Speaketh, O' Mighty Max, of the Dismal State of Qoin

Max Sawicky

THE WAGELESS RECOVERY

The Prez says the economy is strong and getting stronger. By the evidence of the labor market, however, it is weak and getting weaker.

My colleague and labor market genius Jared Bernstein shows that from the third quarter of last year to this year, the wage and salary component of the Employment Cost Index increased by 2.4 percent, relative to inflation of 2.7. The does not mean that total compensation in these terms is less, since these figures do not reflect fringe benefits, but it does mean that for workers this recovery stinks. Faster employment growth and better jobs would put upward pressure on money wages.

This is the slowest growth rate on record. The most recent comparable period was the first half of 1993 -- Poppy Bush's economy, for all practical purposes.