Tag Archives: Real Wages

Inflation Runs Hot, Hot, Hot

CPI out this morning,  up 0.6 percent for January, more than double the 0.3 percent that was expected.  The hottest number since February 2013.  The main culprit was the rise in the cost of gasoline, which accounted for half the … Continue reading

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The Economist Gets It…

That is, why governments need asset bubbles as the average real wage falls.   See our post, America’s Bubble Dependent Economy. This also goes a long way in explaining the reelection of President Obama even with stubbornly high unemployment and a weak … Continue reading

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The Ultimate Relative Price Change

This chart from Mark Perry goes a long way in capturing the decline in purchasing power of many Americans as the population ages (and gets heavier).   We suspect the relative price shift is not fully captured in the Consumer Price … Continue reading

Posted in Inflation/Deflation, Innovation | Tagged , , | 1 Comment

Punk real earnings in the U.S.

The BLS reports, Real average hourly earnings for all employees fell 0.7 percent from July to August, seasonally adjusted. This decline resulted from unchanged average hourly earnings combined with a 0.6-percent increase in the Consumer Price Index for All Urban … Continue reading

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Inflation Convergence and Real Earnings

The BLS chart clearly illustrates the convergence of core (x/ food and energy) inflation and all items.   Core inflation is up 2.3 percent y/y, which is a little hot given its recent history.  Here’s the BLS commentary, The index … Continue reading

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Is Inflation Driving the U.S. Wealth/Income Gap?

The bears video got us motivated to put together a chart of the S&P500 and gas prices over the past year.   It’s stunning, though not surprising, to see how both series move together.   The two charts below help explain a … Continue reading

Posted in Economics, Employment, Energy, Equities, Video | Tagged , , , | 12 Comments

Hours of Work Needed to Buy a Barrel of Oil

Another awesome piece of work from our friends over at The Chart Store.   The chart below is a times series of the numbers of hours of work — based on the average hourly wage — needed to buy a barrel … Continue reading

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