Bush Economics 101: Investors "worried" about accelerating wage growth

[Bush_Eats_Beef]

Are bigger paychecks around the corner?

People on Main Street would cheer but Wall Street, Fed are starting to worry about upward pressure on wages.

By Chris Isidore, CNNMoney senior writer

February 2, 2006: 3:54 PM EST

http://money.cnn.com/2006/02/02/news/economy/jobs_wages/index.htm?cnn=yes

NEW YORK (CNNMoney.com) - All of a sudden one of the bigger worries for investors is what average workers have long been waiting for: bigger paychecks.

This week brought several reports suggesting that wage growth is finally ready to accelerate. At the same time job growth in January looks like it rebounded from a disappointing December.

Of course those same reports fanned worries on Wall Street about rising labor costs that could dent corporate profits, and lead to a pickup in inflation.

On Tuesday, the Labor Department said that wages and salaries jumped 0.8 percent in the fourth quarter, the biggest gain in its Employment Cost Index since 2002. And stocks sank Thursday partly on a government report showing a surprise drop in worker productivity, the first in five years. Strong productivity growth in the 1990s through much of last year helped keep labor costs in check.

[bobbieinok]

1. Malloy on WLS used to say Greenspan only got worried about the economy

when it looked like wages might rise.....he said Greenspan took action to stop wage increase (don't know enough economics to know what that might be)

[The Magistrate]

2. Throwing People Out Of Work, Ma'am

Was his usual remedy,a nd the instrument was raising interest rates precipitously....

The essential illness of a view which holds an increase in wages bad for an economy cannot e overstated.

"LET'S GO GET THOSE BUSH BASTARDS!"

[tech3149]

4. Even in the last two years

Greenspun said when testifying to congress that he was concerned about "wage inflation". That old fool was no help to the economy, but Bernanke believes in things that the Fed helped the 1929 economic crash. The burden will be on the populace and the fat cats will skate.

[punpirate]

3. What an incredible crock of shit....

"Strong productivity growth in the 1990s through much of last year helped keep labor costs in check."

Usually, strong productivity forces labor costs upwards (sharing the wealth). It's only been in the last few years that the opposite is true--mostly because the job market has been so bad that employers benefit. For that reason, productivity has generated greater dividends to stockholders and no gains by employees. Middle-to-low-income wage earners have seen wages decline against inflation in the last five years, so what the fuck is this about an increase in inflation due to wages?

This is BS.

[Hubert Flottz]

13. "Strong productivity growth"

In China maybe! America has lost OVER 2 MILLION production jobs since 2001. Why wouldn't production be down in the US? * All we can buy is JUNK! All we make anymore, is Big Mac and Whoppers with our freedom fries!

It's about busting ALL the unions in America and equalization of the standard of living world wide! It's The "NEW WORLD ORDER!" The "Ownership Society," Bush campaigned on was the "Ownership" of the planet by the 1% of the most wealthy people in the world. Everyone else will be a slave living of cabbage soup and turnip sandwiches, with first grade educations. 99% of the planet's population will be slaves 1% will be the "OWNERS"...

Not only is your paycheck smaller since 2001, but the dollars you do have are worth FAR less too! The World Bankers are sucking the life blood out of working people everywhere, AS FAST AS THEY CAN!

THE PRICE OF FREEDOM, WILL SOON BE UNAFFORDABLE, TO ALL BUT THE "OWNERS!"

[The Backlash Cometh]

5. When are we going to learn? Wall Street is the enemy.

We get suckered in as stockholders, but how many stockholders have really done well over the last ten years? I just looked at our portfolio and all I can think of is, why are we still here? You want to know where all that corporate lobby power comes from which has neutered our democracy? It comes from Wall Street.

I've no problem with the institution, as long as it doesn't monopolize and corrupt our government, which it apparently has.

[ClintonTyree]

6. I've often said.........

that there are no countries anymore, just corporations hiding behind flags masquerading as countries. The corporate world runs the government, they own it.

[xchrom]

7. the environment is coming apart at the seams -- and

they are worried about wages?

if they were worried about pressure on the economy -- then global warming should have them shaking in their guccis and pradas --
wall street, like bushco lies about what they are concerned about in order to get a short term result.

[xchrom]

8. my computer just did something i've never seen

in my reply above -- i don't even think i could describe it.

[ShockediSay]

9. God forbid the server class

should stop sinking while the ruling class keeps rising.


:sarcasm:

[ProfessorGAC]

10. Gee, In A Consumption Based Economy, It Would Sure Hurt. . .

. . .to have the middle class bolstered financially, wouldn't it? This is idiotic. The people who are getting paid more end up buying more, which ends up increasing the absolute margins of those companies in which the investors have money. Sheesh! Who would buy something this silly?
The Professor

[TheBaldyMan]

11. so they're not worried about executive pay going through the roof?

only little people getting a wage rise will effect profits the economy.

[area51]

12. Rising wages?

In what alternate universe?

Jobs are next to impossible to find. Wages are being cut. Healthcare is being cut as a benny.

We're in the midst of the 2nd Great Depression.

[applegrove]

14. If EVERYONE participates in a growing economy, then the stock

markets have to be slowed down to check inflation. Didn't you know? Workers have been fighting inflation themselves. Bad workers!:sarcasm: