Jason Posted July 16, 2018 Share Posted July 16, 2018 Quote The 2.9 percent inflation for the 12-month period ending in June is a sign of a growing economy, but it's also a painful development for workers, whose tepid wage gains have failed to keep pace with the rising prices. http://www.chicagotribune.com/business/ct-biz-inflation-rates-20180713-story.html Anecdotally, I think the boost to my paycheck was 3.5%. But what's even better is if what I saw is correct the boost to our paychecks isn't really due to lower taxes, it's just due to lowered default withholdings. So if that's right then a bunch of people are gonna have a REALLY nasty shock in the spring when they see a much smaller refund, or even find themselves owing money. (Conveniently after the midterms, of course.) Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted July 16, 2018 Share Posted July 16, 2018 This will only further convince the Fed that their interest rate increases are the right course of action. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted July 16, 2018 Share Posted July 16, 2018 From ShadowStats: CPI-U if computed using the same measurements as 1990: CPI-U if computed using the same measurements as 1980: Quote Link to comment Share on other sites More sharing options...
CitizenVectron Posted July 16, 2018 Share Posted July 16, 2018 30 minutes ago, SFLUFAN said: From ShadowStats: CPI-U if computed using the same measurements as 1990: CPI-U if computed using the same measurements as 1980: From my understanding (which could be incorrect), aren't a lot of standard costs not included in inflation calculations, like fuel costs and rent? Both of those have been increasing at much higher rates over the past few decades than other costs, which could explain the gap between the modern measurements and the old ones. All I know is that the government always says that inflation is 2 or 3%, yet in reality most people's costs are going up at a much higher rate, year-to-year. Quote Link to comment Share on other sites More sharing options...
Snaynay1 Posted July 16, 2018 Share Posted July 16, 2018 21 hours ago, CitizenVectron said: From my understanding (which could be incorrect), aren't a lot of standard costs not included in inflation calculations, like fuel costs and rent? Both of those have been increasing at much higher rates over the past few decades than other costs, which could explain the gap between the modern measurements and the old ones. All I know is that the government always says that inflation is 2 or 3%, yet in reality most people's costs are going up at a much higher rate, year-to-year. I know fuel is included in the calculation, and I believe landlords are surveyed about rental rates, but I am not 100% sure on that one. 1 Quote Link to comment Share on other sites More sharing options...
marioandsonic Posted July 16, 2018 Share Posted July 16, 2018 It'll all trickle down soon! Quote Link to comment Share on other sites More sharing options...
Jason Posted July 16, 2018 Author Share Posted July 16, 2018 10 minutes ago, marioandsonic said: It'll all trickle down soon! Just get under the mattress, everyone! Quote Link to comment Share on other sites More sharing options...
SaysWho? Posted July 20, 2018 Share Posted July 20, 2018 Quote Wage growth has been lackluster since the Great Recession. Recently, unemployment fell to one of the lowest levels since 1969 and business leaders keep complaining they can't find enough workers. Typically, companies raise wages sharply in this kind of environment, but average hourly earnings are still stuck below 3 percent, a low level historically. Quote Link to comment Share on other sites More sharing options...
SaysWho? Posted July 20, 2018 Share Posted July 20, 2018 Wages aren’t growing when adjusted for inflation, new data finds Quote According to the Labor Department, median weekly earnings fell 0.6% in inflation-adjusted dollars in the second quarter, compared to the same time period of 2017. That’s now the third straight quarter where inflation has outpaced wage growth. Quote Link to comment Share on other sites More sharing options...
skillzdadirecta Posted July 20, 2018 Share Posted July 20, 2018 11 minutes ago, SaysWho? said: Wages aren’t growing when adjusted for inflation, new data finds Yeah that was always my understanding for the vast majority of jobs in this country. Quote Link to comment Share on other sites More sharing options...
SaysWho? Posted July 20, 2018 Share Posted July 20, 2018 1 minute ago, skillzdadirecta said: Yeah that was always my understanding for the vast majority of jobs in this country. It's amazing to me that earnings actually dropped. Not looking forward to that next recession. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted July 20, 2018 Share Posted July 20, 2018 Inflation-adjusted wagaes have been stagnant for nearly 40 years. Quote Link to comment Share on other sites More sharing options...
Signifyin(g)Monkey Posted July 20, 2018 Share Posted July 20, 2018 On 7/15/2018 at 9:25 PM, SFLUFAN said: This will only further convince the Fed that their interest rate increases are the right course of action. A few more hikes and the yield curve will invert. I smell recession a-comin’. If we’re lucky it’ll take until mid- 2020 or something. Quote Link to comment Share on other sites More sharing options...
SaysWho? Posted July 20, 2018 Share Posted July 20, 2018 6 minutes ago, SFLUFAN said: Inflation-adjusted wagaes have been stagnant for nearly 40 years. Do you have a good graph showing inflation-adjusted wages compared to raw wage gains? I've seen wages vs. productivity, but I'd love to get a good look at this one. Quote Link to comment Share on other sites More sharing options...
Jason Posted July 20, 2018 Author Share Posted July 20, 2018 2 hours ago, Signifyin(g)Monkey said: A few more hikes and the yield curve will invert. I smell recession a-comin’. If we’re lucky it’ll take until mid- 2020 or something. If it's gonna happen it should go to shit a month before the midterms. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted July 20, 2018 Share Posted July 20, 2018 2 hours ago, SaysWho? said: Do you have a good graph showing inflation-adjusted wages compared to raw wage gains? I've seen wages vs. productivity, but I'd love to get a good look at this one. This is data from 2010 to present: Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted July 20, 2018 Share Posted July 20, 2018 Some more long-term data: Quote Link to comment Share on other sites More sharing options...
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