The chart above shows the dilemma for Americans who derive most of their income from wages and salaries, as opposed to investments. It is more than a personal problem. The Wall Street Journal reports today on how uneven wage gains are holding back the overall economy. Seen over decades, and the collapse of wage growth is a key factor behind the hollowing out of the middle class.
Care to see where you fit in? An outlier city such as Seattle has done better than most places. But you can use the wonderful inflation calculator of the Bureau of Labor Statistics to check your real progress over time.
This Week’s Links:
• A new Wall Street looting scheme: Disaster savings accounts | Naked Capitalism
• Understanding why you think QE didn’t work | Barry Ritholz
• Capital ownership and inequality | House of Debt
• The Chinese want their own Cargill | BusinessWeek
• Let’s not count out Jeff Bezos and the Washington Post | Marginal Revolution
• No, a voluntary safety net won’t work | Baseline Scenario
Today’s Econ Haiku:
Will Vlad up the stakes?
Dump Treasuries and dollars?
He’d be impaled, too