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Business/Finance See other Business/Finance Articles Title: Hey — Where’s My Stinking Raise? Hey — Where’s My Stinking Raise? Mike Larson | Friday, July 31, 2015 at 4:20 pm That’s what American workers are asking these days – and they’re not getting any good answers. I say that because the latest figures show wages and salaries are stagnating like never before. The Labor Department reported this morning that worker pay rose a pathetic 0.2% in the second quarter. Not only was that down from a 0.7% rise in the prior quarter … and far below the 0.6% estimate … but it was also the worst in recorded U.S. history. The department began tracking in 1982. If you exclude government employees, the news is even worse. Private wages were essentially unchanged – the first time ever that they didn’t rise at least a bit in a given quarter. Average hourly earnings figures contained in separate monthly reports on the job market have also been disappointing, as I’ve noted before. They were recently up only about 2% year-over-year, far below the robust gains seen in past economic recoveries. Is the problem lackluster growth in the economy overall, a trend underscored by yesterday’s GDP report? Companies are scrimping on raises for workers. Are problems in Europe or China, and the corresponding impact of the rising U.S. dollar, holding us back? That’s one view I’ve talked about and tend to agree with. Or is it increased regulation, or the higher health-care costs that employers are confronting? Too-free trade with foreign countries? That’s what still more pundits argue. Regardless of what’s causing wages to stagnate, the effect is to depress consumer spending and economic growth. That, in turn, is one likely reason the market has stalled out so far this year. So until we see some improvement in core wage growth, I plan to continue erring on the side of increased caution with investing strategy – and you may want to do the same. Now, let me hear from you. Are you seeing your own wages stagnate, and if so, is that a fairly new development? What about your friends and family? Should Washington change policy to improve the outlook, and if so, what specifically do you think would help? Here’s the link to the Money and Markets website where you can add to the discussion. Poster Comment: All I know is that I made more than some of the guys working in baling, and that is hot and dirty work. Post Comment Private Reply Ignore Thread
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