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Old 07-19-2018, 06:26 PM
 
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Quote:
Originally Posted by TimAZ View Post
No, absolutely not. Lauded economist John Maynard Keynes once quipped that a modest amount of inflation in wages allows the common man a sense that he is "getting ahead". For some reason our Federal Reserve sees 2% inflation as a rational target rate. Why not 1% or 3%?

No banker or economist wants to see deflation because it can result in a death spiral of declining growth and wages as asset prices fall. While rapid inflation is unpleasant as prices and wages ratchet up, the limits of deflation are zero and death.
We will never get ahead.. So some get a %2 pay raise due to COL but hard to counter that when their is 5%+ inflation every year.

Why not %2 COL pay check and 1% CPI? so that way we are getting ahead? Current rate is design to keep the poor man working longer hours for less pay. (more taxes taken out)
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Old 07-19-2018, 10:02 PM
 
Location: Myrtle Creek, Oregon
11,068 posts, read 11,474,429 times
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Quote:
Originally Posted by hitpausebutton2 View Post
We will never get ahead.. So some get a %2 pay raise due to COL but hard to counter that when their is 5%+ inflation every year.

Why not %2 COL pay check and 1% CPI? so that way we are getting ahead? Current rate is design to keep the poor man working longer hours for less pay. (more taxes taken out)
Your results will vary widely depending on which metro area you are in. Chicago and NYC have done well in 2017, while San Francisco, Houston, and Seattle have lost significant ground. That's not the case for a 3 year timeline, but the rapid rise of inflation has certainly put the pinch on many households.

Quote:
Real Wages Dip Across Metros
On average, most metro areas experienced positive real wage growth over the three year period of our analysis. However, that trend took a significant downturn in 2017, with real wages — a worker’s remaining pay after subtracting the rate of inflation — falling in every metro we examined. That’s despite today’s 17-year-low unemployment rate and an economic expansion that’s the third longest on record since the 1850s.
https://www.glassdoor.com/research/a...ith-inflation/
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Old 07-20-2018, 02:58 AM
 
64,699 posts, read 66,206,532 times
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Quote:
Originally Posted by hitpausebutton2 View Post
We will never get ahead.. So some get a %2 pay raise due to COL but hard to counter that when their is 5%+ inflation every year.

Why not %2 COL pay check and 1% CPI? so that way we are getting ahead? Current rate is design to keep the poor man working longer hours for less pay. (more taxes taken out)
not only have i not seen 5% inflation but in the 3 years we are retired we have not even needed an inflation adjustment yet .some things went up and some things went down for us . no one sees the same inflation rate when it comes to our personal rate of inflation, which has little to do with the cpi. the cpi is only a price change index of things we may not buy often or even use as well as,geographic locations can all be different .

Last edited by mathjak107; 07-20-2018 at 03:42 AM..
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Old 07-20-2018, 03:38 AM
 
64,699 posts, read 66,206,532 times
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Quote:
Originally Posted by Larry Caldwell View Post
Your results will vary widely depending on which metro area you are in. Chicago and NYC have done well in 2017, while San Francisco, Houston, and Seattle have lost significant ground. That's not the case for a 3 year timeline, but the rapid rise of inflation has certainly put the pinch on many households.



https://www.glassdoor.com/research/a...ith-inflation/
many of us do not stay in the same job position or even job year after year for life . we tend to move up the ladder ,switch jobs or move to other job functions all of which can increase pay .

so these wage growth studies assume one stays a burger flipper or picker packer forever. not very accurate across the board from what goes on in real life where many of us increase pay by increasing our value to the company or other companies . many lower end jobs are being replaced by kiosks and robots making those jobs even less valuable to the market place .

the industry i left has seen crazy wage inflation as demand for skilled employees or sales people with a following has reached a level where the employees are in the drivers seat and employers are offering way more today because they have to .

to get a best of breed employee here can cost a whole lot more . i am retired and got a call right after from wesco , westinghouses electrical supply division to come in and talk and pretty much write my own pay check within some very high bounds .

Last edited by mathjak107; 07-20-2018 at 05:00 AM..
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Old 07-20-2018, 08:30 AM
 
1,241 posts, read 3,600,343 times
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Quote:
Originally Posted by PamelaIamela View Post
Due to the exponential returns to talent, intellect, and skill, in a world where labor's share of wealth is declining, monetary inflation is flowing into assets, either financial or hard (real estate, collectibles, etc.).

Those who own such assets are doing better than most and they are inflating the price of the things they buy, like more assets, insurance, or consumables like fancy dinners, good booze, personal services (accountants, lawyers, dentists, advisers, personal trainers, etc.)... so [/b]consumer price inflation is a very UNEVEN phenomenon.[/b]

Stay home and bake bread, service your own well-used vehicle, dress simply and you will not notice it too very much.

Take cool vacations, go to sporting events, out to dinner, or to live concerts, and it is quite noticeable.

Buy your kid a BMW SUV and drive it to your lake house for their BFD catered graduation party, and, yeah, there's a ton of inflation. But the good news is you can afford it!
You just described the lifestyle of 80% of the households here in the Eastern Massachusetts and even more so in the city of Boston.

One thing is child care plus property taxes make $100,000 the bare minimum for a family with no kids, double if you have 2 kids
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Old 07-20-2018, 08:32 AM
 
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I meant the Last 2 paragraphs. Of course this is a choice and most of the time that choice is also 10k at least just in outstanding credit card debt
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Old 07-20-2018, 10:32 AM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,042,195 times
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I've reduced going out to eat, just too expensive.. and if I go out it's to places offering better values. I used to go to this Turkish place after my hike on Sundays and eat a kebab sandwich... so, it was $7 a few years ago, then it became $8, then $9 and now suddenly it's $12 and then they expect a tip as well (at a fast food joint with self service? This whole tip thing is getting out of control but I digress), so $13 for a tiny sandwich and that's with no drinks or anything else? If I were to get some side and a drink it would be $20... and this is a fast food place for goodness sakes! No thanks! I just stopped going there and eat something when I get home.

The worst is Starbucks, what is the price of a mixed drink now... $4.75 or something like that? Beyond ridiculous. I remember when it was $3 and change just a few years ago.

If my wages kept up it would be one thing but outsourcing and globalization has severely depressed wages in my industry (I am in tech) and CA COL is going through the stratosphere. Rents are up almost 200% in a decade and change while wages have stagnated even in super hot industries like tech. Yeah, there are a gazillion tech jobs out there but what they don't tell you is that they are paying 70% of what they paid in 2000.

Even with a good six figure income it's a struggle.
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Old 07-20-2018, 12:11 PM
 
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Seriously a tip for carry out service?? Uh no, only for eat in or if drinking at a bar.

And $12 for a small sandwich alone is average for lunch in Manhattan or Boston not including drink, even small bottled water is 2.00
Don't forget sales and or meals tax. Sales tax in nyc is 8.875%, Massachusetts is 7%.
Both Metros are shockingly expensive but except for the bay area, we are in the best economy and job market in the nation and both states are much more worker friendly than say in Texas
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Old 07-20-2018, 12:16 PM
 
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Re : Starbucks, it's a place for the children of the 1 % and trust fund kids to congregate always on the newest MacBook pro. My MacBook pro is ancient from 2014 with the white not Grey apple but I do not depend on mommy and daddy to buy me the latest tech gear and iPhone like all of these obscenely wealthy kids who goto the colleges in Boston especially BU, BC stuff that will only be used for one year at most.
The Starbucks atmosphere is stuck up and pretentious. I won't spend money there on principle
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Old 07-20-2018, 12:23 PM
 
2,248 posts, read 1,391,923 times
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Quote:
Originally Posted by NickL28 View Post
Re : Starbucks, it's a place for the children of the 1 % and trust fund kids to congregate always on the newest MacBook pro. My MacBook pro is ancient from 2014 with the white not Grey apple but I do not depend on mommy and daddy to buy me the latest tech gear and iPhone like all of these obscenely wealthy kids who goto the colleges in Boston especially BU, BC stuff that will only be used for one year at most.
The Starbucks atmosphere is stuck up and pretentious. I won't spend money there on principle
Reverse snob | Define Reverse snob at Dictionary.com
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