Americans’ Income Drops Most in Twenty Years
October 20th, 2011
et again the real data confirms what most of us already know: the U.S. economy is in serious trouble.
One look at this chart and you’ll understand what we mean.
Via Zero Hedge:
One place where nominal and real income data can absolutely not be fudged is the Social Security Average Wage Index based on withholding data reported by employers, particularly the median wage, whose nominal change can then be extrapolated in real terms using CPI to create a chained series. And here is where things get messy: as John Lohman demonstrates in the chart below, real income based on median wages, dropped (in real terms) by 1.2% – the biggest year over year slide in over 20 years of data…
What we are seeing is a perfect storm of horrendous economic data on almost all fronts. Manufacturing costs are up, essential basic goods have skyrocketed in price over the last three years, and more people are left unemployed every single month than the month before. The New York Times reports that gloom has gripped the U.S. consumer: