Wages

Snapshot for April 20, 2005. Economic Policy Institute
Price growth outpaces wages for the 11th consecutive month
http://www.epinet.org/content.cfm/webfeatures_snapshots_20050420jb

Today's CPI report allows us to examine the progress of wage growth four years out from the recession that began in March of 2001. Since then, real hourly wages have gone up by 1% in total, an annual rate of 0.2%. Real weekly wages, which reflect the diminished hours of work over much of this period, were flat, down 0.2% over the four-year period.

Snapshot for April 21, 2005 .Economic Policy Institute
Productivity growth and profits far outpace compensation in current expansion
http://www.epinet.org/content.cfm/webfeatures_snapshots_20050421

Over prior business cycles, profits (including interest income) have accounted for 23% of the growth in corporate-sector income, on average, with total compensation accounting for the remaining 77%. In the current business cycle, the distribution is almost reversed: profits have claimed nearly 70% of total growth in the corporate sector, while increases in compensation (from increased employment and higher hourly compensation) have received just over 30% of total income growth
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Study of these Two Quotes leads to some disquiet, and not just totally for the plight of Labor. Real Weekly wages have not risen, but stagnated with a slight drop. Imports have increased by leaps and bounds over the same Period, an arena where Profits can be maintained with relatively few inputs of Labor. Other sources cite Consumers paying down their Credit Card debt, as well as non-mortgage Bank debt. These elements, taken together, suggest the American manufacturing sector has eroded more than Economists thought. It also hints that the Discouraged Labor force are much greater in Numbers than Government releases maintain.

The Total could possibly foretell a weak Summer season, with consequential reduction of the Summer Employment. Housing Start permits need to be closely watched; if they continue last month's trend, Construction will lose Employment generation. Most Economists like to claim the Oil Price increases are not hurting the Economy excessively, but this Author thinks We are only beginning to witness the havoc. lgl