLE

Really? Please contact your Accountant. First, you are making the counter-argument FOR THE UTILITY OF OFF-SHORING PROFITS; but more, how is that related to "creating a productive economy"? You seem to be suggesting that Off-Shore investments don't invest in U.S. ventures (i.e., creating productive economy ... They do.

Its brutally apparent Rush's audience is completely behind the curve on understanding the breadth and width of the numerous Tax Avoidance Scams brought on by "Off Shoring" Multinational Corps have lobbied for and received thanks to "Low Information Voters" who keep re-electing Corporate Puppets to Congress

If by "Rush's audience" you are referring to people with degrees in economics and understand more than the latest sophomoric argument ... then, Okay.

To rehash, Closing loop-holes will do nothing to create a productive economy ... You seem to be conflating closing loop holes with income re-distribution (i.e, dealing with the 1%). These are two very different concepts.

And BTW, I am far from a "low information voter".

[Enthusiast]

11. It's just the way God intended.

Otherwise we wouldn't be seeing these results. God guides the fortunes of people. Some people are simply undeserving. Others should be richly rewarded. It's all very simple.

[cstanleytech]

20. Agreed 100%

[silverweb]

53. Exactly.

[font color="navy" face="Verdana"]I've been saying this for some time now.

The 1% want to take us all the way back to a theocratic feudal system, where the only rights "commoners" have are those granted by the "lords," and they get to beat us into submission on religious grounds that support their established hierarchy... just like the Saudis and new Islamic Caliphate, except Christianist in the West.

[littlemissmartypants]

4. Kicking. Thank you.

Do you think we have hit the tipping point, finally?

How low can it go?

If only I was in a disco and talking limbo.
I miss disco.

Thanks for your post.
Lmsp

[xchrom]

6. ...

[theHandpuppet]

9. I wish I could say we've reached the tipping point

But I think it's have to get even worse before the millions in denial come to their senses.

[littlemissmartypants]

10. I am afraid that you are correct.

However, it's very hard to watch it unfold.
Unravel might be a better word choice. Either way it won't be pretty.

Thanks again.
~ Lmsp

[antigop]

40. there are still too many who have not been impacted yet. And they don't care about those those

who have. I cannot believe the number of people who honestly believe their job cannot be outsourced.

[Enthusiast]

12. Kicked and recommended!

Thank you, xchrom.

[blackspade]

13. But the sheep will still vote for the rethugs

The stupid hurts us all...

[dotymed]

24. And a fast food worker shall lead them.

At least the are still fighting for a near- living wage.
It may be the catalyst. When these Neanderthals go to Wendy's and the French Frie maker is earning $15 plus benefits..Wow, these idiots will probably fight against the workers instead of demanding a living wage form their job (if they have one).....
KOCH SUCKERS

[freebrew]

28. It's happened already...

that's why the unions are struggling now. In my area, people are concerned that union folk are making more money than they are. Idiots think the union people are making too much. Try to tell them, "no, you are making too little".

It just goes right over their heads. Unbelievable, but that's the reality.

[dotymed]

32. Sadly,

I live in TN. and hear this daily. IDIOCRACY is the current state of the union...

[whereisjustice]

14. clearly our education system is at fault, we need to learn how to

live on $5/hr w/o benefits like the workers in India and China who are taking our jobs. The other stuff they teach in school? Not so important.

Even worse, when the millionaire corporate aholes in Congress see their income drop, they have only one solution - cut taxes for millionaire corporate aholes in Congress.

Until we stop depending on the kindness of corporations to govern our nation, our quality of life will continue to decline.

[LittleGirl]

18. But India and China

have universal health care....

[whereisjustice]

58. In urban China you may pay for majority of medical costs, care varies wildly, the wealthy

pay very high prices to be treated at western style clinics. This is mostly true in India as well, except for those employees of American/European parent corporations who may have exclusive access to medicines and insurance plans unavailable to ordinary citizens. You will also find an assortment of drugs in use that have been banned in US and Europe as dangerous or ineffective, pharmaceutical industries sell them to the poor. In rural China there may be subsidies available, but good luck finding care.

Having traveled a bit in both countries, I assure you health care in these countries is far from "universal" and the general rule for lower wage workers is "if you get sick, you get fired."

That last statement of fact summarizes why CEOs love sending jobs to India and China. Wall Street won't be happy until our streets resemble the slums of Asia. Only then would they consider hiring US workers. US workers are too smart and conscientious to be employed by US corporations.

[LittleGirl]

59. Thank you for the details you listed

I was remiss. I should have not used the word universal because what you describe is how I figured it was but lacked the proper words in my brevity. I also agree completely with your other information which is honest and I believe you what you say is true. I've not traveled that part of the world (yet) so I spoke without knowing what I was talking about. Thanks for setting me straight. Cheers.

This^^ is what I love about DU.

[whereisjustice]

61. you are welcome, it is true India and China has subsidized care, but nothing

like the successful systems of Canada, Europe. I think even Mexico is stabilizing their crazy system with something more resembling universal care. Meanwhile, back in US we are converging with Russia, China and India, one thing in common with all these countries is massive economic disparity and massive corruption in Government.

[MannyGoldstein]

15. And Obama just unilaterally cut wages for military and government workers

He overrode the standard COLA formula and reduced their adjustment to 1%, lower than inflation.

[dotymed]

26. Manny, anyone who has been buying groceries

for the last ten years knows that real inflation is much, much higher than 1% annually. They screw us on the numbers already meant to screw us....wow.

[1StrongBlackMan]

16. Not to be a statistical wet blanket; but, ...

I suspect there a problems with this study ... not the least of which is using income ranking/categories to extrapolate wage conclusions; and, beyond that, not accounting for the disparate re-entry rate (between income categories) typical of economic recoveries to draw year to year conclusions on wages.

(disclosure: I haven't read the study; but will do so ... and if I am incorrect, I will self delete my comment)

[NCTraveler]

71. "I suspect there a problems with this study "

"disclosure: I haven't read the study"

Admit it. That's funny.

[daleanime]

19. K&R....

[Buddyblazon]

21. My wife and I guy both gave up the game...

of chasing wages last year and opened our own business.

It's been rough. But I'd do it again. It gets a little easier each month. Instead of constantly trying to suck up to a corporate employer that throws us just enough to live only slightly better than paycheck to paycheck even after years and years of loyal service...we spend our energy on increasing our business.


Exponentially happier, and we both had an epiphany:

People that work for others in this day and age are going to see their situations get ever worse. This is no longer a country where your time and service and hard work will be recognized by corporate overlords.

If you ever want to be free of these people, figure out what you can do to generate your own income...






and get the fuck away from these corporate parasites.

[safeinOhio]

25. I quit my PT job last Sept.

All together about 6 people at this business quit or were fired and all were making minimum wage. Everyone of them are now making more money. Started my own small business and am now making about 3 times what I was and having a ball doing it.

I may just be lucky, but the business I worked for was very short sighted in the way it treated it's employes and the way it paid wages.

[ReRe]

47. Hear! Hear!

[AllyCat]

22. We did not get a raise this year. Again.

Price if everything had gone up, but raises were only given to management.

[alterfurz]

23. Find out just what any people will quietly submit to...

...and you have the exact measure of the injustice and wrong which will be imposed on them. -- Frederick Douglass

Beyond a certain point there is no return. This point has to be reached. -- Kafka

In their defense, you can't say that the current incarnation of the 1% aren't doing everything in their power to help the peasants find out their Douglass limit, and reach that Kafkaesque point...

Across this great old nation
Tell me what you gonna do?
When there's one law for the rulers
and one law for the ruled
Which side are you on, boys?
Which side are you on?
Which side are you on, gals?
Which side are you on?

[dotymed]

29. Those limits

should have been reached years ago.
Since TPTB own corporate media, most Americans stay placated by the
lies..
They should realize that "the news" programs are just more fictional "entertainment" on most issues.

[yodermon]

27. But the market is at all time high! All these wage slaves had to do was invest

their insulin money and this wouldn't even be a headline!

[dotymed]

30. And...

low taxes on dividends while your paltry social security check is taxed as wages...
United we could stand yet instead we fall divided daily.

[progressoid]

33. Not to worry. That will start trickling down any day now.

[marmar]

31. K/R

[KG]

34. well the parasite class is making out like the bandits they are. and after all

isn't that what's really important?

[grahamhgreen]

35. Costly trade agreements hold much of the blame. Why Hill & Barry are for it I'd love to have explain

Ed

[antigop]

41. well, we know the explanation, don't we? nt

[Dopers_Greed]

42. B-b-b-b-b-but...

The booming market has caused 401ks to go up.

So this "recovery for the 1%" is actually good for all working americans.

[whereisjustice]

62. the rich trickle down on us every day don't they, a recovery fueled by job loss and slashed wages

[geretogo]

43. Reaganomics is working just as planned .

[SomeGuyInEagan]

55. Reaganomics ....

[link:|

[geretogo]

63. Good picture of the Reagan crime family . They should be serving time in a Federal Pen for what they

have down to this country .

[EEO]

44. There will be another economic meltdown. Ten banks own 77% of all U.S. banking assets.

In 2008, the response to over-leveraged banks failing was to make bigger over-leveraged banks that are now ticking time bombs. There has been no meaningful changes to our economy since the economic crisis in 2008 and there will not be any additional regulation until we hit rock bottom. And it will be worse the next time.

[SoCalDem]

45. And now, companies require college for jobs that once

went to HS diploma holders..why?..Because they know they can GET more educated workers for low wages because there are more job seekers than there are jobs..

Back when companies WANTED people who would "stay forever", they liked being able to hire young kids just out of HS, and TRAIN them at low entry level pay...and then groom them to be a "company-man(woman)".. Now many companies just want part time, contract workers for low pay..and then toss you aside when they don't "need" you anymore

[noiretextatique]

46. not surprised

everyone i know how had a decent job before the meltdown is fine. but those who have been in transition (i.e., fired) have not been able to find jobs with comparable pay and benefits.

[cer7711]

48. Who Cares?

Last edited Thu Sep 4, 2014, 07:13 PM - Edit history (1)

So long as I has me Netflix. Free internet porn. NRA membership. Cable television and Apple I-phone. The choice of shopping at Walmart or Target. McDonalds or Wendys. Access to right-wing media programming that leaves me constantly seething with rage at "the other." (It's all the fault of those budget-busting union members! Or Mexicans. Or Blacks. Or teh gays. Or atheists. Or--putting it all together--those budget-busting, unionized Mexicali-Afro gay atheist false-flag Americans.)

Yes, life is just fine in these United States so long as I can buy the cheapest, shittiest goods available, make meaningless commercial choices with my ever-dwindling paycheck, narcotize and numb myself with the latest sports event/mass-market novel/hyper-hyped Hollywood moo-vie; comic book, celebrity gossip rag and/or video game. And of course--most important of all!--keep my brain misdirected, angry and a-whirl on the usual moronic right-wing memes of duplicity, hate-mongering and utter nonsense.

PS. And yes, this is intended as sarcasm, for those about to alert. (I've learned. Here and elsewhere: irony and satire don't play well with some people.)

[silverweb]

54. That about sums it up.

[font color="navy" face="Verdana"]Sad, isn't it?

[cer7711]

68. Indeed

[adirondacker]

64. Great rant! nt

[cer7711]

67. Thank You!

Great button! Bernie is da man.

Bernie Sanders (or Elizabeth Warren) for President!

[valerief]

50. and why should this year be any differnet? policies aren't. nt

[blkmusclmachine]

56. Expect more of this. Lots more.

[Drunken Irishman]

65. This article is a bit too hyperbolic.

Firstly, wages rise and fall all the time - regardless of economic condition. In 2006, wages were 10.05 in March and 9.99 on average in August. By November, they were at 10.15 an hour.

Wages this year started at 10.31 in January and are at 10.29 in June - the drop being about an average of three cents. It doesn't mean much. Not to say the economy is sound, but the metrics they're using is a bit stretched.

In contrast, the average hourly wage in June, 2013, was ... 10.30. A cent difference. It declined to 10.29 a month later and rose to 10.33 in December.

Again, lots of fluctuation - which happens a lot.

[lonestarnot]

66. And bushers apparently are still glad that voted for that shit pile.

[raouldukelives]

69. Maybe we should try investing more in corporations?

That will lead to more lobbyists and funding of groups like ALEC and Cato which will in turn lead to more tax breaks and less environmental regulations for corporations which will assuredly lead to a growth in wages and a prosperous future for all people.