Prices Rise, Earnings Fall

If Ben Bernanke needed more support for his controversial, economy-stimulating QE3 decision, he just got it. On Friday, the Labor Department announced that the real average hourly earnings for all employees fell 0.7 percent from July to August. And as Americans make less, prices are also rising. The consumer price index for urban consumers rose 0.6 percent from July to August, the Labor Department also announced today. The dour numbers come on the heels of the latest Census Bureau report, which saw median household income drop by over $2,000 since 2009, as well as anemic job growth in the August nonfarm payroll report.