Average hourly wage growth has exceeded inflation for 12 straight months, according to new Bureau of Labor Statistics data released this morning. This real (or inflation-adjusted) wage growth is a key indicator of how well the average worker’s wage can improve their standard of living. As inflation continues to normalize, I’m optimistic more workers will…
This is cool and all but the post is about wage growth in the past 12 months.
It’s like if the post said, “did you know 1+1=2?” and you came along saying, “Yeah well 2+2=4”. It’s not a counter argument to the statement in the post title. It’s another statistic altogether.
Now go ahead and try to hand wave this way.
No, handwaving would be saying something like, “well I haven’t experienced this and also none of my friends have so it’s not happening”.
So, interesting stat which is relevant in a larger context but doesn’t mean the post is factually incorrect.
The first mate on a ship decided to celebrate an occasion with a “little” stowed away rum. Unfortunately he got drunk and was still drunk the next morning. The captain saw him drunk and when the first mate was sober, showed him the following entry in the ship’s log: “The first mate was drunk today.” “Captain please don’t let that stay in the log”, the mate said. “This could add months or years to my becoming a captain myself.” “Is it true?” asked the captain, already knowing the answer. “Yes, its true” the mate said. “Then if it is true it has to go in the log. That’s the rule. If its true it goes into the log, end of discussion” said the captain sternly. Weeks later, it was the first mate’s turn to make the log entries. The first mate wrote: “The ship seems in good shape. The captain was sober today"
Once you understand this story all of economics makes sense.
It is worth noting that the article itself does bring employment rate into it, stating that the reason for the real wages spiking like that did in 2020 was the lower wage employees leaving work, thus raising the average wage.
I haven’t seen the data on employment rate, but if the bottom end of employees are still not back to being as employed as they were at the start of the pandemic, then that may be keeping average wages higher than they’d otherwise be
I like data as well.
https://www.bls.gov/charts/employment-situation/civilian-labor-force-participation-rate.htm
You will notice that not only has the US not returned to pre-housing crisis levels it hasn’t even returned to March 2020 levels.
Now go ahead and try to hand wave this way.
This is cool and all but the post is about wage growth in the past 12 months.
It’s like if the post said, “did you know 1+1=2?” and you came along saying, “Yeah well 2+2=4”. It’s not a counter argument to the statement in the post title. It’s another statistic altogether.
No, handwaving would be saying something like, “well I haven’t experienced this and also none of my friends have so it’s not happening”.
So, interesting stat which is relevant in a larger context but doesn’t mean the post is factually incorrect.
Once you understand this story all of economics makes sense.
It is worth noting that the article itself does bring employment rate into it, stating that the reason for the real wages spiking like that did in 2020 was the lower wage employees leaving work, thus raising the average wage.
I haven’t seen the data on employment rate, but if the bottom end of employees are still not back to being as employed as they were at the start of the pandemic, then that may be keeping average wages higher than they’d otherwise be