October 30, 2006
Wages up
In case this doesn't get a lot of play. Yup, Wal*Mart's October sales are off but, three stories down:
U.S. September Personal Income Grew 0.5%; Consumption Fell - WSJ.comPersonal income grew in September at a seasonally adjusted rate of 0.5%, after increasing a revised 0.4% in August, the Commerce Department said Monday. August income growth was previously reported at 0.3%. Meanwhile, personal consumption grew 0.1% in September, less than the revised 0.2% increase the month before. August spending growth had previously been reported at 0.1%.
When spending is up, folks worry about the savings rate, when they don't, they worry about confidence. When productivity is up, they worry about wage growth. Those are market forces and I'm all for them, but Larry Kudlow's Goldilocks-Economy-Greatest-Story-Never-Told is looking pretty good.
Economics and Markets Posted by jk at October 30, 2006 10:11 AM
Think about the unemployed JK. The unemployed. Their personal income didn't grow. The economic good times are passing them by.
A gray sky is easy to find. You hardly have to look. ;)
Posted by: AlexC at October 30, 2006 10:32 AM"When productivity is up [or inflation is low] they worry about wage growth." There is a term that economists use to describe widespread wage growth - it's called "inflation."
Posted by: johngalt at October 30, 2006 3:21 PMEt tu jg? A Phillips curver has infiltrated ThreeSources.
Inflation is a *monetary* phenomenon, too few goods chased by too much money. Wage growth may cause inflation fears but I would not equate it to inflation.
Posted by: jk at October 30, 2006 4:38 PMAm I not let off the hook by my use of the adjective "widespread?" If *everybody* gets a wage hike then isn't more money chasing the same goods as before? I dunno though, yer the 'conomist. I'm just the guy who wants to protect the wealth of the rich (and the near rich, and the middle class, and anyone else who has any.)
Posted by: johngalt at October 31, 2006 2:48 PM | What do you think? [4]