Why Aren’t Widespread Labor Shortages Translating Into Roaring Wage Inflation?

By John Rubino – Re-Blogged From Dollar Collapse

Google “labor shortage” or “wage hikes” and the result is a picture of an overheating economy. Some examples from August 10:

Why Disneyland’s $15-an-hour labor deal is a win for workers everywhere

Colorado small businesses seek help with labor shortage

Washington growers struggle with labor shortage

Now hiring: teenagers (and anyone else willing to work)

You can’t read these headlines and not expect wages to climb dramatically as desperate companies pay what they have to in order to keep their customers happy. But the macro numbers tell a different story. Here’s the change in average hourly earnings over the past decade:

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‘Amazing’ US Economic Growth

By Todd Beamon – Re-Blogged From Newsmax

President Donald Trump on Friday hailed the “amazing” 4.1 percent quarterly growth rate — the fastest pace since 2014 — as proof that “we’ve accomplished an economic turnaround of historic proportion.”

“Once again, we are the economic envy of the entire world,” Trump, flanked by Vice President Mike Pence and his economic team, said at the White House. “America is being respected again and America is winning again because we are finally putting America first.

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Inflation Is Back, Part 8: Labor Shortage Reaches “Critical” Point

By John Rubino – Re-Blogged From Dollar Collapse

Economist Peter Bookvar recently analyzed the the anecdotal evidence of capacity constraints piling up in recent industry surveys, including the following:

“Business is strong in all regions. Materials are tight. Trucking continues to be a major challenge.” (Chemical Products)

“Strong economic growth continues to put pressure/strain on capacity, lead time, availability and pricing across a broadening array of commodities and components.” (Computer & Electronic Products)

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US Adds 213,000 Jobs as Unemployment Hits 4 Percent, Wages Rise

By Thomson Reuters – Re-Blogged From Newsmax

U.S. job growth increased more than expected in June as manufacturers stepped up hiring, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases.

Nonfarm payrolls rose by 213,000 jobs last month, the Labor Department said on Friday. Data for April and May was revised to show 37,000 more jobs created than previously reported. The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population.

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Failed States, Part 1: Hopeless European Millennials And The Populist Takeover

By John Rubino – Re-Blogged From Dollar Collapse

Europe is frequently held up as an example of how the rest of the world should behave on a variety of issues. But this comparison misses at least two things: First, “Europe” is actually a lot of different countries in a lot of different situations. Second, much of what seems to work over there only does so because it’s being financed with ever-increasing amounts of debt.

For countries, as for individuals, borrowing money is fun at first but beyond a certain point becomes debilitating, as interest payments begin to crowd out everything else. That’s where a growing number of Europe’s failed states now find themselves, with overly-generous pensions and overly-restrictive labor laws making it virtually impossible to run a functioning market-based economy.

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The Dangers of Investing Based on Phony Government Statistics

By Stefan Gleason – Re-Blogged From Money Metals Exchange

President Donald Trump recently took to Twitter to boast, “The U.S. has an increased economic value of more than 7 Trillion Dollars since the Election. May be the best economy in the history of our country. Record Jobs numbers. Nice!”

“We ran out of words to describe how good the jobs numbers are,” reported Neil Irwin of the New York Times, amplified in a Trump retweet. If you believe the headline numbers, joblessness is at a generational low with the economy booming.

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Nearly 102 Million Working Age Americans Do Not Have A Job

By Michael Snyder – Re-Blogged From Freedom Outpost

Don’t get too excited about the “good employment numbers” that you are hearing about from the mainstream media.  The truth is that they actually aren’t very good at all.  For years, the federal government has been taking numbers out of one category and putting them into another category and calling it “progress”, and in this article, we will break down exactly what has been happening.  We are being told that the U.S. unemployment rate has fallen to “3.8 percent”, which is supposedly the lowest that it has been “in nearly 50 years”.  If these were honest numbers that would be great news.  But these are not honest numbers…

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