The bad news first…Inflation has outpaced wages for the first time in 14 years. (Let’s see…2005 minus 14 = 1991. The end of the first Bush era.) Last year, the Consumer Price Index rose 2.7% and the average hourly wage rose 2.5%.
Now the good news…The economy has expanded at 4%; better than the historical 3% average. Corporate profits have hit record highs as companies got more productivity out of workers while keeping wages low.
Back to the bad news…Workers are being hit with a weak job market, rising healthcare premiums and inflation.
Back to the good news…American consumers have continued to shop. Why? Because the consumer has seen housing increase in value by 9%, giving them increased “paper wealth”.
OK, I say it’s time for the “Trickle Down” economics to begin. You say that you don’t believe in it? Well, you better believe in it…it’s the only thing this administration has to offer.
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