The economy: Payday's decline

The federal government put a number on the economic pain American workers are feeling. Real wages have declined 2.4 percent in the past year.

Last month's measurement, which reflects both increases in wages and even-faster rises in costs of goods, was a sharp change from June 2007. Hard-working Americans are facing harder times.

It's a particularly worrying trend when so many families and individuals are facing mortgage or credit debt. With their overall living costs going up faster than their pay, Americans will find it even more difficult to pay off their existing debts, much less begin to save at the rates they are beginning to understand will be necessary.

The economy has so far wiggled past the threat of recession. Maybe there will be some relief at the gasoline pump, if a few days of saner oil prices on world markets mean anything. One factor in the oil market, however, is the increasing belief that demand will drop as the economy here continues to decline, likely into recession.

The 2.4 percent loss in earning power comes on top of long-term trends either squeezing or only modestly benefiting the middle and working classes during a generation of generally strong economic growth. Free trade and lower tax rates have had some benefits to the general economy, including consumer prices. But the bottom line for political leaders and candidates has to be how to build the economy for all Americans, without letting people who work hard slip backward.