Archive for the ‘Department of Labor’ tag
January Stagflation Index Falls Sharply
January 2009 12-Month Simplified Stagflation Index
The January Simplified Stagflation Index (SFI) dropped sharply as the cost of living outpaced wage gains. This ended several months of steady or falling prices and modest wage growth, yielding positive (blue) SFI indices.
The January data from the Bureau of Labor Statistics indicates that wages rose slower than inflation for non-managerial workers in the private sector, who make up about 80% of the American workforce. The key data:
Consumer Price Index (CPI) 0.3%
Average Hourly Earnings (AHE) +$0.05 or +0.27%
Average Hourly Wage $18.46/hour
Calculating the December percent increase in wages adjusted for inflation:
AHE – CPI = 0.27 -(0.30) = -0.03
January Simplified Stagflation Index = -0.03 X 100 = -3.
For a fascinating discussion on our “shadow economy” including reckless banking and commodities deregulation, listen to Michael Greenberger on NPR’s Fresh Air with Terry Gross. Greenberger explains how we got into the current financial collapse.