|
|
Louisville Average Real Weekly Wages
Below is a graph showing the Louisville MSA Average Real Weekly Wages. The real weekly wages was calculated by dividing the nominal weekly wage by the inflation index for medium-sized midwestern cities. The graph also shows a dotted line depicting the national average real weekly wage.
(Click the graph for a larger view)
Average real weekly wages in the Louisville MSA dropped sharply even before the recession hit due to soaring energy and fuel prices in the middle of 2007. The average weekly wage would in fact improve during the recession, when inflation suddenly reversed into a brief deflationary period, but this improvement was still far from pre-2007 levels. Since the Recovery Act was signed, the Louisville MSA has had an increase in the average real wage during a very low inflation period. Traditional economic theory, however, states that high inflation may result from such a large stimulus bill if the money is not properly administered, which would again depress real wages in the area.
|