Dec 5, 2006

Wages Slowing, Manufacturing Orders Down, Wall Street Cheers

Wages, when adjusted for inflation, are below there 1973 levels. Along with health care and retirement benefits having been drastically cut. Exactly what more does Wall Street expect the American worker to give up and still have an economy.

I fail to understand how bad news for the American worker is always construed as being good for the economy. It’s just one more example of the short term thinking that now defines the American financial community.

In an
AP article out this morning “Investors applauded Labor Department figures showing wages and benefits increased at a much slower pace”.

In another
AP article: “In other economic news, the Commerce Department said that orders to U.S. factories plunged 4.7 percent in October, the third decline in the past four months, and the biggest drop in more than six years. The manufacturing sector is starting to experience the adverse impact from this year's slowdown in the overall economy with auto sales and home construction suffering."