Yesterday Investors.com posted an article about the employment numbers released by the Bureau of Labor Statistics on Friday.
The jobless rate is 5.8%, the lowest since June 2008. However, the Labor Force Participation Rate (the percentage of Americans of working age who are working) is at 62.8 percent, essentially flat since April according to the Bureau of Labor Statistics website.
Despite these relatively good numbers, consumer confidence is still low, Part of the reason for that is what has happened to Middle Income family income since 2007.
The article at Investors.com reports:
Real median household incomes fell 6.6% from $55,627 in 2007 to $51,939 at the end of last year. It will take years to recoup that loss. Meanwhile, male workers’ incomes have been in a tailspin for over a decade.
Private-sector wages grew 2% from last year in October — just barely ahead of the 1.7% rise in inflation.
So lack of opportunity stemming from 2% GDP growth and slow-growing family incomes have put average Americans in a sour mood.
The article at Investors.com further reports:
It’s policy failure. We and others repeatedly warned that President Obama’s massive stimulus, cheap money and heavy-handed regulation were a recipe for stagnation. That’s exactly what happened.
Each era of big government tinkering ends with the the economy being systematically run into the ground by Keynesian policymakers — and with economists pondering whether it’ll always be this way.
“Are you better off today than you were four years ago?” President Reagan famously asked in the 1980 campaign. Today, Americans seem to be saying no.
I hope the new Republican Congress will have the courage to encourage the President (strongly) to change direction.