24 October 2012

An Interesting Bias

Although wages in Allen County continue to lag behind state and national averages, the fact that both the potential work force and the number of people with jobs grew indicates the local economy is recovering. [Emphasis added.]

It’s interesting to see the inherent biases of economists (or, in this case, journalists who report on economics).  All of them have their perception of what a recession is and what a recovery looks like.  The writer of this post clearly thinks that economic recovery is not going to see a depression of wages during the post-recession boom.*  This suggests that the writer is not entirely convinced that the current recession was predicated on any sort of bubble that inflated prices of everything, even labor, which is then why it must seem so mystifying to said writer why the employment rate improves even as wages decline, relatively speaking.

Anyway, this is but an interesting aside into how those who buy into the economic narrative of mainstream economists perceive the current situation.  To them, it remains a bit of a puzzling mess, since reality is not conforming to their preconceived notions.  Maybe this will challenge them to rethink their preconceptions.

* While I don’t think that we’re in the middle of a recovery, it’s obvious that this particular journalist does, hence the acquiescence to his assertion.

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