If Economists Were Right, You Would Have a Raise by Now
by Peter GosselinJennifer Oldham
12:01 AM EDT March 16, 2015
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Six years into the U.S. expansion, the link between falling unemployment and rising wages -- once almost as basic to economic theory as supply and demand -- seems to be coming unhinged.
The disconnect is puzzling to people like Colorado Governor John Hickenlooper. With one of the best growth rates among the 50 states, a population thats younger and better educated than the nations and a jobless level thats fallen further and faster than the national average, Colorado seems to have everything going for it.
Yet the rise in the states median wage since the recession ended in mid-2009 has averaged just 1.1 percent a year, based on data from the federal governments Current Population Survey. Thats no better than the lackluster 1-percent-to-2-percent national pace. What gives?
The whole notion that wage growth has been lagging job growth -- thats the crux of the problem here, Hickenlooper said in an interview. Were working very hard to figure out why.
If the current trend continues, millions of working Americans could wait years to recover economically from the last recession and spend most of their adult lives in an economy in which low unemployment doesn't generate the wage growth needed to lift living standards.
more...
http://www.bloomberg.com/news/articles/2015-03-16/your-wallet-isn-t-getting-fatter-as-economics-101-comes-unhinged
bigbrother05
(5,995 posts)The Greedy B'tards have bought and rigged the system just like the GOP Gerrymandered the states. Even when they lose, we can't win.
Populist_Prole
(5,364 posts)They adroitly contradict any clinical economic principles they previously promoted any time the working class even seems to gain ground.
Hydra
(14,459 posts)Ironically, they will pay in other ways. I've seen it over and over again, but we are in a time of insanity...people fighting for the whole single cake, when we could all have our own cakes.
Yonx
(59 posts)Cheapo.