Published on Real-World Economics Review Blog RWER, by David Ruccio, October 4, 2012.
The current economic recovery, such as it is, is actually exacerbating the problem of inequality. One side of that problem is the growth of corporate profits, and consequently the rise in the stock market and high-tend salaries. The other side is the growth of low-paying jobs.
New research by the National Employment Law Project [pdf] shows that, during the recession, employment losses occurred throughout the economy, but were concentrated in mid-wage occupations. By contrast, during the so-called recovery, employment gains have been concentrated in lower-wage occupations, which grew 2.7 times as fast as mid-wage and higher-wage occupations … //
… At this rate, we’re going to come out of the Second Great Depression with an even more unequal distribution of income in the United States than we went in with. And that’s saying a lot!
(full text, charts and comments).
On Krugman’s reading list, on RWER, by Lars Syll, Oct. 4, 2012;
The intellectual loneliness of Jens Weidmann, boss of the (german) Bundesbank, on RWER, by Merijn Knibbe, Oct. 3, 2012;
Unemployment in Europe continues to be an economic and social disaster (2 charts), on RWER, by David Ruccio, Oct. 3, 2012;
real-World economic review, suscribe for free;
Dangerous Territory: Concerns Mount that ECB Bond-Buying Program Is Illegal, on Spiegel Online International, by Christian Reiermann, Oct. 2, 2012;
Frank Stronach’s Frankness: Billionaire Businessman Stirs Up Austrian Politics, on Spiegel Online International, by Walter Mayr, Oct. 5, 2012.