H/T ZeroHedge (click chart to enlarge)ZeroHedge, the dissident financial webzine which in my professionally-informed opinion is more valuable than the rest of the Business media combined, has done it again: published an essay vividly demonstrating the damage done to Americans by an excessive population influx while managing to avoid the dread I word (immigration in this context, not Impeachment).
Last month they highlighted the disparity in income growth between the top 1% and the rest since the late 1960s as I reported in Inadvertently, ZEROHEDGE Illustrates The Catastrophic Impact Of Excessive Immigration On Ordinary Americans. Now they have turned to the divergence between the top 20% and the rest in the Obama years: The Mystery Of America's Missing Wage Growth Has Been Solved by Tyler Durden 03/12/2015
One of the biggest conundrums, one that has profound monetary policy implications, and that has been stumping the Fed for the past year is how can it be possible that with 5.5% unemployment there is virtually no wage growth. Friday's jobs data merely confirmed that since the Lehman crash there has been virtually no real wage growth.While the chart for “Wages of All Employees: Y/Y% Change” clearly shows this, ZeroHedge intelligently looked at the charts for “Production and Non-Supervisory Employees” and “Supervisory Employees” separately. Approximately these are 80% and 20% of the workforce respectively the latter being
…those which the LA Times defines as "primarily employed to direct, supervise, or plan the work of others."
In other words "working-supervisors", bosses, and other job "leaders."
H/T ZeroHedge (click chart to enlarge)
…there, ladies and gentlemen, is your soaring wage growth: all of it going straight into the pockets of those lucky 20% of America's workers who are there to give orders, to wear business suits, and to sound important.ZeroHedge is to be commended for this insight (although it appears to wrong in assuming Economists qualify as supervisory). However no explanation is offered.
Yes - wages are growing, for those who least need said wage growth, the "people in charge."
The explanation has been repeatedly provided by VDARE,com’s Ed Rubenstein for instance in Immigration Not Only Displaces American Workers—It Also Reduces Incomes (most recent update February Jobs Data Show Immigrants Beating Out Americans Again—And A New Immigration Surge?).
Overwhelmingly the jobs immigrants get fall in the 80% category (some of which involve considerable education:
“...office and clerical workers… physicians, lawyers, accountants, nurses, social workers, research aides, teachers,”but which are still entry level opportunities. Newcomers to the workforce rarely start off as managers).
ZeroHedge generally takes and very ably defends the view that markets are being rigged by a small circle of Plutocrats who control Washington and other Governments and who are concerned to engineer massive wealth transfers to themselves from the bulk of the population. Immigration fits right into this thesis. Yet the site does a Matt Taibbi and treats the issue like it complains the MSM treats Rand Paul.
Hypotheses as to why are welcome.