Tuesday, December 26, 2006

The Wages of Growth

From a WSJ staff editorial today:

The latest reports on wages and income can discount one more canard about the current economic expansion -- namely, that wages are stagnant and workers are doing far more poorly than they did in the 1990s. For example:

  • Over the past year, the real average wage for nonsupervisory employees has risen 2.8 percent.
  • That equates to about a $1,200 increase in purchasing power for the typical household this year.
  • In 2006, real median household income was also up 1.1 percent after inflation
Thus the "stagnant wages" story can join the "jobless recovery," the "outsourcing" crisis and the runaway budget deficit as other tales of woe that have all turned out to be evanescent.


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