Why People Feel Strapped

    From the Economic Policy Institute:

Real hourly wages rose 0.2% in June, reversing a three month slide from March through May.  Over the first two quarters of this year, both real hourly wage and weekly earnings have been flat, according to today’s report from the Bureau of Labor Statistics.

Despite growing more quickly in recent months, the real wages of most workers continue to lag inflation on a yearly basis.  Inflation was up by 4.3% over the past year, leading to 0.6% fall in real hourly wages.  Thanks to increased hours, weekly earnings were essentially unchanged over the past year, (0.1%).

The workforce whose wages are covered in today’s report represents about 80% of the private sector workforce, and by dint of their non-managerial status, these are not the managers and executives whose compensation packages have been soaring over the past few years.  In fact, compared to November 2001, when the current expansion began, both their hourly and weekly earnings are unchanged in real terms (hourly, down 0.4%; weekly, 0%).  Over this same period, productivity is up 15%.  Clearly, this growth has not done much to lift the living standards of the broad majority.

Comments

[anon]

what is up with the UFCW? why are grocery store wages so low? we don't even have any Wal-mart super centers or whatever they're called where I live. do the UFCW union leaders have any strategic plans of making a union wage a living wage?

[briberg]

Amazing stats. We can see who the real majority is in this nation when 80% of all workers are losing ground. Reports like this point to amazing political potential for the Democratic Party.

Steer clear of narrowly defined issues of 'morality', be clear and honest about the war in Iraq, and continually acknowledge the abandoned working class, squeezed middle class, and invisible poor. Avoid seperating out these economically stressed groups as Sen. Evan Bayh did recently - http://www.washingtonpost.com/wp-dyn/content/article/2006/07/17/AR2006071700774.html.

We can help the poor and middle class. Design and speak clearly about a 'holistic' approach to combatting povery -- as Sen. John Edwards does.

The paramaters of the debate for the Democratic primary are being established right now. Basic truths that this report suggest will be excluded from the debate unless we organaize now. Sen. Edwards and his Draft campaign (www.draftjohn.com) are working hard to make sure that issues of working America will be a part of the debate in 2008.

William Greider correctly points out that important forces within the Democratic party are setting the parameters on the debate around trade and the economy now. Check out his article on alternet at http://www.alternet.org/workplace/38981/.