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Thread: U.S. wage growth is getting wiped out by inflation

  1. #1

    U.S. wage growth is getting wiped out by inflation

    http://www.latimes.com/business/la-f...810-story.html

    AUG 10, 2018

    U.S. workers' paychecks are worth less than they were a year ago, the Labor Department reported Friday, as modest wage gains have not kept pace with inflation.

    Prices rose 2.9% from July 2017 to July 2018, the Labor Department said, while average hourly pay increased 2.7% in the same period.

    The lack of real wage gains comes despite a strong economy, with sustained growth and an unemployment rate of 3.9% ó one of the lowest levels in decades.

    The Labor Department tracks average hourly pay adjusted for inflation, which is known as the "real wage." According to the federal government, the real average hourly wage was $10.78 in July 2017 and $10.76 in July 2018. Real wages have been on a sharp decline since the start of the year.

    "Despite the strong labor market, wage growth has lagged economists' expectations," Pew Research said in a report this week. "In fact, despite some ups and downs over the past several decades, today's real average wage has about the same purchasing power it did 40 years ago."

    Since 2000, only the top quarter of wage earners have seen any true increase in their pay once you account for inflation, Pew reported. For the middle class, it's been years of stagnation, and the latest trends aren't encouraging.

    Gas prices, housing and transportation costs have all jumped in the last year, taking a bigger bite out of people's paychecks. The price of gas has risen 50 cents a gallon in the last year, according to the AAA tracker of the average national price of gas. Used-car prices and rent are also up substantially from a year ago.

    When inflation rises faster than wages, workers fall behind. They have to cut costs from their budgets, take on debt or put in more hours to try to live the same lifestyle they had enjoyed a year ago. The Labor Department reported that Americans are putting in more time on the job this summer versus last summer, which is helping to keep family earnings about the same for now.

    "We are nearly a decade into the recovery and we're still arguing about whether or not we're seeing meaningful gains in wages. That should be a given at this point in the cycle," said Lindsey Piegza, chief economist at Stifel.

    President Trump campaigned on getting Americans back to work and getting them a raise as he recognized the frustration of many working people, but it's proving a challenging task for Trump, much as it was for former presidents Obama and George W. Bush. Trump passed a large tax cut for businesses and consumers that is giving many families more money in their pockets this year and doesn't show up in the wage data, but families are having to use a good chunk of the tax cut to cover rising energy and housing costs. The president has tweeted several times to try to get Saudi Arabia to produce more oil and lower gas prices.

    The last time wages were growing substantially above inflation was in 2016. Since then, inflation has picked up while wages have remained the same. Inflation hit a six-year high this summer, and most economists think it will stay near its current level or grow a bit faster, especially if Trump's tariffs on Chinese products and steel and aluminum drive up costs for consumers.

    Most economists have been predicting that pay will take off, with a record-high number of job openings and many business leaders saying their biggest problem is finding enough workers. But so far there's little sign that businesses are increasing pay in an effort to attract employees.



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  3. #2
    Im sure if wages (not just minimum wage) kept up with inflation, the minimum wage would be about $30 an hour. What would that mean for everyone else that doesnt make minimum wage? Or are we ALL getting $#@!ed by the Fed and Fractional Reserve Banking?

    Ron Paul defined Inflation as a Hidden Tax on the value of money.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  4. #3
    "According to the federal government, the real average hourly wage was $10.78 in July 2017 and $10.76 in July 2018."

    How are they calculating that number?

    Minimum wage is $7.25, and the "real average hourly" is only $10.76?

    Something's not right there.
    1. Don't lie.
    2. Don't cheat.
    3. Don't steal.
    4. Don't kill.
    5. Don't commit adultery.
    6. Don't covet what your neighbor has, especially his wife.
    7. Honor your father and mother.
    8. Remember the Sabbath and keep it Holy.
    9. Donít use your Higher Power's name in vain, or anyone else's.
    10. Do unto others as you would have them do to you.

    "For the love of money is the root of all evil..." -- I Timothy 6:10, KJV

  5. #4
    Quote Originally Posted by DamianTV View Post
    Im sure if wages (not just minimum wage) kept up with inflation, the minimum wage would be about $30 an hour. What would that mean for everyone else that doesnt make minimum wage? Or are we ALL getting $#@!ed by the Fed and Fractional Reserve Banking?

    Ron Paul defined Inflation as a Hidden Tax on the value of money.

    Umm... The peak inflation adjusted minimum wage from the LBJ era would be $10.86. https://money.cnn.com/interactive/ec...ge-since-1938/


    The minimum wage FDR implemented would be a little over $4 today.

  6. #5
    it's all a distraction, from the real problems with taxation, fed, etc. A well paid slave is still a slave.
    Last edited by kfarnan; 08-14-2018 at 02:59 PM.

  7. #6
    Quote Originally Posted by kfarnan View Post
    it's all a distraction, from the real problems with taxation, fed, etc. A well paid slave is still a slave.
    What makes one a "slave"?
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    Quote Originally Posted by NorthCarolinaLiberty View Post
    I didn't actually read any of the thread. I now mostly just come here to mess with Zip.
    I am Zippy and I approve of this post. But you don't have to.

  8. #7
    Synonyms for slavery; drudgery, compulsion, hard labor. Anyone who steals the labor of others at gunpoint, one could say is slavery

  9. #8
    Quote Originally Posted by kfarnan View Post
    Synonyms for slavery; drudgery, compulsion, hard labor. Anyone who steals the labor of others at gunpoint, one could say is slavery
    So if you did not have to work for a living, you would no longer be a slave. Maybe the government could do something about that. Give you more free stuff so you don't have to be a slave.
    Donald Trump: 'What you're seeing and what you're reading is not what's happening'

    "Truth isn't truth"- Rudy Giuliani

    Quote Originally Posted by NorthCarolinaLiberty View Post
    I didn't actually read any of the thread. I now mostly just come here to mess with Zip.
    I am Zippy and I approve of this post. But you don't have to.



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  11. #9
    Quote Originally Posted by Zippyjuan View Post
    So if you did not have to work for a living, you would no longer be a slave. Maybe the government could do something about that. Give you more free stuff so you don't have to be a slave.
    Anyone who steals the labor of others at gunpoint, one could say is slavery
    You can maintain power over people, as long as you give them something. Rob a man of everything, and that man will no longer be in your power. Aleksandr Solzhenitsyn

    Quote Originally Posted by LibertyEagle View Post
    Trust principles; not people.
    My Che avatar is my unique way of giving a big middle finger to the, the neocons, the globalists, imperialists and most importantly to the left and right political establishment who hate his guts till this day. My admiration for him ends where his anti imperialist pro communism ideology starts.

  12. #10
    Economic growth and wages have been fairly consistently stagnant since the last crash . I expected it to continue until the next downturn . It has for a decade .
    Do something Danke

  13. #11
    Quote Originally Posted by juleswin View Post
    WTF, is he talking about?



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