Inflation wiped out America’s pay raises
Companies big and small are raising wages to attract workers and hold onto employees as the economy revs back into gear.
But those fatter paychecks aren’t going as far, thanks to rising inflation.
In fact, compensation is now lower than it was in December 2019, when adjusted for inflation, according to an analysis by Jason Furman, an economics professor at Harvard University.
Not counting inflation, compensation rose 2.8% between March and June, despite the relatively high unemployment rate — a trend that reflects the tight labor market. Job openings are at record-high levels, according to the Bureau of Labor Statistics.
But at the same time, prices are soaring. Gas costs more. Food is more expensive. Car prices are at record levels. The consumer price index rose 0.9% in June and 5.4% over the past 12 months — the largest jumps for each since mid-2008, according to federal data.
Remember how real wages were going up under Trump.
Well, the Swamp couldn’t let you have that, so they had to take that away with price increases.
They set you back two years and inflation isn’t going to slow down any time soon the way they are spending money.
But hey, at least there are no mean Tweets while your salary backslides.
Give the Democrats and their Inflation time. They will take away half your financial assets before they are done.
Damn! I retired just in time to watch my fixed income melt into nothing….
Also remember this: even when we have “low inflation” the unelected monetary meddlers at the Fed think that “the right level of inflation” is 2 percent. So while your fixed income may not be melting very fast, still it melts, because of economic witch doctors in DC.
For a correct understanding of economics, read the work of real economists, not political quacks, which you can find in writings from a century ago. An extremely good one is Ludwig von Mises (also at times heavy going, not too surprising since he’s Austrian). Also good and easier is Henry Hazlitt.