I stumbled across two interesting graphs today.
The first is from Brad DeLong’s Blog which he refers to as a graph that is “currently freaking me out.” It’s an index that shows how, since 2000, “Total nonfarm business compensation has fallen 10% relative to GDP–an extraordinarily large amount. It’s as if 10% of the wages, salaries, and benefits that we would expect in the normal course of things to see flowing to workers has vanished in the past three years. Real GDP per capita today is 3% above its year-2000 value. But real worker compensation per capita is 7% below its year-2000 value.” Like him, I wonder if this could possibly be true.
Next, Clive Maund hears “gold echoes from the 1970′s” that “present a most interesting chart that shows the current bull market overlaid on the 70′s bull market”. Indeed. The two track each other in an strikingly similar fashion.