U.S. Economic Recovery Belies Flat Wage Growth

[LiviaOlivia]

U.S. Economic Recovery Belies Flat Wage Growth
Sat Apr 24, 2004 07:12 PM ET

By Kevin Plumberg
NEW YORK (Reuters) - When Danny Tabor, a 37-year resident of Inglewood, California, voted earlier this month not to allow Wal-Mart to build a mammoth new store in his neighborhood, low wages were on his mind. Although the company promised 1,200 new jobs, Tabor, a former city councilman, decided local families deserved jobs that would pay more than the $6.75 to $7.75 an hour Wal-Mart Stores Inc. would offer. Voters defeated the Wal-Mart proposal by a 2-1 margin, reflecting a growing concern that the U.S. economic recovery has not yet shown up in the paychecks of most working Americans -- and that when pay raises do arrive, they may not be significant.

<snip>

In the past few years, income tax refunds and mortgage refinancings helped to bolster consumer spending, which makes up two-thirds of the economic activity. But with gasoline prices hitting record highs and tax rebates trailing expectations this year, some analysts wonder if consumers will soon have to dip deeper into their take-home pay to support their spending habits.

<snip>

But workers have been going without pay raises for an unusually long time in this current recovery, according to a recent study by Northeastern University in Boston. Employee compensation made up 38.6 percent of national income during 2002 and 2003, far below the 63 percent average following the past eight economic recessions since World War II.

<snip>

As much as Tabor would welcome an influx of jobs in Inglewood, he said he voted against Wal-Mart because the wages the retailer pays "are not enough to provide for a family. You're not going to be able to pay the mortgage or put the kids through school."


http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=4929979

[ClintonTyree]

1. The poor woman..........

at our local Walmart told me she was denied credit on a 3 year old used car becuase she was below the poverty level. She's been working there for 6 years.
When I see those commercials about how great Walmart is to their employees I want to vomit.

[bemildred]

2. Recovery my ass. nt

[kalian]

3. Notice....

"Companies typically want to make sure their income streams are stable and repeatable before they use it to start paying compensation to workers," he said.

But workers have been going without pay raises for an unusually long time in this current recovery, according to a recent study by Northeastern University in Boston. Employee compensation made up 38.6 percent of national income during 2002 and 2003, far below the 63 percent average following the past eight economic recessions since World War II.

Workers....they just mention the peons. The managers and CEOs are
rolling in bonuses out the wazoo. What's wrong with this picture?
Ah yes, I remember, 19th century capitalism. :eyes:

[rfkrocks]

4. Does any US media cover the people's problems anymore?

Reuters at least has good reporters-also wait till the budget debts starts kicking our ass- the GOP is already lined up to destroy social security and Medicare plus we will have inflation-the social services net is ripping too-hell it just gets dark before it goes completely black-No more republicans ever

[PROGRESSIVE1]

5. "Rich, White, Wall Street, Repubs" are the ONLY ones who are....

benifiting from this ""Recovery!

:mad: :mad: