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Monday, September 1, 2008

Stats show working America is struggling

Every Labor Day, the economists of the Economic Policy Institute offer up their annual report on how working America is doing.

Their conclusion? Worker productivity remains high, but real incomes of middle-class families were lower in 2007 than they were in 2000.

The institute defines 2000-07 as a business cycle, which some would debate. Cycles run from boom to bust. The Economic Policy Institute is nonpartisan but tends to view trends from labor’s point of view.

Busts, or recessions, hurt income growth. But we haven’t had a recession yet. (That 3.3 percent growth in gross domestic product for the second quarter has delayed that pronouncement.)

The Economic Policy Institute says real median family income usually grows before a business cycle ends. And since 1947, it’s always surpassed the previous peak.

Not in the 2000s.

They’ve also been marked by low job growth. It took 47 months to regain the jobs lost during the 2001 recession compared with the 21-month average for other business cycles since World War II, the institute said.

Philly Ticker

Picking winners and losers from among local stocks in a slow trading week before Labor Day is a bit like choosing the best or worst NFL team based on its last preseason exhibition game.

You can do it, but I wouldn’t recommend it.

None of the big movers among local stocks made any news. And the one local company involved in a $1.6 billion acquisition didn’t budge that much.

Ikon Office Solutions Inc., of Malvern, agreed on Wednesday to be bought by Ricoh Co. Ltd. for $17.25 per share. It had closed trading on Tuesday at $15.56, making the offer an 11 percent premium.

Shares closed Friday at $17.31, slightly higher than the Ricoh offer.

Quotable

I have an old saying. It is one word - Ichiban. This means Number 1 in Japanese. I have no doubt that with Ricoh and Ikon together, we will be Ichiban.

- Kirk Yoshida, chairman and CEO of Ricoh Americas, from a conference call with Ikon employees.
Posted by Mike Armstrong @ 3:05 AM  Permalink | File Under: Management, workplace | Post a comment
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About Mike Armstrong
Mike Armstrong, a business editor and writer for nearly two decades, is the Inquirer's business columnist and PhillyInc blog editor. Contact Mike via e-mail or at 215-854-2980
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