<center><h2><a href=http://www.boston.com/news/nation/articles/2004/08/07/report_low_pay_derailing_recovery?mode=PF>Report: Low pay derailing recovery</a></h2></center> <blockquote>By Stephen J. Glain, Globe Staff | August 7, 2004 WASHINGTON -- Not only has the rate of new job growth stumbled badly, as shown by yesterday's payroll report, but the jobs that are being created do not pay enough to sustain the country's fragile economic recovery, according to economists. The preponderance of low-paying jobs coupled with high gas prices are undermining consumer spending, the economy's sole engine of growth as the stimulative impact of tax cuts and rising defense spending exhaust themselves. Consumption in June fell to its lowest level since the terrorist attacks of Sept. 11, 2001. "The labor market will continue to remain tough for both the employed and those persons seeking new jobs," said Peter Morici, an economics professor at the University of Maryland. "Wages will only grow modestly, more workers will be compelled to accept positions without health benefits, and benefits packages generally will continue to deteriorate." The rate of new job growth has slowed dramatically in the past two months after an encouraging spring and an average economic expansion in the past three quarters of 5.4 percent, the most robust sustained growth rate in 20 years. Despite yesterday's dismal jobs report, the economy has added 177,000 new jobs per month this year on average, according to the labor department, similar to the pace of new employment recorded during the booming 1990s. But many of the new jobs either pay too little to invigorate consumer spending or are part-time positions that offer no benefits, economists say. Of the 3.1 million jobs created since last August, nearly two-thirds are in low-wage industries, according to several reports issued recently by banks and economic research groups. For the labor market as a whole, according to Stephen Roach, chief economist for Morgan Stanley, inflation-adjusted wage growth has declined, with average hourly earnings growing by 2 percent on a year-to-year basis, compared with 3.1 percent growth in consumer prices.</blockquote> This flies in the face of Dubbyuh's claim that America "...Is turning the corner...". Of course he also wanted to have jobs at fast food restaurants reclassified as "manufacturing" jobs. Under Dubbyuh, and his merry band, the only corner America is turning is the one looong turn we're making as America circles the drain.