Real Wages For The Employed Now Falling

Jared Bernstein notes the interesting fact that for the bulk of the recession real wages were actually going up for those of us who managed to not lose our jobs. But that's turned around:

For all the same reasons that employers like to open factories in China rather than Indiana when possible, falling real wages will tend to increase employment (you see a hint of this in the fact that weekly wages are falling slower than hourly wages). Basically when the powers that be fail at Plan A for avoiding mass unemployment, then fail at Plan B, Plan C, Plan D, and Plan E this is the Plan Q that you end up stuck with. Wages fall, so demand for labor grows and you'll reach a new equilibrium at some point. And of course on Wall Street and the CEO's office, pay has never been higher.