The Right's suppression of organized labor is bearing fruit so toxic to economic growth even Wall Street is taking notice. The power imbalance between employers and employees hasn't been as great since the rise of unions helped pull working people out of the destitution of the Great Depression. Stagnant wages are harming consumer confidence and the economic growth.
Consumer sentiment drops on worries over wages
By Ruth Mantell
WASHINGTON (MarketWatch) — Consumers grew more concerned this month about current and coming economic conditions, with a gauge of their sentiment dropping on worries about wages, according to data released Friday.
“Tiny wage gains meant that nearly half of all households anticipated declines in inflation-adjusted incomes during the year ahead,” according to the sentiment report.
Economists polled by MarketWatch had expected a final May reading of 82.5, compared with a preliminary monthly result of 81.8. For context, over the year leading up to the start of the recession, which began in December 2007, sentiment averaged 86.9.
Traders watch sentiment levels to get a feeling for the direction of consumer spending. Elsewhere Friday, the government reported that consumer spending fell last month — the first decline in a year.
A variety of factors are impacting consumers. Employers appear to be picking up hiring and laying off fewer employees, but workers are still concerned about their career prospects. Home prices are on the rise, but many households are wary of taking on too much debt, with Americans’ credit-card balances recently hitting the lowest tally in more than a decade.
That this news comes from the Wall Street Journal should be significant. The one percent are so rapacious that they are savagely destroying America's economic vitality to satisfy their ever expanding lust for wealth. Like sharks in a feeding frenzy the sent of obscene financial gains blots out any concerns about the well being of the nation, or their fellow citizens.