Gains in Wages Expected to Give Economy a Lift

[drewshin]

Friendly public service announcement:
Since 1970, ice cream consumption has increased by 250%. By the same token, the numbers of murders have also increased by a similar amount. Therefore, we are urging consumers out there to STOP EATING ICE CREAM!

seriously though, wage gains in and of themselves do not help the economy, its increased productivity that does. if you laid off 90% of a company, but gave the other 10% a really nice 20% raise, would that be of a net benefit to the economy?

if anything, the wage gains will contribute to possible future inflation which will negate them.

i do agree with the article though that consumer spending has been buoyed by the housing market.

it's charrison with one of his economy is doing better posts, been posting this since at least january. dont worry though, eventually he'll be right. as some have said with robert prechter, even a broken clock is right twice a day.

 

[rjain]

dmcowen: Do you realize the difference between 5% of 30,000 and 10% of 1200? You claim that they are equal?? Hint: healtcare premiums aren't as much as your salary, despite the rhetoric you seem to believe.

 

[Hayabusa Rider]

It seems to we are acting as blind men examing the elephant. One feels the trunk, and another the body. Clearly this isnt the same animal, is it?

Well, the animal is the state of the economy and more specifically the take home pay of American workers.

First in defense of employers, health care is effectively beyond their ability to control, from a cost standpoint. They do have choices, however when all your options go up 10 or 20 percent per year (let's say) for the same benefit, that's not much of a help. It's not their fault.

On the other hand, if employers give a wage increase, and rapidly rising insurance costs are passed along (and at some point they have to be), it is not the employees fault either.


In other words, it isnt the employer, and it isnt the employee. It is factors that are beyond the control of either, to any significant degree, and I believe that those pressures, if addressed directly may be a more constructive way to approach the problem.

 

[ZaneNBK]

Originally posted by: rjain
dmcowen: Do you realize the difference between 5% of 30,000 and 10% of 1200? You claim that they are equal?? Hint: healtcare premiums aren't as much as your salary, despite the rhetoric you seem to believe.

Glad someone finally stated this.

 

[CADsortaGUY]

Originally posted by: ZaneNBK

Originally posted by: rjain
dmcowen: Do you realize the difference between 5% of 30,000 and 10% of 1200? You claim that they are equal?? Hint: healtcare premiums aren't as much as your salary, despite the rhetoric you seem to believe.

Glad someone finally stated this.

Heh - I wonder if these same people will bitch when Dean or one of the other nutjobs raises their taxes by getting rid of Bush's tax cuts......uh I mean give them a mandatory paycut

So how bout it everybody. Vote for Dean! He'll give you a paycut.! WOOOT!!!

CkG

 

[charrison]

Originally posted by: drewshin
Friendly public service announcement:
Since 1970, ice cream consumption has increased by 250%. By the same token, the numbers of murders have also increased by a similar amount. Therefore, we are urging consumers out there to STOP EATING ICE CREAM!

seriously though, wage gains in and of themselves do not help the economy, its increased productivity that does. if you laid off 90% of a company, but gave the other 10% a really nice 20% raise, would that be of a net benefit to the economy?

if anything, the wage gains will contribute to possible future inflation which will negate them.

i do agree with the article though that consumer spending has been buoyed by the housing market.

it's charrison with one of his economy is doing better posts, been posting this since at least january. dont worry though, eventually he'll be right. as some have said with robert prechter, even a broken clock is right twice a day.

and the economy has been picking up over the past year. Only fool would try to argue that the economic numbers have not been getting better of the past year. But i must have forgot that good news is not allowed on this forum.


Now back to your regulary scheduled we are entering a depression thread, even though no economic data supports such an idea.

 

[KMurphy]

Originally posted by: dmcowen674

Originally posted by: freegeeks

Originally posted by: burnedout
I was shocked as sh!t last Thursday when the owner of the company awarded me a 7 percent pay increase.

congrats

Yes, congrats BO.

I have first hand knowledge from multiple people of an even more ominous situation.

A minimum of 10 to 30% increase in the monthly cost out of pocket for Health Insurance which clearly wiped out any pay raises which normally run anywhere from 3 to 7%.

You can clearly see that many if not most are actually enduring a pay CUT.

Very sad to see such a deceptive posting.

There's a flaw in your percentages. Pay raises are 3-7% of total wage. Health Insurance is only a fraction of the total wage, therefore 10-30% of a fraction of one's paycheck.

 

[KMurphy]

Originally posted by: dmcowen674

Originally posted by: freegeeks

Originally posted by: burnedout
I was shocked as sh!t last Thursday when the owner of the company awarded me a 7 percent pay increase.

congrats

Yes, congrats BO.

I have first hand knowledge from multiple people of an even more ominous situation.

A minimum of 10 to 30% increase in the monthly cost out of pocket for Health Insurance which clearly wiped out any pay raises which normally run anywhere from 3 to 7%.

You can clearly see that many if not most are actually enduring a pay CUT.

Very sad to see such a deceptive posting.

There's a flaw in your percentages. Pay raises are 3-7% of total wage. Health Insurance is only a fraction of the total wage, therefore 10-30% of a fraction of one's paycheck.

 

[KMurphy]

Originally posted by: dmcowen674

Originally posted by: freegeeks

Originally posted by: burnedout
I was shocked as sh!t last Thursday when the owner of the company awarded me a 7 percent pay increase.

congrats

Yes, congrats BO.

I have first hand knowledge from multiple people of an even more ominous situation.

A minimum of 10 to 30% increase in the monthly cost out of pocket for Health Insurance which clearly wiped out any pay raises which normally run anywhere from 3 to 7%.

You can clearly see that many if not most are actually enduring a pay CUT.

Very sad to see such a deceptive posting.

There's a flaw in your percentages. Pay raises are 3-7% of total wage. Health Insurance is only a fraction of the total wage, therefore 10-30% of a fraction of one's paycheck.

EDIT:
Sorry for the triple post, forum burped. Also, as an example; my health insurance went up $25 per month while my pay increased $500 per month.

 

[dmcowen674]

Originally posted by: KMurphy

Originally posted by: dmcowen674

Originally posted by: freegeeks

Originally posted by: burnedout
I was shocked as sh!t last Thursday when the owner of the company awarded me a 7 percent pay increase.

congrats

Yes, congrats BO.

I have first hand knowledge from multiple people of an even more ominous situation.

A minimum of 10 to 30% increase in the monthly cost out of pocket for Health Insurance which clearly wiped out any pay raises which normally run anywhere from 3 to 7%.

You can clearly see that many if not most are actually enduring a pay CUT.

Very sad to see such a deceptive posting.

There's a flaw in your percentages. Pay raises are 3-7% of total wage. Health Insurance is only a fraction of the total wage, therefore 10-30% of a fraction of one's paycheck.

EDIT:
Sorry for the triple post, forum burped. Also, as an example; my health insurance went up $25 per month while my pay increased $500 per month.

$500, Good for you. So are you saying that is the norm? I don't think so. and that $25 per month increase is a nice low figure compared to everyone else's increases I am hearing about and seeing first hand, more like $125 per month more increases.