by John Galt
October 21, 2009
EDIT 10/21 1730 ET: Well, this is what happens when yours truly is overdosed on cold medicine, gets two hours of sleep and can not think clearly. My apologies to my readers and I’m man enough to admit it: I screwed up. The first chart NOW reflecting the current report in 2009 dollars will make much more sense than the 5 a.m. presentation. Shoot me, please, as I am infested with the “Swine Cold” and my brain can not take any more nightmare visions of Spam flying over my head while blowing my nose vociferously at 2:18 a.m.
The Bureau of Labor Statistics (BLS) publishes a quarterly report which often is ignored but should drive the point home just how badly middle America is being screwed by our central bank that we all know and love as the Fed. This report is titled the “Usual Weekly Earnings of Wage and Salary Workers” and you can review the current data by clicking on the link provided. While everyone is cheering and saying “see we are all making more money” if you review the historic data and chain it to when our fiat currency was more important to this nation, you realize we’re not exactly improving one whole heck of a lot. The median earnings direct from the BLS pages with data from 2000 forward in current 2009 dollars is here:
Now that you can see the CORRECT chart from the BLS, let’s extrapolate what it means. Since 2000 the value of the USD has declined approximately 22% (more after the recent price action).
Thus adjusting for the decline in the US Dollar:
The purchasing power chart of the USD reflects this of so terrifyingly and thank the Fed for diluting this to keep the massive Ponzi scheme in equities, real estate and finance going to destroy the savers and prop up the banksters:
Now (since I’m an idiot and taking too much cold medicine) let’s look at the chart in constant 1982 dollars so one can get some idea of just how little a pay raise you’ve received over the years:
So this means that in constant 1982 dollars you’ve seen an increase in salary of about $7 per week!
That means that over the past 9 years you have seen an increase in your hourly wages (if you are paid by the hour) of:
$7.00 per week
Divided by 40 hours
= $0.175 per hour increase
Divided by 9 years
=$0.0194 per hour/per year
But there’s no inflation and the currency is still the strongest in the world. Now if you’ll excuse me, I’m going to take double shots of Nyquil until I pass out. Ugh.