Worker Salaries Losing to Inflation

[True_Blue]

NEW YORK (Reuters) - U.S. worker salaries are growing much more slowly than inflation, raising concerns about consumers' ability to repay loans and credit cards bills at a time when borrowing is near all-time highs.

Just as Americans have begun receiving hefty statements for their holiday purchases in the mail, the government reported on Friday that wages rose a meager an 2.5 percent over the past year -- the smallest increase on record.

Stacked against a 3.3 percent overall increase in prices for the year, the data paints an ugly picture of debt-burdened, cash-strapped American consumers struggling to make ends meet.

more....
http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=5&u=/nm/20050130/bs_nm/economy_wages_dc

[PROGRESSIVE1]

1. It's the 1970's all over again!

Democrats need to work HARD as HELL and get their message straight for the 2006 elections!

[salin]

2. looks like bringning back Nixon advisors (Cheney, Rumsfeld, etc.)

has brought back Nixon's economy.

[NEOBuckeye]

3. Surprise, Surprise

The Republicans will always, always, ALWAYS screw the American worker when it comes to raising wages and living standards. Now, as the dominant party in government, they are able to use terrorism as a convienient excuse not to do anything to help relieve this burden on the average American citizen, even while their men like Cheney, Rumsfeld and Poppy Bush stuff their pockets full of millions of dollars from war profiteering in Iraq.

Anyone who can't see this, and is buried under a mass of credit card debt deserves to be stuck there.

[mbperrin]

4. Don't you wish inflation was as low as the 3-4% they keep claiming?

nt

[KeepItReal]

5. "Inflation is low...exlcuding transportation and food costs" GOP says

I heard those bastards on NPR talkin about low inflation in the same breath as saying that their inflation stats don't count food and transportation!?!?

WTF else does the average working person spend their money on *every day*?

[MountainLaurel]

6. And how about housing?

Shit, the selling price on my condo is TWICE what it was 2 years 4 months ago when I bought it. Funny, I don't remember my salary doubling over that time period.

:wow:

[HockeyMom]

7. sell your big 3/4 bedroom house

only to discover that a tiny 2 bedroom condo is going to cost almost as much as the house.

[Cobalt Violet]

9. These day not much else. I don't have much left after food and trans.

Rent. Wow.

[lovuian]

8. When Workers wages go down & no jobs its called

A Major recession or Depression!!!

Thanks to Republicans!!!

[ArchTeryx]

10. Been following this for a long time

Heh. I listen to this and wonder what my own future is going to be like...getting a virology PhD at the moment, but in a field with very uncertain employment prospects and with a HUGE student loan burden. I've paid my credit card every month for nearly 6 years, and I intend to keep it that way permanently. Financial disipline, combined with occasional help from friends to cover major things like car repairs and unexpected medical bills, have allowed me to do this.

It's what everyone that has the capability and smarts to do should. (I realize that alot of really poor folks are putting necessities on the credit card...better that then payday loans, but still very bad that it has to be done!). Credit cards are very useful, but they are tools of slavery, and potentially, everyone's downfall in this twisted economy.

-- ArchTeryx

[alarimer]

11. Health care costs probably play a role too

Many people have higher out of pocket expenses and premiums now too. I work for a state agency and we have had 3 pay raises in 12 years (each around 3% or $100 whichever was higher). In the meantime the average state worker's health care (deductibles, copays, premiums) costs them $900 more a year so in many cases they have actually lost money in recent years. This has not been my personal experience but if I had a health problem it would. Anyway, in budget negotiations they are talking about making the employees pay part of the premiums for insurance (the state currently pays the whole thing for just the employee- employee pays for dependent coverage). So we would lost another $50 a month or so depending on what the final decision. So my salary would actually be less if that happens. So this report is probably very close to the true picture. I bet a lot of people actually make less than they did last year at this time.

[reprobate]

13. Unpaid medical bills have been the biggest cause of bankruptcy.

Have been and still are.

Only in the United Corporate States of America.

Some day we'll join the rest of the industrial world. After the revolution.

[Coastie for Truth]

16. That is the dark little secret about "Bankruptcy Reform"

...it's the unpaid medical bills that push a family that is just "struggling" into bankruptcy.

MBNA and Citi may propagandize that it is bad management of the family budget --- but the coup de'grace is a layoff or a serious illness with concomitant unpaid medical bills.

[Lorien]

12. What they aren't talking about are the pay CUTS

for workers. I'm making 1/3 less than I was ten years ago for the same work because high unemployment has driven salaries down in the illustration/ animation markets. I expect the same is true for many others out there (especially the tech trades).

[Coastie for Truth]

15. Also most fields of engineering (Not just IT)

[Erika]

14. W is burying the American Dream

and the GOP populace isn't smart enough to realize it.

[Colorado Blue]

17. I read something recently that stated US salaries had gone

up since 1970, from about $11,000 (average) to $31,000 (average). My numbers are probably off a bit but they're close enough.

People use these to make folks think that American workers are doing really well.

Hah.

What they are NOT pointing out is the relative cost of basics, which have SOARED.

Example: my first full-time job, in 1971, paid $125.00/week - an entry-level clerical job. My apartment, a huge one-bedroom with space enough for my painting and an eat-in kitchen AND an enclosed back-porch AND a back and front yard AND enormous closets, etc etc etc., cost $90.00 month. That apartment today would cost about $1,000 month here in my city. Meanwhile, people are hiring receptionists for less than $10.00 hour and expecting college degrees.

It is AMAZING.

A person could support a family and build a house on one salary 30 years ago - for the average working person that is IMPOSSIBLE today.

If the loss of material wealth were accompanied by a gain in environmental well-being and education and support for art, science and philosophy, I would say, YES it is WORTH IT. But we are getting meaner, stupider, more bigoted and the Walmarts of the world are just sucking the life out of this nation. It is SO hard to be a creative person or an inventor or an entrepreneur -

At a MINIMUM we need universal health care. That would help enormously. And I would support grants for independent thinkers, advanced education, and start-up SMALL businesses - give Mr. Brooks' "heriditary meritocracy" a run for its money and revitalize our nation. I would support tax credits for people who cut down on fuel consumption and take other steps to make a dent in our pollution. Since Bush won't sign Kyoto, maybe we can get our home states to look at something like this.

And, I think it's time for people to start looking at UNIONS.

We can't wait for the Republicans to do ANYTHING that's good for us!

OK, end of rant:)

[GetTheRightVote]

18. We are going down and down badly, losing on wages

:kick:

[GetTheRightVote]

19. We are going down and down badly, losing on wages

:kick:

[struggle4progress]

20. kick