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.