WP: Consumer Prices Increase, Outstrip Wages

[DeepModem Mom]

Consumer Prices Increase, Outstrip Wages
By Nell Henderson
Washington Post Staff Writer
Wednesday, August 17, 2005; Page D01


Consumer prices rose faster than most workers' wages last month as energy costs surged again, the Labor Department reported yesterday.

The department's consumer price index, a widely followed inflation gauge, rose 0.5 percent in July, the biggest monthly increase since April. That left overall consumer prices 3.2 percent higher last month than they were a year earlier, the report showed.

Wages have lagged by comparison, the department said in a separate report. After adjusting for inflation, average weekly earnings for private production and non-managerial employees fell last month by 0.2 percent. Those wages bought 0.5 percent less last month than they did in July 2004, after taking price increases into account. These workers make up 80 percent of the labor force.

The U.S. economy has grown at a healthy pace this year and even showed signs of gaining momentum in recent weeks, despite a 14.2 percent rise in energy prices over the year that ended in July. Consumers have been snapping up autos and bidding up house prices with gusto, while businesses have boosted their spending on equipment and software.

But many analysts remain concerned that the expansion may slow sharply if rising energy prices force consumers to cut their spending on other items and cause businesses to pull back on new investments. The rise in the July CPI primarily reflected a 3.8 percent increase in energy prices, including a 6.1 percent jump in gasoline prices....


http://www.washingtonpost.com/wp-dyn/content/article/2005/08/16/AR2005081600411.html?sub=AR

[blue neen]

1. It's amazing that they continue to say that the economy is growing

at a "healthy" pace. Consumers are NOT going to be snapping up any more autos now that the deep discounts are gone. The housing bubble is already starting to burst.

The only people making money are the oil companies...:grr:

[papau]

2. Amazing that the DU spin - as in facts - get reported a day after they

are reported - correctly - on DU

and a day after the MSM said nothing by way of analysis other than all is well in the world of Bush.

:-(

[bribri16]

3. But prices don't out strip "unearned income" only "suckers" who

have to work for wages are affected by this economy in a negative way. Workers rights have been swallowd up by the corporate cabal and only when and if workers (wage earners) unite to fight back will anything be done to make is so that everyone can earn a "living wage."

[hedgetrimmer]

4. I call this trickle-up economics...

This is not a new phenomenon, capitalism declares the fact that products need to outweigh salaries. Labor has been the dominating factor in producing goods going back to Egyptian times... To maintain an "upper-class" there must be a large pool of "lower-class" for the trickle-up effect to benefit a minority while the majority are victimized. If the "middle-class" gets to big the "upper-class" loses profits and the "lower-class" rises out of poverty giving a more even playing field. The uber-rich do not like this dynamic thus-by attempting to restore the order to their benefit. Profits gained elsewhere outweigh loses due to energy costs.

[cliss]

5. I think it's MUCH worse than they're willing to admit.

I think unemployment is higher than they've reported. I think prices are higher than they admit. People are hurting much more than these pencil-pushing "analysts" recognize.

I think we're going to see the REAL face of America this winter. I fully expect hundreds, if not thousands of Americans dead because they can't afford heating oil to keep warm. They're going to freeze to death because the price has gone up so much.

Just watch - there will be a cover on Time Magazine about it. Bastards.

[reprobate]

7. The real question is: At what point do Americans stand up, say 'No More'?

[Javaman]

10. When you have 10K people applying for 400 jobs at china-mart...

to me that doesn't sound like a robust economy. They don't track the people that are no longer on the unemployment rolls and haven't found a job. they just look at jobs created not ones lost and not replaced.

Yes, things are alot worse.

colossal failure*

[atreides1]

12. It probably is much worse.

When MSM reports on job numbers they fail to report what kind of jobs, full time, part time, with or without benefits.

Even if people do die this winter because they can't afford to heat their homes, the Bush lovers will just blame it on the dead for not
being prepared, or that it was part of God's plan!!!

It's too late for the fanatics, they will never admit the truth, and
will support Bush to the very end, our end.

[onehandle]

6. No shit.

Just found out that my Global 100,000+ employee company gets no raises this year.

This happened in 2002 and 2003 also.

[Eloriel]

8. Ah, so that's what they mean by "robust economy"

:sarcasm:

[tom_paine]

9. One thing is certain: It is twice as bad as Lying Soviet Bushevik numbers

suggest.

Perhaps more. Imperial Amerikan numbers are simply not believable anymore since the United States of America died.

[barb162]

11. I am surprised they didn't finesse the numbers even more

The fact they even came out and said prices rose... but I think they are very understated in any case

[DemsUnite]

13. No end to these Bush accomplishments !!

:(

[not fooled]

14. yeah, and isn't oil not included?

I have heard that oil (gas) prices are not factored in because of volatility--so the rise reflects secondary effects that the robber barons have caused by jacking up energy prices. IF gas were included directly, it would be much, much worse.

Oh well, *'s oil robber baron and Saudi buddies are happy. Call it what it is: a massive * tax on Amerika to extract and transfer $$ to his cronies.

Hope the morans who love * are suffering BIG-TIME.