Myth: "Sure the economy is expanding, but real wages are declining, and the average family is falling behind."
Reality (link requires subscription):
So what has really happened in the last 5-plus years?
The Wall Street Journal adds:
Our point isn't to disparage the growth of the 1990s, which was a boon to all Americans. The recession of the early 1990s was steeper than the recession of 2001, so the wage declines were larger. And we should point out that wage gains accelerated in the latter half of the last decade, as growth continued and the labor market grew tighter. We mention all this merely to point out that the current expansion is at least as healthy as that one at a comparable stage, and that if growth continues so will wage gains.So Dr. Sanity has another item to add to her list of "cross-outs," which already includes these busted economy myths:
In most parts of the U.S. today, the biggest labor-market problem isn't the lack of jobs but a shortage of willing workers with the proper skills. That's a problem that much of the rest of the industrial world, with jobless rates nearly twice as high, would love to have.
(There is a technical error in the fine print in the WSJ's table, whose intro should read: "Comparison is from peak of business cycle through recession to 62 months after peak of business cycle.")
Cross-posted at BizzyBlog.com.