Friday, December 8th, 2006
Wages
Here’s an interesting New York Times article (surprisingly unbiased on a subject as hotly contested as the this) on the dwindling “middle class squeeze.” Dems are of course, defensive, claiming it’s temporary. Honestly there’s no way of knowing as the economy seems to be at a tipping point right now with the housing market slump. But all in all, this is good news. I wonder what effects a big boost in the federal minimum wage will have over the next year?
For now, however, paychecks are growing fatter in nearly every corner of the economy. Average hourly earnings for workers outside management grew faster than inflation in every major sector but manufacturing from October 2005 to October 2006, according to Moody’s Economy.com. For workers in leisure and hospitality, financial services and natural resources, for example, wages grew more than 4 percent, after accounting for inflation.
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