Saturday , October 19 2019
Home / Lance Roberts Real Investment Advice / Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Summary:
Women are slowly catching up to men in median wages but growth has been pathetic across the board. BLS data on real wages shows women are slowly catching up to men. That’s the good news. The bad news is real wages for women have only risen at slightly over 1/2 of 1 percent per year for 19.5 years. Men performed even worse. Real wages for men have risen at a pathetic rate of about 1/4 of 1 percent per year in the same period. The featured images is from a set of Interactive BLS Graphs on Fred. The anecdotes and calculations are mine. I used an Annual Rate of Return Calculator to determine the percentages. Major Assumption The numbers assume you believe the BLS’ questionable rates of inflation. I don’t because the BLS excludes housing prices and ignores asset

Topics:
Mike Shedlock considers the following as important: , , , , , , , , , , , ,

This could be interesting, too:

Jeffrey P. Snider writes The Dollar-driven Cage Match: Xi vs Li in China With Nowhere Else To Go

Lance Roberts writes #WhatYouMissed On RIA: Week Of 10-14-19

David Robertson writes The Bursting Bubble Of “B.S.”

Lance Roberts writes Why The Measure Of “Savings” Is Entirely Wrong

Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much
Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Women are slowly catching up to men in median wages but growth has been pathetic across the board.

BLS data on real wages shows women are slowly catching up to men.

That’s the good news.

The bad news is real wages for women have only risen at slightly over 1/2 of 1 percent per year for 19.5 years.

Men performed even worse. Real wages for men have risen at a pathetic rate of about 1/4 of 1 percent per year in the same period.

The featured images is from a set of Interactive BLS Graphs on Fred.

The anecdotes and calculations are mine.

I used an Annual Rate of Return Calculator to determine the percentages.

Major Assumption

The numbers assume you believe the BLS’ questionable rates of inflation.

I don’t because the BLS excludes housing prices and ignores asset bubbles. The BLS also dramatically understates health care costs.

Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Questioning the BLS Medical Care Index

I discuss health care and incorrect BLS methodology in Another Surge in CPI Medical Care Costs.

One person commented “I bought my own insurance and it went up about 180% in the first three years of Obamacare.”

Unfortunately, that’s typical. Anyone buying their own insurance will not believe the purported 4.3% rise in the past year.

I discuss other problems with the BLS’ medical calculations.

Annualized Home Price Increases

Since 2000 Wage Growth Has Barely Grown, If You Even Got That Much

Housing Bubble Reblown

Last Chance for a Good Price

The Last Chance for a Good Price Was 7 Years Ago.

Home prices are not in the CPI.

Those who want to buy a home quickly discover wage growth has not kept up with home price growth.

Since 2000, assuming you believe the CPI, wages are going up 0.27% per year for men and 0.56% per year for men. Add them together to get a household and the combined increase is well under a full percent.

Home prices are dramatically outstripping median wage increases.

For those looking to buy a home and for those who do buy their own medical insurance, real wage growth is negative.

American Dream

In case you missed it, 68% of Millennial Homeowners Regret Buying a Home

The top regret “too costly to maintain”.

So congratulations American Dreamers on your 0.34% annualized wage growth since January, 2000, assuming you believe you actually got that.

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Leave a Reply

Your email address will not be published. Required fields are marked *