Turning the corner...Uh huh...

[Bullypulpit]

<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.

 

[Annie]

<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.

Boston Globe (Owned by the New York Times ), is not an unbiased source, given the spin by the reporter on Swift boat incident. With that said, how about a bit of fact checking:

http://www.polipundit.com/2004_08_01_polipundit_archive.html#109190319869937027

 

[KarlMarx]

<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.

1. If the inflation rate is the lowest it has been in over 40 years (about 1 or 2 percent), then you wouldn't expect pay to go up by 10 percent....is that a difficult concept?

2. The 3 percent spike in prices is due to the increase in oil prices, but does not represent a long term trend. In fact, the price of oil in inflation adjusted dollars is actually now lower than it was in 1984, during the height of the Reagan Recovery.

3. Fact ---- most people who are in the lowest 25 percentile in earnings eventually move the highest 50 percentile in earnings within 10-15 years. Why? Most of the people in the lowest 25 percentile in earnings are under the age of 25 and thus earn less than the average. As they get older and are promoted, gain experience, etc etc. they move up the earnings laddder.

3a. I would like to interject at this point, my parents, who have less than a 6th grade education, immigrated here from Italy, yet live in a house that is bigger than most people's, sent their kids to college and are living comfortably. They never had government assistance. And to top it off, they have been for the greater part of their lives, in the lowest 25 percentile in earnings. Something to be said for good ol' fashion frugality. By the way, they aren't the only ones, many of my aunts and uncles, who are also semi-educated, and immigrated her from Italy are also in the same condition. If I talked like the "educated" reporter from the Boston Globe to them, they would tell me that I've lost my mind and that I should stop such an educated whiner, this is the land of opportunity and much better than it is in Italy (which is quite Socialist -- my observation, not theirs).

4. Ahhh...positions without Health Benefits!!!! I love that one.... Yes, let's talk about that. The cost of health care has been increasing well in excess of inflation for years, why? At least three reasons, the fact that free market forces are not allowed to operate to bring those costs under control, and the cost of litigation (can you say John Edwards, Trial Lawyer and Litigator anyone?) and existing government regulations and laws. Because of insurance, and Medicare, medical consumers do not see the actual cost of medicine, therefore, they are more likely to use it more often than they would have if they were paying the full cost. Increase demand, limited supply = higher costs. Secondly, because doctors are afraid of being the victims of litigation, they are more likely to order unnecessary tests, medicines etc in order to protect themselves. This, too, raises the demand for medical services and medicines. Increased demand + limited supply = higher costs). Thanks to the powerful Trial Lawyers lobby (which is, and has been, one of the biggest contributors to the Democratic National Party, by the way --- gee, I wonder why?), tort reform is highly unlikely.Thirdly, pharamcutical companies have only a 17 year period in which they can be protected under US Patent Law in order to reclaim the cost of developing drugs (which can amount to hundreds of millions of dollars). However, the clock starts running as soon as they submit a drug for approval to the FDA. The FDA approval process can then take several years, and often a decade or more, before a drug is available to the public. Thus, pharamacuticals have only a few years in which to recover their costs before they start to face competition from generic drug manufacturers, which do not have the development costs that the "name brand" companies have. Thanks to government beaureaucracy, the cost of medicine has also been pushed up. Thus, because of these three factors (and others as well), the cost of medical care goes up. Since these increased costs are reflected in higher insurance premiums, employers can no longer afford them and remain competitive.

Another case of "Blame-Bush-itis"!



Challenge: can you find the reporter from the Boston Globe in the figure above?

 

[Tom E]

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.

Have you been in a fast food restaurant latelly? What is the differance between one and a box plant!

Not much, just assembly line workers!
:chains:
USA going down drain! Ha GNP is still growing, every year we produce more an more, housing is better and better, health care is getting better, communications unbelevable!