Why? Why Does the Media Routinely Lie About Worker Wages and Compensation?

The Wall Street Journal is excited:

American workers received their biggest pay raises in a nearly decade in the year to June, a sign the strong labor market and low unemployment is boosting wages as employers compete for scarcer workers. The employment-cost index, a measure of wages and benefits for civilian workers, rose 2.8% in the 12 months to June, the Labor Department said Tuesday. Wages and salaries, which account for about 70% of total compensation, also rose 2.8% from a year earlier. That marked the strongest gain for both measures since September 2008.

I am so tired of this shit I could croak. Unless I missed it because I was so annoyed, there’s not a single mention in the Journal story about what this “pay raise” looks like adjusted for inflation. So for your edification, here’s the ECI itself adjusted for inflation

It doesn’t really seem to be growing much lately, does it? Here’s another chart showing the year-over-year growth of the ECI adjusted for inflation:

Yep, you read that right: growth from June 2017 to June 2018 is a whopping 0.13 percent. That’s how much the average cost of employing someone has increased over the past year. That includes wages, health care, Social Security payments, office costs, pension benefits, etc. etc. It’s the whole enchilada. Total it up and it comes to 0.13%.

Does this mean that the “steady drumbeat of rising inflation continues”? I suppose, but you could simply put up a chart showing the inflation rate if that’s the point you wanted to make. Conversely, “U.S. Workers Get Biggest Pay Increase in Nearly a Decade” is just a straight lie by any measure. In fact, worker compensation increased at its lowest rate since 2014.

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THE TRUTH IS...

what drives Mother Jones' team of 50-plus journalists. The truth is powerful, as evidenced by how hard those with something to hide, or profit to gain, seek to discredit it. The truth, stated boldly and reported meticulously, is what draws so many readers to Mother Jones.

And the truth is, going into the final 4 days of the year we still needed to raise $TK to hit our $350,000 goal and start 2021 on track. It's nerve-wracking, wondering if the big spike we normally see at the end of December is going to be another thing that doesn't go as planned in 2020, or worse, if, now that Donald Trump is set to leave the White House (for longer than a taxpayer-funded golf trip to a property he owns), folks might be pulling back from fighting for the truth and a democracy and think the hard work is done.

It's not, and if you can right now, please consider a year-end donation to support our team's fearless nonprofit journalism so we can close that big fundraising gap and finish the year strong, ready for all that's ahead in 2021. Whether you can give $5 or $500, it all matters in keeping us charging hard, and we'd be grateful.

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