How Misperceptions Spread, Causing Confusion On Money Matters
From The New York Times to specialized news outlets, like The Street, financial headlines were grim after the government said only 20,000 new jobs were created last month.
It’s a cautionary tale of how misperceptions spread almost instantly, causing mass confusion about money matters.
The bad surprise that just 20,000 jobs were added to the economy in February was probably caused by an aberration, literally as likely to occur as bad weather.
The blue bars indicate the sharp drop in new-job creation occurred largely because of a plunge in construction jobs,
Construction hiring plunged due to unusually bad weather across the country.
This triggered headlines of an economic storm when the problem was really just a bad spell of stormy weather.
Meanwhile, average hourly earnings for blue-collar workers rose by 1.7% in the 12 months through December, and by 11.6% in the 10 years through 2018!
To be clear, in the last decade, blue-collar Americans saw an 11.6% gain in real purchasing power!
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