American Elephants


Declining Wages, Declining Government Statistics, Declining Trust. by The Elephant's Child

That was President Obama, back in February, boasting about the latest jobs report which showed the unemployment rate falling to its lowest level in eight years.”Inconvenient for Republican stump speeches” as they “continued their gloom and despair tour” he chortled.  Zero Hedge points out that once again, that was then, this is now.

In yet another stunning tribute to the “accuracy” and “consistency” of economic propaganda data being reported by our government agencies, the Bureau of Labor Statistics yesterday reported a massive downward revision of the 1Q 2016 YoY real wage growth from +4.2% to -0.4% (a 4.6% swing). But we wouldn’t worry much about it because the revisions resulted in only “small” changes in the underlying data according to the BLS:

 Indexes of all hours-related measures in the business, nonfarm business, and nonfinancial corporate sectors show historical revisions because hours in the base year of 2009 were revised; resulting revisions to percent changes are small.
Revising the real Year on Year wage growth downward by 4.6% is perhaps better described as  “disastrous” or “abysmal” or even just awful. The revisions to manufacturing wages and durable manufacturing wages were far worse Real manufacturing was revised from + 2.8% down to -4.3% (-7.1%) and durable manufacturing was down by 7.5%, from +1.9 down to -5.6%. Those are really big “revisions.”
It seems impossible to get accurate information from the federal government, but that’s just me — I worry about stuff like the national debt nightmare Obama is leaving for us, and the VA which can’t seem to properly serve our veterans — while buying $300,000 worth of TVs and simply storing them, and we learned today that the VA has 167 interior designers on staff, but they can’t get around to serving patients promptly.  That sort of thing.

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