Economic News

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wmheel1287 said:
Anyone care to help educate me on what that chart is graphing?
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www.bls.gov

Estimating the U.S. labor share : Monthly Labor Review : U.S. Bureau of Labor Statistics

www.bls.gov www.bls.gov

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“…The labor share is the percentage of economic output that accrues to workers in the form of compensation. It is calculated by dividing the compensation earned during a certain period by the economic output produced over the same period. The labor share is an indicator of the extent to which workers share in the economy’s output and is of interest to many. For example, studies by Michael W. L. Elsby, Bart Hobijn, and Ayşegül Şahin in 2013; Loukas Karabarbounis and Brent Neiman in 2014; and Robert Z. Lawrence in 2015 address measurement issues concerning the labor share and possible reasons for its decline.<a name="_ednref6" title="" href="Estimating the U.S. labor share : Monthly Labor Review : U.S. Bureau of Labor Statistics"><sup>6</sup></a>The measure is also of interest to workers, because it both describes the degree to which they are compensated for their efforts on the job and directly compares the output they helped produce with the compensation they received.

Furthermore, changes in the labor share help explain the extent of the “wage gap” between growth in labor productivity and growth in real hourly compensation. Declines in the labor share widen the gap between these two measures, while increases narrow the gap.<a name="_ednref7" title="" href="Estimating the U.S. labor share : Monthly Labor Review : U.S. Bureau of Labor Statistics"><sup>7</sup></a> In addition to its relevance for workers, the labor share is of interest to government policymakers, who can have a substantial impact on the distribution of income in an economy through tax policy and spending initiatives. Also, in part because of their simplicity, labor share measures facilitate international comparisons of income distribution among more-advanced nations, which produce a range of sophisticated statistical measures, and less developed nations, which may produce only a few broad economic statistics.

Still, the labor share measure does have at least one limitation: it cannot account for between-worker inequality. For example, the compensation of a highly paid CEO and a low-wage worker would both be included in the labor share. This limitation can be mitigated by supplementing the labor share data with other data, including wage data and information on income inequality.

At the same time, it should be noted that the labor share does include nonwage compensation, a useful feature lacking from many other measures used to investigate income inequality….”
 
So 50,000 jobs added in December
Revised data for November, meanwhile, showed a gain of 56,000 jobs rather than 64,000, while revised data for October showed a loss of 173,000 jobs compared to the earlier reported decline of 105,000.

Unemployment rate 4.4%
 
Not great stats, but still Bureau of Trump Statistics. The real numbers are likely much worse. It's sad that citizens' only information about the economy has to come from "vibes" and "feelings".

I suppose if we just believe the dear leader, we'll be fine.
 
pspsps said:
I just read the article because the headline did not square with the dire recent manufacturing data. I found the below quotes to strike a cord quite discordant with the headline.

“Because of a surge in imports earlier this year, the overall trade deficit from January to October was still up 7.7 percent from the previous year.”

Mark Zandi, the chief economist at Moody’s Analytics, said that there was a lot of noise in the data for the month, and that gold and silver markets in particular had been “bonkers.”


Another force narrowing the trade deficit in the month was a collapse in pharmaceutical imports, he said. Drug companies stockpiled pharmaceuticals ahead of tariffs going into effect on the sector on Oct. 1, though many firms were ultimately spared from tariffs.

“Cutting through the noise and getting to the underlying signal in the data, it suggests to me that the deficit is as large as its ever been,” Mr. Zandi said.”
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Also lost in all this is, does the trade deficit even matter, how much does it matter, and why does it matter?
 
Is there any way to guesstimate what the loss of trust and respect will cost us in the future? I don't care who we elect next or how strongly we repudiate all Trump ends up doing, I don't too much see getting that back.
 
finesse said:
Is there any way to guesstimate what the loss of trust and respect will cost us in the future? I don't care who we elect next or how strongly we repudiate all Trump ends up doing, I don't too much see getting that back.
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I think we need to know how bad it gets to estimate how long it will take to fix. But if we get evidence over the next months or years that the numbers are being fudged or just made up, It does seem like it could take decades to rebuild trust based on how long it took the FBI and DOJ to rebuild trust after Watergate (as an example).
 
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