Tuesday, March 27, 2012

The McJobs Recovery

The McJobs RecoveryIn their zeal to report positive economic news, the mainstream media often forget that employment has both a quantity and quality component. While it's true that there has been a slight uptick in hiring over the last couple of quarters, it is also true that federal income tax withholdings are down from last year. In other words, people are earning less in taxable wages.
If the American economy added nearly 2 million jobs over the past 12 months, as the BLS asserts, but federal withholdings are down, that means that the majority of new hires have taken low-paying jobs. Indeed, nothing says economic recovery like "you want fries with that" from the mouth of a former high-wage earner.


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