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Where do you get that information? Just look at Cal Pers one of the largest pensions, 40% is in fixed income.
Good point. We have a huge inflation coming our way regardless of what we do. Or something like it. If we lead with wages we should be able to do it with high employment. Fixed incomers would pay a price. The inflation tax. Printing $7trillion over 10 years is going to hurt someone, you can’t un-print the money that has been printed.
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Originally Posted by hilgi
Look at the 70's our highest inflationary period, the stock market was down from 1968-1982.
If you look at the Dow in gold the recovery in price in the 2000’s goes away. The Dow is being inflated, that is what is currently happening.
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Originally Posted by hilgi
If we are having inflation why have they not increased Social Security in 2 years?
They need too and probably because of the lack of revenue.
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Originally Posted by hilgi
Good point. Most pensions are fixed.
Currently 35% of our national income is from governments, either SS, govt Pensions, welfare etc. Those would all need to increase also causing more problems.
It is my understanding that The SS system is underfunded as it is. The pay outs are adjusted for inflation. (core inflation, not what the things you need to live are costing). Upping employment to 5% unemployment from the approximately 20~25% unemployment we currently are running would get us something like 1/4~1/3 more income. Upping the minimum wage would tend reduce the amount that working people would get in payouts. Upping employment would also radically reduce the unemployment pay outs. As of Nov. of 2010 they were paying out for something like a 17% unemployment rate.
Because the worlds monetary base did a 3.3333X over the last decade, with the printed money going through the US economy, and we need to up the minimum wage just to keep up with inflation.
and while you are doing this, are you going to up the SS benefits, our company retirement benefits and welfare benefits for those who are on government assistance? Of course not....
Because the worlds monetary base did a 3.3333X over the last decade, with the printed money going through the US economy, and we need to up the minimum wage just to keep up with inflation.
Here's a novel idea for you. Get 5X better, smarter, faster at your job and get a 5X pay increase.
and while you are doing this, are you going to up the SS benefits, our company retirement benefits and welfare benefits for those who are on government assistance? Of course not....
SS yes they are keyed to inflation. But inflation is coming no matter what we do.
Welfare benefits will be tend to be reduced as the number of working people that need assistance will go down. Company retirement will probably not be upped or at least not as far as it should.
We have a structural problem with the economy in that we have to many retirees come at once. There is no easy way to deal with this except to keep those that are still fit working longer.
The debt bubble that is popping is really hard on the economy. There is a good argument for a 20~25% unemployment rate. They are paying out as of last Nov. for an unemployment rate of over 17%.
Here's a novel idea for you. Get 5X better, smarter, faster at your job and get a 5X pay increase.
Tell that to 25% of the work force.
Really. That is about the number that is out of work. They are paying out for a 17% unemployment rate and that doesn't count the number of people that have fallen off the back end of the dole.
The point of raising the minimum wage (4X) is to fix the debt to income ratio of the nation. With this fixed we can get back to full employment.
Really. That is about the number that is out of work. They are paying out for a 17% unemployment rate and that doesn't count the number of people that have fallen off the back end of the dole.
The point of raising the minimum wage (4X) is to fix the debt to income ratio of the nation. With this fixed we can get back to full employment.
So why CAN'T we tell 25% of the workforce to get smarter and better? Your idea is doing nothing but rewarding those who are unwilling to do what it takes to make something of themselves.
So why CAN'T we tell 25% of the workforce to get smarter and better? Your idea is doing nothing but rewarding those who are unwilling to do what it takes to make something of themselves.
You can tell them to get smarter and better but it wont change the macro picture.
No it is to change the macro economic picture. Too much debt not enough income. Fix that and the economy can grow again. If you want more than minimum wage get off your butt and make something of yourself.
SS yes they are keyed to inflation. But inflation is coming no matter what we do.
Welfare benefits will be tend to be reduced as the number of working people that need assistance will go down. Company retirement will probably not be upped or at least not as far as it should.
We have a structural problem with the economy in that we have to many retirees come at once. There is no easy way to deal with this except to keep those that are still fit working longer.
The debt bubble that is popping is really hard on the economy. There is a good argument for a 20~25% unemployment rate. They are paying out as of last Nov. for an unemployment rate of over 17%.
of course SS is tied to inflation, but inflation has been so low the last few years (forget about hidden inflation) no raises have been seen and you are talking about a 4 times increase in min wage, not a little 1 or 2% increase. And how do you figure the number of people on government assistance will go down? Sorry, I think your theory is all wet or at least damp at the best.
You can tell them to get smarter and better but it wont change the macro picture.
No it is to change the macro economic picture. Too much debt not enough income. Fix that and the economy can grow again. If you want more than minimum wage get off your butt and make something of yourself.
Educating the individual is the key to fixing the economy. If you want more than minimum wage, work for it. If the 10% of people who are unemployed right now educated themselves and created jobs for themselves, the economy at a macro level would improve.
I agree that there is too much debt and not enough income. That problem, however, rests 100% on us individuals, NOT on the government. The economic problems in this country are largely due to laziness and a lack of motivation on the part of the individual.
of course SS is tied to inflation, but inflation has been so low the last few years (forget about hidden inflation) no raises have been seen and you are talking about a 4 times increase in min wage, not a little 1 or 2% increase.
We are going to see the kind of inflation I am talking about no matter what we do. If we do bump minimum wage we may be able to turn off the inflation.
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Originally Posted by nmnita
And how do you figure the number of people on government assistance will go down?
Easy. Food stamps if you get a part time minimum wage job you’ll be making enough to feed yourself. With a full time minimum wage job you’ll be able to keep yourself, a wife/husband and a kid above the poverty line. So no food stamps etc.
Quote:
Originally Posted by nmnita
Sorry, I think your theory is all wet or at least damp at the best.
Nita
Too each his own. The popping housing bubble is going to be a big drag on the economy for a very long time and we are way overcommitted on a number of things. Fixing the housing bubble requires a substantial inflation of wages in order to sustain the housing prices at the peak. And the housing market is way over built as it is and they are still building more. So if you are going to get the back inventory of houses down you need a new untapped market of home buyers, teenagers with jobs.
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