Tag Archives: wages

The 21st Century Misery Index: Labor’s Share of the Economy and Real-World Inflation

In the late 1970s and early 1980s, an era of stagflation, the Misery Index was the unemployment rate plus inflation, both of which were running hot. Now those numbers are at 50-year lows: both the unemployment rate and inflation are about as … Continue reading

Posted in General | Tagged , , | Leave a comment

The Rowboat (Wages) and the Yacht (Assets)

The reason why the status quo has failed and is fragmenting is displayed in these three charts of wages, employment and assets: wage earners (labor) are in a rowboat trying to catch the yacht of those who own assets (capital). Here … Continue reading

Posted in General | Tagged , , , , | Leave a comment

A Tale of Two Housing Markets: Hot and Not So Hot

Though housing statistics such as average sales price are typically lumped into one national number, this is extremely misleading: there are two completely different housing markets in the U.S. One is hot, one is not so hot. Just as importantly, … Continue reading

Posted in General | Tagged , , , , , | 3 Comments

The Disaster of Inflation–For the Bottom 95%

Central banks are obsessed with boosting inflation, but the “why inflation is good” arguments make no sense for households being ravaged by inflation. The basic argument is that inflation makes it easier for debtors to service their debts. But this … Continue reading

Posted in General | Tagged , , , | 10 Comments

Here’s Why Wages Have Stagnated–and Will Continue to Stagnate

Mainstream economists are mystified why wages/salaries are still stagnant after 7+ years of growth / “recovery.” The conventional view is that wages should be rising as the labor market tightens (i.e. the unemployment rate is low) and demand for workers … Continue reading

Posted in General | Tagged , , , , , , , , , , | 2 Comments