Ground Control to Major Tom
Either this Administration is on drugs, or they think WE Are.
The Bush administration said yesterday that wages were reaching a “tipping point,” after official figures showed average US earnings rising at the fastest pace in almost five years.There are a few minor details worth noting as they hover above us in their tin can.
Wages were up by 3.8 per cent over the year to April, despite unexpectedly slow employment growth of just 138,000. Economists had been expecting an increase of 200,000.
The US Treasury said rising wages and an increase in hours worked suggested that the economy remained in a “sweet spot.”
With inflation expected to be about 3.4 per cent in April, wages seem to be outpacing rises in the cost of living for the first time since early 2004.
- They're LYING. Just last week Reuters reported that the "[Employment Cost Index] rose 0.6 percent in the first quarter [THE SLOWEST PACE IN SEVEN YEARS], down from a 0.8 percent rise in the fourth quarter and well short of the 0.9 percent gain that had been forecast.”
- Employment growth of 138,000 is not even enough to keep up with population growth - 150,000 new jobs a month are needed.
- Fewer jobs means those employed have to work MORE hours to get the job done. If they work MORE hours, they'll make more money - but not because their “wage increased” - because they WORKED HARDER. Moreover, that increase is meaningless for the tens of thousands who remain unemployed.
- Wages increased 3.8% in the WHOLE first quarter, while inflation is expected to be 3.4% in April ALONE. Even if they're comparing the same time interval, they're not talking about the same INFLATION index as their index does not include food and energy prices, among other essentials. There is simply NO WAY that wages are “outpacing” inflation. They're floating in a tin can - FAR above the world.
But, they'll never admit it (because the media will never force them to). Instead they congratulate themselves on this spectacular “achievement” and ask Congress to extend tax cuts to the rich as a prize.
[Treasury secretary, John Snow] said the tax cuts enacted in [Bush's] first term had been at the centre of this achievement and urged Congress to extend the lower tax rates on capital gains and dividends, due to expire at the end of 2008.Given those two choices, the Fed of course always chooses to enrich moneylenders, who tenderize people so they can be easier targets for companies to exploit.
The rise in wages leaves the Federal Reserve with a delicate balancing act, catching the central bank between slowing employment growth and the potential inflationary dangers posed by rising costs to companies.
[The Fed is] expected to raise rates for the 16th consecutive time to 5 per cent at its meeting on May 10.Nevermind the fact that the dollars workers are paid in depreciated immediately on news that their “wages increased,” and that companies that supposedly “need protecting” engaged in self-help by decreasing employee benefits.
US stocks and bonds rallied on the data and the dollar fell more than half a cent to a new year-low against the euro at $1.2765.These are all MINOR details - for people on Earth to deal with.
Although wages have started to rise more briskly, the cost to companies of employee benefits appears to be coming under control. This may contain the need for companies to increase prices.
In short, it's time to take your protein pills and put your helmets on.
We're in for a rough landing.
Why Believe Your Lying Eyes
They hate us for our WAGES
LIAR, LIAR, economy on FIRE