For the wage earning working man, these charts say it all. True wages have been falling for years.
As I show in True State of the Union: Wage-Earners' Income and Taxes, true wager earners' income as a percent of GDP has been falling since George W. Bush.
In You are Going to Wind Up Working in a Gas Station. Capitalism is Dying, Americans, I show you true wages for various occupation groups.
Here is what Total Private Wage Income looks like since LBJ.
No one can deflate anything with CPI. CPI is a measure of current inflated prices from a base of past inflated prices. CPI is not a measure of the change in circulating media.
Measuring the change in circulating media the only way to get a deflator to measure inflation or deflation in an fiduciary monetary system of legal tender cash and token coins.
In TRUE STATE OF THE UNION: WAGE-EARNERS' INCOME AND TAXES, I give you both the sum of True Private Wages as percent of GDP by presidency as well as the True Average Income by presidency.
Plus my charts look prettier and are much easier on the eyes.
Doug Short might have his head in the right place, but his method of using CPI is flat out wrong. Thus his numbers and beliefs are wrong.
In the 18 years from LBJ to the Reagan private wage income peak, true wage income rose 12.6% rising at the yearly rate of 0.7%. in the 13 years from the Reagan Peak to the Clinton Low, true wages fell -44.8% falling at an annual rate of -4.5%.
In the Clinton Good Times, the six and three-fourths years from the Clinton Low to the Clinton prosperity peak, true wages rose 33.1%, rising at an annual clip of 4.3%. Since the Clinton Peak Good Times to the Obama Hard Times, true wages have fallen -44.1%, falling at a yearly rate of -4.2% during the 13 and half years.
In the fifty and half years since LBJ, true private wage income has fallen -53.7%, falling at annual clip of -1.5%.
As I show over and over, wages and capital are linked. True wages arise from true capital spending. You cannot get true wages unless you get true capital spending and you cannot get a rise in true capital spending and hence a rise in true wages unless the return to capital is increasing.
And now, I give you charts that show the true hourly wage by sector of the economy.
Here, you can see the declines have been wicked. Yet when the annual decline is ever so slight, most can tolerate the ouch of a sliver of less income each year.
And once again, here is the smartest chart you shall ever see regarding the economy.
This is the chart that socialists, big government economists and politicians hate.
The chart says that true wages, or "real" wages if said by economists have been falling for years in lockstep because capital spending per prime age worker, those between 25 and 54, has been falling.
Contrary to what many believe, wages rise when capital rises. Wages are a consequence of producing wealth under efficiency. The more wealth produced and gained by each worker, the higher wages would rise.
The true question every entrepreneur-adventurer asks himself or herself is is this: Is there a dearth of workers or is there an abundance of workers?
So why has there been a fall in wages since the 1980s? The growth in prime age working adults in America has been tremendous, up 45.3% since 1980. And not-so-coincidentally, true wages have fallen 41% and capital spending has fallen 49.5%!
The only factor that decides if capital spending shall rise is whether there is a dearth of workers or an abundance of workers. From the Reagan Peak to the Obama Low, true wages have declined -58.9%, falling at an annual rate of -2.7%. Since 1980, true cap spending has fallen -49.5% while population of prime age workers (25-54) has risen 45.3%.
In short, immigration, which has been responsible for all net increase in population in the USA since the 1980s, has led to the lowering of true wages for Americans.