Laissez le bon temps roules

[pchang]

http://www.business2.com/b2/web/articles/0,17863,1035595,00.html?promoid=cnnmoney?cnn=yes

Last month, for example, there was a lot of chatter about the so-called wageless recovery. Now that the critics can no longer get traction by discussing offshoring or the jobless recovery -- the economy added 2.3 million new positions last year -- they're trying this new tack. I traced the origin of this canard back to a press release from the Economic Policy Institute, a liberal think tank in Washington, D.C., that says that wage growth in 2004 was an anemic 2.1 percent, "the lowest in the history of this wage series, which began in 1964."


The funny thing is, the EPI got the number wrong: It's actually 2.6 percent. But the validity of the entire report is in doubt because the EPI was looking at the wrong data set. The more relevant number, the median weekly earnings of all full-time workers, puts the pay increase at 2.9 percent last year -- the best in three years.

[DanS]

Two notes on this:

(1) The real compensation increases are pretty small. The CPI went up substantially last year as well, wiping out most of the gains that you cite.

(2) Even though #1 is true, it was because lack of worker pricing power. As the jobs grow over time, pricing power for workers should return.

I think overall, we're doing pretty well for this point in the business cycle. We're just now entering the expansion phase.

[Flubber]

Its good to see some positive economic news from the US. Hopefully a nice little boom in the US will help Canada continue along very very well

[DanS]

Btw, if you earn $86k in Gainesville, I'll bet you're living like a king, unless you've got a huge coke habit, etc.

[chequita guevara]

Originally posted by DanS
Btw, if you earn $86k in Gainesville, I'll bet you're living like a king, unless you've got a huge coke habit, etc.

Where did that ome from? And yes, you would, though you wouldn't have anything to do.

[DanS]

From the article.

[pchang]

25 year old pharmacist - fresh out of pharmacy school.

He started at $76K and got a $10K raise after 2 weeks on the job.

[Frozzy]

My old French teacher almost went into a flaming rage when people wrote "le bon temps" or "les bon temps".

[pchang]

It's a Cajun thing.

[Ted Striker]

Pharmacist != common worker

Meanwhile the minimum wage hasn't been increased in over 8 years.

Wait, that's really only like 3 or 4 people!

ZOMFG every small business is going to go under if we raise it!


Nice troll though pchang.

[Dinner]

The good news is that pricing power for workers usualy returns on the high end first then works its way down the pay ladder. At least the process has started.

[Kidlicious]

The bottom of the ladder never really gets any improvement. The only improvements come where there are shortages at skilled positions. That's why we saw the temporary improvements during the 90s.

[Mr. Harley]

Also compare the salary increases to the costs in medical insurance, drugs, and schools. Oh, but that's different the conservatives whine. The middle class, you know, those weird people who want to send their children to college and try to carry medical insurance.