23 June 2006

Inflation Ravages U.S. Wages, Fueling Angst at Bush's Economy

Bloomberg.com: U.S.: "June 20 (Bloomberg) -- Americans' wage gains are evaporating as inflation accelerates, helping explain why confidence in the economy isn't soaring along with job growth.
Weekly wages adjusted for inflation fell 0.7 percent last month and are down 0.2 percent over the past year, according to a report last week by the Labor Department. Pay has been flat or declined in more than half of the 65 months since January 2001, when President George W. Bush took office.
Those numbers contrast with other government reports showing incomes for all workers staying a step ahead of prices, highlighting a growing disparity between the wealthy and those of more modest means. The difference may explain why the economy's performance isn't translating into greater popularity for Bush, whose poll ratings hover near record lows. "

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