Friday, June 17, 2016
Pay not matching inflation so cut back spending
Like I say "If they wanted me to buy something then they would of paid me better!"
I do without! There are many things I stopped buying like I did in the 2000's!
By the way something worth $20 in 2000 is now worth $27.90, that is how much
more you have to pay for something now vs in 2000!
So being the pay is not going up the sales go down.
And shows in the mass of overstock mostly the high priced
People in Oklahoma still cry about oil prices being low but fail to say
people spend less on oil than they do of food and other things.
Like driving to Walmart using $2 worth of gas to buy $100 worth of
stuff at Walmart! And to say Walmart is doing good being more people
shop there vs other places losing their value as the prices go up.
Walmart saves you money and is why people shop only there more often.
Sort of like Walmart did to the down town in the 80's!
I shop at Walmart myself being I support the workers and also am broke.
I know I am shutting down many places as I join the party.
The poor will bring you down with them as noted in my state with the sales
tax going down. As the poor does not buy high dollar things we pay
a lower sales tax making less funding.
Also is the lack of medicaid expansion to help people pay for their
healthcare instead dumping it on the people making low pay making
less pay for them to consume. The ACA is only a issue to the people
that make children wages. Children don't buy insurance!
The ACA is working good in other states I mean they should be
working to make it work better for people and stop fighting it all the time!
All of this will grow! But down the line it looks like the pay will go up
within three years as I see. People with money to burn is better than
doing without people! With better pay it's best to spend what you earn to help
society, make better jobs, better schools, roads everything!
~~~~~Why Aren't Wages Outstripping Inflation?
MONTAGNE: Give us the basics. Wages are supposed to grow, and historically
they have done that faster than inflation. So what's happening?
WESSEL: Well, you're right. Since the end of World War II, wages generally have
risen faster than inflation. That's why we have more goods and services than our
grandparents did. And as recently as the late '90s which were a pretty good time for the
U.S. economy - that was happening. In the in past year, though, average hourly earnings
have risen 1.9 percent. But consumer prices have risen 2 percent, which means when you
adjust for inflation, wages haven't gone up at all. There are broader government measures
that factor in the cost of wages and benefits to employers, and they've gone up roughly
the same amount. And it isn't just one bad year. The typical man between ages 25 and 54
is making less today - adjusted for inflation - than a comparable man was in 2000.
For women, the picture's better. Their wages, on average, have gone up a bit.
MONTAGNE: Of course, for most individual workers, this is not so great.
But what about the larger economy?
WESSEL: Well, consumers are a big force in the American economy.
And in the mid-2000s, a lot of them managed to borrow money credit cards,
home equity loans and the like - so their spending could go up faster than their wages
did. But that's over. That credit is harder to get now. So, to a very large extent,
companies that sell to consumers - particularly to that large number of lower and
middle-class families - their business is constrained by the fact that people don't have as
much money, a function of how many of them have jobs and what their wages are.
On the other hand, the combination of rising wages in China and the stagnant wages here
is making the U.S. a more attractive place to produce from many companies.
That's one reason lower labor costs at U.S. auto companies are doing so well,
selling so many cars, putting workers on three shifts and stuff like that.
So there are some benefits for producing here. But if you depend on selling to consumers,
you don't have the money.