MoneyBlogNetwork
Archives By Month
pfblogs.org Blogroll
Randomized Blogs
Site Sponsors
|
Your “Real” Raise
If you’ve been wondering why your average raises over the last few years haven’t helped you get ahead, it’s because, as the New York Times reports, real wages (after factoring in inflation) have actually declined 2% since 2003. Apparently, the last time this has been the situation was during Wolrd War II.
The drop has been especially notable, economists say, because productivity—the amount that an average worker produces in an hour and the basic wellspring of a nation’s living standards—has risen steadily over the same period.
So why are people working harder but getting paid less after inflation? It’s not because total compensation including salary and benefits beat inflation. In fact, it didn’t.
Over the last year, the value of employee benefits has risen only 3.4 percent, while inflation has exceeded 4 percent, according to the Labor Department… Average family income, adjusted for inflation, has continued to advance at a good clip… But these gains are a result mainly of increases at the top of the income spectrum that pull up the overall numbers. Even for workers at the 90th percentile of earners—making about $80,000 a year—inflation has outpaced their pay increases over the last three years, according to the Labor Department.
The above is interesting. The result is you’ll hear politicians talking about average income increasing, but that’s due to increases seen by high-income earners ulling the average higher. The average family will not see these average income increases.
Bookmark: del.icio.us | reddit | digg
By Flexo on Tuesday, August 29th, 2006 at 7:10 am
Related Entries on Consumerism Commentary
Leave a Comment
|
Welcome to Consumerism Commentary
Consumerism Commentary is a blog for every human who wishes to make the most of his or her life, from a financial perspective. Read more about Consumerism Commentary.
Contributors
Flexo, chief editor |
Sasha |
Smithee
Subscribe via E-mail
Recent Comments
nickel: I guess we’re at #2 on the list. on Maimonides’ 8 Levels of Charity
Kirk: Pretty solid portfolio and good choices. I would add a REIT fund, specifically the Vanguard REIT ETF, and a commodity ETF. Google Roger Gibson in the... on The Only 7 Investments You Need
nerb70: The whole taxact stuff, goes like this. If you had the fee’s taken out of your refund, expect a check in the mail.... on Didn’t Receive Your Economic Stimulus Payment Yet?
Jim: getting on soapbox… I can’t agree with Jonathan’s post #3 more. Charity should not be an after thought or a ‘whatever you can... on Maimonides’ 8 Levels of Charity
marie: My dad recieved his letter from the IRS that he would be recieving his check. He draws Disabled Social Security. He filed married... on 1,500 Economic Stimulus Payments Sent To Wrong Accounts
Best of Consumerism Commentary
Following Your Bliss: Good Advice or Bunk?
Unintended Consequences and Money
The New Emergency Fund: Five Components to an Emergency Plan
Paying off Debt: 6 Steps to Building a Better Snowball
10 Steps to Break the Credit Card Habit
Your Job as Your Identity: Not for Me, Thanks
5 Signs You are About to Lose Your Job
Economic Stimulus Tax Rebate Calculator
50 Tips to Help Establish Your Emergency Fund
79 Cards Offering 0% APR on Purchases, Balance Transfers, or Cash
Advances
Cash vs. Credit Card: Gas Stations Charging Different Prices
Recent Articles
If You Had Filing Fees Deducted From Your Tax Refund, You Will Receive a Paper Check Rebate
The Only 7 Investments You Need
1,500 Economic Stimulus Payments Sent To Wrong Accounts
Maimonides’ 8 Levels of Charity
Early Morning Blog Roundup: Suckers, Micropayments, and Obsession
Gas Stations’ Profits Hurting: Should Congress Intervene?
Privacy Policy for Consumerism Commentary
Chrysler’s $2.99 Gas Guarantee: A Bad Deal
Sallie Mae Reporting Incorrectly to Equifax, Dropping FICO Scores
Using Fame to Promote an Issue: A Reponsibility or Uncouth?
Popular on pfblogs.orgAuctioning Debt to the Highest Bidder? (Master Your Card) Everything comes out today! (The American Dollar) The best article ever (Well-Heeled And Everything) Success Stories: From $11 an Hour to $3,000,000 (Can I Get Rich On A Salary) Microsoft Wireless Mouse Giveaway (Christian Personal Finance) How Much Could You Have if Social Security Was YOUR Money? (AllFinancialMatters) 12 Ways To Be Financially Boring (Save and Conquer) The Monthly Grind: Sixteen Hardcore Tactics for Minimizing Your Monthly Bills (The Simple Dollar) Make Paying Down Debt a Priority (Being Frugal) On Lunches (This Writer's Wallet) Powered by pfblogs.org
Disclaimer
The authors of Consumerism Commentary are not professional financial advisers and no text within this website should be considered financial advice. Any individual who makes financial decisions based solely on the information
contained within does so at his or her own risk. Always consult a financial professional.
About Advertising
|
Subscribe
August 29th, 2006 at 8:32 am
This issue was raised in Bernanke’s Fed testimony last month when the Fed was criticised for using “real” numbers for most sectors of the economy but “nominal” numbers for employee compensation.
September 1st, 2006 at 6:21 am
September 1st, 2006 at 1:45 pm
September 12th, 2006 at 9:40 am
August 27th, 2007 at 10:50 am