WP: Pay Lags Behind Inflation (economy fine except for working families)

[DeepModem Mom]

Pay Lags Behind Inflation
Overall Economy Keeps Growing, Commerce Dept. Says
By Nell Henderson
Washington Post Staff Writer
Saturday, July 30, 2005; Page D01


Workers' pay and benefits rose more slowly than inflation in the second quarter, even as the U.S. economy expanded at a healthy pace, the government reported yesterday.

Employers' costs for wages, salaries and benefits rose 0.7 percent in the quarter, the same pace as in the first quarter and the smallest gain in six years, the Labor Department said.

Meanwhile, rising energy costs helped push consumer prices up at an annual 3.3 percent rate in the second quarter, while the economy grew at a 3.4 percent annual rate, the Commerce Department said in a separate report.

Together, the reports portrayed an economy that continues to produce more goods and services even while workers' pay gains are getting smaller, nearly four years after the end of the most recent recession. Businesses are holding down the growth of their labor costs through new technologies and management practices.

"The economy's doing fine, except if you figure in working families," said Jared Bernstein, senior economist at the Economic Policy Institute, a think tank focused on labor issues. "We're posting great numbers in aggregate demand, yet the lousiest on record for wage growth."...


http://www.washingtonpost.com/wp-dyn/content/article/2005/07/29/AR2005072900566.html

[Erika]

1. Yet the lousiest record for wage growth

Yeah, if you don't factor in working families, the economy is fine.

Bush's America.

[bribri16]

28. Working families that voted for Bush deserve what they get. Too bad

the rest of us have to suffer along with them.

[FloridaPat]

2. So they're not even talking about the unemployed. So the economy

is good for ? Defense contractors. Not good for soldiers. I saw on stock market shows today the eceonomy is in wodderful shape. Profits everywhere. Guess it's good for corporations.

[Erika]

3. They aren't talking about working families either

I guess the elitists are making out like bandits. But that is why W was "selected".

[TahitiNut]

4. Who gives a shit as long as the stock market is up?

:sarcasm: :puke:

[cosmicdot]

5. is this the same Commerce Dept. which just revised growth down

and inflation up over the 2002-2004 period? can we even believe these numbers are adjusted adequately?



Growth revised lower, inflation higher
````````````````````````````````````````

By Rex Nutting, MarketWatch
Last Update: 11:43 AM ET July 29, 2005


WASHINGTON (MarketWatch) - The U.S. economy was weaker over the past
three years than previously estimated, while inflation was
moderately higher, the Commerce Department said Friday.

Instead of growing at a 3.1% annual rate in the three years from
2002 through 2004, the economy actually grew at a 2.8% pace, the
government said.

~snip~

The revised data show the recovery since the recession of 2001 was
weakest in the post-World War II era.

At the same time, inflation was a bit hotter than previously thought, especially in 2004.

~snip~

http://www.marketwatch.com/news/story.asp?guid=%7BE5F40DB7%2D5B66%2D4DF9%2DBE78%2DD3B447D04F5B%7D&siteid=mktw


US growth weaker, inflation stronger in 2002-2004
`````````````````````````````````````````````````
Fri Jul 29, 2005 8:32 AM ET


By Andrea Hopkins

WASHINGTON, July 29 (Reuters) - The U.S. recovery from the 2001
recession was the weakest in more than 50 years, while inflation last year was stronger than first thought, new government data show.

Annual revisions to U.S. gross domestic product released on Friday
by the Commerce Department suggest the Federal Reserve has been
right to worry about rising inflation despite previous data showing
fairly tame price pressures.

~snip~

By comparison, GDP grew at annual rate of 5.4 percent in the 13
quarters following the 1975 recession, 4.7 percent after the 1982 recession, and 3.3 percent after the 1991 downturn.

The revisions also show core inflation -- as measured by the
personal consumption expenditures price index excluding food and
energy, a measure favored by the Fed -- was much stronger than
initially thought. The core PCE price index grew 2.0 percent in
2004, up from 1.5 percent previously estimated.

~snip~

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-07-29T123254Z_01_N27284242_RTRIDST_0_ECONOMY-GDP-REVISION.XML

1975 recession - Nixon/Ford
1982 recession - Reagan
1991 recession - Poppy

[DeepModem Mom]

6. I thought I'd been seeing conflicting assessments. nt

[earthboundmisfit]

7. Then I guess a slave-wage workforce would make the economy BOOM big time..

Why profits would be positively astounding!

[Erika]

9. Yes, the market would go sky high at corporate earnings

when slave-wages are paid.

[FloridaPat]

23. Don't forget all those layoffs too.

[The_Casual_Observer]

8. I guess nobody works in america anymore

That is what must make america great, nobody has to work, just sell houses to each other!

[WannaJumpMyScooter]

10. duh, could have told them that

but, no everything is just fine... nothing to see here... move along

[Erika]

11. American families being oppressed

but the stock market is way happy.

When will the wage earners realize they simply do not play a part in the stock market other than if their wages remain low Wall Street is happy? They don't "own" enough to have a say. It's the corporate globalists, like Bush, who affect the market.

[Cobalt Violet]

22. Don;t hold your breath waiting for wage earners to demand more.

I've been hoping for that since the 80's. I can't believe it's gotten this bad. I guess that's why they're called sheeple.

[barb162]

12. my favorite sentence

"Businesses are holding down the growth of their labor costs through new technologies and management practices."

Isn't that wonderful that businesses are holding down labor costs?
OUTSOURCING, OUTSOURCING, OUTSOURCING, OUTSOURCING

[Erika]

13. Bushco and Bushbot's America

Those pesky low class should just crawl under a rock. Just because they work, they think they should have decent wages and medical care?

[barb162]

14. Yeah, who the hell do they they are? Why should they eat

when they are depriving some rich corporate exec from buying a new Maserati? I mean, come on with this crap that people deserve an actual living wage like we once had not all that long ago. sarcasm galore

(Sometimes I could just cry with what is going on with our economy and how many people are suffering with unemployment and underemployment)

[Robert Oak]

15. question is

why is the economy for corporations going to bust...they are destroying the middle class, I don't see too much of a global middle class growing to replace us...so who is going to buy their products?

[Disturbed]

16. RW and most Dems...

don't give a damn about the Working Class, the Working Poor or the Poor. The Silverspoon Sociopath told a lady that was working three jobs: "Fantastic." Then he joked, "Don't get much sleep, do ya." He is an arrogant, clueless asshole.

[FloridaPat]

24. China's economy is taking off. Once the dollar is down to nothing,

Europeans can buy the products for next to nothing.

[Robert Oak]

26. yes, but the point is

There is no real middle class raising in China to replace us.

Even if we are replaced that's major reason to get these cats out of office, but in terms of a growing middle class anywhere in the globe....
from what I see that answer is no and it's no because they are turning workers into slaves around the world.

[fasttense]

17. Wait a minute,

I don't get where the economy is improving. Wages are stagnant, that is obvious to anyone with a brain.

The Stock Market is stagnant. We don't even see the highs in the stock Market we saw back in 1999. The DOW closed on January 22, 2001
at - 10,578.24. It rarely goes above this.

Yet the economy continues to produce more goods and services. So the economy is producing more but who is buying it? Obviously some of this demand is coming from normal population growth but aside from profits reaped by companies outsourcing, where is the demand that is fueling our economy?????

[llmart]

19. Yes,

and why is consumer sentiment so low? This is a bunch of horseshit. The economy has gone nowhere under these frauds.

[halsaxby]

21. There's the rub...

The never specify what part of the economy is doing better. I have no doubt that there is growth in corporate sector, due to all of the layoffs, outsourcing and illegal immigrants.

[FloridaPat]

25. Military spending is included in GDP. $1 billion a week for Iraq.

Tons for Afghanistan. And don't forget the $1 trillion for Star Wars non-Defense fiasco.

[strizi64]

18. so where's the "Bush-Boom"

Meanwhile, rising energy costs helped push consumer prices up at an annual 3.3 percent rate in the second quarter, while the economy grew at a 3.4 percent annual rate, the Commerce Department said in a separate report.

3.3% inflation y/y and a 3.4% growth in GDP, that's only 0.1% real growth in GDP. No boom at all, even Germany and France keep up this pace...

striz

[54anickel]

20. "Just around the corner", "we're on the cusp", and all the other cheap

talk they've been spewing for 4 years.

[Zhade]

27. This belongs in the...

..."if-I-rolled-my-eyes-back-any-further-while-saying-DUH!-I'd-be-staring-at-my-brain" category.