41 votes

Wages aren't just stagnating they are plummeting

Average wages have declined or been stagnant since 1970.

Time to take America back to before then. Time to take America BACK to what made it GREAT.


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Real wages vs. Nominal wages

Real wages have fallen, indeed, as the purchasing power of the dollar has greatly eroded. Since the 1970s the cost of living has tripled due to the dollar dropping in value over a third, and dropping 94% since 1913!

The federal government, however, continues instituting wage and price controls to prevent the drop in nominal wages whether it be through increasing the minimum wage, guaranteeing pension benefits (except for non-unionized workers), and through inflation. It really is messed up how often the government uses inflation to make things look better and simultaneously ignore it and downplay it...

We NEED wages to ACTUALLY come down (nominal) in order for this economy to truly position itself for a recovery. Otherwise, the government pressure to keep them up will continue to exert pressure on struggling businesses who will continue to lay people off and hold back on hiring due to all the expenses involved in hiring someone (high payroll taxes, EEOC requirements, minimum wage, regulations hiring). Hey Government, Let the market work!

The counter intuitive nature of fiat currencies is problematic

Federal Reserve Notes are an elastic currency, by design. Only the insiders know how far it is being stretched, so they create profit opportunities for themselves.

Gold, silver and copper have been used as money for thousands of years. The value of a trade for labor or goods can be compared over centuries. The entrepreneur needs to assess values and risks over time.

Elastic currencies cheats future values making entrepreneurial efforts riskier.

The insiders operate without that risk. They win!

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I canot understand

why we have so many Blue Republicans and others who use Washington Post as a source for discussion.

All numbers are pointless since the government data on inflation and other things is fudged. It is clear from the start that corporatism, taxes & regulations, central economic planning via Federal Reserve and forceful social engineering demanded by 75% of Americans (Affirmative-Action recipients if you include women and gays) are NOT helpful to competition, wealth production, capital accumulation, productivity and REAL wages.

BTW, in a free society, NOMINAL wages will be falling along with prices due to limited amount of new excavated gold.

right you are.

as i understand it, wage rigidity is a major problem during recessions. it's the basis of keynes's theory, and is a side effect of government regulation. if wages were aloud to fall with everything else, we would be on our way to a quick recovery. also, we regulate companies right out of the country. how are wages supposed to be bid up if there are no companies to bid on the laborers? just look at the depression of 1920-21. prices fell faster than ever before, and wages fell right along with them. it was over in less than a year. inflation, as ron paul always says, is the transfer of wealth from the middle class to the rich, so it makes sense that the wages for the average person would be falling and the wages for the top 1% would be rising.

Measure in oz AU, AG and CU.

Measures with $FRN that have devalued exponentially over 100 years is almost meaningless over time.

Wages lag prices in such an inflationary environment because we have been trained to be creatures of habit.

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i used to be a planning and performance analyst

i don't necessarily agree with these charts.
while it serves as a basis for discussion, the logic is much to be desired.

I started working for wage in

I started working for wage in 1971 just after Nixon closed the Gold Window.

In 1971, I was paid a $1.25/hr the equivalent of a gram of gold to flip burgers.

To make the same wage today would be $52.75/hr. A little less than a government employee is paid today.

Done in silver it would be $27.18/hr today.

With an hour wage I could buy 3 gallons of gas. Today a $1.25 buys a quarter of a gallon of gas.

We bust our humps for 6 months a year so government employees have a job. Then we get to work for ourselves. LOL so DYI.

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if thats accurate, thats incredible. real wages contine to drop, and the government will be the last to tell you

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"Terrorism is the war of the poor, while war is the terrorism of

I stand by my testimony.

Yes, government wants dependents that will pay their bills.

The quickest way to create dependency in a people is through apparent kindness.

I say apparent kindness because there is nothing kind about wanting a people addicted to government aid. It becomes a people willing crimes to pay the pusher.

Who grabbed Saddam's golden loot?

Our government is dependent on their debtors. If Congress cannot raise their credit limit, then government goes bankrupt.

Might as well admit it! We're addicted to love and "kindness".

Free includes debt-free!

Just because an article fits

Just because an article fits with your narrative it doesn't mean it's right...

Look at compensation first, not wages.

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I don't care about wages,

I don't care about wages, wages can be a dollar a week for all I care, it's the prices that matter to me. These artificially propped up prices are what make the wages seem so terrible.

Commerce with all nations, alliance with none, should be our motto. - T. Jefferson rЭVO˩ution

"Everyone wants to live at the expense of the state. They forget that the state wants to live at the expense of everyone.” - BASTIAT

Precisely. Just because wages

Precisely. Just because wages are up doesn't mean that people have more purchasing power. If anything, we all have less purchasing power under the illusion of prosperity.