Posts filed under “Wages & Income”

The U.S. Economy’s Lost Decade

We interrupt the George Bush reputation rehabilitation tour for this brief reminder:

“For most of the past 70 years, the U.S. economy has grown at a steady clip, generating perpetually higher incomes and wealth for American households. But since 2000, the story is starkly different.

The past decade was the worst for the U.S. economy in modern times, a sharp reversal from a long period of prosperity that is leading economists and policymakers to fundamentally rethink the underpinnings of the nation’s growth.

It was, according to a wide range of data, a lost decade for American workers. The decade began in a moment of triumphalism — there was a current of thought among economists in 1999 that recessions were a thing of the past. By the end, there were two, bookends to a debt-driven expansion that was neither robust nor sustainable.”

Just in case you forgot: By nearly any conceivable measure, the George W. Bush administration (2000-08) economic performance was the worst of any President since Hoover.



Aughts were a lost decade for U.S. economy, workers
Neil Irwin
Washington Post, January 2, 2010

Category: Employment, Really, really bad calls, Wages & Income

Household Net Worth (as % of Disposable Income)

Interesting chart that Macro Market Musings calls “The Revenge of the Balance Sheets.” Each of our double peak in assets — dot com stocks and housing — sent the ratio to unsustainable levels and back again. You may recall at each of these peaks, some idiot was invariably trotted out to discuss how the debt…Read More

Category: Consumer Spending, Credit, Real Estate, Wages & Income

Analyzing 2008 Tax Returns

Floyd Norris digs up the dirt on US income, via the SOI Tax Stats of the IRS: – In 2008, Americans reported $8.4 trillion in total income, down 4.6% 2007. – Inflation adjusted, that is down 8.4% — the sharpest decline in total income since 1990. – Biggest source of decline: Falls in Investment Income…Read More

Category: Data Analysis, Wages & Income

The Old Pay System of Wall Street

> Last weekend, we discussed issues of Wall Street compensation and liability in placing a natural limit to excessive risk-taking: Delay Pay? Try Partnership Liability. This week, Floyd Norris received an email from a retired investment banker regarding what Wall Street compensation used to look like, and why that curtailed excessive behavior, and private gains,…Read More

Category: Bailouts, Legal, Regulation, Wages & Income

Delay Pay? Try Partnership Liability.

In the Sunday NYT, Yale Professor Robert Shiller discusses one of the recommendations of the Squam Lake Report — holding back some executive compensation to align their risk with taxpayers (Help Prevent a Sequel. Delay Some Pay.) Here is their recommendation: “The Squam Lake group recommends that companies be encouraged to withhold a good part…Read More

Category: Bailout Nation, Bailouts, Corporate Management, Regulation, Wages & Income

Positive Sign: Worker Mobility

One of the data points that has been getting some attention is the total withholding tax receipts, as reported by the IRS. According to the table below, it is down year over year. Some are interpreting this to contradict BLS, and likely means that the improving jobs data are bogus. Bill King specifically noted that…Read More

Category: Economy, Employment, Wages & Income

Consumer Finances

As per our prior discussion, let’s take a look at a nice set of charts showing the present state of Consumer Finances (all data thru Q1 2010): Balance Sheet, Savings Rate, Debt Service Ratio click for larger chart Source: (Left chart) JPM, FRB, J.P. Morgan Asset Management. Data includes households and nonprofit organizations. (Right charts)…Read More

Category: Credit, Economy, Markets, Wages & Income

American Pastime: OverPaying CEOs

There is a longish Sunday NYT article on CEO pay that I plan on reading. But before I get to it, I wanted to share some longstanding thoughts of my own on exec compensation. While there was a temporary drop in exec comp caused by the market crash, we still have structural compensation issues that…Read More

Category: Really, really bad calls, Wages & Income

Top 10 Hedge Fund Managers 2009 Salary

Here are the top 10 managers for 2009 in terms of net compensation. The majority  of this comp is based on performance fees, plus investment returns on their own money. The top 25 earners were paid a collective $25.3 billion. The lowest earner on the list earned a puny $350 million — a shanda! —…Read More

Category: Hedge Funds, Wages & Income

Payroll Withholding Taxes Surge in March

Matt Trivisonno shares with us some of the research he does at Daily Jobs Update regarding payroll withholding taxes. He notes that in March, there has been a very strong surge in withholding taxes. The amount is roughly equivalent to 300,000 new workers being paid $30,000 salaries.  Matt presume many of these jobs are Census…Read More

Category: Taxes and Policy, Wages & Income