Hi Bill,
IN REAL DOLLARS FAMILY AND HOUSEHOLD INCOME HAS ONLY INCREASED BY ONLY 10
PERCENT OVER 2 1/2 DECADES
In preparing a posting in celebration of Labor Day , I found the Census Department does not
conveniently publish statistics which reflect the socio-economic conditions of the Labor Force. This is
unfortunate since total population conditions are skewed by the non-labor force households. So keeping this
in mind I offer the above statistic to reflect upon this Labor Day.
Most would say that the last two and a half decades have been a great bull market and era of posterity; yet,
IN REAL DOLLARS FAMILY AND HOUSEHOLD INCOME HAS ONLY INCREASED BY ONLY 10
PERCENT OVER 2 1/2 DECADES! The highest quintile has increased by 30%. The lowest quintile has
decreased by 21%. (Unfortunately, I do not have readily available the average hours worked per household.
We know the increase is substantially higher than 10 %. This appears to approach being a Zero Sum Game.
IMHO.)
When you convert this phenomena to real terms: hours worked to pay for taxes , health care, housing and
other necessities; housing size and real asset accumulation: you have a statistical picture; which no one who
has been a policy maker whether in government, politics(either party), the Federal Reserve or business
should be proud of. (Yes, this is a run-on sentence. Is this a run-on phenomena?)
To be fair the causes are many: social changes, the initial inflation and economic shock waves in the
economy, technology changes, a lack of proper allocation of capital by business, etc. Yes, perhaps we did
the best we good. I know all had good intentions. AND THE ACTUAL ACCOMPLISHMENTS WERE
GREATER THAN THE 10% IMPLIES. The last five years have shown improvement in this statistic.
It is LABOR DAY and it is labor's productivity and well being which will determine the future.
Skeet |
