Monday, August 28, 2006

“the golden era of profitability” - gag, cough, urgggggggh. We're screwed.

The New York Times reports
August 28, 2006
Real Wages Fail to Match a Rise in Productivity

With the economy beginning to slow, the current expansion has a chance to become the first sustained period of economic growth since World War II that fails to offer a prolonged increase in real wages for most workers.

That situation is adding to fears among Republicans that the economy will hurt vulnerable incumbents in this year’s midterm elections even though overall growth has been healthy for much of the last five years.

The median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation. The drop has been especially notable, economists say, because productivity — the amount that an average worker produces in an hour and the basic wellspring of a nation’s living standards — has risen steadily over the same period.

As a result, wages and salaries now make up the lowest share of the nation’s gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960’s. UBS, the investment bank, recently described the current period as “the golden era of profitability.”

1 comment:

Greg said...

Speaking of not-so-pretty economic news, I think I'm glad I won't be in the housing market for another few years. As Atrios says, "This is not going to be pretty."