After four years in which pay failed to keep pace with price increases, wages for most American workers have begun rising significantly faster than inflation. How will this impact the economy?
Friday, December 08, 2006
Wages Start to Outpace Prices
After four years in which pay failed to keep pace with price increases, wages for most American workers have begun rising significantly faster than inflation. How will this impact the economy?
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9 comments:
This is all and well, but with the inflation that the "hamptons" produces will this be enough? This is great for towns in north dakota, but when you can't buy a peice of clothing in east hampton town for under 100 bucks we still have a major problem. This addition to the problem only fixed the surface of it.
HORRAY!
i think its great that wages are increasing, and is awesome for Mercedes Herrera. but if its just a spike wouldnt that not be bennificial at all? "the share of the nation’s economic output going to workers’ pay and benefits fell to its lowest level in 40 years" <- and isnt that really bad too? widening the gap and division of income to the masses maybe? im not very good at economics but it seems like wage increases are great but all the other things they mentioned werent very good. i didnt like that they kept compairing now to the 90s, because while its the most culturally related time period to where we are now its completely different ecomonically because how the extravagent advancements made during those years which we have not come close to recreating recently.
(I BLOGGED MR ROOD I BLOGGED...)
Well an increase in real wages is good for the economy and for consumers, but if it increases too fast it could be harmful. With a wage increase more money would be spend and invest in the economy. But if we have too big of an increase in the long run it could lead to inflation.
The recent wage increase is great because it means that more jobs are opening that need more workers, and that will pay higher. Although the economy is slowing down, I think that wage trend will continue increasing because more jobs means more production, and more production leads to higher supply which can push the economy towards higher and higher GDP outputs.
This will impact the economy because consumers will now have more purchasing power. This should increase demand and raise expenditure/consumption levels and spark the economy, at least at first. However, won't this increase in demand just raise the price level again?
this seems great that wages are keeping up with inflation though how long will it last? but for now it's good becaus eit allows for more purchasing ppower and allows for people to spend more of the money that they work for and allows for more money being put into the economy and an increase in GDP
That's good that the wages are keeping up with inflation. This gives the consumer an increase in purchasing power. This will lead to an increase in demand and will lead to and increase in production.
This is really super. Wages keeping up with inflation is always good and is obviously great for the economy and wow zach about like .001232 whatever percent of the U.S population lives in the hampton's and to make a comparison is ridiculous and your commenting privileges should be revoked WHATS UP
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