The Q2 2012 Productivity & Costs revision shows Labor productivity increased an annualized +2.2% instead of +1.6%. Output was revised to +2.4% from +2.0% and hours worked were downgraded to +0.1% instead of the originally reported +0.4%. The revisions continue to show bad news for workers, more output for less hours means worker squeeze and less hires and it's worse than we thought with these revisions.
Most economists and the press look at personal income to think about America and wages. But there is another set of statistics which paints an even more stark picture. The social security administration publishes wage data, the last year available is 2010. While the average wage was $39,959.30, 66.2% of wage earners make less than this amount The median wage is $26,363.55. That means 50% of all wage earners in the United States earned less than $26,363.55 annually. That's poor.
The August 2012 ISM Manufacturing Survey PMI decreased, -0.2 percentage points, to 49.6% and is in contraction for the 3rd month in a row. In July 2009 the PMI registered 49%. Shrinkage is the theme of August's ISM manufacturing survey as the shadows of 2009 infiltrate this report.
Anyone find these economic stimulus packages put out by the government and the Federal Reserve ridiculous at this point? The reality is a direct jobs program would be much cheaper and much more effective to get the economy moving. Yet, magically that idea has been dismissed and worse since 2008.
Fire in the Jackson Hole - Bombastic Stimulus Claims
Federal Reserve Chair Ben Bernanke will do more quantitative easing. That's the consensus from his Jackson Hole speech. As usual, the utterances on labor are ignored by Wall Street or in this case, used to justify Wall Street's crack addict quantitative easing fix.
The stagnation of the labor market in particular is a grave concern not only because of the enormous suffering and waste of human talent it entails, but also because persistently high levels of unemployment will wreak structural damage on our economy that could last for many years.
Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.
Bernanke is justifying this action through various studies claiming quantitative easing generated jobs.
Anyone find these economic stimulus packages put out by the government and the Federal Reserve ridiculous at this point? The reality is a direct jobs program would be much cheaper and much more effective to get the economy moving. Yet, magically that idea has been dismissed and worse since 2008.
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