The end of the American dream?

[NVMojo]

The US economy has been generating strong economic growth over the past few years as it has come out of recession.

After growing at more than 3% a year in 2004 and 2005, the pace picked up to a blistering 5.6% annual rate in the first quarter of this year - although the pace has since then slipped back to 2.9%.

So far, though, little of that growth has translated into the hands of the average worker, according to new research from the Economic Policy Institute (EPI).



For real household incomes, the median point - the level at which half of households earn more and half less - has actually fallen over the past five years.

That marks a notable contrast with the 1990s, when the economic boom boosted both jobs and incomes.

The puzzle of economic expansion without significant job or wage growth has been troubling US economists and commentators of all political persuasions.

more...

http://news.bbc.co.uk/2/hi/business/5303590.stm#graph

[NVMojo]

1. oops, meant to put this over in Editorials and other articles, sorry

[leftchick]

2. "Income Inequality"!!!!

another good graph from the article...



<snip>

Even for those with jobs, the fruits of economic growth have been more unequally distributed within the labour market.

The incomes of the top 20% have grown much faster than earnings of those at the middle or bottom of the income distribution. The income of the top 1% and top 0.1% have grown particularly rapidly.

From 1992 to 2005, the pay of chief executive officers of major companies rose by 186%.

The equivalent figure for median hourly wages was 7.2%, leaving the ratio of CEOs' pay to that of the average worker at 262.

In the 1960s, the comparable figure was 24.

[FloridaPat]

3. Considering economic growth for the last 5 years has been people

with home using their equity to pay off their credit cards so they can run them up again - I would say it's no suprise that wages are not growing. There is no economic boom except for defense contractors. * has been shipping high paying jobs overseas as fast as he can. I don't understand why the people aren't screaming bloody murder.

[Shipwack]

4. "puzzled"?

This is the statement that surprises me:

"The puzzle of economic expansion without significant job or wage growth has been troubling US economists and commentators of all political persuasions."

Why are they puzzled? All the college economic classes I've taken tell me that the number one duty of a corporation is to increase shareholder wealth. It's not "be a good corporate citizen". It's not "be a friend of a community". It's definitely not "give a living wage", or even share your profits with those who made them possible.

When a corporation cuts jobs, wages, or benefits, they invariably are rewarded by the market with the price of their shares going up. Corporations have all the legal rights of a citizen with none of the responsibilities. Why should they act any differently, and why are economists surprised. Or are the pundits just playing along with the gag so that the "little people" don't catch on?

[Javaman]

5. translation of the chart...

Keep paying them shit and tell them it's a raise, while at the same time keep squeezing them by the balls and tell them it's good for the economy.

fuckers.