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Post by jeffolie on Nov 14, 2013 7:59:12 GMT -6
Nov. 14, 2013
U.S. third-quarter productivity climbs 1.9%
WASHINGTON (MarketWatch) - U.S. productivity increased by a 1.9% annual rate in the third quarter, slightly faster than revised pace in the prior period, the Labor Department said Thursday. Economists polled by MarketWatch had forecast productivity to climb by 2.4%. Output of goods and services jumped 3.7% from a 3.3% gain in the second quarter, while hours worked rose by 1.7% vs. 1.4% in the previous period. Unit-labor costs, however, fell by 0.6% and inflation-adjusted hourly compensation of American workers declined by 1.3% after rising 2.3% in the second quarter. Compensation rose 1.3% without taking inflation into account. In the manufacturing sector, the increase in productivity slowed a 0.4% annual clip from a 2.7% increase in the second quarter. And productivity over the past year - the key to a richer society - is unchanged, according to the government's data
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Post by unlawflcombatnt on Nov 16, 2013 10:58:08 GMT -6
There are several ways to interpret this information, and all of them are bad for the American worker.
And all of them portray a continued widening of the gap between the rich & non-rich.
Regardless of whether there was a -0.4% drop in productivity, or whether it stayed the same, the -1.3% decline in real wages indicates an increase in the wage-productivity gap.
Which means that still less productivity is being shared with American workers.
And, as was true before the financial meltdown, the only thing sustaining consumer spending & production demand is the continued increase in consumer borrowing ability (despite all the B.S. about "tightening credit").
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Post by jeffolie on Nov 16, 2013 11:58:12 GMT -6
There are several ways to interpret this information, and all of them are bad for the American worker. And all of them portray a continued widening of the gap between the rich & non-rich. Regardless of whether there was a -0.4% drop in productivity, or whether it stayed the same, the -1.3% decline in real wages indicates an increase in the wage-productivity gap. Which means that still less productivity is being shared with American workers. And, as was true before the financial meltdown, the only thing sustaining consumer spending & production demand is the continued increase in consumer borrowing ability (despite all the B.S. about "tightening credit"). I agree and will broaden the "consumer borrowing ability" to also in business borrowing ability. For example in single family homes, deceptive all cash buying by Blackstone and Colonial represent their ability to massively borrow at subsidized rates from Primary Dealer Banks plus govt implied consent to bubble up the single family housing market which helps the in trouble bank portfolios unburden.
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