Investment views based on the cycles and economic fundamentals. Not all views expressed in this blog are in line with the views of F&C.
Investment Chart Kondratiev Wave
Sunday, 11 March 2012
Ever lower income growth for lower middle class, others see more income growth
Since about a year the wage growth in the US is calculated for all labourers together, for the ordinary employees (lower middleclass) and their bosses, supervisors etc. (upper middleclass)
The average of those two groups shows a stable rise of wages. The old wage numbers took only the lower middle class wages into account and by doing so it was hard to explain why consumption growth was doing so well.
The chart of Benderly shows that the wage of the lower middle class is rising less and less. That trend is inexorably down, even while the recession has ended three years ago.
For the upper middleclass the bad times are over. They get salary rises (in the US). Around the credit crisis those wages were going down, but now it is Goldilocks for them. This means bigger income inequality is continuing.
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