Posted: October 20, 2014
Recently the national unemployment numbers dipped below 6% (New Mexico’s aren’t that good). As mentioned often, there is little room to celebrate because the percent of eligible workers who have dropped out of the work force because there is no work for them has also gone up to all time highs.
As the linked article below suggests, another reason not to celebrate is because wage growth in the U.S. has stagnated for decades. Your wages have the same purchasing power today as they did in 1973 and you know that things cost more now than they did in 1973.
Inflation is chronic and inflation eats away at wages of everyone, especially the middle class and poor.
When politicians talk about increasing the minimum wage you might say hooray, but they would have to increase the wage to twenty five dollars an hour to put you where you need to be in the battle of inflation.
The U.S. Federal Reserve is directly responsible for the inflation, and thus the wage stagnation.
When your candidate supports the Federal Reserve policies, like Tom Udall, you know that you are going to lose in the end. Inflation will slowly munch your buying power like a Pac Man.
Lower unemployment numbers as a measure of economic health is not effective. Lower unemployment numbers are only ONE measure of the countries financial health.
Talk about minimum wage would make sense of it actually helped.
Curbing the Fed would make the most sense now, but politicians don’t have the stomach for it.
Keep a bottle of Tums available because we are going to need two bottles.
Full article here >>>.