← America’s Bubble Dependent Economy
These statistics use the mean, but the median would be a truer indicator. I have looked for this kind of chart based on the median rather than the mean, but have not been able to find any. Any suggestions?
AV, Thanks for comments. Try here:
Have not seen a long term series for real wages x/ the President’s report.
Thank you, that is helpful. People talk about what is or is not good for “the economy”, and they seem to usually have in mind GDP or GDP per capita. But to me, a truer measure of whether the American people are doing better or not economically is whether the median wage is increasing or decreasing, adjusted for inflation.
Why do you use 82-84 dollars instead of 2012 dollars? This changes things greatly. Adjusted for inflation (2012 $s) shows that real weekly earnings are up steadily since 1965. Source Page 374: http://www.whitehouse.gov/sites/default/files/microsites/ERP_2012_Complete.pdf
Jason, Thanks for comments. Using the nominal dollars does not take into account the real purchasing power for wages. The economic wage is the real wage, which is the nominal wage in 2012 dollars divided by the consumer price index.
Got it thanks…It was my confusion as I interpreted it to mean current = 2012 $s not nominal.
Here’s my next question. Why are real wages falling over time yet real disposable personal income per capita (as per FRED St. Louis Fed ) is rising over time?
Inflation is rising faster than wages. That is why, households need to two incomes to maintain the lifestyle of the 1960’s and early 1970’s.
Just today I saw a long time series that has median wages, but yearly not weekly: http://www.ssa.gov/oact/cola/central.html. Also not adjusted for inflation.
Thanks, Alan. We will deflate it with the CPI and post in the next few days and give you a nice hat tip!
I believe the hat tip should go to Jesse, since I became aware of the data through his report: http://jessescrossroadscafe.blogspot.com/2013/01/wages-median-and-mean.html.
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