Inquiring minds are digging into the stunningly bad Quarter-Over-Quarter decline in wages and real wages across all sectors…
…The BLS notes “Unit labor costs in nonfarm businesses fell 4.3 percent in the first quarter of 2013, the combined effect of a 3.8 percent decrease in hourly compensation and the 0.5 percent increase in productivity. The decline in hourly compensation is the largest in the series, which begins in 1947.”…
This is just lousy. Now, before any of you out there get all “that’s just GOPer doom and gloom”, Mike Shedlock (Mish) was firmly anti-Bush 2001-09 and stands entirely outside the GOP. He’s not in any way, shape or form one of us. He’s just a genuinely independent observer and economic analyst. And his conclusion?
The Fed and Obama are both engaging in counterproductive policies that discourage hiring, especially hiring of full-time employees.
Of course Obama will respond by asking for a raise in minimum wage (giving further incentives to businesses to seek ways to get rid of employees), and the Fed will vow to keep interest rates low (enabling companies to borrow money for next to nothing to do just that).
Between the Federal Reserve (entirely committed to Keynesian idiocy) and Obama (also entirely committed to Keynesian idiocy), the ability of the United States to recover from the 2008 crash has been crushed. And to make it all worse, the twin policies of Bernanke and Obama are setting us strait on the path to renewed, and much worse, crash. The only way we can get out of this mess is to produce our way out of it – by creating wealth. That takes making, mining and growing things in a free market…not subsidizing green energy scams or dinosaur auto makers; not printing more fake money and piling up more debt; not by re-paving an already paved road and hiring more diversity coordinators for the Department of Departmental Affairs.