Wednesday, January 12, 2011

Economy - #2552 - Wage Cuts Steepest Since the Depression - Hot Air (2) Chart: Who got Stimulated - Patriot Post - Chart by Heritage Foundation

The continued high rate of unemployment has made labor a buyer’s market, and the effect on price has been predictable — and substantial. The Wall Street Journal reports that wages have fallen farther than at any time since the 1981-82 recession, and that this downturn has already exceeded that crisis.




As the unemployed scale back expectations on both jobs and income levels, compensation has retreated farther than any time since the Great Depression: The only other downturn since the Depression to see similarly large wage cuts was the 1981-82 recession. But the latest downturn is already eclipsing that one. Unemployment has stood above 9% for 20 straight months—longer than the early 1980s stretch—and is likely to remain above that level for most of 2011, putting downward pressure on wages.  Many laid-off workers who have found new jobs are taking pay cuts or settling for part-time work when they get new ones, sometimes taking jobs far below their skill levels.  Read more........

Who Got Stimulated - The Patriot Post - Chart by Heritage Foundation - Compared to more productive private sector employees, whose income is confiscated to pay government wages and benefits, hourly government workers are paid 57 percent more than those in the private sector for comparable jobs ($28.64/hour vs. $18.27/hour). Salaried bureaucrats enjoy average annual wages of $78,901, while those in the private sector average $50,111, and the number of bureaucrats collecting more than $150,000 a year has doubled since Obama took office.  When benefits such as taxpayer-funded contributions to pensions are included, government bureaucrats end up with 85 percent more compensation than their private sector comparables.  On top of that disparity, bureaucrat jobs are virtually tenured, both recession proof and unaffected by a dearth of productivity. Benjamin Franklin once famously said, "Nothing can be said to be certain, except death and taxes." Today, however, you can add government jobs to the short list of guarantees.  Read more.........

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