Saturday, July 28, 2018

You can't eat GDP

The U.S. economy grew by 4.1 percent in the second quarter of 2018 and while the corporations and the rich are feasting on most of the growth,  workers see their wages fall. Even in the midst of steadily rising growth, record-breaking corporate profits most workers are not seeing a noticable boost in their paychecks.

"What the president won't talk about is that there is slow—and even negative—growth in real wages adjusted for inflation. So if GDP is rising, but wages are falling, the money is going to the top," Timothy McBride, a health economist at Washington University in St. Louis. GDP doesn't pay the bills.

Morris Pearl, a former managing director at Blackrock said in a statement. "Well, some Americans are better off—people like me who are wealthy enough to not need work—but most Americans are still struggling."

New York Times columnist Thomas Edsall highlighted the "continued failure of wages to advance, despite job growth, while corporate profits shoot up to record levels."

"While wages have risen by 12.9 percent overall since 2006, wages adjusted for inflation (so-called 'real wages') have actually fallen by 9.3 percent," notes Vox's Emily Stewart. "And between the first and second quarters of 2018 — after the tax cuts were enacted—real wages fell by 1.8 percent."

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