Obama economy is 'amazing,' says hedge fund billionaire

[OverVolt]

For some weird reason, there seems to be a never ending war on the lower and middle classes. We'll start at a point where minimum wage is actually a reasonable wage, let's say $1/h. Inflationists then agree that minimum wage is too high, and we need to cause inflation so people at the bottom are paid less in real terms. The cost of food goes up 10%, but minimum wage is still $1. The cost of education goes up 10%, but minimum wage is still $1. The cost of rent goes up 10%, but minimum wage is still $1. Eventually people at the bottom get sick of this bullshit and they demand higher wages. Either they unionize or they petition the government to increase the minimum wage. Minimum wage gets increased to a reasonable wage again. Inflationists maintain that minimum wage is too high and it needs to be inflated away, so the process starts over again. People get yearly pay cuts due to inflation until they get pissed off, the people demand higher minimum wage, and it gets raised again.

So far we've established a trend where the free market almost never increases wages to keep up with inflation. If it did, we would never need to raise the minimum wage. What about all of the people who get paid more than minimum wage? There's no law protecting those people. There's no union protecting those people. Most people, myself included, get yearly pay cuts due to inflation. House prices doubled since 2000, so why isn't the average income around $100,000 per year? It's because wages never keep up with inflation.

http://www.theonion.com/article/nations-lower-class-at-least-grateful-it-not-part--28999

You'd like that then.

 

[realibrad]

Why are you saying wages never keep up with inflation? That seems to be pretty directly contradicted by the data.

Well, if the bottom wages were keeping up, why would there ever be a push to raise the minimum wage right?

I'm not saying that would be a good policy, but the argument for raising the minimum wage has mostly been about the price of life going up.

 

[Spungo]

If economic growth is outpacing inflation, and your cut of that growth isn't, that's not the fault of the inflation....

The reason the median income hasn't kept up with inflation for the past 40 years is because 300+ million people are idiots? There was a time when you could feed 5 kids and have a stay at home wife and take yearly vacations on 1 middle class income. The situation has declined so much that young people still live with their parents at age 30. Forget feeding 5 kids; they can't even feed themselves. Home ownership is at a 4 decade low. Do you think young people like having sex in their parents' basement? They would love to have a place of their own, but they can't afford one.

I posted this on the first page and I'll post it again.

That's what inflation does to wage earners. Your $15/h job still pays $15/h (national median income is around 30k per year), but rent goes up every year. Healthcare goes up every year. Education goes up every year.
Back in the 1970's, this was such a big problem that the government imposed price controls. Nobody would be demanding price controls if their wages were going up faster than their cost of living.

 

[OverVolt]

The reason the median income hasn't kept up with inflation for the past 40 years is because 300+ million people are idiots? There was a time when you could feed 5 kids and have a stay at home wife and take yearly vacations on 1 middle class income. The situation has declined so much that young people still live with their parents at age 30. Forget feeding 5 kids; they can't even feed themselves. Home ownership is at a 4 decade low. Do you think young people like having sex in their parents' basement? They would love to have a place of their own, but they can't afford one.

I posted this on the first page and I'll post it again.

That's what inflation does to wage earners. Your $15/h job still pays $15/h (national median income is around 30k per year), but rent goes up every year. Healthcare goes up every year. Education goes up every year.
Back in the 1970's, this was such a big problem that the government imposed price controls. Nobody would be demanding price controls if their wages were going up faster than their cost of living.

Yes yes, young people have uphill odds, how many different charts do you need, lol.

Alot of older people will never understand why everyone is delaying home, car, marriage, or whatever else people want to do with their lives, I don't really waste my time trying to explain it. Some young people bite the bullet before they are truly ready I think much to their long-term detriment but at the same time you can't wait forever.

 

[fskimospy]

Well, if the bottom wages were keeping up, why would there ever be a push to raise the minimum wage right?

I'm not saying that would be a good policy, but the argument for raising the minimum wage has mostly been about the price of life going up.

He said wages, not bottom wages though.