U.S. Workers Losing Ground Since June 2020

WORKERS HAVE LOST ECONOMIC GROUND SINCE JUNE 2020. In the chart below, I have profiled the 3-month moving average hourly wage rate (adjusted for inflation between March 2017 and November 2022. As indicated the average U.S. worker began to experience positive growth after the 2017 corporate tax cut. Wages expanded by a compound annual growth rate (CAGR) of 3.3% from passage of the corporate tax cut (Dec. 2017) and June 2020. Since peaking CAGR wages have declined by 2.2%.

Note that the hourly wage rate expanded slightly for the last three months of 2022. This is one factor pushing the Federal Reserve (FED) to raise interest rates. Powell, head of the Fed, is effectively saying to investors, "Read My Lips, We are going to continue to raise rates." Ernie Goss