Home Mobile Archives Reader Blogs Register Login

Tuesday, October 31, 2006

Wages And Benefits Growing At 2-Year High, Outpacing Expectations

Nice…

WASHINGTON - Wages and benefits paid to American workers rose in the July-September period at the fastest pace in more than two years.

The Labor Department reported that its Employment Cost Index was up 1 percent in the third quarter, compared to a 0.9 percent rise in the April-June period. It was the biggest quarterly increase since a similar 1 percent rise in the second quarter of 2004.

The increase, which was above the 0.9 percent rise that economists had been expecting, was led by a big jump in the cost of employee benefits such as health insurance and pensions.

For the third quarter, benefit costs rose by 1.1 percent, up from a 0.8 percent gain in the second quarter. Wages and salaries were up 0.9 percent, matching the increase in the second quarter.

I think the continued low employment is mostly the cause of this.  When unemployment is low the pool of available labor for business is, obviously, smaller.  This means businesses must compete against one another more to attract qualified employees, which in turn means that businesses raise compensation levels (wages and benefits) to make their positions more attractive.

This is a very, very positive thing for our economy.

Further, I’d also point out that it is evidence in support of my “all jobs are good jobs” theory.  Many, especially here in my home state of North Dakota, rail against “Wal-Mart jobs” or “McJobs” as not being good enough for our economy.  The truth of the matter is that they are good enough, because the creation of any job, be it as a burger flipper or an engineer, is a sign of economic growth.  As economic growth advances and competition for workers increases because of lower unemployment compensation levels go up.

We cannot expect to control a free economy.  Trying to dictate which “type” of jobs we’re going to have in our economy is nonsense.  What we should promote is economic growth, and that means the encouraging the creation of all types of jobs.  We do that, and our economy will be just fine.

Update: This is how the AP chooses to report this good economic news:

image

Right.  Wouldn’t want to report that wages are up or anything right before the election.

Comments

Of course, it just makes sense in a growing economy.  The class-envy crowd is trying to sell us the old Marxist poop about the capital vs labor lie; that the “workers” aren’t getting any benefit from the good economy, which might be true if we were a socialist economy, but we aren’t.  The economy is doing well because of the efforts of all the individual citizens.  Duh.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on October 31, 2006 at 08:34 am
Avatar for WOOF

compensation1ad0.gif

WOOF on October 31, 2006 at 03:26 pm

Growing Economy



LOL


"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

Troy_Pineri on October 31, 2006 at 03:45 pm
Rob
Rob
17185 comments
Send a private message

Woof, real wages doesn’t take into account growth in compensation in the form of health benefits, etc.

Why don’t you be honest and find a chart for total compensation?

Troy: Just because you don’t want to believe that there’s a growing economy doesn’t make it any less true.


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

Rob’s recently listened-to songs:

robport.gif border=0

Rob on October 31, 2006 at 03:47 pm

Troy? Did the evil Republicans cut your welfare check? Boohoo.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 31, 2006 at 03:49 pm

growth in compensation in the form of health benefits,


Who is getting more health benefits?  Most Americans are losing benefits or are required to pay a larger share of the premium.


"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

Troy_Pineri on October 31, 2006 at 03:50 pm
Rob
Rob
17185 comments
Send a private message

Troy, the numbers quoted in the post would tend to show that you’re just plain wrong:

For the third quarter, benefit costs rose by 1.1 percent, up from a 0.8 percent gain in the second quarter. Wages and salaries were up 0.9 percent, matching the increase in the second quarter.

Businesses are spending more on benefits.

Maybe you’re relying too much on what politicians tell you instead of reality.  Now if we could get health care prices back down by making individuals more responsible for paying for their own health care (I’m thinking health savings accounts) we’d really be getting somewhere.


The war against illegal plunder has been fought since the beginning of the world. But how is… legal plunder to be identified? Quite simply. See if the law takes from some persons what belongs to them, and gives it to other persons to whom it does not belong. See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime. Then abolish this law without delay … If such a law is not abolished immediately it will spread, multiply and develop into a system.

Frédéric Bastiat, The Law

Rob’s recently listened-to songs:

robport.gif border=0

Rob on October 31, 2006 at 03:54 pm

Businesses are spending more on benefits.



Who is spending more?

Maybe you’re relying too much on what politicians tell you instead of reality.



The Irony


"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

Troy_Pineri on October 31, 2006 at 03:57 pm

The lefties have to lie about the economy because they are emotionally unable to admit that our President has had any success at all.  Because they are arrogant elitists, like Seymour Hersh, they think we will swallow any old crap that they put out, because we are so ignorant.
Here’s the bottom line: Workers who make more money buy more and better stuff; therefore, it is in the best interest of businesses to have more productive workers who make(because of their efforts, not govt mandates) more money.  The only people who want a large “worker class” are the Marxists, who need to have a large portion of the population dependent on govt.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on October 31, 2006 at 04:56 pm

The President/Fed Reserve has to lie about the economy because they are emotionally unable to admit that our economic system is crashing.  Because they are arrogant elitists, like Seymour Hersh, they think we will swallow any old crap that they put out, because we are so ignorant.
Here’s the bottom line: Workers who borrow more money buy more and better stuff; therefore, it is in the best interest of businesses to offer more credit, and financing, and lower interest rates, over longer peoriods of time, so they can make(because of their efforts, not govt mandates) more money. No one in American govt wants to tell the truth, because who wants their legacy to be the same as Hoover’s.


"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

Troy_Pineri on October 31, 2006 at 05:06 pm

Troy: Nice Marxist talking points!  Can’t you be a bit more original?  At least acknowledge where you got the substance of your comment(with the insertion of your own lies in place of the truth).  Shame on you!


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on October 31, 2006 at 05:23 pm

Troy is truly a sad, pathetic piece of crap.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 31, 2006 at 05:46 pm
Avatar for Bat One

Robert108,

Forget Troy.  What he understands about economics isn’t worth the cost of 3X5 card it would take to write it on… in crayon.

WOOF,

Your chart is of some interest, not least because of the marked decline in private sector benefits it displays starting with Mr. Clinton’s inauguration.  Do you suppose that had anything to do with his promised middle class tax cuts that became tax hikes as soon as he took office?  It would certainly appear to be a causal relationship.

If that’s the case, please explain how our economy and our workers can afford any more such cuts in private sector benefits when the Democrats start raising taxes again.  Particularly as the working population is aging and baby boomers are closing in on retirement.  If the economy really is anywhere near as weak and fragile as you lefties have claimed, the last thing the American worker needs is more enforced “sacrifices” for your mythical “common good.”

Bat One on October 31, 2006 at 05:49 pm

Bat: Thanks for the support.  Troy’s deficiencies in economics knowledge are painfully obvious.

If the economy really is anywhere near as weak and fragile as you lefties have claimed, the last thing the American worker needs is more enforced “sacrifices” for your mythical “common good.”

Sounds a lot like Stalin’s “Five Year Plans”, which went on for decades.  The Dems definitely have their script for this country.


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on October 31, 2006 at 05:54 pm

You guys on here are deficient in economics.. the world is changing and your view is so myopic your about ready to get your ass handed to you.. the funny thing is you’ll wish there was more bread lines when your out on the street


"All the perplexities, confusion and distress in America arise not from defects in their Constitution or Confederation, nor from want of honor or virtue, so much as downright ignorance of the nature of coin, credit and circulation.”
- John Adams

Troy_Pineri on October 31, 2006 at 05:57 pm

Troy: Nice leftie vision for America.  Thanks for being truthful about where you stand.  What are you doing about it, besides plagiarizing my words?


"If the good men are silent only the wicked are heard.” - Edmund Burke

robert108 on October 31, 2006 at 06:00 pm

Poor little Troy, can’t get a job that does not involve a deepfryer. Your precious Marxist/Socialist ideology is the only thing that will bring on another Great Depression, so when you go to bed tonight make sure to include that in your prayers to Engals.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 31, 2006 at 06:01 pm
Avatar for Bat One

You guys on here are deficient in economics.. the world is changing and your view is so myopic your about ready to get your ass handed to you.

Troy,

Leaving aside your modest grammatical skills, I would be interested in a substantive demonstration of your superior economic knowledge.  If your current commentary and prognostication are any indication, there is little to be gained by further embarrassing yourself.

Still, being a principled conservative I’m willing to acknowledge an error on my part if you’re capable of providing me a suitable reason.

Bat One on October 31, 2006 at 06:17 pm

This ought to be good.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on October 31, 2006 at 06:19 pm
Avatar for Bat One

This ought to be good.

2Hotel9,

I doubt it will worth missing those re-runs of

Bonanza

or

Happy Days

on cable.  After all, listening to Troy babble on about economics is kinda like listening to John Kerry trying to explain national security.
Bat One on October 31, 2006 at 06:28 pm

It appears he took his “employees” and went to bed. I actually skipped waiting for his indepth and scintillating economics dissertaion to go watch Southpark.


Una Salus Victus Nullam Sperare Salutem

2Hotel9 on November 1, 2006 at 02:21 am
Page 1 of 1        

Post a Comment


Before commenting, please recite:

Grant me the serenity to ignore the trolls,
the courage to debate with honest opponents,
and the wisdom to know the difference.

Name   
Email   
URL   
Human?
  
 

Upload Image    

Remember my personal information

Notify me of follow-up comments?

Note: Notifications will only be sent to confirmed email addresses.