WEB Notes: Something here is missing… Oh yes, how could I forget? “Great Again”! There we go. So wages have barely moved in decades, that would include a lot of Presidential terms, including Republicans and Democrats. My, my, my, what will the people say now? They say we have the same purchasing power today that we had decades ago…
Yet, decades ago a Caddilac may cost you $4-5k which was more than you could purchase a home for. I should not need to tell you that ratio does not hold true today. So someone is still playing around with the numbers here.
Today it would take several Caddilacs to equal the cost of today’s average home depending on where in the US you are located. Then we have debt. Today, Americans are in more credit card debt, college debt and any other kind of debt you can think of. Someone has not been managing their money very well I would say.
On the face of it, these should be heady times for American workers. U.S. unemployment is as low as it’s been in nearly two decades (3.9% as of July) and the nation’s private-sector employers have been adding jobs for 101 straight months – 19.5 million since the Great Recession-related cuts finally abated in early 2010, and 1.5 million just since the beginning of the year.
But despite the strong labor market, wage growth has lagged economists’ expectations. In fact, despite some ups and downs over the past several decades, today’s real average wage (that is, the wage after accounting for inflation) has about the same purchasing power it did 40 years ago. And what wage gains there have been have mostly flowed to the highest-paid tier of workers.
Source: Pew Research