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According to the BLS, the previously published data for Q4 2022 showed real nonfarm wages rising +0.7% annualized (wages growing faster than inflation), but thi

According to the BLS, the previously published data for Q4 2022 showed real nonfarm wages rising +0.7% annualized (wages growing faster than inflation), but this has now been revised to -4.7% annualized (wages shrinking vs inflation). In fact, the revised figures show that wages decreased by 0.7% even in nominal terms, whereas they previously estimated that wages had been growing 4.9%. Revised figures for 2023 Q1 show that nonfarm real hourly compensation decreased -1.7%, whereas the previously published figures showed -0.3%.

jeffbee 3y ago
I guess that poses a serious problem for those who still claim that wages are driving inflation.
- toomuchtodo 3y ago
  Corporate profits down ~5% last quarter. 10 million job openings at the moment. We are at full employment. Lots of pain for capital ahead, not so much for the labor market (structural demographics). Gotta squeeze enterprises more, who have been juicing profits with pricing power (“greedflation”).
- adra 3y ago
  I mean, it could be still true if you expect that only the economy outlier super rich driving up the costs against those that can barely scrape together enough for a meal. An interesting observation would be to know the grocery cost growth per area / supermarket chain to see if there's a wider increase in prices between affluent and poor neighbourhoods.
- berbec 3y ago
  "Facts" and "reality" have never been a serious, or any sort of, problem for those folks. They believe in trickle-down and the reason people are poor is because they go to StarBucks too much.
  - jjtheblunt 3y ago
    Do you have terms mixed? Trickle-down was a Republican thing, but these stats are during a Democratic administration?
    - berbec 3y ago
      I'm talking about those that "claim that wages are driving inflation", not the current administration. If they are also doing so, I will happily retract my statement and focus my ire more broadly.
- Aunche 3y ago
  The only people who claim that wages are driving inflation are strawmen based on out-of-context Federal Reserve quotes.

jeffbee 3y ago

I guess that poses a serious problem for those who still claim that wages are driving inflation.

toomuchtodo 3y ago
Corporate profits down ~5% last quarter. 10 million job openings at the moment. We are at full employment. Lots of pain for capital ahead, not so much for the labor market (structural demographics). Gotta squeeze enterprises more, who have been juicing profits with pricing power (“greedflation”).
adra 3y ago
I mean, it could be still true if you expect that only the economy outlier super rich driving up the costs against those that can barely scrape together enough for a meal. An interesting observation would be to know the grocery cost growth per area / supermarket chain to see if there's a wider increase in prices between affluent and poor neighbourhoods.
berbec 3y ago
"Facts" and "reality" have never been a serious, or any sort of, problem for those folks. They believe in trickle-down and the reason people are poor is because they go to StarBucks too much.
- jjtheblunt 3y ago
  Do you have terms mixed? Trickle-down was a Republican thing, but these stats are during a Democratic administration?
  - berbec 3y ago
    I'm talking about those that "claim that wages are driving inflation", not the current administration. If they are also doing so, I will happily retract my statement and focus my ire more broadly.
Aunche 3y ago
The only people who claim that wages are driving inflation are strawmen based on out-of-context Federal Reserve quotes.