...Labor Secretary (this is Labor Day) Elaine Chao had this exchange with John Roberts on CNN Late Edition.
ROBERTS: Secretary Paulson says not everyone is feeling it.
Secretary Chao, what's going wrong?
CHAO: Well, first of all, overall wages have increased dramatically since 2001. So when we're talking about overall income, first of all, let's make it very clear, we are talking about increases in overall wages.
And the debate is really about how much one group may have increased their wages versus another. But everybody's wages has increased.
Now, when we talk about wages, we need to talk about total compensation. Because that is what's most important. And total compensation includes not only wages but also retirement benefits, health benefits, paid leave.
Overall compensation has been up well over 6 percent since 2001. So overall, compensation overall is strong and it's overall, compensation numbers that we should be looking at.
Secondly...
ROBERTS: Secretary...
CHAO: Let me just finish one other thing. When we talk about personal income as well, let's talk about disposable, after-tax income. And after-tax income is what's, after all, in people's pockets. And that has increased to well over 8.2 percent since 2000.
ROBERTS: Secretary Chao, you'll have to forgive me. We've got a fire alarm going off.
CHAO: Yes, I hear that as well.
"Overall compensation has been up well over 6 percent since 2001"?? And, disposable income "has increased to well over 8.2 percent since 2000"?? Try dividing 6 percent by 5 years, Madam Secretary.
The fact of the matter is "the median hourly wage for American workers has declined 2 percent since 2003, after factoring in inflation".
Figures lie and liars figure, Madam Secretary.... Happy Labor Day.
CNN Transcript
