Taps Coogan – August 11th, 2021
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Thanks to the various stimulus billls and handouts forcing employers to compete with expanded unemployment benefits that often exceeded median wages, the Payroll Protection Program, and other stimulus spending, US wages surged in 2020, despite the recession and lockdowns.
It was all going so well… and then inflation showed up.
As the following chart reveals, via Patrick Hill, inflation has not only wiped out all median wage gains, real wages are actually shrinking faster than they were during the depths of the Global Financial Crisis.
In what will apparently come as news in Washington DC, printing trillions of dollars and handing it out to everybody doesn’t actually create wealth. It just creates inflation.
Government handouts only work on Wall Street.
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Wage growth has been at the very bottom and at the very top and almost none existent in the middle. Statistics seem to be more for propaganda much like the “inflation” numbers. As if only “now” inflation has appeared.
A house in a so so hood where I live is $1,000,000 and top of the line auto with all the bells and whistles is $100K+ and a #4 at Carl’s JR is $11
I’d hate to see what “real inflation” looked like.
p.s. my shop rate is less than it was in ’97
Out of curiosity, whatkind of shop are you running?
I do engineering work. Mold design specifically for rubber, silicone, plastic tooling. Self employed since ’86. I started with a pencil and a piece of paper, actual drafting on a board. A lost art for sure. then used autocad for 2D and now it’s full 3D on Creo software. in 2000 when china came in scene it was as if somebody turned a switch and the vast majority of the work vanished. It was was complete shit too. I used to tell customers that if you will accept this junk from me I can get it built for the china… Read more »
In a prior life I worked for a company setting up a contract manufacturing process for injection molded plastic parts and assembly and it was next to impossible to find a capable shop in the US that could meet the requirements etc… The whole donestic supply chain is hollowed out.