Can We Please Stop Using Nominal Wage Figures to Tout New Records?

Here is the Wall Street Journal today:

Wage growth accelerated, with average hourly earnings for private-sector workers climbing 0.34% on the month and up 2.9% over the past year. That was the strongest year-over-year gain since June 2009.

I am so tired of reading this kind of thing, especially in a newspaper aimed at the financial and business communities. The Journal is presenting nominal wage growth and calling it the “strongest” since 2009. But who cares? If inflation is running at 5 percent, that would be a wage decrease. If it’s running at 0 percent, that would be terrific growth. So what does real wage growth look like?

Adjusted for inflation—which is the only metric that matters to economists and workers alike—wages were up slightly more than 1 percent. The last time we saw growth that high was…16 months ago.

Real wage growth of 1 percent isn’t horrible. I happen to prefer looking at wages for nonsupervisory workers, which were up only about 0.6 percent, but that’s a matter of taste. What’s not a matter of taste is adjusting for inflation. Real wage growth in January was OK, but it was no record breaker.

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WE'LL BE BLUNT

It is astonishingly hard keeping a newsroom afloat these days, and we need to raise $253,000 in online donations quickly, by October 7.

The short of it: Last year, we had to cut $1 million from our budget so we could have any chance of breaking even by the time our fiscal year ended in June. And despite a huge rally from so many of you leading up to the deadline, we still came up a bit short on the whole. We can’t let that happen again. We have no wiggle room to begin with, and now we have a hole to dig out of.

Readers also told us to just give it to you straight when we need to ask for your support, and seeing how matter-of-factly explaining our inner workings, our challenges and finances, can bring more of you in has been a real silver lining. So our online membership lead, Brian, lays it all out for you in his personal, insider account (that literally puts his skin in the game!) of how urgent things are right now.

The upshot: Being able to rally $253,000 in donations over these next few weeks is vitally important simply because it is the number that keeps us right on track, helping make sure we don't end up with a bigger gap than can be filled again, helping us avoid any significant (and knowable) cash-flow crunches for now. We used to be more nonchalant about coming up short this time of year, thinking we can make it by the time June rolls around. Not anymore.

Because the in-depth journalism on underreported beats and unique perspectives on the daily news you turn to Mother Jones for is only possible because readers fund us. Corporations and powerful people with deep pockets will never sustain the type of journalism we exist to do. The only investors who won’t let independent, investigative journalism down are the people who actually care about its future—you.

And we need readers to show up for us big time—again.

Getting just 10 percent of the people who care enough about our work to be reading this blurb to part with a few bucks would be utterly transformative for us, and that's very much what we need to keep charging hard in this financially uncertain, high-stakes year.

If you can right now, please support the journalism you get from Mother Jones with a donation at whatever amount works for you. And please do it now, before you move on to whatever you're about to do next and think maybe you'll get to it later, because every gift matters and we really need to see a strong response if we're going to raise the $253,000 we need in less than three weeks.

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