Rate Hike On The Way

Bob I guess your moniker say's it all! :D

I'm not making comment on whether wage increases are enabling workers to keep ahead of rising prices (including taxes and bracket creep). Clearly folks are struggling.

I'm only concerned about if people are making more or less.

Remember employers face the same hurdles as individuals.

If they're able to pay more for labor along with everything else rising then I know there's money floating around.

Quote from thriftybob:

Gross Wage grew by $1200 last year. Payroll taxes took over $450 of that, including Fed W/H, FICA, Medicare and State W/H. The company took back $400 for increased healthcare premium, leaving $350 increase in the net pay deposit per year.

Just gas alone from $2.15 to $2.85 = $.70/gal increase just for the 9800 mi to/from work 245 days at 20 mpg will eat $343 of the the increase.

So, from a 3% overall increase, we ended up with 1% in the check, and nothing after including just the cost of gas only for work miles only. The company says they gave a decent increase, the government gets higher revenues, the insurance and oil companies get 1/3 and we have nothing left, BEFORE we start paying for increases in things like college tuition and food.

The only thing that saves us is we have no debt and I make money in the market.
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What about "other income". I think people who aren't making enough tend to be alot louder than those who are. Nobody really knows how wealthy this country is. They just know how poor it is.

Quote from thriftybob:

Gross Wage grew by $1200 last year. Payroll taxes took over $450 of that, including Fed W/H, FICA, Medicare and State W/H. The company took back $400 for increased healthcare premium, leaving $350 increase in the net pay deposit per year.

Just gas alone from $2.15 to $2.85 = $.70/gal increase just for the 9800 mi to/from work 245 days at 20 mpg will eat $343 of the the increase.

So, from a 3% overall increase, we ended up with 1% in the check, and nothing after including just the cost of gas only for work miles only. The company says they gave a decent increase, the government gets higher revenues, the insurance and oil companies get 1/3 and we have nothing left, BEFORE we start paying for increases in things like college tuition and food.

The only thing that saves us is we have no debt and I make money in the market.
More...
 
Those were just the numbers, Pabst. If I were "thrifty" or "not thrifty", they'd still be the numbers. I'll have to remember to whine at the wife because she didn't get 4% (an extra $200 after tax, I'd guess) like the national average. Every time I mention that she is underpaid I have to listen to a 1/2 hr story of who's been laid off or fired in the past month.

I'm not trying to say all is terrible. Its when they hand out the pink slips and 15% pay cuts like in 01/02 that things are terrible. But even if you are getting "average" increases, I seriously doubt your standard of living is anywhere near keeping up with the increases in cost of living. That was my point. Everyone seems to ignore the effects of increased taxes and deducts when calculating wage increases, INCLUDING the BLS and Fed.
 
Quote from Pa(b)st Prime:


Remember employers face the same hurdles as individuals.

If they're able to pay more for labor along with everything else rising then I know there's money floating around.
More...

This is pure nonsense, come on. You are not familiar with the job market. Contracting business is one thing, they do feel the pressures of inflation and have to do the best with what they can, which ends up being worse quality labor. $10/hour hires low-end unskilled labor, which cannot be trusted with many tasks. Mexicans won't even work for $5/hour anymore, unless they are mentally retarded.

Corporations are offshoring en masse, not caring about quality but the bottom line. This is the trend, if you question it, call up your bank rep who will be in India. There is little wage growth in these industries, since the labor pool is flooded with applicants, creating pressure on wages. Positions are being eliminated and replaced with lower paying ones, you can check the headlines for proof of this. Certain industries have experienced wage depression as a result of offshoring and cost-cutting, without any concern for the quality.

Government figures show wages which grew at a lower pace than the "official" inflation. I'm sorry, but there is very little positive in there, especially considering how statistically engineered both numbers are. If we apply even a little dose of reality, like taxes and healthcare premiums, the picture gets even more dim. Should I mention food prices?

You keep trying to find positives in this economy, it's like you are actually enjoying watching this country turn into a third world nation. I am not saying it's not interesting, but it's far from enjoyable. It's just sad.
 
In keeping with the original thread, PPI up 1%, core unchanged. PPI yoy 3.2%, while core yoy 1.7% which is down from the 1.8% yoy increase reported in Feb.

Yawners.
 
housing bottoming, commodities rising, economy growing, consumers consuming, inflation high by any measure - hike is on the way.
The only way we do not get it is that the longer rates are going to go up - from today's knee-jerk reaction of the bond market I would not be surprised if that happens...
 
I THINK THE REALITY OF AN INCREASE HAS NOT HIT THE MARKETS AT ALL IN ANY RESPECT.

THIS DATA IS JUST OVERWHELMINGLY INFLATIONARY AND NOT INDICATIVE OF A RATE CUTTING ENVIRONMENT.

I JUST CHECKED THE NON FARM HISTORY ON BLOOMBERG.

THERE ARE 43 CONSECUTIVE POSITIVE NON FARM PAYROLL FIGURES OVER THE LAST 3 TO 4 YEARS.

THE EURODOLLARS ARE PRICING IN RATE CUTS.

WAKE UP EVERYBODY.

THEY ARE NOT CUTTING RATES.

FED PLOSSER JUST SAID ON THE WIRES INFLATONARY COMMENTS.

I THINK A POSSIBLE CHANGE AT THE NEXT MEETING IS ON THE CARDS WITH REGARD TO BIAS OR EVEN A HIKE AT THAT MEETING.

NOW THAT WOULD THROW A SPANNER IN THE WORKS.
 
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