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Businesses Education The Almighty Buck United States

US College Grads See Slim-to-Nothing Wage Gains Since Recession (bloomberg.com) 245

The worth of a college degree is losing its luster in the US job market. From a report on Bloomberg: Wages for college graduates across many majors have fallen since the 2007-09 recession, according to an analysis by the Georgetown University Center on Education and the Workforce in Washington using Census bureau figures. Young job-seekers appear to be the biggest losers. What you study matters for your salary, the data show. Chemical and computer engineering majors have held down some of the best earnings of at least $60,000 a year for entry level positions since the recession, while business and science graduates's paychecks have fallen. A biology major at the start of their career earned $31,000 on an annual average in 2015, down $4,000 from five years earlier. "It has been like this for the past five, six years now," said Ban Cheah, a research professor at Georgetown who compiled the data. "It's a little depressing."
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US College Grads See Slim-to-Nothing Wage Gains Since Recession

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  • by H3lldr0p ( 40304 ) on Friday March 31, 2017 @11:08AM (#54151709) Homepage

    Wage stagnation has taken the earnings of the middle class since the 70s. About the only thing keeping wages going up in that time has been union action and increases in the minimum wage. Since the min wage certainly has not been keeping up with inflation _and_ unions are at an all time low, none of this is a surprise.

    For those of you who want the world to be better without a government acting as the means to corral all of us cats wandering around need to start showing us who think otherwise how that's going to work. Because the ideas you've espoused so far have failed. Profits as an end goal only promote avarice and greed as valued traits. This is where such thinking has lead us.

    • Re: (Score:2, Funny)

      by Anonymous Coward

      But... but... but... Capitalism! Invisible Hand! Free Market! It will all right itself, you'll see. One day we'll all wake up in a paradise of high pay and a clean world. You just gotta believe!

      Until then get back to work, slave.

    • For those of you who want the world to be better without a government acting as the means to corral all of us cats wandering around need to

      First thing to do when something doesn't work is to stop doing that. We're in this situation where the government controls the issuance and devaluation of money, the government regulates the markets, the government fakes the inflation data to make it look like we're not in a depression, and then people say, "obviously we need a government to be successful!"

      start showin

      • by pnutjam ( 523990 )
        I see your suggestions and raise you these books by Frederick Lewis Allen; Only Yesterday [gutenberg.net.au], Since Yesterday [gutenberg.net.au], and The Big Change [gutenberg.net.au]. All free on Gutenburg (Australia).

        I also enjoyed "The Rise of the One Percent", although it's still under copyright.
      • by Kjella ( 173770 ) on Friday March 31, 2017 @12:57PM (#54152757) Homepage

        Do you want to just say that or do you want to put in the time to read Man, Economy, and State, The Road to Serfdom, On Human Action, Economics in One Lesson, and I, Pencil

        When your first link is to a 1500 page treatise on economic principles with no clear reference you remind me of the nutters who link to two hour long YouTube videos and anyone who doesn't watch it lose the argument.

        Inflation is not really the problem, if you get paid good money convert it to gold, property or other item of real value. The problem is that many people don't get a fair value for their work. But what's the solution? You can let the free market handle it, but the buyers aren't interested in giving you a fair value, they want it as cheap as possible. Or you can try to let society decide through some form of socialism, but in practice that leads to some being more equal than others. Or we can go back to self-sufficiency, losing all advantages of scale and complex economic ecosystems. Or go UBI and decide that what you do isn't important, have some free money anyway.

        • Or go UBI and decide that what you do isn't important, have some free money anyway.

          UBI is paying people not to riot. Which, frankly, is a pretty good investment; if that's all it takes, then I don't see why they wouldn't be happy to pour on the cash. Especially since it's a really easy way to keep tabs on a lot of the population. If you implement it the same way we implement AFDC these days, you'll get a lot of data back when they use their benefits card. It's the next-best thing to killing cash without actually killing cash, because the poorest people will have the least access to paper

      • by mx+b ( 2078162 )

        We're in this situation where the government controls the issuance and devaluation of money, the government regulates the markets, the government fakes the inflation data to make it look like we're not in a depression, and then people say, "obviously we need a government to be successful!"

        Have you read about eras such as the Gilded Age in the US? Unregulated markets, brought on mostly by quickly changing technology that simply didn't have rules on it, lead to the concentration of wealth into monopolies. Businessmen ruthlessly cut their competition out of the market, then performed hostile takeovers and shut them down to keep the prices/profits high once there was no competition. Once there was no competition, there was no incentive to do right for workers, so they shut down factories, laid o

    • I'm sure those gaining as the inequality grows already think the world is better. And there are enough other people who are not gaining and never will gain but believe with an almost religious fervor that they are just one break from their hard work and inherent talent enabling them to leap the gap and they dream of that moment when they will be able to turn round and say "Fuck you, I'm alright now" to those left behind. And that's what will make the world a better place for them and they're happy with a wo

    • by cayenne8 ( 626475 ) on Friday March 31, 2017 @12:11PM (#54152301) Homepage Journal

      Wage stagnation has taken the earnings of the middle class since the 70s. About the only thing keeping wages going up in that time has been union action and increases in the minimum wage.

      Middle class folks are NOT minimum wage earners.

      Pretty much by definition a middle class worker is waaaaaay above minimum wage.

    • by Salgak1 ( 20136 )

      Tell me about it. I haven't had a raise even close to the OFFICIAL Inflation Rate since the turn of the century: the only real bumps to pay came from changing jobs. And even then, bonuses are a thing of the past, last one I got was in December 2008. . .

      And I'm a senior guy, by income, at about the "4%" level. When I was young, I would have thought myself rich. Now ? Upper middle-class at best, and only treading water. . .

  • by avandesande ( 143899 ) on Friday March 31, 2017 @11:21AM (#54151807) Journal
    were pulling in 60K a year in the early 90s

    Aging demographic and the growing wealth gap are deflationary it's going to hurt when it happens
    • by crgrace ( 220738 )

      Marky Mark reference?

    • by Touvan ( 868256 )

      All we need to do is democratically make policy to solve these problems. Aging demographic is harder, and is usually taken care of through immigration, but the wealth gap is easier. We have simple models to follow from the 1940s. Tax the crap out of the wealthiest, and hand out the money. FDR had to use a public works program, but the actual mechanism you use to distribute wealth is actually less important.

      The missing part is a political movement that feels empowered to make these demands. After WWII it was

  • Everyone knows that these days you don't make money actually working in a job. If you want to make money you have to invest. If they paid workers decent wages then all these companies wouldn't be able to post perpetually increasing profits which means that their stock value tanks. And if stock values tank, how are all those decent, hardworking, real Americans going to take care of their families if they can't get money from the stock markets? Because they certainly can't make any money working in a real
    • by m00sh ( 2538182 )

      Everyone knows that these days you don't make money actually working in a job. If you want to make money you have to invest. If they paid workers decent wages then all these companies wouldn't be able to post perpetually increasing profits which means that their stock value tanks. And if stock values tank, how are all those decent, hardworking, real Americans going to take care of their families if they can't get money from the stock markets? Because they certainly can't make any money working in a real job. Companies no longer exist to provide services for customers and jobs for employees. They exist to drive income to shareholders through dividends or profits derived from stock trading. That's why you have all these unicorns and tech companies with massive valuations with no clear plan to profitability or long-term stability: that's not their purpose. They just need to keep the stocks flowing and the Dow going up.

      When did companies exist to provide jobs for employees?

      Anyways, investment has replaced pension and retirement. If you don't invest, then you're working till the day you die. Instead of letting the company or city handle the investment, you handle it yourself now. So, the burden of investment is now on you.

      On the other hand, unicorns and massive valuations are great because they need employees to create new products which creates competition for employees and rising wages. If big established companies d

      • by Nidi62 ( 1525137 )

        Everyone knows that these days you don't make money actually working in a job. If you want to make money you have to invest. If they paid workers decent wages then all these companies wouldn't be able to post perpetually increasing profits which means that their stock value tanks. And if stock values tank, how are all those decent, hardworking, real Americans going to take care of their families if they can't get money from the stock markets? Because they certainly can't make any money working in a real job. Companies no longer exist to provide services for customers and jobs for employees. They exist to drive income to shareholders through dividends or profits derived from stock trading. That's why you have all these unicorns and tech companies with massive valuations with no clear plan to profitability or long-term stability: that's not their purpose. They just need to keep the stocks flowing and the Dow going up.

        When did companies exist to provide jobs for employees?

        Anyways, investment has replaced pension and retirement. If you don't invest, then you're working till the day you die. Instead of letting the company or city handle the investment, you handle it yourself now. So, the burden of investment is now on you.

        I have 15% going to a 401k (it includes matching from my company) but, even in a dual-income household, with mortgage and student loan payments we can't afford to put anything more towards retirement. We put a little bit into savings each month but that's it. And the sad thing is, with the combined income of me and my wife (and including overtime, profit sharing, bonuses, etc) we will make almost $100k this year. My wife brought over a decent amount of savings when we got married, but I'm afraid to inves

        • by m00sh ( 2538182 )

          Everyone knows that these days you don't make money actually working in a job. If you want to make money you have to invest. If they paid workers decent wages then all these companies wouldn't be able to post perpetually increasing profits which means that their stock value tanks. And if stock values tank, how are all those decent, hardworking, real Americans going to take care of their families if they can't get money from the stock markets? Because they certainly can't make any money working in a real job. Companies no longer exist to provide services for customers and jobs for employees. They exist to drive income to shareholders through dividends or profits derived from stock trading. That's why you have all these unicorns and tech companies with massive valuations with no clear plan to profitability or long-term stability: that's not their purpose. They just need to keep the stocks flowing and the Dow going up.

          When did companies exist to provide jobs for employees?

          Anyways, investment has replaced pension and retirement. If you don't invest, then you're working till the day you die. Instead of letting the company or city handle the investment, you handle it yourself now. So, the burden of investment is now on you.

          I have 15% going to a 401k (it includes matching from my company) but, even in a dual-income household, with mortgage and student loan payments we can't afford to put anything more towards retirement. We put a little bit into savings each month but that's it. And the sad thing is, with the combined income of me and my wife (and including overtime, profit sharing, bonuses, etc) we will make almost $100k this year. My wife brought over a decent amount of savings when we got married, but I'm afraid to invest any of if because I know that this giant stack of Jenga blocks we call a stock market is going to come crashing down sooner rather than later (when it does I'll shift funds to index stocks and ride the recovery). The marketing and advertising bubble will pop. The Twitter sale debacle is a harbinger of what's to come as people realize that marketing data and ad revenue aren't enough to keep a business afloat (hear the rumblings about Twitter adding paid subscriptions?) As incomes remain at best stagnant, disposable income drops as cost of living increases, meaning that marketing data gets less and less valuable. One of the pillars the stock market is built upon is confidence. As these large, popular companies go further and further in the red, people will start to panic. Wall Street might want to look into licensing those FoxConn suicide nets, or at least hand out free hardhats to pedestrians walking below.

          The interesting statistic that I read recently was that the largest increase in the stock market happens right before the crash.

          So, you're missing out on a lot of gains waiting for the crash.

          Plus, as they say, timing the market is a fool's errand. Just buy now and ride out the bumps. On a long enough term, you'll mostly always come out good (except for a few occasions in history).

          • by Nidi62 ( 1525137 )

            The interesting statistic that I read recently was that the largest increase in the stock market happens right before the crash.

            So, you're missing out on a lot of gains waiting for the crash.

            Sure, you make all those gains, but, since like you say, timing the market is a fool's errand, unless you get lucky and pull out at the right time, you lose those gains along with everyone else.

            Plus, as they say, timing the market is a fool's errand. Just buy now and ride out the bumps. On a long enough term, you'll mostly always come out good (except for a few occasions in history).

            If you play long enough, the house always wins. When you play craps there's no problem riding a hot shooter, but if you are joining the game late in the streak, you might be better off just playing the pass line until he craps out. You won't win big, but you won't lose big either. Better to save your money for the

        • I have 15% going to a 401k (it includes matching from my company) but, even in a dual-income household, with mortgage and student loan payments we can't afford to put anything more towards retirement.

          Is she putting 15% of her income into a 401K or IRA too?

          If so, then you're not doing too badly if starting out this young.

          • by Nidi62 ( 1525137 )

            I have 15% going to a 401k (it includes matching from my company) but, even in a dual-income household, with mortgage and student loan payments we can't afford to put anything more towards retirement.

            Is she putting 15% of her income into a 401K or IRA too?

            If so, then you're not doing too badly if starting out this young.

            No. Her old job gave her a Roth, but she left that job for another one that paid a little less, but was closer to our house and actually offered a week of paid vacation. Every couple months she will put a couple hundred dollars into savings but that's it. I do all the 401k investment. Her paychecks are mostly earmarked for the mortgage.

      • When did companies exist to provide jobs for employees?

        Roughly speaking, from the time unions started to spring up until Dodge v. Ford .

        But otherwise, a solid belief in slavery (including sweatshops and company towns) and/or a choice of short-term greed and riches over long-term economic growth have dominated.

    • The problem is that you don't make money by investing unless you can control your risk and make decisions from an understanding of how businesses work. This is a very specific skill set that is as complicated as programming. If you have someone else make the decisions for you, you are not getting a very big piece of the pie. If we are down to investing as truly the only way to profit, then the whole concept of 'having a career in a field' is gone. You might as well tell a developer to go mine some gold,
      • by Nidi62 ( 1525137 )

        The problem is that you don't make money by investing unless you can control your risk and make decisions from an understanding of how businesses work. This is a very specific skill set that is as complicated as programming. If you have someone else make the decisions for you, you are not getting a very big piece of the pie.

        There are 2 easy ways to make big money investing. 1 is HFT. The market on that is kind of locked down, the little guy doesn't really stand a chance to get in on that unless you buy stock in HFT firms. The second is to just put enough in so that your small piece of the pie(to use your metaphor) is still a pretty big piece. That's kind of my point: unless you are smart enough (in the right way, there are plenty of smart/intelligent people that can't play the market) or are lucky enough (get in on an IPO,

        • So basically if you are rich already you can invest and make money. I thought that went without saying.
          • by Nidi62 ( 1525137 )

            So basically if you are rich already you can invest and make money. I thought that went without saying.

            Rich or, as I said, lucky. These days you don't get rich or make a lot of money just working. You can make enough to be comfortable (which I readily admit I am in this camp), but you have no real way to actually make money. I'm a reasonably intelligent person (and have been acknowledged as such both throughout school and by my coworkers), but my intelligence is geared more towards the acquisition and application of information. I'm not wired for inventive or entrepreneurial endeavors, which is just abou

    • by Touvan ( 868256 )

      Everyone doesn't know that - in fact, schools seem to go out of their way to avoid teaching that. Ownership of the means of production is the way you turn 1 dollar into 2, in a capitalist society. Working for a living is for suckers, and public schools mostly train suckers.

      • But then how does a middle class family rise up? No middle class family has enough money for ownership? Heck, you might as well say people should just buy their houses outright instead of having a mortgage, some people can do it but not many.
  • by rsilvergun ( 571051 ) on Friday March 31, 2017 @11:23AM (#54151833)
    Demand for workers falls. Why is it people treat supply and demand as a never-ending cornucopia of benefit. Raw, unfettered capitalism has a downside. Who knew?
    • by alvinrod ( 889928 ) on Friday March 31, 2017 @12:07PM (#54152261)
      You're missing the backside that as productivity increases, so does supply which reduces costs. You could certainly have a government that gives everyone a job, whether they want it or not, but that typically means doing so by limiting productivity or creating jobs which do nothing productive. Work for the sake of work is pointless.

      Also, we have to look at the rest of the world as globalization trends continue. China has seen massive growth of the middle class since moving to a mixed economy, but naturally that's going to come at our expense. The U.S. owes a lot of its success in the 50's to escaping from WWII with its infrastructure unscathed while other western nations had to rebuild along with the isolationist Communist bloc not competing against the American economy.

      Europe has been able to fully rebuild and reduce barriers to doing business to become a major economic powerhouse and the former Communist states have either ditched it or moved towards mixed economies that have allowed them to become far more prosperous. When we have to compete with the rest of the world, it's little wonder that we don't look as strong relative to decades past.
      • by Touvan ( 868256 ) on Friday March 31, 2017 @01:10PM (#54152905)

        Well then you are missing the way way back side. If productivity increases, and reduces the need for workers, fewer people have money to buy goods - even when they are cheaper (though that doesn't happen due to price stickiness and profit motive/greed). This causes a downward spiral that we've been living in for decades.

        I'm so tired of market fundamentalism. It is a soulless religion.

        China has seen an increase in their middle class because they use policy to build it. In the 40s through the 60s in the US rich people paid huge percentages of their income in taxes (and only the top 5% at first paid that), which was directly redistributed back to workers through public works and other programs. Wages and salaries were controlled with both floors and caps. This even lead directly to employer benefits such as health insurance - they couldn't pay more, so they needed to offer something else - and the economy was so good from these policies that there was a lot of demand for everything.

        Europe and Japan acheived similar wonders with similar policy. We can look at those places today to see the countries where those redistributive policies are stronger, are weathering the shit-storm market fundamentalism brought us over the last decade, better than the free market states.

      • You're missing the backside that as productivity increases, so does supply which reduces costs.

        To a point. People love to assume this graph is a straight line.

  • by 0100010001010011 ( 652467 ) on Friday March 31, 2017 @11:28AM (#54151859)

    I feel like this boils down to what skillsets you have and how willing you are to move to use them.

    1. If you ignored the EVERYONE HAS TO COLLEGE advice of the 2000s and learned a skilled trade instead you'd be doing rather well right now. We have such a shortage of CNC operators that local companies have teamed up with the VocTech highschool to offer an adult education class. You earn your GED and CNC/welding certifications in 8 weeks (going 2 days a week) and walk out earning $50k/year. CNC have billboards everywhere. $25/hr with 401k, medical, dental and vision.

    Even within engineering there are winners and losers. I just got poached on linked in for a 30% raise in another state. If you have the right words on your resume companies are looking. Just talking about my niche: Simulink, dSpace (Hardware-in-the loop), embedded, RTOS, etc are all doing very well across automotive and aerospace.

    "Biology" is a great starter degree for pre-med or other advanced degree. A BS Bio on its own qualifies you to earn $31k a year.

    2. Fewer Americans Moved Last Year Than At Any Time On Census Bureau Record [bisnow.com]. Since we followed food out of Africa humans have been migrating to earn a life. I see job postings around here that can't be filled because my college peers insist on living in location X. "I don't want to leave Seattle. It's so wonderful. I can't afford to go out. Live with 2 roommates but I'm 'living my dream'".

  • by p51d007 ( 656414 ) on Friday March 31, 2017 @11:36AM (#54151921)
    Don't forget to pay back the 20,30,40 THOUSANDS of dollars in college debt, for your worthless degree that pays 20-50,000 per year, while finding an apartment, transportation, food, mandatory health care, trying to have a social life. Trade schools are "worth" more than a liberal arts degree, but no one wants to have a discussion on the high price of "big college"...paying presidents, deans, sports coaches hundreds of thousands of dollars a year, and some professors only working a few days a month. Nope, don't talk about that...just continue to rail on CEO's of big oil, big pharma etc.
  • by nehumanuscrede ( 624750 ) on Friday March 31, 2017 @11:44AM (#54152013)

    For the most part, wages have been stagnant across the board for pretty much everyone in the middle class and below for quite some time.

    http://www.epi.org/publication... [epi.org]

    It isn't just limited to those with a college degree.

    In addition, the price increase of a degree has far, Far, FAR outpaced wages and will eventually reach a point that you'll have to consider if getting a degree ( and the enormous amount of debt that will come with it ) will be worth it or not in the future job markets.

    • Wages have been stagnant since the 70's, roughly around the time companies could start purchasing technology to replace people.
  • by bobbied ( 2522392 ) on Friday March 31, 2017 @11:46AM (#54152027)

    Be willing to change, locations and careers as necessary. Be flexible.

    There ARE places and jobs in the grand old USA where wages are going up. If you don't get that raise you want where you are, start looking for a location and career that is in demand and JUMP. Sooner rather than later.

    I've lived in 4 different states in my long career and I am willing to pull up the tent stakes and move if it means more money. I've also had multiple kinds of jobs, from Electronic Engineering to Network engineering to Software Development.... And last year I got one of the biggest raises of my life by changing jobs...

    • That's terrible for kids.
      • Who's kids?

        There are many children who grow up moving a lot. My wife was a preacher's kid and she moved every couple of years as a child. I know military brats that moved every 9 months or so. Yea, it may be a hard thing, but it's not an impossible thing, and sometimes the adversity of one's life builds character.

        IF your kids stability is more important to you than salary increases, that's fine, just be honest about it with yourself. It's not your job that's holding your back.

        Like I said.. I've chang

        • Yes I know there are anecdotal examples of kids that move and are fine. I also know a lot of kids that moved and had social issues. The question is whether that population of kids would have less social issues if they didn't move. I can't say I've ever known 'keep everything unstable as much as you can' to be part of good child-rearing practice. I know as a kid I wouldn't have handled it will at all. My parents moved once and it was very difficult on me.
          • Still... IF you are locked in place because of the kids and that location doesn't see the salary increases available in other locations, it's not the job that's holding you back, but the location you desire to live that's holding you back. Just be honest with yourself about this and I'm fine...

            Personally, I think that a lot of parents are inclined to coddle their offspring a bit too much anyway, which can also cause adjustment issues as they become adults. But hey, you got to do what you think is best for

            • This is a much more complicated issue than you are letting on. First of all, I'm not entirely sure if there is any place in the US that it truly benefits a person to move to. I have computer skills and I know I could make a bigger salary in Silicon Valley but from the sounds of it, you sell your soul with regards to housing costs and commute time. So am I willing to make that move? No, because despite the bigger salary I would be losing quality of life. Everything I have heard about living in Silicon V
              • Oh sure, it's not simple, but there are websites that sort all this Cost of Living stuff out for you if you google a bit and the quality of life is something only you can determine for yourself.

                I don't know where you are, but here in Texas there is a huge boom and they are starting to get desperate for software types and related fields. As one of my friends put it "It's a seller's market" for technical skills right now. The standards of living are not bad, though will admit that housing prices and comm

  • When I see an article like this these are the things that come to mind as the real reasons for stagnation:
    • Cooperate Taxes - Why stay here when you can go overseas for cheaper labor
    • Insurance / Obamacare - If you get beyond a certain size you either have to cut everyone hours so you don't have pay their insurance. Or you pay a penalty in the form of taxes on insurance to help pay the Affordable Care Act.
    • H1B1 VISA Contractor - Why use expensive local labor when you can bring in an external entity to do it cheaper
    • Work Ethics - Its just hard to find young people who will work like their older counter parts
    • Automation - We've seen article here about robotics and AI. The menial tasks are slowly getting replaced reducing the labor pool
    • Lack of Education - Colleges need to show that their graduating about 80% of their students to get state and federal funds. So they're dumbing down [theblaze.com] the courses.
  • In general people earning at the median income (roughly 56k) have not seen their incomes recover past their pre-recession levels, and people at the first and second quintile (from the bottom, roughly 33k) have not recovered to their pre-recession incomes. Fresh out of school, the average college graduate makes about $50.5K.

    So what recent college grads are experiencing is representative of what at about half of the people in the country are experiencing -- namely those with average to below average income.

    • You seem to be mixing personal and household incomes here. The median personal income is closer to $25k. The median household income is around twice that, in the $50k-ish range, because the median household has about two-ish people. So your median income figure must be household income, or else it's off by an order of magnitude. But your college graduate income figure has to be personal income, because households don't go to college, individuals do.

      Either that or you meant mean personal income, not median?

  • by Qbertino ( 265505 ) <moiraNO@SPAMmodparlor.com> on Friday March 31, 2017 @12:06PM (#54152249)

    The housing bubble has moved to an education bubble.

    He said 8 years before that the dotcom bubble had moved to a real-estate bubble. ...

    To his credit, he's actually paying people to leave college and start companies.

  • Could it be that economic prosperity is not caused by college graduates... could it be the other way around perhaps?
    Could it be that instead of attacking fundamental problems in national economics, politicians instead decided to hand out even more money that wasn't there... ?

    "We must be doing better, cause we all got papers now saying how smart we are"
  • by bradley13 ( 1118935 ) on Friday March 31, 2017 @12:25PM (#54152431) Homepage

    Salaries suck, because the US is still in a recession. With real unemployment well over 20% [slashdot.org], comparable to economic powerhouses like Greece, Croatia and Botswana, it's no surprise that salaries are declining. Add in inflation, and they are declining even faster.

    There is one overriding reason for the continuing recession: debt. Federal debt in the US [cbo.gov] is out of control - plus up to $200 trillion of unfunded obligations that everyone is carefully ignoring. If we also ignore those invisible (but inevitable) obligations, the US is still one of the top 20 most indebted nations. [wikipedia.org]

    Keynesian economics have been thoroughly debunked. Actually, there was never any evidence that they might be correct. But politicians love them, because they provide an excuse to buy votes by spending other people's money. All of this debt has been built up with promises that never would be fulfilled. But the politicians making those promises are now mostly millionaires [nytimes.com], so that's ok.

    What cannot go on forever will stop. Debt cannot be infinitely piled on, and countries like the US are reaching the limits of their ability to sell more debt. When this stops, the stopping is likely to be abrupt and unpleasant.

  • by ErichTheRed ( 39327 ) on Friday March 31, 2017 @12:41PM (#54152619)

    I think most of the stagnation is due to the fact that most college graduates are having to take lower-paying jobs. In the past, large companies were happy to take in new college graduates for entry-level jobs. Big companies paid relatively big salaries, and the recipient of that entry level job could either use it to rise in that company, or put it on their resume and move on to another.

    These days, there's just not a lot of entry level work that pays well. Big companies are outsourcing and offshoring the stuff that new grads used to do, and the jobs that remain onshore are with service providers. Those providers squeeze every single penny out of every outsourcing deal they make, and one of the ways they do that is to pay workers less and give them crappy benefits. For those who aren't lucky enough to get one of these jobs, yes, Starbucks awaits. The early 90s had a similar problem -- large companies had just killed huge swaths of their employees because computers were starting to automate processes that would require tons of manual work. College grads who would have gotten some faceless cubicle job a generation prior and used it as a stepping stone to prosperity all of a sudden didn't have that option. I'm pretty sure that's where the word McJob came from -- educated people forced to take low-paying, low-skill work because there wasn't a demand for educated people.

    I'm foolishly hoping that one day MBA schools will start teaching students that it's better overall to have everything done in-house with employees you control. Accounting rules and tax laws would have to change to incentivize hiring large staffs, but I definitely think everyone, including executives on down to the lowest level employee, were happier when everyone who made the investment in education had the chance to earn a good wage.

  • Like every single industry since 1987 - all the revenue generated from efficiency is going strait to the top; this includes years since the recession:
    Adjusted average income for the 1 percent without capital gains rose from $871,100 to $968,000 since the recession.
    Yet everyone else fights for table scraps... https://www.nytimes.com/2015/0... [nytimes.com]
    .
  • As I've watched American prosperity and society change over the last 30-40 years, I've come to believe the following are the cause of the economic stagnation/depression that just gets worse each decade:

    - Americans went gung ho into promoting cultural and ethnic diversity wiping away the uniformity of the 50's/60's replacing it with gigantic mess where no one talks to each other any more because they have nothing in common. Many recent research studies suggest that culturally/ethnically diverse societies fi

  • by JustNiz ( 692889 ) on Friday March 31, 2017 @03:27PM (#54154133)

    What pay employers will offer is a direct function of supply and demand.
    All the big companies are complaining about a shortage of STEM workers, but the reality has to be that its just not the case, otherwise there would be more competition for thos workers which would directly translate into higher wages offered.
    Clearly the complaints are a baseless dog-and-pony show, probably just to keep the H1Bs flowing, which is also presumably where most of the supply is coming from that is actually surpessing the demand (and therefore wages) for local talent.

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