More Stress for Households Deep in Debt
February 20, 2008 - 4:39pm ET
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The Bureau of Labor Statistics reported today that average seasonally adjusted weekly wages fell another -0.5 percent behind consumer price increases in January, with wages now able to buy -1.4 percent less than they did one year ago. This chart illustrates the impact.
Weekly wages fell in four of the past five months since last August. Average real weekly wages are now again lower than they were in January 2002…and in January 1981, when the irresponsible debt and deregulation ideology took power.
Oh, and the Commerce Department report last week that nominal consumer spending rose 0.3 percent in January that the debt industry spun to suggest economic growth: Today the BLS reports that consumer prices rose 0.4 percent in January. After adjusting for inflation, consumer spending fellby about -0.1 percent in January but their real wages fell even further.
Today’s reports are more evidence that the economy is very likely already in recession and consumer finances are certainly worsening rapidly.
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