Here’s a disheartening reality: your paycheck has been on a downward trajectory for the past five years. Unfortunately, this is not a fabrication.
According to MarketWatch, “Since the Great Recession concluded five years ago, the real hourly earnings for Americans have notably decreased after adjusting for inflation. This decline is a principal reason why the U.S. economy is currently expanding at only 60% of its usual rate.
“While hourly wages have increased by approximately 10% since June 2009, reaching $24.45 an hour, they have actually decreased by 0.3% in real terms during the same period. This indicates that most families are essentially staying afloat.”
This succinctly highlights the frustrations prevalent among the average American worker today. They are exerting more effort than ever before but are seeing their compensation diminish.
It resembles a relentless slog through ankle-deep sand on a scorching, endless beach. Countless hours and effort are invested, yet the returns are increasingly meager. Continue reading
Recent developments have provided additional verification of our forecast for 2014. Earlier this year, we peered into our crystal ball and envisioned a world that would not become warmer, but instead cooler. So far, this prediction appears to be accurate.
“Pittsburgh is experiencing one of the coldest summers on record, affecting the foliage,” reported CBSPittsburgh. “On Friday morning, temperatures dipped into the 40s across Western Pennsylvania.
“Meteorologists note that these unexpected cold temperatures are causing trees to change color in mid-August. ‘This is extraordinary for August, and certainly reflects the cool weather’s dominance,’ remarked KDKA Meteorologist Dennis Bowman.”
We mention our prediction of global cooling as a moment of self-congratulation. Such precise foresight is rare for us, and we allow ourselves this brief moment of triumph.
Additionally, it allows us to take a light-hearted jab at the consensus opinion that has proven to be so misguided. Continue reading
There may be a glimmer of hope for job seekers in a stagnant market. After years of vying for limited positions with stagnant wages, something remarkable appears to be occurring—opportunity may finally be presenting itself for the unemployed.
The Labor Department’s recent Job Openings and Labor Turnover Survey indicates that the competition for each job has decreased significantly, reaching a six-year low in June. The ratio of unemployed individuals to open positions fell to 2.02, according to Reuters, marking the lowest level since April 2008, down from 2.14 in May, now below the average from 2002 to 2006.
Furthermore, the number of job openings has reached its highest level in over 13 years, and the hiring rate is the best it’s been in more than six years. Should these positive trends continue, we can anticipate an increase in wage growth. Continue reading
The financial markets are currently experiencing a chaotic tug-of-war, with prices soaring and plummeting daily. For instance, last week saw the DOW fluctuate wildly, swinging several hundred points before settling where it originally began. Here we go again.
Down. Up. Up. Down. Up. The stock market seems to be bouncing around like two contenders in a boxing ring. Thus far, the official scorecards indicate a tie.
What are we to make of this? Is the bull market finished? Or is the market merely searching for a new foothold to rally upward?
At Economic Prism, we are placing our bets on the bear. We view the economy as one of slow growth that has never fully recovered from the Great Recession, while the stock market appears inflated due to aggressive monetary policies.
Severe interventions in capital markets have caused asset prices to skyrocket, greatly benefiting the wealthy, while wage earners have been largely overlooked—median income remains below its levels in 2007. Continue reading
