Monday, September 21, 2015

Why aren't wages going up

Why is your pay not going up? In small towns it is a mix of bigger stores that are
raising their pay from $7 an hour after taxes to like $9 an hour after taxes.
And most places making $7 after taxes. There is change happening but it's in
slow motion.

In red states they are mostly are scared to death of better pay, because they are
scared they will raise the cost of the merchandise to pay for the higher wages.
Ignoring that people spend what they earn making better sales all around.
And not raising the pay keeps people from consuming so why worry about
the cost going up when those places will close more likely from people
like me saying "If they wanted me to shop there then they would of paid me better."

"But we might be in some sort of 'new normal' where wages and inflation don't pick up."
And if that is the case that would be bad for the nation. It's the same as putting in some
small town Peckerheads (No other name for them.) from small towns into DC 
running things. America would be running like a small town and would have nothing 
like small towns do vs a big city. Well it's true! Take all of the businesses from a 
big city with their "High Prices" and drop them off in a small town and see how long 
they stay open! That would be what the whole nation would be looking at, with the 
"new normal, where wages and inflation don't pick up." 
Very stagnate! Dead, no growth!

Low pay takes care of itself as the lack of sales closing many stores forcing the
higher wages, to make the sales comeback. It's a form of consumer based pricing,
but with the pay going up.

Now about small towns with the lack of pay! That is where things get interesting!
Small towns are the most corrupt as the small government is noted to be like less
security cameras keeping an eye on the people putting the money in their pocket.
And blockading any wage growth they can.

It's a war! But this is where one should get out more dressed poor looking to make
the town look low pay. Stop pretending! If it cost too much, don't buy it to push
on the consumer based pricing, that does work! Be the low wage clog in the machine!
Impoverishing your town will push the need for better pay.
You get what you pay for better pay is better sales. Well, when a rich guys car cost
more than a poor persons house well you know there is an issue, resolved by the poor,
cutting their spending, going out like in a poverty crusade!

The pay needs to go up. How are you to grow if you are broke?
My job and many others still here make about $1 every 9 min!
Or in view at the time working at Walmart I seen it as a sweatshop so I
judged my pay by the pound. Pallets had the LBS on them so I noted
I worked 10,000 LBS a night divided by what I made after taxes a night
was my pay vs pounds work load! It was bad! Thinking for myself and not
like a working zombie I figured this out and asked myself, do I buy high dollar
things knowing I have to work 4 hours to pay for it? NO!
And that should be the view more in small towns!

~~~~~Unemployment keeps going down. So why aren't wages going up?
Pay hasn't budged in years. It's a problem that goes far beyond those earning
minimum wage and fighting for $15 an hour.

The middle class is stagnating too. American household income is just shy of
$54,000. It's barely moved from where it was 20 years ago.

In recent years, many economists and the Federal Reserve have said:
Don't worry! Wage increases are coming along with a better economy.

"The economy has been performing well. And we expect it to continue to do so,"
Fed chair Janet Yellen, America's top economic policymaker, said Thursday.

But Main Street Americans can hardly draw comfort from an economic
improvement that hasn't affected their pocketbooks.

"The Fed has consistently been optimistic about wages and inflation; still holding
our breath on both," tweeted Diane Swonk, chief economist at Mesirow Financial.

Related: Typical American family earning $53,657 last year

People even protested outside the Fed meeting last week holding signs that read
"Good jobs now!"


In today's global economy, companies can find cheaper workers abroad and
Baby Boomers may not be demanding higher wages like they once did, explains
Michael Block, chief strategist at Rhino Trading.

"Economic models don't work in a vacuum like these guys [at the Fed] assume,"
Block says.

It has been a slow recovery. Some people have been able to get better pay when
they changed jobs, although those are often higher-skilled workers.

But we might be in some sort of "new normal" where wages and inflation
don't pick up.

That's a much more frightening prospect -- for Main Street, Wall Street and the
Federal Reserve. It contributes to a growing sense of unease Americans have
about their future and makes it harder to set economic policy.

For now, workers are doing OK because inflation is basically nonexistent.
Prices rose a mere 0.2% in the past year (the Fed's inflation target is 2%).
Americans' modest wage gains aren't being "eaten up" by having to pay more
for gas, groceries and rent.

"I challenge the notion that it's as good thing to have inflation going up.
A lot of inflation is rent inflation. Why is that good for consumers?"
asks economist Yardeni.

Inflation is low because oil prices have plunged in the past year from over
$100 a barrel to under $50 now. Health care costs have also moderated
a bit, and the strong U.S. dollar makes imports cheap.

But the bottom line is Americans are still waiting for better wages and investors
are still puzzled by how the Fed will set economic policy if wages and inflation
don't improve.

No comments: