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Almost All Americans' Wages are Plummeting

Posted by Kathy G, The G-Spot at 2:03 PM on September 10, 2008.


Real wages have fallen for every educational group in America save folks with professional degrees (doctors, etc.)

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Wsj_3

Chart from the Wall Street Journal

Today, the Wall Street Journal reports the sobering news that, since 2000, real wages have fallen for every educational group in America except folks with professional degrees (doctors, lawyers, and the like). All other groups, even those with master's degrees and Ph.D.'s, saw declining wages over this period. The WSJ piece is based on recently released Census data (you can find the most recent Census Bureau report on income and earnings here).

In recent years, the college earnings premium has decreased substantially. As the Journal points out:

In 1975, for instance, workers with college degrees earned 60% more per year on average than workers with high-school diplomas only, according to the 2006 Economic Report of the President.

Workers with a college degree saw their earnings premium grow steadily over the next quarter century, and by 2000 their average earnings were roughly double what workers with a high-school diploma made. Over the next four years the trend reversed: By 2004, workers with a college diploma only were earning about 80% more than high-school grads, on average.

The Journal article identifies globalization (including the outsourcing of both blue- and white-collar jobs) and rising health costs as possible causes for the decline in wages. One reason workers' wages aren't keeping up with inflation is that health care costs have risen dramatically in recent years, so employers are shelling out more for health coverage, and less in wages.

For most Americans, these data paint a fairly bleak picture of their economic prospects. About the only good thing I can say about this is that, given this economic climate, I find it almost impossible to believe that the Republicans triumph this November. The seven-year period during which wages have been in freefall just happen to be seven years in which a Republican was president and Republicans, for the most part, controlled Congress. There's no way in hell that the Republicans should be able to get away with this. If, in spite of everything, they end up winning this fall, it will be the con job of the century.

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Tagged as: economics, wages, recession, wage loss

Kathy G Runs The G-Spot blog.


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Please note the source
Posted by: JSquercia on Sep 10, 2008 2:22 PM   
Current rating: 5    [1 = poor; 5 = excellent]
Please note the source of this NOT the 'Liberal" New York Times but rather that bastion of Capitalism the Wall Street Journal .
Nothing better illustrates the FAILURE of Reaganomics and the Bush Economy and THIS is the Economic policy that McCain would not only CONTINUE but would Double Down ON

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» What failure? Posted by: xconservative
» RE: What failure? Posted by: jvaljon1
fuzzy math...
Posted by: undrgrndgirl on Sep 10, 2008 3:49 PM   
Current rating: 3    [1 = poor; 5 = excellent]
i don't see how (with the info given)that the the change for "all groups" is a GAIN of +.03%...
if you add the other numbers together and divide by 5 (the number of educational levels) you get an overall LOSS of 1.6%...

[« Reply to this comment] [Post a new comment »] [Rate this comment: 1 - 2 - 3 - 4 - 5]

» RE: fuzzy math... Posted by: Lauren
» not so fuzzy math... Posted by: donl51
» RE: fuzzy math... Posted by: Spot
» RE: fuzzy math... Posted by: Angela History
Age demographics?
Posted by: Krotos on Sep 11, 2008 5:07 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Not to defend Bushonomics, which has been an unmitigated disaster for the country as a whole, but it would be interesting to see the causes of this salary decline addressed more clearly. I wonder if some of it might be due to large numbers of Gen-Y and younger Gen-X employees entering the workforce over the past decade as Boomers have been retiring. Even with the same level of education, younger people earn less than people with more seniority, so the median salaries would naturally go down.

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» RE: Age demographics? Posted by: Cybershaman
» RE: Age demographics? Posted by: donl51
» RE: Age demographics? Posted by: mnascimento
» RE: Age demographics? Posted by: Cybershaman
How about outsourcing?
Posted by: donl51 on Sep 11, 2008 8:12 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
...Has anyone taken,outsourcing to mind? Out sourcing has affected most every category of employment but...law,medical the like and service blue collar industry...that part [blue collar] has been attacked primarily by the lower pay scale illegal immigrant...once upon a time lawn services to name but one,employed upper year HS,and college kids during summer break,well not anymore,then we have roofers!,so many I see are hispanics anymore,working at lower rates then into labor and construction as well!I have two masters degrees and a BA all associated w/art advertising and markting...a very good business that treated me well for many years albeit long hours,well I watched as one by one ours and our competitors clients work went overseas.thankfully I was older as it still goes on today!their are other factors as well,but outsourcing for this is quite enough!This all could definately account for a shft in eaning power and it really doesn't matter who's writing the original article...a fact is a fact!

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Where Have The Benefits of the Economy Gone?
Posted by: FoonTheElder on Sep 11, 2008 8:43 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
So where have the benefits of this so-called good economy gone? Straight to big corporate profits and evenutally to the top 2% of Americans. All of the gains have gone to this group during the Bush Administration with a net of zero to everyone else. All working people are the pawns of the Republican chessboard. Your wages are taxes much higher than capital gains and dividends.

Still, huge numbers of duhmerricuns want to continue to vote for Republicans. McCain has all but promised to make this situation worse than it already is.

The party in office tries to make the economy look good for the election. This is the best that the Republicans can do. Just wait until the big bankrupt banks are allowed to fail after the election.

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» I Meant Taxed, not Taxes Posted by: FoonTheElder
outsourcing
Posted by: cyr3n on Sep 11, 2008 10:18 AM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
outsourcing and contracting destroys the value of white collar labor in the USA. I've walked into places in the inner city where graphic designers and web programmers are illegal immigrants.

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» RE: outsourcing Posted by: xconservative
No Educated Needed, for Jobs...thru DHS...
Posted by: One American Lady on Sep 11, 2008 12:03 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
Can You Imagine, that...even with No High School Diploma, You Can Earn... $3.63 "Every 15 Minutes"... just for Washing Dishes / opening a can of soup or open a can of food / sweeping & mopping a floor ???
On Top of All That... You Can Receive "Travel Pay"... All the Miles, You Travel, throughout the Day... JUST FOR THOSE CHORES... Which is Supposed to Be, for "Individuals, of Homebound Status" !!
I am greatly surprised, that for just Light-Weight Household Help, a Person can be paid $3.63 Every 15 Minutes... an employee is "in the Private Home of a Citizen of America".
The Program is the ADvantage / Personal Care Attendant (PCA) Program...
Requirement for the Job: NO FORMAL TRAINING: NO FOOD HANDLERS PERMIT / NO PATIENT SAFETY TRAINING / NO PRIOR EDUCATION,ON "HOW TO PROPERLY WASH DISHES OR MOP A FLOOR".
You Don't Have to Have Any Education, Nor Any Common Sense...to be on a Staff like this...
Yet, Millions of Americans are Being Employed, thru this Program, & "Contracted to Home Health Agencies".
These PCA's, get paid, for "being on the job, NOT NECESSARILY, BEING PAID...TO PREFORM A JOB".
This PCA job, pays about $1,400 to $1,600 a month... depending on "How Many *Units of 15-Minutes, Each*...that you can spend in anyone's home... & get the travel pay, while being imployed Each Day."
This is a Job, Worth Having...for sure...
Can you imagine getting $14.52 per hour, to
wash dishes & sweep / mop a kitchen floor.
I'd say this is very Good Wages... beats the $8 or $9 an hour, a Certified Nurse, gets when working in a Nursing Home.
There is No Requirement for PCA's to Have an
I.D. Card, stating that the Employee is "Disease Free", either.
If anyone could just, "go into the private homes, where these PCA's are *supposed to perform labor,* that inspection, might show, that the Private Homes, ARE NO CLEANER, THAN BEFORE THE PCA... WAS *ASSISGNED TO THAT HOMEBOUND PATIENT / CLIENT*.
Sometimes, Employees, will need to travel, several miles, between patients, & sometimes the patients homes, are close together, demanding less travel...
But, just imagine... if you worked at least an
8-hr day...at $3.63 per Every 15-Minutes, that
equals = $116.16 per 8 hours....& ALL DONE, WITHOUT ANY PRIOR TRAINING OR PRIOR EDUCATION, IN THOSE TYPE OF HOUSEHOLD CHORES !!
What if I told you that PCA Employees, between the ages of 18 to 55 Years Old, DO NOT KNOW HOW TO PROPERLY, "WASH DISHES"... OR MOP A FLOOR.
WHAT IF I TOLD YOU THAT "PCA's HAVE GONE INTO THE PRIVATE HOMES... *KNOWING THEY HAVE... STAPH INFECTION*... & Knowing that It is Contagious... but *exposing the Homebound Patient, to that type of infecton*.
WOULD YOU BELIEVE THIS ??
You should... this is *For Real*.
(ALRIGHT, TAXPAYERS... HERE'S A REASON TO GRIPE.. WHEN YOUR MONEY IS BEING SPENT... SO FREELY... FOR A JOB... NOT SO *WELL-PERFORMED*.
One American Lady

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"Wanta Get Rehabilitated ??"... Ya Can't Do It, Thru DHS, Unless, you do this:
Posted by: One American Lady on Sep 11, 2008 12:10 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
According to Resources, from the DHS, an Individual, who seeks to Improve Their Life, CANNOT GET "REHABILITATED, UNLESS... THAT INDIVIDUAL... IS A CLIENT OF A MENTAL HEALTH AGENCY... & IS CONSUMING, MENTAL HEALTH MEDS...!!"
No Wonder the Statistics, are Showing that American Citizens are Mentally Ill... WHEN THEY AREN'T.
THEY'RE BEING DENIED THE RIGHT... TO BE EDUCATED, ENOUGH TO HAVE A JOB... OTHER THAN THAT OF A PERSONAL CARE ATTENDANT... WHO REQUIRES NO EDUCATIONAL SKILLS... & Make $14.52, based on NOT KNOWING HOW TO PROPERLY PERFORM A JOB...
The Bill of Rights, is Supposed to Be Our Guarantee, for U.S. Citizens, to Have Every Opportunity, for: "Life / Liberty / Pursuit of Happiness"...
When we are being Denied, the Right to Be Educated, so we can be Employed... is a Violation of the Bill of Rights, for sure.
One American Lady.

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Wages are also the source...
Posted by: jvaljon1 on Sep 11, 2008 4:10 PM   
Current rating: Not yet rated    [1 = poor; 5 = excellent]
...for Medicare and Social Security payments.

In addition to 'concentrating most American wealth in the hands of the ultra-rich', Reaganomics had one other great goal--to kill Social Security and Medicare. It took them thirty years after Ronnie Dearest, and there's still time left to reverse this new American disaster--but time is rapidly running out.

Social Security and Medicare are the two targets that remain, and will be tough to kill, but plummeting wages will ensure that.

Once this large boomer generation is gone, the assault will begin with a vengeance, and this time they won't stop until Roosevelt's "covenant between generations" is broken, and Medicare is privatized, benefiting no one but its CEOs.

The only thing that can stop this tragedy from happening, is American people realizing that they're under attack by an occupying force and their NeoSymp stooges;--and to vote Democratic straight down the line in the next few elections on all levels.

I know, I know--both parties are in thrall to Wall St. Maybe so--but I can't help thinking that Wall Street thrived before, when America was thriving, and that with a solid Democratic majority like there was before Reagan--Presidency, House and Senate, plus Governors--keeping their worst excesses in check; we could still reverse the effects of this 30-year attack on the American Dream and the American way of life.

No American, whatever their political party, wants to see their children worse off than they are. That's NeoCON propaganda, and it just doesn't have to happen. Secure our voting machines--and it won't. The people are ready. Barack is ready. And for sure, America is more than ready, to re-inhabit our big, beautiful American Golden Age.

Looks like a majority, to me!

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