Yesterday we showed all those key economic criteria (that get so little airtime for obvious reasons), which were prevalent the last time the Dow Jones Industrial Average hit an all time high, back in 2007, all of which reflected a far more vibrant economy, and more importantly, an economy,and market, not propped up by a $14 trillion global central bank liquidity tsunami. Today, our chart of the day comes from BloombergBrief, which shows yet another aspect of the “low wage” recovery, namely that while the bulk of the jobs lost heading into the “recovery” were of middle and higher paying jobs, the offset have been part-time and other low-paying jobs, which explains also why the purchasing power of the average American, in real terms, declines with every passing day.
It is this that Ben Bernanke keeps slamming his head into the pavement over (metaphorically of course: everyone knows the Chairman’s only purpose is to make his banker friends richer beyond their wildest dreams), because as long as his artificially imposed “wealth effect” refuses to trickle down in the form of better paying jobs and higher wages, nothing will change, and every periodic surge in “recovery” propaganda, usually taking place in the start of every year, will be met with the same failure as has been the case for the past 4 years.
Recent analysis of current population survey data by the National Employment Law Project shows that 60 percent of job losses during the Great Recession were among middle-wage earners, with low-wage earners accounting for only 21 percent of job losses. During the recovery, those numbers have been flipped; only 22 percent of job growth occurred in the middle-wage occupations while 58 percent of job gains were for low-wage occupations.
The chart below needs no further explanation: