There’s a very good reason why the Fed is battling stagnant growth and below trend inflation. Salaries for a majority of Americans are awful.
A majority of the new jobs created by the “robust” recovery pay so little that 75 percent of working families are still receiving food stamps or other government support as cited in a report from the University of California Berkeley released this week.
So in 2015, the idea of landing a job and bettering your life is just another farce and no longer the American Dream.
Many of the “service industry” jobs we see added by the Bureau of Labor Statistics on a monthly basis come with an hourly wage that is not enough to start people on the road to sustainability.
Not only waiters and bartenders, but healthcare workers and childcare workers — the three sectors showing the biggest growth during the “recovery” have a majority or close to it still needing public support.
Real hourly wages for median American worker are just 5 percent higher in 2013 as compared to 1979 wages. Remember the economy was horrible in 1979, with nearly 15 percent borrowing rate and inflation roaring out of control.
So when economists scratch their heads coming up with an explanation as to why retail sales are slumping and inflation is below trend — despite job growth — here is the answer.
It’s not a job if you can’t support yourself. It’s a hobby or pastime.