Reflections on the "Wage Recession" Mike Shedlock March 2, 2013
"Jed Graham at Investor's Business Daily has an interesting chart showing Wage Recession Hits 5 Years; Worse Than Jobs Drought. I can show it's even worse, but first let's consider a chart and commentary by Graham.
As bad as the current job recovery has been — and it's by far the weakest since World War II — the recovery in wages has been far worse.
Five years after the recession began in December 2007, total wages in the economy have yet to fully recover in real terms, Commerce Department data show. In other words, the wage recession continues. . . . Real Disposable Income
Instead of looking at wages, let's consider real disposable income as a measure of the "wage recession". Here is a chart from Doug Short at Advisor Perspectives on Nominal vs. Real Income.
Real Disposal Personal Income Per Capita . . . " When you look at the Cart of disposable income for 2000 - 2014 remember real income (blue line) was created using an index based upon chained dollars which is nothing more than pure substitution effect and measures the cost of a DECLINING standard of living, not a set standard of living. If real income was created using an index that reflected a set standard of living the blue line would be dropping.
RIGHT'S RIGHT 
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Sun Mar 03, 2013 2:46 pm
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