3 ms·

While it's true that wage growth has been slower during since 2009 than in previous business cycles, it's false that real wages have actually gone down (it's up

While it's true that wage growth has been slower during since 2009 than in previous business cycles, it's false that real wages have actually gone down (it's up about 1-4% since the end of the last recession depending on how you measure[1]). Additionally, benefits have grown quite a bit over the long term, which makes looking at just wages misleading. If you look at total compensation, we've seen a 60% increase since the beginning of the 70s and about 30% since the 90s[2]. Slightly off topic, but I also found it interesting that net transfers (e.g. from the government) also make up a much larger percentage of total household income than they used to (growing from 5% in 1950 to about 17% now[3].) [1] https://fred.stlouisfed.org/graph/?g=l1e2 https://fred.stlouisfed.org/graph/?g=l1e2 [2] https://fred.stlouisfed.org/graph/?g=74dI https://fred.stlouisfed.org/graph/?g=74dI [3] https://fred.stlouisfed.org/graph/?g=7rNW https://fred.stlouisfed.org/graph/?g=7rNW

linkregister 8y ago
Indeed the cost of benefits has risen precipitously while the value has dropped. White-collar professionals are insulated from this by a combination of much greater employer contribution ratios and a healthier risk pool. I had read an article claiming that the major source of government transfers were due to a much larger percentage of people being on Social Security disability. The causes are a mix of improvement in the enrollment process and a loss of jobs in regions that experience lower migration. I could be misremembering aspects of this so I won't be shocked if someone disputes this.
- whoisthemachine 8y ago
  Anecdotally, I feel as though the trend amongst my friends and family has been that the cost of benefits has increased, while the benefits themselves have contracted. I'm lucky to work at a fairly young company where we get nice health insurance options, but even so, our sick leave policy leaves something to be desired.

linkregister 8y ago

Indeed the cost of benefits has risen precipitously while the value has dropped. White-collar professionals are insulated from this by a combination of much greater employer contribution ratios and a healthier risk pool. I had read an article claiming that the major source of government transfers were due to a much larger percentage of people being on Social Security disability. The causes are a mix of improvement in the enrollment process and a loss of jobs in regions that experience lower migration. I could be misremembering aspects of this so I won't be shocked if someone disputes this.

whoisthemachine 8y ago
Anecdotally, I feel as though the trend amongst my friends and family has been that the cost of benefits has increased, while the benefits themselves have contracted. I'm lucky to work at a fairly young company where we get nice health insurance options, but even so, our sick leave policy leaves something to be desired.