Cost of everything is up, pay stays the same. (visa, companies, interest)

[sherrenee]

I am becoming increasingly frustrated over the fact that the cost of everything is up (gas, electric, water, taxes, groceries, dinning out, day care, insurance, etc etc). However the American people are still being paid the same. The average cost of living raise is only 2%, that is not enought to amount to a hill of beans.

What is your take on the problem? And what do you think should be done about it?

[Rcm58]

I have worked places in the past where some people got a 2% raise but it was hardly standard, i've personally never gotten less than 10%. Honestly most companys alot so much for raises and its up to management how they want to disperce it, some people get nothing some get alot. I'd tell them to keep it.

[Prettygyrl777]

I'll be the contraversial one. I think if people can learn to live without trying to keep up with the jones's, their finances would be in better shape. We gripe and complain about our finances yet when Apple comes out with the latest toy- there are lines around the block waiting to purchase the rather 'unnecessary' necessity. Until I hear that people are foregoing food, hot water and are unable to care for their children, I will have a difficult time believing in many of the 'hardluck' stories that I hear.

[christina0001]

Ask for a raise! If I do my work well (and I do), then I expect better than a 2% annual increase.

[NewToCA]

Life has changed a lot the past 35 years since I began working. Job hopping is very acceptable, so leave your job for one which pays better.

[mbuszu]

Originally Posted by sherrenee

I am becoming increasingly frustrated over the fact that the cost of everything is up (gas, electric, water, taxes, groceries, dinning out, day care, insurance, etc etc). However the American people are still being paid the same. The average cost of living raise is only 2%, that is not enought to amount to a hill of beans.

What is your take on the problem? And what do you think should be done about it?

This is the most common story in the US right now. It's also the story that up until very recently, hardly anyone in the media nor the political arena talked about. Indeed, I would go so far as to state that this was covered up the past few years. Job growth was highlighted and nearly all income estimates were skewed with numbers from the very rich (who indeed have gotten richer faster than anyone else). The middle class in the US is struggling right now and flat incomes are a huge part of the problem.

The reasons are numerous but the one that seems to me to be most significant is that all large companies are now looking outside the US for low-cost employees to do almost every major job function (job functions that were traditionally middle class). Low-cost employees are being brought in via Visas or via outsourced operations.

What can you do about this? Well cutting back your expenses is an obvious thing to do. Also look for ways to stretch your income further (tax deductions you haven't taken advantage of in the past etc). Perhaps also realize you may need to work for yourself rather than for another company - come up with a business plan. Lastly, vote for someone like Ron Paul for president. To the best of my knowledge, none of the current Democratic candidates and none of the other Republican candidates have expressed interest in reducing outsourcing and helping the common US citizen. Everyone else is so focused on immediately assisting with the globalization of our economy that there is a lack of a plan for how to get the US involved in the global economy without incomes and job opportunities being negatively impacted by the outsourcing to low-cost countries. Someone like Ron Paul who seems to care about the US, the Constitution, and who thus seems to be a real patriot is what we need rather than more politicians who are paid off by big corporations to "globalize" everything.

[FarNorthDallas]

Job hop!!! It's the only way to get the big increases. Just don't leave your current job until you have secured the new one.

[NYLATINQT]

Corporate Greed On Steroids.

[sherrenee]

This was only intended to be a general discussion. I love what I do so I am not looking at switching jobs.
My point was it seems like all over the US cost have gone up dramatically on the basics, yet the pay has not increased to match those cost. I agree there are alot of things Americans can do with out but, food, water, electric medicine, medical care etc is not something anyone should have to do with out.

[midwestmom]

We have friends living in different parts of the country and they're all saying the same thing - rents especially seem to be getting higher and since that's one of the monthly necessities it leaves less income for food and medical (even w/insurance you still have co-pays and deductibles). These aren't extravagant people who live above their means. I think its definitely gotten harder to cover the basics of rent, utilities, and food on the same salary in the past few years. I know its been harder to find mid-priced rents in decent areas. There's a trend toward luxury rentals w/non-necessary amenities.
I'd rather pay less for rent than have the convenience of a gym/office center I'd seldom use.

Places with higher salaries tend to have higher living costs and lower salaries/lower costs so you might end up with the same amount of money after the basics are covered. The only suggestion I have is to live where you like other things like the climate, activities, etc. - I've known people who had the good fortune to have a great job/good income and if they aren't happy where they live they'll gladly take the pay cut. Those that I know who are struggling won't budge because they're happy where they live.
There seems to be less of a middle-ground