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Tuesday, August 28, 2007

New Income Data Show Workers Losing Ground - Again

The CPS data released today undermine the president's claims that the economy is benefiting all Americans. They show that earnings of full-time, year-round workers in 2006 dropped for the third(!) year in a row. That household earnings have increased while individual earnings have decreased is a sign that American families are sending more members into the workforce just to maintain their current standard of living. The president touts the above-average productivity growth since 2001 as sign of a strong economy. But when strong productivity growth does not spur higher wages, the gains of the economy flow to the stock owners, and not to those who have contributed their labor.

And, as this table shows, individual worker earnings have yet to rise to their pre-recession levels in 1999.

Single-income households are becoming less and less viable as the costs of health care and energy continue to climb. But, we are virtually assured that the next time the president takes to the podium to discuss national, non-military affairs, he will crow about the increase in median household income as signs of a "robust" economy, and that to maintain this "fabulous" poverty reduction, Congress must not raise taxes and stymie the "strong and growing" economy. Meanwhile, back here in the really real world, the economic gains of the current recovery have in fact not made it to the pockets of most workers.

Photo by Flickr user AMANITO used under a Creative Commons license