Everything’s bigger in Texas (except the salaries)

POSTED BY ORHAN

Former U.S. Labor Secretary Robert Reich analyzes data from the US Bureau of Labor Statistics on Texas job growth:

While Texas leads the nation in job growth, a majority of Texas’s workforce is paid hourly wages rather than salaries. And the median hourly wage there was $11.20, compared to the national median of $12.50 an hour.

Texas has also been specializing in minimum-wage jobs. From 2007 to 2010, the number of minimum wage workers there rose from 221,000 to 550,000 – that’s an increase of nearly 150 percent. And 9.5 percent of Texas workers earn the minimum wage or below – compared to about 6 percent for the rest of the nation, according to the Bureau of Labor Statistics. The state also has the highest percentage of workers without health insurance.

He concludes:

…how can lower incomes possibly be an answer to America’s economic problem? Lower incomes mean less overall demand for goods and services — which translates into even fewer jobs and even lower wages.

Good question.

4 responses to “Everything’s bigger in Texas (except the salaries)

  1. Ahhh, the Republican vision for America.

    Like

    • I didn’t read the whole article, but it reminded me waht Romney said in the last debate – both Bush and Richards had better job records. And Richards had a big recession too.

      Like

  2. Pingback: USD: Can The Fed Help? | Forex Online

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