“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.”