Monday, December 18, 2017

Trump's Speech--Just in Time

Trump spoke today about the necessity of the US competing successfully in the world economy, not just "partnering" to achieve "comity" with countries whose real objective is to overtake the US economically (and then, militarily).

This couldn't come at a better time.

...If the economy is so solid, and the job market is so historically tight, how come it’s now skirting a technical real wage recession, and why is the paycheck slump for manufacturing now nearly two years old?
My term “technical recession” doesn’t exactly match the standard version of an economic downturn – two straight quarters of contracting output. But it’s pretty darned close: at least two straight quarters over which some indicator (in this case, inflation-adjusted wages) has dropped cumulatively....
The real wage data released today by the Bureau of Labor Statistics (BLS) reveal that this is exactly the situation for the entire private sector. (These real wage data don’t include public sector workers since their paychecks are mainly determined by politicians’ decisions, not by market forces.) Since June – five data months ago – constant dollar hourly pay is down 0.56 percent. Indeed, this measure of compensation has now decreased for four straight months. One more and we’re in technical recession territory....

The Clinton/Bush/Obozo Globaloney schemes--which translate to Importing Deflation--have begun to bite, hard, and it's not just manufacturing.  Services, particularly retail, have also been hit hard on the wage front over the last few years.

Good to see that somebody gets it....

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