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Monday, November 22, 2010

Will the US Follow Japan?

Via Tom Keene, here's a chart showing "deflation adjusted" real wages for Japan. The US has followed Japan in other ways, will real wages in the US do the same?:


This is a killer chart of Chairman Bernanke’s worst nightmare. Well, at least one of them, vintage 2003. This is deflation-adjusted real wages for Japan. ... The real Japanese wage has tanked 6.5% or so in a decade-plus.

Unless labor markets pick up soon, and most forecasts are for just the opposite -- a very slow recovery for employment -- this is something to worry about. [Also posted at MoneyWatch.]

    Posted by on Monday, November 22, 2010 at 04:42 PM in Economics, Unemployment | Permalink  Comments (40)


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