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Friday, March 28, 2014

Viable Opposition: The Stagnant Wage - Modest Economic Growth Conundrum

Viable Opposition: The Stagnant Wage - Modest Economic Growth Conundrum


A recent study, "Wage Woes" by Russ Koesterich at BlackRock examines what is missing in the post-Great Recession recovery and how this missing factor is going to impact growth rates in the economy.
Let's open with a look at two key aspects of the economy; real disposable personal income and real personal consumption expenditures.  Here is a graph showing how real (after inflation) per capita disposable personal income has changed since the Great Depression:

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