S
G.T. wrote:
> <[email protected]> wrote in message
> news:[email protected]...
> >
> > Ted wrote:
> > >
> >
> > > inflation is staying low,
> >
> > At least we got that; unfortunately, the average American worker's pay
> > is not even staying up with that.
>
> I'm staying agnostic on this one since it crosses several administrations
> but I was shocked to see that both the middle and lower classes have lost
> ground to inflation since 1980 even with inflation so low.
No reason for being agnostic- the only time they gained ground since
1980 was during the only Democratic presidency- Bill Clinton's.
In fact, the only way to gain ground with low inflation is with
significant productivity gains that parallel job growth. The Fed takes
wage growth in general as a sign to start throttling back on an
economic expansion, which is pretty significant when you think about
it: when the results of an expansion start to reach middle class wage
earners is about the time the expansion stops. There have been a whole
series of economic policy changes starting with Reagan that have
contributed to the situation. Needless to say, the top 5% or so of the
population have made out just fabulously over the same period.
> <[email protected]> wrote in message
> news:[email protected]...
> >
> > Ted wrote:
> > >
> >
> > > inflation is staying low,
> >
> > At least we got that; unfortunately, the average American worker's pay
> > is not even staying up with that.
>
> I'm staying agnostic on this one since it crosses several administrations
> but I was shocked to see that both the middle and lower classes have lost
> ground to inflation since 1980 even with inflation so low.
No reason for being agnostic- the only time they gained ground since
1980 was during the only Democratic presidency- Bill Clinton's.
In fact, the only way to gain ground with low inflation is with
significant productivity gains that parallel job growth. The Fed takes
wage growth in general as a sign to start throttling back on an
economic expansion, which is pretty significant when you think about
it: when the results of an expansion start to reach middle class wage
earners is about the time the expansion stops. There have been a whole
series of economic policy changes starting with Reagan that have
contributed to the situation. Needless to say, the top 5% or so of the
population have made out just fabulously over the same period.