Obama: Wage stagnation feeding an ‘undertow of pessimism’ – WTF?

From Wiki. ‘Real wages’ are adjusted for inflation.

President Barack Obama, in a frank exchange with business leaders about strengths and weaknesses in the U.S. economy, lamented that wage stagnation had created “an undertow of pessimism despite generally good economic news.”

His observation highlights perhaps one of the most vexing issues in the slow recovery from the financial crisis–why aren’t wages picking up? And in some cases, why are wages sliding?

“Although corporate profits are at the highest levels in 60 years, the stock market is up 150%, wages and incomes still haven’t gone up significantly and certainly have not picked up the way they did in earlier generations,” Mr. Obama told the Business Roundtable on Wednesday.

Average hourly earnings for most workers rose more than 4% per year in 2006 and 2007, but they have not risen more than 2.5%, year over year, since May 2010. They rose just 2.22% year-over-year in October 2014, Labor Department figures show. This is the weakest period of wage growth since at least the 1970s, and perhaps much earlier…


Clearly, the solution is millions of new workers imported from Mexico and Central America.

Is Obama really this stupid? Does he not understand the elementary concept of supply and demand?

Immigration is not the only cause of decline in wages since the 1970’s but it certainly isn’t helping.  

Does Obama not wonder why there is so much support for mass immigration from the business world?  These are not warm, fuzzy types — there must be some other reason.

Share
  • Clausewitz

    I’m sorry Obama, but can you please tell us what those economic wins have been. Please cite sources and explain your major theme. No wonder this idiot doesn’t allow his school records to be viewed.

    • Exile1981

      He doesn’t want anyone to see that he passed because of mandatory minimums for minority students.

  • dance…dancetotheradio

    A straight wage comparison between now and fifty years ago even when adjusted for inflation disregards too many other variables.
    It assumes that the two worlds are the same when they are clearly not.
    The overall tax burden is greater now than it was then, so today’s purchasing power is lower now, on an after tax basis.
    Then there’s the whole array of goods and services.
    The quality and affordability of these things have gone in different directions.
    It’s hard to quantify relative purchasing power for Everything.
    For instance, my mother paid several hundred dollars for a Filter Queen vacuum in the late sixties that promised it could do everything including drying her hair.
    People used to pay three months salary for encyclopedias.
    They paid more then for records and books and all other media.
    Cars were cheaper partly because government regulation hadn’t yet mandated expensive add ons like airbags, yet they were less dependable because of lack of competition and something called planned obsolescence.
    I could go on but I’d rather hear other examples.

    • Frau Katze

      I realize it very complex, but there is no question wages are down. And despite some things being a lot cheaper now, many other things are vastly more expensive, such houses and university tuition fees.

      In the 1950’s, most families could survive with just the father working.

      • eMan14

        It doesn’t help when Canadians have to compete for buying homes against foreign buyers. Such is the case in many new condo developments. Mother and Father buying international son or daughter student a condo for a place to live and for an investment.

        • Frau Katze

          There’s a lot of that in Vancouver. My nephew who lives there (where I was born and raised myself) has simply given up on the idea of ever owning a home.

      • Exile1981

        Also add in how cheaply made a lot of things constructed in China are. I have underwear that were made in the US that are over 10 years old and in great shape, while some newer pairs made in china have lasted less than 3 washes before the stitching came apart and they had holes in them at seams.

    • Frau Katze

      And housing is the big one. I have two children and four nephews and nieces and I know all about it. My daughter is OK because both she and her husband are professionals.

  • Jay Currie

    I have to say, all indications point to Obama really being that stupid.

  • This b@$#@rd wants to destroy the US, economy and all.

    If the Americans had any wontons, they would show up- en masse- where Obama golfs and protest.

  • eMan14

    Wanna raise wages… bring back the manufacturing economy. Which would require curbing free trade and breaking all kinds of international agreements. And has “0” chance of ever happening. Pending a mass revolution… of the working class. If only they would stay of the happy drugs.
    Big business loves the status quo. As do governments. Which is why immigration concerns them very little.

    • Frau Katze

      Off shoring certainly was a big factor. So was increasing automation (huge ports that would once have been full of longshoremen are now by a handful of people, since containers were introduced. They rely a lot on computers too).

      But Obama’s amnesty can only make a bad situation worse.

    • Frau Katze

      You’re wrong about big business. The financial press (WSJ, Financial Times, The Economist…the ones I read), push immigration ceaselessly.

      • eMan14

        No I didn’t mean that big business was against immigration. I’m saying that since immigration is already high, they would prefer the status quo. They have no desire to change the high rate. Plus it helps lower wages here.

        • Frau Katze

          Exactly my point. Obama is whining about wage stagnation, but then making it worse with his amnesty.

  • Xanthippa Socrates

    In order to re-build America according to his vision, he first needs to destroy it.

    He knows exactly what he is doing.

  • asad

    Really exciting information and while all the
    reading I have feel that this blog is really informative all those quality that
    qualify a blog to be an excellent.

    http://kino3.ch/

  • asad

    Congratulations to a brilliant effort in publishing your
    article. One can be more informative as this. There are many things I can know
    only after reading your wonderful article.

    http://illoy.com