Wages Lagging Behind Prices

[crazytimes]

For the first time in 14 years, the American workforce has in effect gotten an across-the-board pay cut.

The growth in wages in 2004 and the first two months of this year trailed inflation, compounding the squeeze from higher housing, energy and other costs.
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[mrbowler]

Crazy-Don't get me going about this You need to ask if the inflation data is accurate? What items are used to calculate inflation etc.-you will get arguements on both sides(isn't economics wonderful). Regarding wages-if you take a look at the type of jobs(sectors) it seems that these jobs will not support wage growth(improved standard of living) IMO. Plus household income has been juiced about as far as you can go-since households have reached a ceiling in the amount of both people working. So politicians are looking for a way to keep the household income numbers from rolling over(down) adjusted for inflation-that is why folks want to allow s.s. money to roll into the stock market..the flows would push stock prices higher, and in turn make the household income numbers better overall, but it really might just be hiding the underlying problems since many lower income earners don't have stock holdings, but are factored in with all households(those that have stock-i.e. ownership society). When I get a chance I'll post a good article about ownership society-well written IMO.

[crazytimes]

I guess I'll learn about this in economics next year. I don't have a clue about inflation; nobody ever explains it in simple english.

I'm just glad that all the goods (utilities, gas) that are increasing in price seem to be things I don't pay for. As long as food prices don't go up too much (haven't noticed any) I'm happy.

However, I finally realized that on the news when they say "the fed has raised the interest rate," my CC and student loan interest rates go up!! I had no idea. I hope they stop raising it; so what if the savings account earns 3.25% instead of 3% -- if you have a CC thats 16.74% saving is pointless until you pay it off.

[mrbowler]

Here is a real exciting place

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