When The Going Gets Tough...Change the subject


Bad news today via the New York Times as we find out that in spite of the economy adding 2.2 million jobs in 2004, the average wage for workers fell for the year once you adjust for inflation. The first drop in almost 10 years. The New York Times Reports "Pay increases are not rebounding, even though the factors normally associated with higher pay have rebounded," said Peter LeBlanc of Sibson Consulting, a division of Segal, a human resources consulting firm.

The big question becomes is this new situation a long-term thing or is it a temporary slide that will work itself out? Stephen Roach of Morgan Stanley said "We're in for a long period where inflation-adjusted wages will be under acute pressure....That's a most unusual development in a period of high productivity growth. Normally, real wages track productivity."

Others believe the difference is temporary, some who believe the decrease in wages has been caused by the soaring costs of oil.

This is a serious problem that needs to be addressed, as consumers are also being forced to pay the high costs of oil, yet do not have the luxury of having more money coming in. The whole premise of the Bush administration has been to allow more Americans to have more of their money, yet this economic news indicates that the opposite is true. So how does President Bush plan on addressing this issue? According to The Gadflyer, with a speech at Fort Hood "to address the troops about the War on Terror, and other tough-talkin' stuff." Way to dodge the issue Mr. President.

Ryan Oddey
Ryan@TAFMess.com