Media LIES About Wage Growth
Someone is lying through their teeth about national wage growth.
Today Bloomberg reported that "[p]roductivity gains in the U.S. failed to keep pace with a jump in wages in the first quarter."
Labor costs climbed 2.5 percent, more than twice analysts' forecasts, and compensation for each hour worked jumped to an annual rate of 5.7 percent, the Labor Department said in Washington.But, just last week Reuters reported that this quarter's . . .
[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.That's a substantial difference and both numbers allegedly came from the Labor Department.
But also, according to Bloomberg . . .
The increase in wages exceeded a gain in productivity, which rose at an annual rate of 3.2 percent.While Reuters reported that . . .
[GDP] grew at a 4.8 percent annual rate in the January-March quarter, [more than] twice the fourth quarter's 1.7 percent rate [and] the best quarterly GDP performance since [the third quarter of 2003.]How can wage growth be both (a) the slowest in seven years; AND (b) twice as high as forecast; but nevertheless (c) outpace the growth in productivity; yet (d) fall well short of the quarterly growth in GDP, which just happens to be the best its been in three years???
Now, who benefits from making us believe that wages are growing when in fact they are not only STAGNANT, but when adjusted for inflation are actually DECREASING?
"Worker compensation is picking up, labor markets are tightening and unemployment will grind lower,'' said John Herrmann, director of economic commentary at Cantor Fitzgerald LP in New York. "In turn, the Fed has to be a little wary about rising wages and the threat of pass-through'' into inflation.Not only does it give Americans a false sense of security, but it gives Bernanke a green light to jack up interest rates yet again, tightening the screws on the money supply and increasing the cost of our living, all in the name of "fighting inflation."
We're like rats trapped in an exercise wheel controlled by the FED. No matter how fast we run, they make sure we NEVER get anywhere.