Posts filed under “Wages & Income”
I meant to get to this last week but travel (a/k/a Nasdaq Freeze) got in the way
“After collapsing in 2008-10, net worth is booming again and has now surpassed the 2007 peak. A generous take on this is that the dollar value of wealth has now fully recovered; a more realistic interpretation is that wealth as a share of income has been flat over the last 14 years. During this period, boomers moved out of their 40s and into their 50s. Saving and wealth gains should have been unusually high as they set up for retirement; instead they are running in place.”
Two things to note about this: This is national net wealth, not per capita. So it does not reflect population growth, inflation, etc.
Second, it does now show where we would have been had the crisis never occurred. Its 5 years later, and getting back to breakeven is not my favorite metric to show the impact of the crisis . . .
Ethan S. Harris, Alexander Lin, Joshua Dennerlein, Michael S. Hanson, Michelle Meyer
Bank of America Merrill Lynch, August 20, 2013
In 2011, I posed the question “Is McKinsey & Co. the Root of All Evil ?” This was not a tongue-in-cheek query, but rather, a look at how so many recent disasters traced their origins back to McKinsey & Co. Which brings us to the latest issue negatively affecting the United States, skyrocketing CEO pay…Read More
The Path of Wage Growth and Unemployment Mary C. Daly, Bart Hobijn, and Timothy Ni July 15, 2013 After the Great Recession, the fraction of U.S. workers whose wages were frozen reached a record high. Many employers would have preferred to cut wages, but couldn’t do so because of the reluctance of workers…Read More
Watch both of these, but the 2nd one is the killer:
Fast food workers agitate for higher wages and the right to unionize.
Fast food workers demand increased wages and financial analyst Neil Cavuto shares details of his first job.
Household Wealth: Has It Recovered? William T. Gavin Federal Reserve Bank of St. Louis Economic Synopses, 2013, No. 16 Adjusting for inflation, population growth, and a risk-free real interest rate shows there is still a substantial gap between the peak of household wealth in 2007 and the level today. The 2012:Q4 flow…Read More
Source: The Economist There are 12 million people on the planet that had investible assets of more than $1 million dollars. Collectively, this group controls $46.2 trillion dollars (2012). A quarter of them live in America (3.4m); followed by almost a sixth in Japan (1.9m) and a twelfth in Germany (over 1m). China and Great…Read More
The Old Get Richer, but Not the Young click for bigger chart Courtesy NYT I have some good news and some bad news: The good news is that the total wealth of US households are slowly recovering from the credit crisis and Great Recession. The bad news is it has not been sufficient to keep…Read More
Click to enlarge ~~~ ~~~ Yammy: “The greatest issue plaguing the U.S. economic recovery is the dismal pace of real income and wage growth. As long as incomes do not keep up with the underlying rate of inflation, the economy cannot manage enough growth to foster job creation. Average hourly earnings were unchanged in…Read More