Submitted by Tyler Durden on 06/18/2015 09:42 -0400
When the “expert” weathermen advocates of a Fed rate hike (because it “proves the economy is getting better”) are cornered, their cop out excuse is that “wage growth is just around the corner”, and then the promptly point to soaring labor costs, which as we showed have nothing to do with actual wages and everything to do with even more soaring healthcare costs incurred by employers courtesy of Obamacare.
What they don’t touch on is facts, which as we have shown before are bad because not only is nominal wage growth for over 80% of the labor force barely above recession levels, and in a clear downtrend…
… and they certainly don’t discuss real, i.e. net of in/deflation hourly earnings, which in May just dropped to $10.53, indicating zero real wage growth and in fact, the lowest real wage number of 2015.
And zoomed in:
Bring on those rate hikes and the economic “recovery.”
Holy shit, my 2.2% raise last year was perfectly in line! IM AVERAGE WOOHOO!
You won’t see major wage growth until all that money being dumped into the economy starts going to the general economy and not just the financial markets.