From 2000 to 2008, the Houston Chronicle reported that average wages grew from between 3.8% and 4.4% across the United States.
According to the Bureau of Labor Statistics Employment Situation reports, in the first four months of this year, the average weekly salaries rose just 2.6 tenths of a percent from $878.49 in January to $880.79 in April. When annualized, this means that we are on track to have a wage growth of only 7.8 tenths of a percent over the next 12 months. This less than 1% annualized growth, is just 20% of even the worst growth of 3.8% in the years from 2000 to 2008.
Once again, this proves that we are creating jobs and not increasing wages under the Obama administration. I, for one, am tired of his constant touting of job growth. As if having a job is more important that having one that pays well. In 7 years, wages under have only risen 7% or about 1% per year. When you subtract the 27%+ increase for the top 1%, the bottom 99% had an average increase of only 4.3%. Raising the minimum wage in 29 states has not produced wage increases. Nor has Obama's raising of the salaried overtime rule by double, produced higher wages. Instead, low wage growth is indicative of how weak this economy is. The proof of that came in the first quarter when Gross Domestic Product (GDP) only grew by 5 tenths of a percent; just one-eighth of the normal non-recessionary growth rate of 3.79% since 1790. Assuming growth is still slack throughout the year, Obama is on track to have the fourth worst presidential average of just 1.55% growth in his 8 years in office.
References:
What Is an Appropriate Annual Salary Increase?: http://work.chron.com/appropriate-annual-salary-increase-16035.html
The Employment Situation - April 2016 - Bureau of Labor Statistics (Table B-3): http://www.bls.gov/news.release/pdf/empsit.pdf
The Employment Situation - January 2016 - Bureau of Labor Statistics (Table B-3): http://www.bls.gov/news.release/archives/empsit_02052016.pdf
Obama touts job growth, asks Congress to take action on tax evasion: http://www.usatoday.com/story/news/politics/2016/05/06/obama-economy-money-laundering/84017722/
State Minimum Wages | 2016 Minimum Wage by State: http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx
Obama overtime rule could raise wages for 5 million: http://www.politico.com/story/2015/06/obama-overtime-rule-wage-raise-119566
U.S. economy slows, with GDP growing 0.5% in first quarter: https://www.washingtonpost.com/news/wonk/wp/2016/04/28/u-s-to-release-data-showing-gdp-growth-for-first-quarter/
Barack Obama's Sad Record on Economic Growth | RealClearMarkets: http://www.realclearmarkets.com/articles/2016/02/01/barack_obamas_sad_record_on_economic_growth_101987.html
State of the Union: Obama's Economy in 7 Charts - Fortune: http://fortune.com/2016/01/12/obama-economy-charts/
Showing posts with label salaried overtime rule. Show all posts
Showing posts with label salaried overtime rule. Show all posts
Monday, May 9, 2016
Saturday, June 13, 2015
Strong Retail Sales Does Not Mean A Growing Economy
Last Thursday, the retail sales numbers saw a surge; prompting the news agency Reuters to state this:
The fact is, that American national retailers are suffering. Dozens of them are announcing store closures. CNBC predicted this a year-and-a-half ago with their story titled "A 'tsunami' of store closings expected to hit retail". Since that story was run, Radio Shack has announced the closure of 1784 stores due to bankruptcy. McDonald's is shuttering 700. The combined Office Depot/Office Max operation is closing 650 retail operations, and their chief competitor Staples, 225. Others include 200 Walgreens; 338 Wet Seal; 77 Sears; 100 Pier One's, 300 Deb Shops; 40 J. C. Penney's; and on and on with a list too long to enumerate (See References).
In addition, shopping malls are also shuttering their doors. Forbes is predicting 300 Mall closures in the next 10 years, mostly because they are losing their "anchor" stores like J.C. Penney, Sears, and Macy's. But, when a mall closes its doors, so do the dozens of small retail stores that probably won't survive without the large amount of foot traffic a mall provides.
We're six years passed the end of the Great Recession and we are seeing national chain store closures as if we were still in the midst of it; leaving us to question whether or not small local retailers are also closing at that same high rate.
I personally believe that "retail" is hitting the proverbial "brick wall". You have a consumer who has so little money to spend after necessities, that you would have to go back 20 years to see the real median household incomes this low.
Then, retail prices are being driven higher by a variety of factors. For starters, this is the first year that the employer mandate of ObamaCare kicked in. Thus large national chains are being forced to provide health care insurance or pay a fine of between $2000 and $3000 for each employee not properly covered. On top of that, liberal state legislators and city councils are raising the minimum wage. For example, California's minimum wage was raised to $9 this year; and will go to $10 as of January 1st. Additionally, President Obama, through executive order, is expected to force any employer, whose salaried workers make less than $52,000 a year, to pay overtime (time-and-a-half) when they work more than 40 hrs/wk..
The increase in retail sales is more about higher prices and not increased sales. Simply, the consumer is cash strapped and marginal retail operations are being forced to close their doors due to declining foot traffic.
References:
Strong U.S. retail sales boost growth outlook: http://www.reuters.com/article/2015/06/11/us-usa-economy-idUSKBN0OR1H720150611
A 'tsunami' of store closings expected to hit retail: http://www.cnbc.com/id/101353168
Store Closings Index 2015 of Largest US Brick-and-Mortar Retail Chains: http://retailindustry.about.com/od/USRetailStoreClosingInfoFAQs/fl/All-2015-Store-Closings-Stores-Closed-by-US-Retail-Industry-Chains_4.htm
Some 300 malls should close in the next decade: http://fortune.com/2015/01/28/2015-mall-outlook/
Real Median Household Income in the United States - FRED: https://research.stlouisfed.org/fred2/series/MEHOINUSA672N
ObamaCare Employer Mandate - ObamaCare Facts: http://obamacarefacts.com/obamacare-employer-mandate/
State Minimum Wages | 2015 Minimum Wage by State: http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx
White House plans to force business to pay more overtime: http://www.washingtonexaminer.com/white-house-plans-to-force-business-to-pay-more-overtime/article/2556692
U.S. retail sales surged in May as households boosted purchases of automobiles and a range of other goods even as they paid a bit more for gasoline, the latest sign economic growth is finally gathering steam.What I take issue with is the "finally gathering steam" statement. Quite simply, a retailer can have stronger sales, not just because of more foot traffic to their store, but also because they may have been forced to raise prices. If a retailer doesn't have enough sales to pay the bills, it will have no other choice but to close its doors. This is a reality that is growing in strength, and which, belies the "gathering steam" comment.
The fact is, that American national retailers are suffering. Dozens of them are announcing store closures. CNBC predicted this a year-and-a-half ago with their story titled "A 'tsunami' of store closings expected to hit retail". Since that story was run, Radio Shack has announced the closure of 1784 stores due to bankruptcy. McDonald's is shuttering 700. The combined Office Depot/Office Max operation is closing 650 retail operations, and their chief competitor Staples, 225. Others include 200 Walgreens; 338 Wet Seal; 77 Sears; 100 Pier One's, 300 Deb Shops; 40 J. C. Penney's; and on and on with a list too long to enumerate (See References).
In addition, shopping malls are also shuttering their doors. Forbes is predicting 300 Mall closures in the next 10 years, mostly because they are losing their "anchor" stores like J.C. Penney, Sears, and Macy's. But, when a mall closes its doors, so do the dozens of small retail stores that probably won't survive without the large amount of foot traffic a mall provides.
We're six years passed the end of the Great Recession and we are seeing national chain store closures as if we were still in the midst of it; leaving us to question whether or not small local retailers are also closing at that same high rate.
I personally believe that "retail" is hitting the proverbial "brick wall". You have a consumer who has so little money to spend after necessities, that you would have to go back 20 years to see the real median household incomes this low.
Then, retail prices are being driven higher by a variety of factors. For starters, this is the first year that the employer mandate of ObamaCare kicked in. Thus large national chains are being forced to provide health care insurance or pay a fine of between $2000 and $3000 for each employee not properly covered. On top of that, liberal state legislators and city councils are raising the minimum wage. For example, California's minimum wage was raised to $9 this year; and will go to $10 as of January 1st. Additionally, President Obama, through executive order, is expected to force any employer, whose salaried workers make less than $52,000 a year, to pay overtime (time-and-a-half) when they work more than 40 hrs/wk..
The increase in retail sales is more about higher prices and not increased sales. Simply, the consumer is cash strapped and marginal retail operations are being forced to close their doors due to declining foot traffic.
References:
Strong U.S. retail sales boost growth outlook: http://www.reuters.com/article/2015/06/11/us-usa-economy-idUSKBN0OR1H720150611
A 'tsunami' of store closings expected to hit retail: http://www.cnbc.com/id/101353168
Store Closings Index 2015 of Largest US Brick-and-Mortar Retail Chains: http://retailindustry.about.com/od/USRetailStoreClosingInfoFAQs/fl/All-2015-Store-Closings-Stores-Closed-by-US-Retail-Industry-Chains_4.htm
Some 300 malls should close in the next decade: http://fortune.com/2015/01/28/2015-mall-outlook/
Real Median Household Income in the United States - FRED: https://research.stlouisfed.org/fred2/series/MEHOINUSA672N
ObamaCare Employer Mandate - ObamaCare Facts: http://obamacarefacts.com/obamacare-employer-mandate/
State Minimum Wages | 2015 Minimum Wage by State: http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx
White House plans to force business to pay more overtime: http://www.washingtonexaminer.com/white-house-plans-to-force-business-to-pay-more-overtime/article/2556692
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