Scary stats......

[junker]

this is sliced from a rabid conservative's newsletter. He don't give a damn about the two paragraphs, and I urge more enlighten readers to remember one thing here....just cause he is a foaming at the mouth fiscal conservative, don't make him wrong...


stats

The Daily Reckoning site reports that, according to a report by the Bureau of Labor Statistics released last week, the average salary a U.S. worker can expect to make has dropped from $44,570 to $35,410 since 2001. Fabulous. People are making less money. I can't WAIT to hear how the government weenies put a positive spin on THAT!

Then they quote Greg Weldon, who adds this depressing statistic: disposable income, which is the part of your income that you use to buy Oreo cookies and cheap cigars, collapsed in the 4th quarter from $160 billion to a miniscule $1.7 billion. The DR folks were kind enough to do the math, and they report, "That's a 99% drop." I will leave it to the Fed, and Alan Greenspan to show you how a 99% drop in Oreo consumption will also be good for the economy.


***********end of snatched quotes**************
I bring this reference in to let you know that the cracks are showing up all over. One more month of a 30% drop or larger takes the Disposable income figure BELOW the theoretical Carry level. In other words, the theory is that if disposable income drops below about .9 billion, the economy simply seizes up as there is not enough spending to propel the crap we call the dollar through the system. This is coming before summer.

1. Well

I hope they aren't going to buy anything made out of copper or aluminum on THOSE wages! (see other thread)

[ramapo]

6. Oh just charge it

Doesn't matter how much you make. All that matters is how much credit you use. Works for the govt.

[DuctapeFatwa]

2. On the other hand, oil, defense, and prison industries are doing great!

They don't really depend on whether you can buy Oreos. Or medical care or housing, for that matter.

The people that are intended to make money are making it.

It just happens that you are not among those people.

[burythehatchet]

3. No problem

as a middle manager I know that I'm hovering right around the top 1% of wage earners - just like the other 20% of wage earners

[beyurslf]

4. Link please?

[54anickel]

5. link to article quoted

http://www.dailyreckoning.com/home.cfm?loc=/body_headline.cfm&qs=id=3746&tp=c

[Frodo]

7. Where are they getting that from?

I know Junker has already discredited the source somewhat, but what's with using yourself as a source? (The Daily Reckoning site reports that...")

I'd like a link to the source data. Here's all I could find on short notice:



Since hourly wages have done nothing but got up (with a one or two month exception). HOW did average earning go down 20% in just three years? This is straight off the BLS site, where's the drop?

Here's the "real" (inflation adjusted I presume) income since 2000



Doesn't look as good, but there are still more (and higher) "up" peaks than down. I don't see how they get a negative 20% total.


The "disposable income" figure makes more sense since people are spending more than they make and the savings rate has gotten so low. But I still can't find where they got the data.


I will disagree with one important point...


I think the economy WOULD be better off if there was a 99% drop in Oreo consumption. :-)

[54anickel]

8. Dunno, just replied to the request for a link. n/t

[BeHereNow]

9. Glad to see you back Junker...

Missed ya!

BHN