Chart of the Day: U.S. Real Wages

This chart was put together by David Rosenberg of Gluskin Sheff. It shows that wage growth in the U.S. is not keeping pace with inflation. For the statistical recovery to continue sustainably, we will need to either see this trend reversed. Alternatively we could see an increase in aggregate debt levels or a disproportionate increase in consumption from higher net-worth consumers as a bridge to longer-term growth. Over the short-term, fiscal headwinds will make the wage growth picture worse. The question is about the medium-to-longer term. Without sustained real wage growth for the middle class, upper-income consumption and debt accumulation are a bridge to nowhere.