Wage myth

The Washington Times Weekly - - National -

“The­lat­estre­port­son­wage­sand­in­come have been rolling in, and with them we can dis­count one more ca­nard about the cur­rent eco­nomic ex­pan­sion — namely, that wages are stag­nant and work­ers are do­ing far more­poor­lythanthey­didinthat­sec­ond Age of Per­i­cles known as the 1990s,”theWal­lStreetJour­nal­saysin an edi­to­rial.

“Over the past year, the real av­er­age wage for non-su­per­vi­sory em­ploy­ees has risen 2.8 per­cent. That equates to about a $1,200 in­crease in pur­chas­ing power for the typ­i­cal house­holdthisyear.Lastyear,real­me­di­an­house­hold­in­come­wasal­soup1.1 per­cent af­ter in­fla­tion. This rise in take-home pay helps to ex­plain how Amer­i­can­shave­hadthedis­pos­ablein­come­thisChrist­masshop­pingsea­son topay$600forPlayS­ta­tion3­com­puter games and $150 for the Kid-Tough Dig­i­tal Cam­era for 3-year-olds,” the news­pa­per said.

“It is true that in­come and wages arestil­l­about2per­cent­be­lowthe­p­eak they hit in 2000 be­fore the dot-com bust and re­ces­sion. But a new Trea­sury De­part­ment anal­y­sis finds that, mea­sur­ing from the start of the peak ofeach­ex­pan­sion,wages­so­farinthis decade’s cy­cle are run­ning ahead of the re­cov­ery pace dur­ing the 1990s. Thus the ‘stag­nant wages’ story can join the ‘job­less re­cov­ery,’ the ‘out­sourc­ing’cri­sisandtherun­away­bud­get deficit as other tales of woe that have all turned out to be evanes­cent.”

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