As reported in the above-linked Reuters article, Americans’ paychecks fell for the third year in a row to their lowest level since 1999. After median pay peaked at just over $27,000 per year in 2007, paychecks took their biggest plunge in 2010 (the year that stimulus spending and the Fed’s “QE2” program were at their peaks) since the beginning of the recession. That really doesn’t bode well for the future, now that both stimulus programs have ended and Congress is under pressure to cut spending even more.
Until economists pull their heads from the sand and once again consider the consequences of a world with ever-worsening population density, nothing is going to change. This is the new normal – rising unemployment, falling incomes, increasing poverty and misery. No politician can fix this as long as their advisor economists continue to believe that “economic growth” (driven by population growth) and more free trade are the remedies.