OPP Newsletter

http://www.mybudget360.com/two-income-trap-and-inflation-two-household-incomes-us-inflation/

Inflation in the United States is largely seen as a built in part of our economy. People take it for granted as if this was simply the order of things. Yet our central banking system has inflated our debt based financial system and subsequently, the value of money has eroded.

AmericanCenturion

Even with the devalued dollar price gouging in gas, food(especially corn),paper products and meats are causing an underline inflation that has nothing to do with the dollar.
As we import our daily life staples from foreign lands and they manipulate their currency we once again lose as a consumer. The Obama Administration has allowed Global trading in currency other than the America dollar destroy any advantage in world markets .

weneedrubio

The most obvious indication that we have huge economic issues is the fact that, with the administration printing trillions of dollars in unheard of amounts, incomes are still stagnant, at least for anyone who is not already rich. The stock market is the only beneficiary of this and it will not hold up. Our federal gov't is completely out of control and needs to be disbanded, it is the only answer. The essential elements of our federal gov't will still be done by an interim gov't, we can not wait to do this much longer or the Alinskyites will take over in full.

MechDvtEngr Loc: The Soviet of Washington

Please, get real. The average family income in the U.S. in 2010 was something a bit more than $65,000/year (whereas the median family income was just less than $28,000/year). If we assume that there are 100,000,000 families in the U.S. (a sort-of-kind-of-almost-right number), then the average daily income for those families runs just about $22 billion. According to the Wall Street Journal (I looked it up about a year ago), the average daily "take" on the NYSE for 2010 works out to about $180 billion.

Gee, I wonder where the problem lies?

In 1966, touch labor was 50% of the wholesale price of the typical industrial product (ABET). In 1986, the cost of capital and management were 50% of the wholesale price of the typical industrial product. (I was on the team that wrote the automation section of the 1986 ABET report on industrial economics.) In 1966, Bill Allen (then President of Boeing) had a total compensation package equal to (approximately) 20X the average wage & benefit package workers on Boeing's assembly lines received. In 1986, T.A. Wilson (then CEO of Boeing) had a total compensation package equal to (approximately) 90X the average wage & benefit package workers on Boeing's assembly lines received -- and Boeing was only one of 32 companies "compensating" T.A. Wilson. And the "ratios" have only gotten worse since 1986.

Since Bill Allen retired from Boeing (and it was taken over by Wall Street interests), the "compensation package" provided by Boeing is only the plurality of Boeing's CEO income -- not the majority of their income.

Gee, I wonder where the problem lies?

weneedrubio

First, your numbers are way off but second, you are assuming that the money supply stays constant and we are all taking money from a defined amount which is not the case. The more anyone makes, the more everyone can make. Third, I agree that the wall st. types make obscene amounts of money that is out of line but the stagnant wage problem is just as much due to i*****l i*********n as anything else. The influx of people willing to work for less then minimum wage is destroying the low wage earner any pricing power. It is technology that causes the rest of the dislocation and stagnant wages.

weneedrubio

After reading your blurb again I don't know what your point is. Certainly CEO's are getting paid way to much but they are employees too.