Wages In Obama’s Economy Aren’t Keeping Up With Inflation

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Via Zero Hedge, while the economy has been adding jobs of late, and the unemployment rate has come down slightly, but it’s hard to call it an economic recovery when wage growth has been underwhelming at best.

Even more depressing is that, when inflation is factored in, American wage growth is actually going backward. We’re all getting poorer:

Why aren’t wages keeping up with inflation? Well, for one thing, inflation has been pretty awful. For another, there’s a lot of uncertainty in the business world. Between the uncertainty of our increasingly temporary tax code (it’s hard to make long-term decisions when your year-to-year tax burden hinges on Congressional in-fighting) and the impending tax and regulatory shock and awe of Obamcare, businesses just aren’t feeling confident in raising their overhead in the form of raises or hiring.

As a result, we all suffer. But hey, “tax hikes for the rich” or something.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • WOOF

    Life is uncertainly.
    Certainly is death and t

  • Roy_Bean

    This is a result of the decline of union membership. It’s the reason that I pay union dues in a right-to-work state. At least half of the members of the union I am a member of vote Republican. Wage negotiation is not a political thing.

    • Thresherman

      Actually it has more to do with energy prices as they are the leading driver of inflation right now as rising energy prices drive the cost of everything up across the board. If President Ladies Tee had a progressive energy policy rather than a punitive one, the situation would be a lot different and the economy would be a little better. But as long as his policy is to stab business in the heart, a poor economy and inflation is going to be the norm for the next 4 years at least. There is only so much that companies can afford when business is bad and being in a union does not change that. Just ask the former Crystal Sugar union workers.

      • Roy_Bean

        I think the ACS union blew it. Many unions bargain in profit sharing. If the company makes big bucks the employees get a share. If times are tough then at least they have a job. Politicians try to use worker pay levels but in the end pay is more an economic issue than a political issue.

    • WOOF

      Wisconsin and Michigan, say it’s a very political thing.

  • sbark

    In a correction—–things have to correct—and cost of Labor is one of the biggest.

    Dem’cats just use Keyenist economics and its inherent infation to hoodwink Labor into a effective reduction in wages vrs. the cost of products they produce

  • Hannitized, Proofs obsession

    Those Bush tax cuts aren’t helping at all.

  • banjo kid

    700 for rent , 240 for electric 200 for heat 50 for telephone cable 50 there’s 1240 which for a 2,000 income would leave 760 for eating and gas , we can agree most people needs more than 24,000 a year to just barely make it , I would say to make in some kind of comfort 40 grand a year would not be to much . There are very few jobs that pay that kind of money .

    • JW American

      440 dollars for utilities? I’d start looking at turning some lights off, and maybe insulating, if not move to a different rental that paid utilities. Wow, we heat / lights for a 3300 sq feet house at its highest was a bit over 200, come spring and fall or anytime the a/c doesn’t run its under 60.

      • banjo kid

        I pay over 200 for electric alone and during the winter months my bill goes as high as 226 just for natural gas . I do have large home and it is well insulted and I have the right windows by nu sash. I would have to run to another state to get anything cheaper . actually the electric hits over 250 in the hot months it is a seasonal thing but still utilities are a big cost to any one even the ones who don’t pay for it, it is included in the rent. You are right we do use lights so we don’t trip in the dark. we do turn them off at bed time though.

  • banjo kid

    He does not want us to make a good wage because we might not depend on him.

  • Michael Fournier

    Until we get rid of the Federal Reserve Bank We will always be fighting the movement of all money to the top. The federal reserve bank of the US IS NOT a government agency it is a Banking conglomerate that controls it. and Every time the treasury prints more money they do it by taking a loan from the Federal Reserve Bank BUT that loan must be paid back with interest but the amount of money put in to circulation is not enough to pay back the loan plus interest so they have to print more money to pay cover the interest then they have more interest. It is a Endless cycle that just reduces the value of the dollar more and more every time. This has been the case since Nixon took the US dollar off the Gold standard the US dollar is backed by nothing but debt. Of course the US dollar is what backs many of the worlds currencies so when the US Dollar is backed by debt so is most of the worlds currency. So who is getting all the interest payments? the share holders of the Banking conglomerates that run the worlds Banks that’s who. and these same people also are the largest share holders of the world multi-national corporations and are also the largest contributors to political campaigns

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