Skip to main content

We can expect Bush to be trumpeting soon how the average American's wages have gone up during his regime despite the fact that few of us have seen this going on with our paychecks. It appears that one set of numbers shows wages as going up because it conflates stock options which don't get awarded to anyone on the low end of the food chain with salary.

The rest of the article is at the URL, this is something WSJ didn't put behind the subscription wall.

http://online.wsj.com/...

THE OUTLOOK

How Stock Options Muddle
The Relationship Among Wages,
Corporate Profits and Inflation

By GREG IP
September 18, 2006; Page A2

Scorekeepers at the Commerce Department last month discovered that
American workers were earning far more than previously estimated -- and
that created an economic puzzle.


The new data were out of step with other measures showing sluggish wage
growth, a factor in widespread worker dissatisfaction turning up in the
polls. And the increased income wasn't matched by more production --
that is, in gross domestic product -- as it should have been.
. . .
The answer appears to be stock options, a growing part of compensation
for top-end workers. Accounting for them properly has been a major
source of controversy for companies. Now it is complicating the
government's economic accounting, as well.

Last month, the BEA declared that labor income for all Americans in the first half was an annualized $95 billion, or 1.3%, more than it had estimated just a month earlier. This suggested Americans were flush with cash, welcome news for those worried about a slowing economy, but it also raised inflation alarm bells.

Yet another hit-and-run diary for me, it's 3:09 AM. . . I'll try to get back to this in the morning.

Originally posted to alizard on Tue Sep 19, 2006 at 03:11 AM PDT.

Poll

Do you get stock options?

12%5 votes
7%3 votes
80%32 votes

| 40 votes | Vote | Results

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site