Contact Us
Firm Overview
Why Legend Is Different
Client Types
Professional Biographies
Frequently & Rarely Asked Questions
Risk Spectrum
Investment Strategies
Second Opinion
Global Investment Pulse
Event Calendar
Press Center
Legend News
Clients Only
Career Opportunities
Directions
Newsletter Sign-up
Site Search
Site Map
Home
Tell A Friend About This Website
 
 
 
Financial Briefs
Phone: (412) 635-9210
  (888) 236-5960
Connect With Legend:
Subscribe to me on YouTube
More Articles  Printer Friendly Version

 

The No 1. Fake News Story Of The Year Affecting Your Wealth

What's the No. 1 fake financial story of the year that affects your wealth? It's that Americans have not had a pay raise in years.

The coverage depicted above from November 3, 2017 when new wage data was released by the government, shows the myth is perpetuated by many cable TV news channels including Fox Business News, CNBC, CNN and Fox News as well as news syndicates like the Associated Press and Reuters and newspapers throughout the nation.

They have this story wrong.

The misconception that Americans have not had a pay raise for years has, in recent years, become common in an inexplicable abrogation of responsibility by pundits and politicians. The recklessness with which economic facts are ignored is perplexing.

Here's the real story. The Labor Department releases nominal data on wages each month. It doesn't distribute to the press a monthly chart of real wages through multiple expansions and recessions. Those figures need to be calculated, as we've done here. At the end of September 2017, real wages were 1.4% higher than 12 months earlier. The red line is heading almost straight up! The 1.4% real wage growth rate is a high number, but knowing that requires research.

The Brookings Institute crunched wage and inflation numbers through several recessions in a report released in September 2017 and here's what they found. Growth in real wages of 1.4% for the past 12 months is twice the rate of the roaring 1990s expansion! It's four times the rate of growth of the last expansion, from 2000 through 2006.

It's not only untrue that Americans have not had a pay raise in years, but wage growth has been incredibly strong. Benign inflation has hidden it from plain sight and political leaders and the media - who are supposed to know better - are complicit in spreading this false story, making it the No. 1 fake financial news story of the year.

Perhaps the stock market is seeing through the fake news. The Standard & Poor's 500 stock index has been hitting new highs for months. It hit a new record high on Wednesday of 2594.38 before closing the week a fraction lower at 2582.30.


This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.

Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.


Email this article to a friend


Index
Poo-Poohed By Politicians And Pundits, The U.S. Economy Is Booming
News Affecting Your Wealth Dominated The Headlines This Past Week
U.S. GDP Growth Surprise Propels Stocks To New Record
Five Bright Ideas About Year-End Tax Planning
New Year's Resolution: Review Your Estate Plan
Why Does The S&P 500 Keep Breaking Records?
U.S. Stocks Nearly Doubled In The Last Five Years
The Big Economic News The Media Keeps Missing
Trump Tax Plan Upends Year-End Tax Planning
Key Senators Agree On A Road To Cutting Taxes This Year
Countdown To Retirement: Seven Steps To Get Ready
5 Estate Planning Steps To Benefit Your Elders
Year-End Tax Planning Could End With A Thrill This Year
This Week's News About Wealth Management
The Good News The Financial Press Keeps Missing

This article was written by a professional financial journalist for Legend Financial Advisors, Inc.® and is not intended as legal or investment advice.

©2017 Advisor Products Inc. All Rights Reserved.



©2017 Legend Financial Advisors, Inc.®. All rights reserved.